D.C. Capital Region Retains Status as Major High-Tech Hub

Virginia Has the Highest Concentration of Tech Workers in the Country; Maryland Is 5th; DC is 6th

Washington, DC (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 that the D.C. Capital region (which combines the District of Columbia, Maryland, and Virginia) is a growing hub for high-tech companies to locate operations.

"Technology is critical to the economy of the National Capital Region," said Phillip J. Bond, President of TechAmerica. "The 2008 national data show that America's tech sector is remarkably resilient, and is poised to make a quicker rebound than other industry sectors. Federal stimulus spending, which includes a significant focus on technology investments, will help boost growth and jobs creation in the region's tech economy."

Virginia has earned the distinction of having the highest concentration of tech workers in the country in 2007, adding 5,300 tech industry jobs, the most current state data available. Maryland adds 77 tech industry jobs. Though a metropolitan breakdown of the location of these jobs is not available in Cyberstates 2009, anecdotal evidence shows that much of the growth in Virginia and Maryland is clustered in the suburbs of Washington, DC.

This recent job growth has made the entire region a hub for high-tech activity and a generator of high paying jobs. In terms of tech concentration, Virginia has the highest number of tech workers as a percentage of the overall private sector workforce - 9.2 percent. Maryland has the 5th highest concentration - 8.0 percent. And the District of Columbia has the 6h highest concentration of tech workers - 7.3 percent.

The Cyberstates report shows that these jobs are especially well paid. Virginia's average annual high-tech wage is $89,700 - 97 percent more than the state's average private sector wage the 6th largest in the country. D.C.'s average high-tech wage is $9,300 - 29 percent more than the District's average private sector wage. And Maryland's average high-tech wage is $84,400 - 82 percent more than the state's average private sector wage.

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 the Capital Region (combining the District of Columbia, Maryland, and Virginia)?

• 474,800 high-tech workers in 2007 (would be the 2nd largest cyberstate)
• 2,900 jobs gained between 2006 and 2007 (would be 11th ranked after Wisconsin, which added 3,600 jobs)
• As a percentage of the private sector workforce, Virginia has the highest concentration of tech workers in the country (9.2 percent); Maryland has the 5th highest concentration (8.0 percent); and the District of Columbia has the 6th highest concentration (7.3 percent)
• Average annual high-tech wages: Virginia's is $89,700 - 6th ranked and 97 percent more than the state's average private sector wage; the District of Columbia's is $89,300 - 7th ranked and 29 percent more than the district's average private sector wage; Maryland's is $84,400 - 10th ranked and 82 percent more than the state's average private sector wage
• A high-tech payroll of $41.7 billion in 2007, (would be the 2nd ranked cyberstate)
• 28,300 high-tech establishments in 2007, (would be the 2nd ranked cyberstate)

Select Industry Sector Rankings for the States in the Washington, DC Capital Region:

• Virginia ranked 2nd in computer systems design and related services employment (126,400 jobs); Maryland ranked 7th (57,400 jobs); and D.C. ranked 22nd (15,900 jobs)
• Virginia ranked 4th in engineering services employment (50,500 jobs); Maryland ranked 7th (32,000 jobs)
• Maryland ranked 5th in defense electronics (8,200 jobs)
• Virginia ranked 8th in communications services employment (52,800 jobs)
• Maryland ranked 9th in R%D and testing labs employment (27,400 jobs); Virginia ranked 10th (23,800 jobs); and D.C. ranked 20th (7,300 jobs)
• Virginia ranked 14th in software publishers employment (5,200 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.

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