Inside Pittsburgh Tech explores the products coming out of Pittsburgh that will change the world.
Having a market to sell to plus the knowledge of how to reach that market are two important ingredients for companies trying to get to the next level. But when it comes to selling to the military, the second part can be difficult.
Although the military represents a large market, it often speaks a jargon-laden language, has its decision-makers obscured behind bureaucracy and has a long and restrictive process for doing business.
Pittsburgh’s storied history
Pittsburgh’s history is full of government/business success stories, including Westinghouse, Arconic/Alcoa and U.S. Steel. But the newer crop of companies in the technology sector don’t have the same pedigrees, often making it hard to break in.
So the Pittsburgh Technology Council, working with the Air Force and Space Force, is making the connections needed.
In addition to putting together the Defense Robotics and Innovation Coalition, 36 Pittsburgh-based technology companies with a coordinated voice with defense-related economic development, the Technology Council holds occasional symposiums with government officials.
On May 2, Tech Council President Audrey Russo moderated the Defense Innovation Forum at Alloy 26 on the North Side with leaders from the Air Force and Space Force. They explained how Pittsburgh companies and investors can take advantage of programs called AFWERX and SpaceWERX that help the military tap into business expertise.
After all, the usual practices that tech companies use to find and nurture clients, such as LinkedIn, are not likely to work as well with defense agencies whose decision-makers rely on government channels.
Col. Elliott Leigh, director and chief commercialization officer for AFWERX and one of the forum panelists, said, “We’re living in a time of great consequence.”
Director of SpaceWERX Arthur Grijalva added that China “has more than doubled their space assets over the past few years” and is overtaking the U.S.
Investors can de-risk their investments when companies have a ready market, added Luke Walker, capital initiatives division chief at AFWERX, noting that 46% of the companies in what the Air Force calls “active contracts” don’t have venture capital funding.
Since 2019, AFWERX has invested in over 6,000 contracts worth over $4 billion. Since 2021, AFWERX has awarded more than 50 contracts to 22 Pittsburgh area companies worth more than $36 million.
Pockets of ingenuity
Managing bold ideas has always been a strength of the Air Force, according to Lt. Col. Jen Warren, Spark division chief of AFWERX. But as it started looking at the way it manages projects, the Air Force realized it could do a better job on the micro level.
So AFWERX developed Spark Cells, a decentralized network of Air Force bases around the world to execute locally generated ideas and projects.
Pittsburgh joins Austin, the Research Triangle Park (Raleigh/Durham) and Silicon Valley as one of these hubs. These collaborations can be a big win for the military and local businesses.
AFWERX will be having another event in Pittsburgh June 11-14.
Know of a product or service being developed in Pittsburgh or by a Pittsburgh-based company that is cool, is creating growth or will change the world? Let David know via email.