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As G-20 leaders meet this week to assess the progress of the global recovery, they need look no further than their host city of Pittsburgh for, in the words of President Obama, "a bold example of how to create new jobs and industries while transitioning to a 21st century economy." Rather than turning to protectionism as the global economy shifted during the 20th century, Pittsburgh leveraged its human capital, invested in developing new technologies and embraced globalization. G-20 leaders can find inspiration in the city's success as they take stock of the current economic recovery and set an agenda to help restore global growth.
Pittsburgh and Alcoa, the company I lead, share a common story. Faced with a dramatically changing economy, both understood that globalization was part of the solution, not the problem. Pittsburgh diversified its industrial base -- developing new sectors such as health care, information technology and energy efficiency technologies. The city leveraged the quality of its workforce to attract new domestic and foreign investments. In the same way, Alcoa diversified its product base in the face of increased foreign competition and sent its skilled Alcoans from Pittsburgh to expand into international growth markets. Today, both Pittsburgh and Alcoa are successfully navigating the new global economy.
Globalization also enabled foreign companies to build on that powerful Pittsburgh spirit and strength. When I was CEO of a European company, we purchased three Pittsburgh companies -- two manufacturers of machinery to improve the efficiency of utilities and one industrial and municipal water treatment company. At the time, all three were focused only on the U.S. market, but they had the foresight to welcome a foreign investor and the vision to seize opportunities abroad. Today, thanks to the global presence of their new parent company, Pittsburgh entrepreneurs and engineers are leading thriving international businesses.
Alcoa's experience is similar. From the Alcoa Technology Center in Upper Burrell, we drive our entire global innovation and R&D program, inspiring a wide range of new products from aluminum buses in China to advanced aircraft parts in Los Angeles. The center's team even used their know-how to get the fountain at Point State Park running in time for Pittsburgh's moment on the world stage.
Good works begin at home, but can have a global impact. Projecting Pittsburgh community values to more than 40 countries around the world, the Alcoa Foundation manages grants and employee volunteer programs that address a wide variety of needs -- educational, environmental and social.
The G-20 Summit in Pittsburgh will be addressing one of the most pressing needs -- climate change -- and preparing for this December's global environmental conference in Copenhagen. The work done at our Alcoa Technology Center plays a major role in that important effort. We are finding ways to produce aluminum more efficiently, helping to reduce Alcoa's greenhouse gases emissions by 36 percent from 1990 levels despite the fact our production has doubled during that period.
At the center we are also discovering ways to help our customers become more energy efficient and environmentally responsive. For example, we're tapping aluminum's light weight and high strength to improve fuel efficiency and reduce emissions in cars, trucks and airplanes. And, since aluminum is infinitely recyclable, 73 percent of all aluminum ever produced is still in use today. In fact, it was 120 years ago, right here on Smallman Street in the Strip District, that Alcoa's founders launched the aluminum industry. Since then that miracle metal has played a major role in sustainable development around the world.
Because Pittsburgh's companies have been driving forces for globalization before the word was even coined, it's fitting that the city be the host for the G-20 summit at this critical time.
These are difficult times and the leaders coming to Pittsburgh face tough questions about the future of globalization. Protesters and protectionists are blaming globalization for everything from the economic crisis to climate change to regional conflicts.
We at Alcoa believe that the success of Pittsburgh's businesses, and their ability to continuously reinvent themselves to meet changing world markets, are living proof that globalization makes America more competitive and the world more sustainable.
Klaus Kleinfeld is the president and CEO of Alcoa Inc. (www.alcoa.com).
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