Pittsburgh, pennsylvania, USA
Client The Andy Warhol Museum
Project The Factory Creative Arts Centre -Economic Impact Assessment
Year 2024
CHALLENGE
The Andy Warhol Museum is one of Pittsburgh’s most iconic cultural institutions. As part of its ambitious vision to expand its impact, the museum launched The Pop District, a long-term initiative to transform Pittsburgh’s North Shore into a creative hub for culture, community, and commerce. Central to this plan is The Factory Creative Arts Center — a new venue dedicated to hosting music, live performance, and creative programming.
Inspired by Warhol’s original Factory studio in New York, this new space is designed to boost the local creative economy, generate sustainable revenue for the museum, and position Pittsburgh as a national destination for arts and culture.
To evaluate its projected economic and social value, the Andy Warhol Museum commissioned Sound Diplomacy to conduct a comprehensive economic impact assessment.
strategy
Sound Diplomacy assessed the projected economic and fiscal contribution of The Factory Creative Arts Center using a regionally tailored input–output (I–O) model. This included direct, indirect, and induced impacts across three areas:
Operational activity of the venue (e.g. staffing, artist fees, services)
Non-local attendee spending across accommodation, food, transport, retail, and recreation
Construction activity, including supplier contracts, labour, and local investment
We also evaluated industry benchmarks, attendance forecasts, and spending patterns to estimate the venue’s contribution to Pittsburgh’s economy once fully operational.
Findings & outcomes
Economic Growth:
The Factory is estimated to generate $17.6 million in annual economic output in Pittsburgh.
It is projected to contribute $10.3 million in Gross Value Added (GVA) to the regional economy each year.
The venue will support 126 jobs annually, including full-time, part-time, and seasonal employment.
$6.2 million in labour income is expected to be generated annually.
Tax revenues from operations are predicted to total $2.5 million per year across county, state and federal levels.
Construction Impact:
Construction of the venue is expected to generate $58.5 million in total output, including $31.6 million in GVA.
A total of 339 jobs will be supported during the construction phase.
The build phase is forecast to contribute $7.2 million in tax revenue to local and regional governments.
Cultural and Community Value:
The Factory is expected to host 200+ events annually, attracting 75,000 attendees, with nearly 40% visiting from outside Pittsburgh.
Events will span live music, film, public programming, and private hire — creating an inclusive, multidisciplinary space for local and visiting audiences.
Significant procurement is planned from local suppliers, artists, and creative professionals, generating economic ripple effects in the hospitality, entertainment, and service sectors.
As Dan Law, Associate Director of The Andy Warhol Museum, notes:
“Altogether, The Factory leans in on ambitious but realistic goals… to provide valuable earned income to help sustain The Warhol and its mission for years to come.”
Wider Impact
The Factory Creative Arts Center will become a cornerstone of The Pop District and a flagship venue for Pittsburgh’s growing creative economy.
It offers a new model for sustainable cultural infrastructure, one that blends artistic programming with economic resilience and local opportunity. By doing so, it honours Warhol’s legacy of pushing boundaries and building platforms for creativity, while creating a lasting civic and economic asset for the region.