Tech Industry Remains Vital to Kansas Economy

Kansas Has Nation's Fastest Tech Employment Growth Rate in 2007

Oakbrook Terrace, IL (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 Kansas saw the fastest rate of employment gains in the country in 2007. The addition of 4,300 high-tech jobs brought the industry total to 58,200 in 2007 - the most current year for which state data are available. Kansas remains the 27th-largest cyberstate by tech employment. Additionally, the high-tech industry in Kansas paid out $4.2 billion in payroll in 2007. The Kansas average tech industry wage in 2007 was $71,700 - 91 percent higher than the state's average private sector wage, the 9th highest differential in the nation.

"Kansas led the nation in 2007 with eight percent high-tech employment growth," said Ed Longanecker, Executive Director, TechAmerica Midwest. "This really highlights the expansion of our tech industry in recent years and bodes well for high-tech's ability to weather the recession and start adding jobs again. With the help of federal stimulus spending, which includes significant technology investments, we may be able to stage a successful and expeditious recovery."

The largest tech employment gains in 2007 took place in several of the technology services sectors. The fastest growth was in communications services (+1,800 jobs), followed by R&D and testing labs (+1,000 jobs), and engineering services (+500). Kansas high-tech manufacturing also grew, adding 600 jobs in 2007.

Two other major TechAmerica cyber reports are forthcoming 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.

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 Kansas?

• 58,200 high-tech workers in 2007 (27th ranked cyberstate)
• 4,300 jobs added between 2006 and 2007
• High-tech firms employed 52 of every 1,000 private sector workers in 2007, ranked 17th nationwide
• High-tech workers earned an average wage of $71,700 (23rd ranked), or 91 percent more than Kansas's average private sector wage
• A high-tech payroll of $4.2 billion in 2007, ranked 25th nationwide
• 3,200 high-tech establishments in 2007, ranked 31st nationwide

Kansas's National Industry Sector Rankings:

• 13th in communications equipment manufacturing employment with 3,100 jobs
• 16th in communications services employment with 27,800 jobs
• 19th in defense electronics 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:
Ed Longanecker
Executive Director, TechAmerica Midwest
630.613.7174 or ed.longanecker@techamerica.org

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

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