The Collapse of Pittsburgh Steel

Welcome to Pittsburgh, Pennsylvania. The Steel City. The City of Champions. The City of Bridges. Whatever one may call this Western Pennsylvanian town, it is full of diverse cultures and a rich history all the same.

When one thinks of Pittsburgh, they may think of its infamous nickname, the Steel City. Pittsburgh was once the mecca of the country’s steel production. It was a powerhouse creating hundreds of thousands of jobs, booming economic growth, and an even bigger population. Despite the glory and prosperity of the Pittsburgh “Golden Age,” it remained true that all good things must come to an end. What goes up must come down, and down it did. The once glorious steel industry that carried the city of bridges to fame crashed and burned. The steel that Pittsburgh depended heavily on all but disappeared.

Present day, however, we see a Pittsburgh that is vastly different from its past-industrial-era self. Pittsburgh is again thriving, but in a very different way. Instead of a mecca of steel the city is one of technology, finance, and healthcare. Steel mine sites turned corporate office buildings. Steel workers turned bankers, students, educators, and doctors. Environmental degradation turned environmental revival. The collapse of Pittsburgh steel was yes, detrimental, but looking back, it was a positive occurrence for the city and set it up for present day success. But before we can tell the story of the rise, peak, and fall of Pittsburgh steel and the city’s redemption, one must first learn more about the history of and the city itself.

If one fast forwards the clock to today, Pittsburgh is a city of technology, culture, education, and a newly found youth. Universities, company headquarters, and museums dominated the landscape. But before discussing the city today, we must take a look into the past.

The United States began producing steel in the 19th century. The production was introduced to Pittsburgh in 1875, when Andrew Carnegie opened Edgar Thomson Works. From there the company joined the U.S. Steel Corporation, and Pittsburgh’s production boomed. Between 1870 and 1910 (Pittsburgh’s (“Golden Years”), the city’s population went from 80,000 to 530,000, and Allegheny County’s population reached 1,000,000. In 1910 Pittsburgh was manufacturing 60% of America’s steel. The U.S. Steel Corporation, which included Carnegie, was once the largest private company on the entire planet. During World War II, the city’s production reached 95 million tons.

Jump forward to the 1950s and Pittsburgh produces half of the nation’s steel. The population has also reached its highest ever at 676,000.

See the highest peak on the graph to the right is at 1950.

Despite the success of steel that built Pittsburgh, all good things must come to an end, and to an end it did. From 1974 to 1986, US steel was thrust into a “deep depression.”.

The reason for this crash can be attributed to the United States economic downturn of the 1970s and 1980s. The United States faced two recessions very close together: one from 1973-1975 and one in 1980.

In 1973, there was a conflict between Israel versus Egypt and Syria. Israel was invaded by the two countries in an attempt to regain territory for Israel. The Nixon administration requested $2.2 billion from Congress in military aid for their Israeli allies. In response, Arab members of The Organization of Petroleum Exporting Countries (OPEC) placed an embargo on the United States. Between October 1973 and March 1974, prices of an oil barrel went from $2.90 to $11.65. The US economy shot into recession.

See the large dip in raw steel production between the years 1980-1982. This is an incredibly significant change and was an indication of an economy in turmoil.

The US steel industry followed. The cities which most heavily relied on steel production for an economic means, such as Pittsburgh, were hit the hardest. Towards the end of the 1980s, 75% of Pittsburgh’s steel-making capacity was “shuttered.” 150,000 Pittsburgh steel mill workers were laid off by the early 1980s. And between 1980 and 1983, another 95,000 manufacturing jobs were lost. By 1990, half of the population of the Pittsburgh region disappeared. 

The major source of jobs and money, but also livelihoods, was gone. The Steel City was in need of a new name.

Pittsburgh had lost its identity, and along with it, its economy. It had to restructure and renew its economy completely. A manufacturing hub had to turn into something else. Pittsburgh began its revitalization soon after the collapse of its steel industry. The non-manufacturing jobs in 1976 Pittsburgh were 800,000. In 1996 they were 1.1 million. In 1970 Pittsburgh had 6.2% of its workforce in healthcare. In 1990 it doubled to almost 12%. In fact, from 1970 to 1990, the number of people working in Pittsburgh had actually increased by over 5,000.

Today, Pittsburgh looks very different. It is a hub of technology, healthcare, and finance. It boasts prestigious universities, luscious parks and green spaces, and world class museums. 

Although it is smaller today (68th biggest US city) than it once was, the steep population decline has leveled out.

The city is getting younger. The average age is 33 and 25-44 year olds make up a third of the workforce. 

A workforce that was primarily centered around steel and other industrial jobs has shifted.

Scroll to see the growth of Pittsburgh-headquartered companies.

There are many renowned employers headquartered in Pittsburgh, including 8 fortune-500 companies. Some well-known ones are PNC Bank, PPG, and Dick’s Sporting Goods. Healthcare, finance, education, and information services account for 37.5% of all employment.  

Healthcare is a major source of employment. The University of Pittsburgh Medical Center (UPMC) brings in $7 billion in revenues and employs over 50,000 people. 

Scroll to see the growth of Allegheny County hospitals.

Not only that, but the workforce has grown more progressive and feminine. Over 50% of women in Allegheny County are employed. Allegheny County also records a lower unemployment than the national average, at 3.2%.

To fuel the major corporations located in it, Pittsburgh and the surrounding Allegheny County is home to dozens of colleges, universities, trade schools, and academies. The most famous of which are the University of Pittsburgh, Carnegie Mellon, and Duquesne University. Just these three schools educate 56,000 students. Today, 48% of Allegheny citizens (25 and older) have earned a higher degree.

Scroll through to see the growth of post-secondary education in and around Pittsburgh.

The green spaces and parks within the city have grown. Industrial spaces and mills reformed to parks.

Scroll through to see the growth of parks and green spaces around Pittsburgh.

The air quality of the metropolitan area is also recovering. While far from perfect, Pittsburgh is no longer known as The Smoky City.

The Steel City has been through a lot. It has lost and regained its identity. It still has a remembrance of its past steel industries. It pays homage to the history and workers that built the city and economy through teams like the NFL’s Pittsburgh Steelers and the Duquesne and Monongahela inclines.

Yes, Pittsburgh had to shed its old way of life, but in doing so it has set itself up for success and survival in a new and ever changing economy and world.

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