Tech Industry Remains Vital to Texas Economy

Texas Is the Nation's Second Largest Cyberstate

Dallas, TX (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 Texas saw the largest high-tech employment gains in the nation in 2007, a designation usually reserved for California. The addition of 14,700 high-tech jobs brought the industry total to 474,100 in 2007 - the most current year for which state data are available. Texas remains the second-largest cyberstate by tech employment, behind California and ahead of New York. Additionally, the high-tech industry in Texas paid out $39.8 billion in payroll in 2007. The Texas average tech industry wage in 2007 was $83,900 - 84 percent higher than the state's average private sector wage.

"The ongoing success of the high tech industry in Texas is just one example of how our low taxes and reasonable, predictable regulations are allowing businesses to continue thriving compared to many others across the nation during these tough economic times," said Texas Gov. Rick Perry. "I am confident Texas' technology industries are well-positioned to make it through this downturn, helping make Texas emerge stronger than ever before. This report provides data that independently demonstrates that Texas' efforts to promote technological innovation and economic growth are working. I congratulate this growing industry on its success and welcome its ongoing expansion throughout our state."

The largest tech employment gains in 2007 took place in several of the technology services sectors. The fastest growth was in computer systems design and related services (+7,700), followed by engineering services (+4,400), and R&D and testing labs (+3,500 jobs). These gains offset losses experienced in other sectors like communications services (-300 jobs), and software publishers (-100). High-tech manufacturing employment declined in 2007, with gains in semiconductor manufacturing (+1,100 jobs) offset by losses elsewhere, for a net job loss of 500.

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 Texas?

• 474,100 high-tech workers in 2007 (2nd ranked cyberstate)
• 14,700 jobs added between 2006 and 2007
• High-tech firms employed 56 of every 1,000 private sector workers in 2007, ranked 16th nationwide
• High-tech workers earned an average wage of $83,900 (12th ranked), or 84 percent more than Texas's average private sector wage
• A high-tech payroll of $39.8 billion in 2007, ranked 2nd nationwide
• 25,900 high-tech establishments in 2007, ranked 2nd nationwide

Texas's National Industry Sector Rankings:

• 2nd in communications services employment with 125,800 jobs
• 2nd in engineering services employment with 92,500 jobs
• 2nd in semiconductor manufacturing employment with 37,100 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:
Jeff Clark
Executive Director, TechAmerica Texas
972.386.6540 or jeff.clark@techamerica.org

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

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