In 2003, U.S. Census data showed that Johnstown was the least likely city in the United States to attract newcomers; however, what were previously relatively weak opportunities provided by the local manufacturing and service economies have more recently begun to burgeon, attracting outsiders. Gamesa Corporación Tecnológica, a Spanish wind energy company, opened its first U.S.

wind turbine blade manufacturing facility near here in 2006 which subsequently closed in 2014. Several wind turbines are sited on Babcock Ridge, the "Eastern Continental Divide", along the eastern edge of Cambria and Somerset counties. Lockheed Martin relocated a facility from Greenville, South Carolina, to Johnstown in 2008.

Höganäs AB, a Swedish powdered metals manufacturer operates two plants in the region, one in the Moxham section of the city and also in nearby Hollsopple in Somerset County. Companies like Concurrent Technologies Corporation, DRS Laurel Technologies, ITSI Biosciences, Kongsberg Defense and more throughout the region are in business for themselves.

Recent construction in the surrounding region, the downtown, and adjacent Kernville neighborhood—including a new 100,000-square-foot (9,300 m2) Regional Technology Complex that will house a division of Northrop Grumman, among other tenants—signal the increasing dependence of Johnstown's economy on the U.S.

government's defense budget. The high-tech defense industry is now the main non-health-care staple of the Johnstown economy, with the region pulling in well over $100M annually in federal government contracts, punctuated by one of the premier defense trade shows in the U.S., the annual Showcase for Commerce.Johnstown remains a regional medical, educational, cultural, and communications center.

As in many other locales, health care provides a significant percentage of the employment opportunities in the city. The region is located right in the middle of the "Health Belt", an area stretching from the Midwest to New England and down the East Coast that has had massive growth in the health care industry.

Major health care centers include Memorial Medical Center and Windber Medical Center, the Laurel Highlands Neuro-Rehabilitation Center, and the John P. Murtha Neuroscience and Pain Institute, with its advances in treating wounded veterans, and the Joyce Murtha Breast Care Center's focus on early diagnosis and advanced treatment.The University of Pittsburgh at Johnstown and Pennsylvania Highlands Community College attract thousands of students to their contiguous campuses in Richland, 5 miles (8 km) east of Johnstown.

Cambria-Rowe Business College, located in the Moxham section of Johnstown, offers concentrated career training and has continuously served Johnstown since 1891. The Pasquerilla Performing Arts Center, a concert/theatrical venue at the University of Pittsburgh at Johnstown, attracts high-quality performers.

The Johnstown Symphony Orchestra and the recently formed Johnstown Symphony Chamber Players provide classical music. The Johnstown Concert Ballet, centered in the Historic Cambria City District, provides classical ballet performances and training to the area. The Pasquerilla Convention Center was recently constructed downtown, adjacent to the historic Cambria County War Memorial Arena at 326 Napoleon Street.

Point Stadium, a baseball park where Babe Ruth once played, was razed and rebuilt. A zoning ordinance created an artist zone and a traditional neighborhood zone to encourage both artistic endeavors and the old-fashioned "Mom and Pop" enterprises that had difficulty thriving under the previous code. The Bottleworks Ethnic Arts Center offers many exhibitions, events, performances, and classes that celebrate the rich and diverse cultural heritage of the area. The Johnstown Chiefs ice hockey team played for 22 seasons, the longest period a franchise of the league stayed in one city.

The Chiefs were a member team of the ECHL, and played their home games in the Cambria County War Memorial Arena. The Chiefs' decision to relocate caused a flood of public interest in the sport of hockey. As many as four leagues were interested in having a team in the War Memorial. In the end the city landed a deal with another ECHL team, the Wheeling Nailers, who played parts of two seasons at the War Memorial.

A full-time tenant arrived in 2012, when the Johnstown Tomahawks of the junior North American Hockey League began play. The recently established ART WORKS in Johnstown! houses artist studios in some of the area's architecturally significant but underused industrial buildings. The ART WORKS in Johnstown project is projected to be a non-profit LEED-certified green building.

The Frank & Sylvia Pasquerilla Heritage Discovery Center opened in 2001 with the permanent exhibit "America: Through Immigrant Eyes", which tells the story of immigration to the area during the Industrial Revolution. In June 2009, the Heritage Discovery Center opened the Johnstown Children's Museum and premiered "The Mystery of Steel", a film detailing the history of steel in Johnstown.

The Bottleworks Ethnic Arts Center, ART WORKS, and the Heritage Discovery Center are located in the historic Cambria City section of town, which boasts a variety of eastern European ethnic churches and social halls. This neighborhood hosted the National Folk Festival for three years in the early 1990s, which expanded into the Flood City Music Festival.

Johnstown also hosts the annual Thunder in the Valley motorcycle rally during the fourth week of June; the event has attracted motorcyclists from across the Northeast to the city of Johnstown since 1998. Well over 200,000 participants enjoyed the 2008 edition of Thunder in the Valley, and the event continues to grow in size. Significant efforts have been made to deal with deteriorating housing, brownfields, drug problems, and other issues as population leaves the city limits and concentrates in suburban boroughs and townships.

The Johnstown Fire Department has become a leader in developing intercommunication systems among first responders, and is now a national model for ways to avoid the communications problems which faced many first responders during the September 11, 2001 attacks.