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Another historic company moving out

Anewpittsburgh

By Anewpittsburgh
in Pittsburgh

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Anewpittsburgh Unincorporated Area

Anewpittsburgh

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Mellon Financial announced today that it will be bought out/merged with Bank of New York and the new headquaters will be located in New York. It looks like Pittsburgh is losing another one of its most historic famous companies. The article talks about adding more jobs to the Pittsburgh region but who knows if that will come to fruition.

I am not to familar with what this will ultimately mean, at the very least its a let down for the Pittsburgh community. I would be interested to hear others thoughts.

Bank of New York buying Mellon

Monday, December 04, 2006

Pittsburgh Post-Gazette

http://www.postgazette.com/pg/06338/743443-100.stm

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Evergrey Hamlet

Evergrey

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and just weeks ago it was rumoured Mellon was interesting in purchasing a couple Boston companies... how quickly they go from consumer to consumed...

they make promises to Pittsburgh... and who knows how this will impact the region when it comes to jobs... but I have a negative feeling about this right now... the Fortune 500s keep dwindling

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tooluther Whistle-Stop

tooluther

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I don't think this is a huge blow, and it was an eventual inevitability. Better Mellon who will keep a major presence in the city and still have its name attached to the company, than PNC. PNC being bought would basically mean a liquidation of their Pittsburgh presence and jobs.

Also, at least Bank of America and Wachovia are not involved. I feel better about loosing a headquarters to New York, than Charlotte.

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tooluther Whistle-Stop

tooluther

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yes he did work for wachovia.

I think that losing PNC might be a larger blow to the city, but really is this that much less?

Also I wonder why you say it was inevitable that they would be bought out, doesnt Mellon have the ability to buy out, considering earlier this year they were looking into buying out boston firms.

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mjcatl2 Hamlet

mjcatl2

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A PNC loss would definitely be worse as most likely most headquarters jobs would be lost (as would the headquarters). Being that this isn't standard retail banking, I believe that certain operations will continue to exist in Pittsburgh and it makes sense to have those function in Pgh rather than NYC ($$$).

As for a net gain...? We'll see, it's certainly possible, but it really could go either way.

I am hoping that PNC secured more time, by digging deeper trenches into Maryland.

PNC aside, BofA, and Wachovia are big enough.

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facilities man Hamlet

facilities man

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Sounds like all the high level jobs will move to NYC and the back office jobs will be centered in PGH. This might be a net gain in jobs, but the quality of the jobs will be less.

I believe PGH was the third leading fortune 500 corporate headquarters in the country in the 1970's, with NYC and Chicago being way out front as numbers 1 and 2. Does anyone have recent statistics? I think NYC is still #1, but I believe Dallas and Houston are way up on the list now due to the favorable taxing situation in Texas.

Another area reflected in headquarters location is charitable donations. A company identifies with the community where their headquarters are, and where the decision makers live. One example..... Disney's main operations are in Orlando. Their headquarters are in Los Angeles. When it's time for donating to the respective communities Disney gave 1 million dollars to Orlando for an amphitheater and 50 million dollars to LA towards a new arts center.

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facilities man Hamlet

facilities man

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Top 20 Ranked Metropolitan Areas with Fortune 500 Headquarters in 2004:

1. New York-Northern New Jersey-Long Island, NY-NJ-PA- 71

2. Chicago-Naperville-Joliet, IL-IN-WI - 31

3. Houston-Baytown-Sugar Land, TX- 20

4. Los Angeles-Long Beach-Santa Ana, CA - 18

4. Minneapolis-St. Paul-Bloomington, MN-WI - 18

6. Dallas-Fort Worth-Arlington, TX - 17

7. Detroit-Warren-Livonia, MI - 16

8. Philadelphia-Camden-Wilmington, PA-NJ-DE - 15

8. Washington-Arlington-Alexandria, DC-VA-MD - 15

10. Atlanta-Sandy Springs-Marietta, GA - 14

10. San Jose-Sunnyvale-Santa Clara, CA - 14

12. Boston-Cambridge-Quincy, MA-NH - 13

12. San Francisco-Oakland-Fremont, CA - 13

14. Bridgeport-Stamford-Norwalk, CT - 14

15. Cincinnati-Middletown, OH-KY-IN - 10

15. Seattle-Tacoma-Bellevue, WA - 10

17. Charlotte-Gastonia-Concord, NC-SC - 8

17. Denver-Aurora, CO - 8

17. Milwaukee-Waukesha-West Allis, WI - 8

17. St. Louis, MO-IL - 8

What happened to PGH? Anyone have any idea how many fortune 500 corporate headquarters are left?

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Evergrey Hamlet

Evergrey

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After US Steel gets taken over by Russia... we'll be down to 4.

And after the initial wave of spin... the truth finally surfaces... Pittsburgh is sure to lose 600 jobs immediately. But Pittsburgh will "potentially" gain 1000-2000 jobs in the long term. I wonder if that is a "net gain" taking into account the 600 jobs being slashed immediately... probably not.

And you're right, facilities man... the quality of jobs will decline. This is nothing but bad news... another blow for a region that has been trying so hard to come back from the economic abyss of the 80s.

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Evergrey Hamlet

Evergrey

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the remaining 5 Fortune 500s are:

US Steel (rumoured to be taken over)

PPG (all it takes is a new Alain Belda... and they could be off to Manhattan like Alcoa)

Heinz (recent Nelson Peltz turmoil)

PNC (doing really well lately... but always at risk of succumbing to Charlotte)

Wesco

Pittsburgh's economic future is not in Fortune 500 Corporate HQ's.

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Anewpittsburgh Unincorporated Area

Anewpittsburgh

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I agree that having young start up companies might be the future for Pittsburgh, however we really seem to be struggling in this department. Entrepreneur magazine ranked Pittsburgh almost dead last out of 50 cities for starting a company. This is significant when we are hemmoraging fortune 5's. Another thing is that having high level jobs attracts high level talant, the type of people that are inclined to start a business. If we are not attracting this caliber of people we wont be starting that many new companies.

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TheGerbil Burg

TheGerbil

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I have heard of other rankings putting us pretty high as a place to start a business. Makes me wonder what the truth is.

I sure do wish we could get some real business tax reform in this state. That would certainly help a lot.

By the way, wasn't GNC talking about going public? I wonder if they'd make the Fortune 500. And on that note, are there any other local companies that could potentially make the list if they went public?

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Evergrey Hamlet

Evergrey

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I agree that having young start up companies might be the future for Pittsburgh, however we really seem to be struggling in this department. Entrepreneur magazine ranked Pittsburgh almost dead last out of 50 cities for starting a company. This is significant when we are hemmoraging fortune 5's. Another thing is that having high level jobs attracts high level talant, the type of people that are inclined to start a business. If we are not attracting this caliber of people we wont be starting that many new companies.
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mjcatl2 Hamlet

mjcatl2

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And again, while this is very small compared to the old big (if not huge) corporate giants, CMU/Pitt is drawing talent and jobs... how many peer cities have a Bill Gates center opening up, which will build on the collective Microsoft-Intel-Google etc projects locally.

Small, yes, but very significant.

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Anewpittsburgh Unincorporated Area

Anewpittsburgh

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That is true, but it is a shame that most of these students come here to study and them must leave, although the tide is changing a bit there with the emergence of a small tech cluster.

The one area that Pittsburgh truely lacks in is entry level work for college grads without a technical or advanced degree. It is not very easy for a talanted intelligent individual to just find a a high quality job here. Lets just say you are coming out of a top tier liberal arts college with a degree in history... not too many jobs to be had. Anyway just some food for thought.

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