Tech Industry Remains Vital to Arizona Economy

Arizona Is the 4th Largest Cyberstate by Semiconductor Employment

Scottsdale, AZ (March 31, 2009) - TechAmerica, formed by the merger of AeA and the Information Technology Association of America (ITAA), today released its 12th annual Cyberstates report, which includes a first-ever supplement with a 3rd and 4th quarter breakdown of 2008 tech employment. Fourth quarter data show the tech industry's resilience compared to the U.S. economy as a whole, having sustained only a 0.6 percent drop in employment, or 38,000 jobs, in Q4 2008 when total private-sector employment declined by 1.3 percent.

The high-tech industry has added 382,900 jobs to the U.S. economy over the last four years. The industry added 77,000 net jobs in 2008, for a total of 5.9 million workers. This was on top of 79,600 added in 2007, 139,000 in 2006, and 87,400 in 2005.

The Cyberstates 2009 report - which details national and state trends in high-tech employment, wages, and other key economic factors for all 50 states, the District of Columbia, and Puerto Rico - shows that Arizona's high-tech industry employment edged downward by 900 jobs, just under one percent, totaling 116,000 in 2007, the most current year for which state data is available. These jobs remain high paying, with the average tech worker in Arizona earning $75,900 in 2007 or 85 percent more than the state's average private sector wage.

"While Arizona's tech industry may have suffered losses in 2007, the 2008 national data show that America's tech economy held its own for much of the year, said Bill Hinz, founder and CEO of BioCair a electromedical and electrotherapeutic apparatus manufacturing company based in Phoenix. "The industry could be poised to make a quicker rebound than other industry sectors. Federal stimulus spending includes significant technology investments that could help accelerate recovery in Arizona's high-tech industry. Arizona's state public officials need to tap into those dollars."

Arizona remained a critical location for the semiconductor industry, employing 22,600 workers in 2007, making it the 4th ranked state nationwide, despite having lost 1,300 semiconductor jobs between 2006 and 2007. Despite declines in net high-tech manufacturing jobs in 2007, impressive gains occurred in sectors like engineering services (+2,600 jobs) and computer systems design and related services (+2,300 jobs).

Two other major TechAmerica cyber reports that analyze the U.S. high-tech industry, Cybercities 2009: An Overview of the High-Technology Industry in the Nation's Top 60 Cities and Trade in the Cyberstates 2009: A State-by-State Overview of High-Tech International Trade, are forthcoming.

Cyberstates 2009 may be purchased for $150. The quarterly supplement may be freely downloaded. Both reports may be accessed at: www.techamerica.org/cyberstates.

What Does High Tech Mean for Arizona?

• 116,000 high-tech workers in 2007 (18th ranked cyberstate)
• 900 jobs lost between 2006 and 2007
• High-tech firms employed 52 of every 1,000 private sector workers in 2007, ranked 19th nationwide
• High-tech workers earned an average wage of $75,900 (19th ranked), or 85 percent more than Arizona's average private sector wage
• A high-tech payroll of $8.8 billion in 2007, ranked 18th nationwide
• 7,300 high-tech establishments in 2007, ranked 18th nationwide

Arizona's National Industry Sector Rankings:

• 4th in semiconductor manufacturing employment with 22,600 jobs
• 6th in defense electronics management employment with 84,00 jobs
• 8th in photonics manufacturing employment with 1,000 jobs

Source: Cyberstates 2009

Data are for 2007 unless otherwise noted.

2007 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by TechAmerica - Where the Future Begins

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About TechAmerica
TechAmerica is the leading voice for the U.S. technology industry, the driving force behind productivity growth and jobs creation in the United States and the foundation of the global innovation economy. Representing approximately 1,500 member companies of all sizes from the public and commercial sectors of the economy, it is the industry's largest advocacy organization and is dedicated to helping members' top and bottom lines. It is also the technology industry's only grassroots-to-global advocacy network, with offices in state capitals around the United States, Washington, D.C., Europe (Brussels) and Asia (Beijing). TechAmerica was formed by the merger of AeA (formerly the American Electronics Association), the Cyber Security Industry Alliance (CSIA), the Information Technology Association of America (ITAA) and the Government Electronics & Information Technology Association (GEIA). Learn more at www.techamerica.org.

Contact:
Jim Garnett
Executive Director, TechAmerica Southwest
480.607.0233 or jim.garnett@techamerica.org

Josh James
Director, Research and Industry Analysis (research-based inquiries)
202.682.4422 or josh.james@techamerica.org

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