Mayor O’Connor, Let’s Travel to Japan and Show Our Appreciation

Mark Twain’s famous quote, “history doesn’t repeat itself, but it often rhymes,” can easily apply to our region today. Pittsburgh and Western Pennsylvania are in the midst of a renewed period of self-evaluation. While there are some who perceive our future with pessimism, I tend to believe the opposite. Our region is now uniquely positioned to grow and to attract significant new foreign investments, particularly from Japanese companies that are seeking to expand business opportunities in America.

In 1985, I made my first of numerous trips to Japan. Back then, Japan was just entering its exorbitant “Bubble Period,” and for the next seven years boasted the fastest-growing economy in the world. To sharp-eyed observers, Japan seemed destined to dominate the global economy (much as China is today). Although Japan’s Bubble Period abruptly reversed in the early 1990s, its positive impact on western Pennsylvania has continued.

It is worth noting the extensive impact of Japanese investment over the last several decades in our region. Mitsubishi Electric Power Products, Inc. (MEPPI), an affiliate of Mitsubishi Electric Corporation, is headquartered in Warrendale and has over 2,000 employees. Kuraray Co., Ltd., acquired Calgon Carbon Company in March 2018 and has since continued to expand its investment. The Elliott Company is owned by Japan’s Ebara Corporation and employs over 900 people in Jeannette and 2,000 worldwide. These are just a few of the many examples of Japanese investment boosting our regional economy.

What I believe sparked renewed optimism for our region is last year’s massive investment by Japan’s Nippon Steel into U.S. Steel. Nippon Steel recognized the unique position of our region and our invaluable steel-producing history. Nippon Steel likewise realized that as China becomes a more significant economic and military competitor to the United States, it made sense to double down on its overseas investments. Seizing an opportunity, Nippon Steel’s bid to acquire U.S. Steel was eventually successful. The result was a more than $16 billion investment in U.S. Steel and its regional operations, including massive plans for the Mon Valley revitalization. A show of confidence of that significance by a foreign investor is nothing short of life-changing.

There was a time when foreign corporations looking to invest in America narrowed their search to New York City (financial and banking), Silicon Valley (technology R&D), and Houston (energy). That is rapidly changing as investors broaden their search for U.S. regions attractive to their particular sectors. The good news is that our region has at least six factors working in its favor:

• Western Pennsylvania is blessed with strong financial institutions, technology-focused universities such as CMU and Pitt, and academic pods developing robotics and other advanced technologies.
• Energy-focused resources are key to so many newer industries, and our region has an abundance. For example, EQT recently announced its commitment to provide natural gas to power a 4.4 gigawatt natural gas facility in Homer City. Westinghouse in Cranberry is developing newer and safer ways to tap nuclear power that have never been seen before.
• Our UPMC and AHN hospital systems and medical communities are widely revered for their depth in basic and applied research techniques.
• Unlike much of the rest of the world, water is a bountiful resource here available to service the needs of AI and other forms of technology requiring hydropower for modern production and cooling processes.
• In terms of the ever-elusive affordability, housing and living costs trend lower than most of the rest of the country.
• Finally, and in my view most important, western Pennsylvania is a place that has always been open to diversification. Our history is built on immigrants from all over the world, including Japan, settling here successfully, starting businesses and raising families, while bringing their unique foods, cultures and traditions.
  
  Here is what I recommend we do now in order to encourage more Japanese investment to build upon the Nippon Steel acquisition of U.S. Steel. This June, after the primaries are over, a delegation of key representatives from western Pennsylvania should travel to Japan to meet with and express our gratitude to those Japanese companies that have long been invested here. At the same time, the delegation should speak with other Japanese companies to promote our region as a good place to do business. The delegation should include Pittsburgh’s Mayor Corey O’Connor, County Executive Sara Innamorato, hopefully Governor Josh Shapiro, business leaders, and representatives of our universities and cultural institutions. Over the last 25 years, I have personally participated in three such delegations to Japan, and all have successfully led to new investments.
  
  Thinking more long term, our leaders need to do more to foster a critical resource from within, and that is our workforce. The more western Pennsylvania grows in terms of manufacturing and technology investments, the more we will need a young, well-educated and well-trained labor pool. Pittsburgh’s leadership at all levels needs to do much more with high schools and post-secondary trade schools to develop workers and provide enough enticements for them to dedicate their careers to our region.
  
  It’s time for Pittsburgh to stop indulging in pessimism and look around at what it can offer. Pittsburgh can become a town of empty skyscrapers and closed mills, or it can once again direct its future course, as it has many times in the past. We just need to decide now which way we want to go.
  Dennis Unkovic is an international business attorney with the firm of Meyer Unkovic & Scott.