Tech Industry Remains Vital to Minnesota Economy

Computer Systems Design and Related Services Led Growth in 2007

Washington, DC and Roseville, MN (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 Minnesota's high-tech industry added 500 net jobs in 2007, the most current year for which state data are available. Minnesota remained the 17th largest cyberstate, employing 128,500 tech workers with a total payroll of $9.7 billion in 2007. These jobs are well compensated at an average wage of $75,200 - 68 percent more than the state's average private sector wage.

"High-tech employment in Minnesota grew in 2007, when the economy was on the verge of recession," said Kate Rubin, president of the Minnesota High Tech Association. "The 2008 national data show that the U.S. tech sector fared better than the economy in general, adding jobs in the first three quarters, then losing them at only half the rate of the private sector in the fourth quarter. This gives us confidence in tech's ability to regain its strength and continue its growth after the recession."

"Clearly, a critical priority is jumpstarting an economic recovery with stimulus spending that will make investments in our technology infrastructure" said Rob Tabb, vice president and CIO of Ecolab and chair of the MHTA Board of Directors. "However, the Cyberstates report reinforces the high stakes for Minnesota around sustaining and strengthening an ecosystem that encourages long term investment, innovation and growth in the technology sector.

Ms. Rubin recently returned from Washington, D.C. were she discussed with policymakers the importance of STEM education and workforce development issues, federal R&D spending, broadband infrastructure development, and other key issues where the federal government can play a positive role in growing Minnesota's technology industries.

Tech industry job growth in Minnesota was led by computer systems design and related services (+3,300 jobs) and electromedical equipment manufacturing (+300 jobs). Minnesota saw its largest losses in computer and peripheral equipment manufacturing (-1,300 jobs) and communications services (-700 jobs).

Exploring strategies to grow Minnesota's tech-based economy will be the focus of MHTA's Spring Conference on April 15 at the Minneapolis Convention Center, which will feature world-class presenters from leading technology companies. More information is available at www.mhta.org.

Tech industry job growth in Minnesota was led by computer systems design and related services (+3,300 jobs) and electromedical equipment manufacturing (+300 jobs). Minnesota saw its largest losses in computer and peripheral equipment manufacturing (-1,300 jobs) and communications services (-700 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 Minnesota?

• 129,000 high-tech workers in 2007 (17th ranked cyberstate)
• 500 jobs added between 2006 and 2007
• High-tech firms employed 56 of every 1,000 private sector workers in 2007, ranked 15th nationwide
• High-tech workers earned an average wage of $75,200 (21st ranked), or 68 percent more than Minnesota's average private sector wage
• A high-tech payroll of $9.7 billion in 2007, ranked 17th nationwide
• 7,400 high-tech establishments in 2007, ranked 17th nationwide

Minnesota's National Industry Sector Rankings:

• 2nd in electromedical equipment manufacturing employment with 12,900 jobs
• 6th in computer and peripheral equipment manufacturing employment with 13,200 jobs
• 7th in electronic components manufacturing employment with 9,300 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:
Peter Lindstrom
VP of Public Affairs, Minnesota High Tech Association
952.230.4555 or PLindstrom@mhta.org

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

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