Tech Data Points: Waterloo vs. Pittsburgh

Whatever your priorities are, making the best choice starts with reliable data. That’s where our new Technology Data Book comes in. It’s where you can find clear, comparative data that highlights the strengths and challenges of different regions, helping you identify competitive advantages quickly and confidently.

Take Pittsburgh, for example. It’s known for its talent pool, strategic location and expertise in robotics and automation. But the Waterloo region holds its own in these areas – and more.

Our Technology Data Book covers 11 major North American tech ecosystems, comparing workforce, salaries, costs and quality of life. We’ve already stacked Waterloo against Silicon Valley. Now, it’s Pittsburgh’s turn.

Let’s see how they measure up:

Data Point #1: Tech workforce size and growth

Source: CBRE Scoring Tech Talent Report 2024

Pittsburgh has about 10,000 more tech workers than Waterloo, but Waterloo is part of the Toronto-Waterloo Corridor – home to over 314,100 tech workers with 44% growth over five years. Together, these regions create a tech powerhouse that easily outpaces Pittsburgh in workforce size.

While Pittsburgh’s tech workforce has shrunk by 20% over the past five years, Waterloo experienced one of the highest growth rates among 50 markets in CBRE’s 2024 Scoring Tech Talent report. With strong talent concentration and rapid growth, Waterloo is on track to surpass Pittsburgh’s tech workforce.

Data Point #2: Population growth

Source: Lightcast, 2023. Population growth from 2017-2022 at the CD/MSA level; CBRE Scoring Tech Talent Report 2024

Waterloo’s population growth far outpaces Pittsburgh’s, especially among young professionals. It leads all 50 ranked communities in growth for people in their 20s and 30s – key talent pipelines for growing businesses. Meanwhile, Pittsburgh saw a decline in its 20-something population, with a -4.3% decline in growth.

This surge in young, employable talent strengthens Waterloo’s workforce and adds to its appeal for companies looking to expand.

Data Point #3: Estimated one-year company costs

Source: CBRE Scoring Tech Talent Report 2024 – based on office space and wages for 500,000 people

Although Pittsburgh and Waterloo are both classified as midsized tech hubs, Waterloo is more affordable for companies looking to expand. Over the course of a year, it costs almost one million dollars less to set up shop in Waterloo vs. Pittsburgh.

Waterloo’s business affordability is due to our Canadian tax advantages and lower real estate and salary costs. Corporate income and payroll taxes are lower in Canada than in the United States, while tax credit programs like SR&ED can save companies up to 66.5% of R&D costs.

Data Point #4: Payroll taxes

Source: Salaries from Economic Research Institute, Q3 2024. Taxes from respective governments.

Payroll taxes in Pittsburgh are more than double compared to Waterloo for the exact same role. For a software engineer earning $113,302 in Pittsburgh, you’d pay $9,091.60 annually in payroll taxes. In Waterloo, the same role earning $82,515 would cost just $4,332.37.

Why the big difference? Pittsburgh’s payroll tax rates are higher (at 12.07% vs. Waterloo’s at 8.89%), and their salaries are about 37% higher, too. This double impact of higher taxes and wages leads to a staggering cost gap between the two locations.

Data Point #5: Corporate tax rates

Source: Statista, January 2023

Corporate tax refers to the combined federal and state/provincial tax rate for technology companies and it directly affects financial performance and business operations.

Waterloo has one of the lowest corporate tax rates among major tech hubs, tied with Toronto. In contrast, Pittsburgh has one of the highest, directly affecting your company’s bottom line. Lower corporate taxes mean more capital for growth and innovation.