Why German Companies Find Success in Pittsburgh

Germany and Pittsburgh: A Rich Legacy, A Bright Future

German influence in Pittsburgh was a part of the city’s history – and will continue to play a vital role in shaping the region’s future. During the 19th and early 20th centuries, immigrants from Germany and other European countries flocked to Pittsburgh as skilled workers, contributing to region’s growth as an industrial powerhouse. Today, German Americans make up the largest European ancestral group in Pittsburgh.

The descendants of the first German immigrants no longer work in the heavy industries of the past century but have set up high-tech companies or run small businesses. It’s part of the larger story of how the Pittsburgh region is accelerating into the future, now populated by startups and industry leaders in robotics, aerospace, advanced manufacturing and more. And it’s not just German Americans, but companies from Germany that help make this possible by investing in Pittsburgh.

Tech Innovation, Business Culture and Talent: What Makes Pittsburgh a Perfect Match for European Firms?

What makes the Pittsburgh region such an attractive foreign investment destination for European companies in particular? Recent articles in both domestic and international outlets describe a few key factors. To begin, Pittsburgh offers an environment of close cooperation between companies, universities, local governments and regional economic development agencies. This approach resonates with the integrated ecosystems of Germany and other European countries.

Plus, the city’s size is just right: Pittsburgh is big enough to be a major player in U.S. market, but not as large as other metros like New York, Atlanta or Chicago. It’s easy to find the right people when you need to solve challenges or seize opportunities. In addition to the Pittsburgh Regional Alliance, German companies in Pittsburgh can tap into organizations like the German American Chamber of Commerce for support.

With the city of Pittsburgh at its heart, southwestern Pennsylvania also sits at the intersection of the East Coast and Midwest, offering a cultural synthesis of both regions as well as unparalleled market access. You can add to that a genuinely business-friendly environment, stemming from the Commonwealth of Pennsylvania, with less bureaucratic red tape for companies in Pittsburgh and across that state compared to other U.S. regions and the European environment.

Finally, Pittsburgh’s booming tech sector and world-class universities are pulling in outsiders who know there will be opportunities to make strong connections and access highly skilled talent. The city of Pittsburgh is home to approximately 80,000 students, and almost half of residents over the age of 25 have a bachelor’s degree or higher. Universities like Carnegie Mellon and Pitt are fueling a talent pipeline in robotics, AI, computer science, engineering and business. Pittsburgh’s cost of living is more affordable compared to many East and West Coast cities, making it easy for businesses to attract skilled workers and specialists.

Fresh Influx of Investment Shows Growing Presence for German Companies in Pennsylvania

All these factors contribute to why German firms are investing in the Pittsburgh region, from those with a long-standing presence to newcomers in the U.S. market. Covestro , headquartered in Leverkusen, is an example of the former. Already one of Pittsburgh’s largest manufacturing companies, Covestro recently announced a $40 million investment to upgrade its R&D operations at its nine-building headquarters off the Parkway West (I-376).

The move marks the biggest investment by Covestro in Pittsburgh since the company first landed in the region in 1958, originally as part of Bayer. And not only that: “It represents the single largest investment we’ve made in R&D in the United States, in North America, for decades,” notes Samir Hifri, Covestro LLC’s chairman and president. “It’s a commitment to the business; it’s a commitment to the region; it’s a commitment to Pittsburgh.”

Covestro, a leading provider of plastics for a variety of industries including automotive, construction and healthcare, currently employs 700 people in the Pittsburgh region. The $40 million R&D investment will support Covestro’s efforts as a global leader in sustainability and manufacturing circularity, enabling it to innovate solutions to eliminate waste at its factories. With an eye on the future, Covestro is leveraging its presence in Pittsburgh to achieve its goal of net-zero carbon emissions by 2035.

Meanwhile, BGS Beta-Gama Service is a newcomer to Pittsburgh. Based in Wiehl, Germany, BGS announced plans to build a 100,000-square-foot facility – its first in the U.S. – near the Pittsburgh International Airport, where it will sterilize medical devices, pharmaceutical packaging and biotech products using cutting-edge methods involving beta and gamma rays.

This radiation sterilization method is more sustainable and reliable than traditional sterilization techniques that use ethylene oxide gas. Moreover, the German company will use fully automated electron beam sterilization at its Pennsylvania plant – bringing this technology to the U.S. where it is not yet widely adopted.

Expected to open by mid-2025, the new facility is a smart move for BGS to gain a foothold in the USA. “Pittsburgh’s proximity to key markets in the Northeast, Midwest and South makes it an excellent location for our facility,” said Leonard Zuba, new general manager for BGS US LLC. “We are delighted that our initial expansion outside Germany will be in Pittsburgh.”

BGS and Covestro are just the tip of the iceberg when it comes to German companies investing in the Pittsburgh region to innovate, grow and bring new solutions to the U.S. market. And there’s room for more to join.

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Connect with the Pittsburgh Regional Alliance to learn more about opportunities for both international and U.S. companies in the Pittsburgh Region.

Note: As of October 2024, Covestro is in talks to be acquired by Abu Dhabi-based Adnoc Group.