Tech Industry Remains Vital to Washington Economy

Washington Has More Software Publishers than any State in the Nation

Lynnwood, WA (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, for the fourth year in a row, Washington's high-tech industry added jobs, up 11,300 for a total of 174,100 in 2007, the most current year for which state data are available.

"Although Washington experienced its fourth year of job growth in 2007, the outlook for the future remains uncertain, and our expectations for growth are tempered by the current economic situation," said Terry Byington, Executive Director, TechAmerica Washington. "These years of growth are a good omen, pointing to the resilience of our tech industry and its ability to weather the storm. But we need state leaders to be vigilant in attracting dollars from the recently passed federal stimulus package - many of which are targeted toward technology investments. This can provide the impetus for the state's economic recovery."

"The new federal stimulus package has the potential to spur economic recovery Washington and throughout the Pacific Northwest through targeted technology investments. By making much needed investments in health IT, broadband deployment, scientific research, and energy efficiency initiatives, we are positioning our economy for sustainable long term growth. And it certainly doesn't hurt that we'll be creating jobs in the short term, many of them in the high-tech arena."

Washington experienced growth was across the board in 2007. The state's largest sector remains software publishers, which grew by 3,000 net jobs for a total of 47,600 jobs. Washington continued to rank 1st in the country in this sector ahead of California. Computer systems design and related services saw the largest job increase in 2007, adding 4,200 net jobs to Washington's economy. Other sectors that experienced significant growth in 2007 included engineering services (+2,100 jobs), communications services (+1,200 jobs), and R&D and testing labs (+400 jobs). High-tech growth was not confined to the services however, and high-tech manufacturing saw an increase of 300 jobs in 2007.

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 Washington?

• 174,100 high-tech workers in 2007 (12th ranked cyberstate)
• 11,300 jobs added between 2006 and 2007
• High-tech firms employed 72 of every 1,000 private sector workers in 2007, ranked 7th nationwide
• High-tech workers earned an average wage of $95,900 (3rd ranked), or 115 percent more than Washington's average private sector wage
• A high-tech payroll of $16.7 billion in 2007, ranked 8th nationwide
• 7,700 high-tech establishments in 2007, ranked 16th nationwide

Washington's National Industry Sector Rankings:

• 1st in software publishers employment with 47,600 jobs
• 8th in electromedical equipment manufacturing with 3,600 jobs
• 13th in R&D and testing labs employment with 20,100 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:
Terry Byington
Executive Director, TechAmerica Washington
425.775.6168 or terry.byington@techamerica.org

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

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