Scottsdale, AZ, June 26, 2002—Arizona was one of 20 states that experienced a loss in high-tech jobs in 2001. Arizona’s high-tech employment totaled 108,400, down 1200 jobs. This 1% decline reflects the impact that the 2001 economic slowdown has had on one of Arizona’s most important industries. This is a dramatic change from the previous year when technology employment in Arizona grew by 9,700 jobs, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA.

Cyberstates 2001 also shows that electronics exports from Arizona declined in 2001, falling from $7.3 billion to $6 billion, a drop of 19 percent. Despite this drop, Arizona's high-tech exports still represented 48 percent of total exports from the state in 2001.

Venture capital investments also declined between 2000 and 2001 from $650 million to $255 million - a 61 percent decline. Arizona ranked 19^th nationwide in venture capital funding in 2001.

"AeA’s Cyberstates report shows that Arizona has not escaped the technology slowdown of 2001. Because semiconductor manufacturing is such an important industry segment for Arizona, when it experiences a slowdown, so does Arizona," said D’Arcy Collins, Chairman of AeA’s Arizona Council and President of ACADZ, a provider of efficiency solutions for semiconductor manufacturers. "The technology industry is still a very important component of the Arizona economy. High tech accounts for 57 of every 1,000 private sector jobs, and is responsible for 108,400 jobs in the state. Furthermore, Arizona is the 3^rd largest state in semiconductor manufacturing, employing 33,600 workers."

Nationally, Cyberstates 2002 shows that high-tech industry employment grew slightly in 2001, reaching 5.6 million, compared to 5.5 million in 2000. This one percent increase illustrates the effect of the technology slowdown in 2001, compared to nine percent growth in 2000.

Cyberstates 2002 is the sixth edition of AeA’s Cyberstates reports. The study includes nine chapters detailing national and state trends in employment, wages, and exports. Venture capital investments, research and development (R&D) expenditures, and computer and Internet home use are also examined. The report includes state rankings for each indicator. Cyberstates 2002 is based on the most current U.S. government data available.

What Does High Tech Mean for Arizona?

• 108,420 high-tech workers (18^th ranked cyberstate)

• 27,300 jobs added between 1995 and 2001, ranked 18^th nationwide

• Lost 1,200 tech jobs between 2000 and 2001, a 1% decline

• High-tech firms employ 57 of every 1,000 private sector workers, ranked 15^th nationwide

• High-tech workers earned an average wage of $62,900 (17^th ranked), or 94% more than the average private sector wage in 2000

• A high-tech payroll of $6.9 billion in 2000, ranked 17^th nationwide

• 3,800 high-tech establishments in 2000, ranked 20^th nationwide

• High-tech exports totaled $6 billion, ranked 6^th nationwide

• High-tech exports represented 48% of Arizona’s exports

• A decline of $1.4 billion in high-tech exports between 2000 and 2001

• Venture capital investments of $255 million, ranked 19^th nationwide

• Venture capital investments declined by 61% between 2000 and 2001, dropping by $395 million

• R&D expenditures of $5.1 billion in 1999, ranked 14^th nationwide

• Home computer penetration reached 59%, ranked 17^th nationwide

• Home Internet access totaled 52%, ranked 22^nd nationwide
  

Arizona’s National Industry Segment Rankings in 2000

• 3^rd in semiconductor manufacturing employment with 33,600 jobs

• 7^th in defense electronics manufacturing employment with 5,300 jobs

Source: Cyberstates 2002 data are for 2001 unless otherwise noted

2000 data are the most current for wages, payroll, establishments, and industry segment jobs