Early foundation ''. During the mid-18th century, the economy of the Pittsburgh region was focused on agriculture and trade. After the
American Revolutionary War, the government placed a tax on whiskey in order to pay off national debt. In 1794, the
Whiskey Rebellion occurred in Pittsburgh and was the first challenge to the government.“The fledgling Federal government had decided to levy its first tax against
whiskey, but the farmers argued they didn't have cash to pay taxes on bartered goods, and marched in protest. Washington had to send troops to squelch the protest and enforce the tax laws.” Along with the natural resources of the area, Pittsburgh was located at the intersection of the
Monongahela,
Ohio, and
Allegheny Rivers, that is, along the major trade routes of the United States, thus making Pittsburgh "one of the world's leading industrial powerhouses". “The first and largest industry emerging in the 1800s was boat building—both flatboats to transport waves of pioneers and goods downriver, and keelboats, which a strong crew could propel upstream as well.” The second biggest industry in the region was
glass production. The first glass factory was built in 1795 by James O'Hara and
Isaac Craig. Andrew Carnegie was also known as a
philanthropist to the region. “In 1889 he wrote "
The Gospel of Wealth", in which he asserted that all personal wealth beyond that required to supply the needs of one's family should be regarded as a trust fund to be administered for the benefit of the community”. Subsequently, the
Carnegie Library, which is free to the public, opened in Pittsburgh in 1890 and is still open presently. Overall, Carnegie donated over $350 million for the establishment of organizations that benefit the public. Railroad networks reached the Pittsburgh area in the mid-19th century. The
Ohio and Pennsylvania Railroad opened in 1851, which allowed passengers to travel through Allegheny and
New Brighton while the
Pennsylvania Railroad established "Pittsburgh service" as close as
Turtle Creek from their Philadelphia hub that same year. A year later, in 1852, the Pennsylvania Railroad was completed to
Downtown Pittsburgh. In 1856, the
Allegheny Valley Railroad was built. Andrew Carnegie was one of the first to capitalize on the railways; in 1865 he founded the
Pittsburgh Locomotive and Car Works which would be an industry leader from the city until 1919. In 1892, the economy of Pittsburgh faced the
Homestead Strike between the Amalgamated Association of Iron and Steel Workers and the
Carnegie Steel Company. After the workers' previous wage contract expired in 1892, and a new negotiation was not reached, a violent conflict ensued leaving several dead and wounded. Ultimately, The Carnegie Steel company won and had avoided union formation in Pittsburgh.
Emergence of "Big Steel" After Carnegie Steel was reorganized as
U.S. Steel in 1901, it and
J&L Steel dominated the local economy. Several secondary players contributed to the capacity of the metro area such as
Cyclops Steel in
Bridgeville, Pennsylvania from 1908 until 1987,
Mesta Machinery in
West Homestead, Pennsylvania from 1898 until 1983,
Dravo Corporation at
Neville Island, Pennsylvania until 1984,
National Steel Corporation until 1992,
Wean United as an independent until 1993 (still maintaining US headquarters in the city),
Harbison Walker Refractories as an independent until 1967 (while still maintaining US headquarters in the city) and the still operational
Allegheny Technologies and
Ampco Pittsburgh.
Bethlehem Steel,
Republic Steel and
LTV Steel also had large local operations. Other major mills of the area included: •
McKeesport Tube Works 1872–1987 •
Edgar Thomson Steel Works 1873–present •
Hays Army Ammunition Plant 1942 – June 1971 •
Clairton Steel Works April 21, 1903–1984 •
Duquesne Steel Works 1886 – October 1, 1984, employed as many as 9,000 persons in the 1940s. •
Homestead Steel Works 1881 – May 24, 1986 •
Carrie Furnace 1884–1982 • Saxonburg Mill -1987 •
McKees Rocks, Pennsylvania Wheel and Axel plant (Lockhart Iron and Steel and Pressed Steel Car Corp.) Pressed Steel had as many as 12,000 employees. • Donora US Steel Wire mill -1966 4,500 employees • Monessen American Chain & Cable -1972 1,000 employees. • Alcoa's Logan Ferry Powder Works 1918–? • Alcoa's Coal Mine (north of New Kensington) 1918–1923 Throughout this period, Pittsburgh would see a spike in population and a slow decline at the end of the century. At one point Pittsburgh was the eighth-largest city in America. In 1901, The Amalgamated Association of Iron, Steel and Tin Workers organized a general
strike against the
U.S. Steel Corporation subsidiaries, the first strike since 1892. A 1903
Pittsburgh Press front page highlighted the city's being a focus point for three different railroads. In 1911 the city was being referred to as the "Stogie capital of the nation" with several high quality
cigar manufacturers located in the region. Pittsburgh produced around one third of the national output of steel by the 1920s. During this period Pittsburgh was home to the world's largest tube and pipe mill, structural steel plant, rail mill, wire manufacturing plant, bridge and construction fabricating plant. "Boat building and metal industries were later the economic base of the region. When
coke from
coal began to replace
charcoal from wood in iron and steel making Pittsburgh grew up as the heart of the industry. A plentiful supply of bituminous coal underlies the Pittsburgh area." Around forty percent of the nation's coal was obtained from within 100 miles of Pittsburgh. By the 1950s industrial leaders worked with regional government leaders to foster and retain more local industry; organizations such as the
RIDC were formed to further this goal. However, in the early to mid-1980s
the steel industry collapsed, leaving half of the nation's steelworkers unemployed. "The number of steel workers in the Pittsburgh area dropped from 90,000 in 1980 to 44,000 in just four years". Motor Coils manufacturing company of suburban Forest Hills and Braddock has been a leading supplier to American railroads since 1957. Pittsburgh was a major center for advertising and public relations firms in the 20th century such as
Ketchum and
Burson-Marsteller. Retail chains such as
G. C. Murphy,
Thrift Drug, Thorofare,
Fisher's Big Wheel and
Giant Eagle were founded in the early part of the 20th century with
Phar-Mor dominating local retail from the 1980s to the 2000s. Thorofare ceased operations in 1982 and Thrift Drug was bought out by
Eckerd in 1996. Local stores of
Loblaws closed in 1958,
Kroger in 1966 (although it retains stores in nearby West Virginia counties) and
A&P in 1972.
IGA closed its area stores in the early 2000s.
Transition into the present economy Within the transitional years between 1970 and 1990, Pittsburgh's Standard Metropolitan Statistical Area saw shifts in its main employers, which were the manufacturing sector. In 1970, one out of every three jobs was in the manufacturing sector. By 1980 this had slipped to one in four. In 1980, the average production worker in manufacturing was making $360.89 weekly, which was almost $70 more than the state and national average. During this period the largest group of occupational employment was blue collar. This group in 1980 accounted for almost 68 percent of the jobs market. In the 1980s, a decline in the manufacturing industry was expected. The accepted trend was that Pittsburgh would embrace “industrial robots”. Since 1955 Pittsburgh has seen a steady decline in manufacturing employment. In 1955 Pittsburgh had a population of 41.8 percent in the manufactory business. In 1980 that number had slipped to almost 25.3 percent.
Allegheny County is the center for health care and higher education employment. Higher education and health care were the biggest creators of high-wage jobs in the Pittsburgh region between 1999 and 2005. Education accounts for almost 80% of high-wage jobs in Allegheny County. The Pittsburgh area has seen growth in other sectors as well. Professional services, finance and wholesale trade were among the growing sectors. However, much of this growth was outside the borders of Allegheny County. This was detrimental to the county of Allegheny; however, the growth in the outer nine counties helped to stabilize the loss of employment. With big events happening in Pittsburgh throughout the late 2000s, the tourism industry has flourished. The industry has created over 11,000 new jobs in the area, some 6,000 of them within Allegheny County. Pittsburgh has long been a major finance and banking center. == Present situation ==