Broomfield, Colo., June 26, 2002—Utah’s high-technology industry lost 1,700 jobs in 2001, with tech employment totaling 51,100. This is a dramatic change from the previous year when technology employment in Utah grew by 6,500 jobs, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA, the nation’s largest high-tech trade association.

Cyberstates 2002 also shows that electronics exports from Utah declined in 2001, falling from $730 million to $598 million, a drop of 18 percent. Despite this drop, Utah’s high-tech exports represented 17 percent of total exports from the state in 2001.

Venture capital investments in Utah plummeted 72 percent between 2000 and 2001, dropping from $665 million to $188 million.

"AeA’s Cyberstates report shows that the technology slowdown has had a dramatic effect on Utah's economy in 2001. Utah’s economy saw a drop in technology employment, venture capital investments, and electronics exports," said Luanne Williams, executive director, AeA Mountain States Council Council. "While Utah has weathered some tough times this past year, our companies are now stronger and leaner, and ready to grow as the economy pulls forward," she concluded.

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 Utah?

• 51,078 high-tech workers (27^th ranked cyberstate)

• 15,500 jobs added between 1995 and 2001, ranked 23^rd nationwide

• Lost 1,700 tech jobs between 2000 and 2001

• High-tech firms employ 59 of every 1,000 private sector workers, ranked 14^th nationwide

• High-tech workers earned an average wage of $51,300 (33^rd ranked), or 77% more than the average private sector wage in 2000

• A high-tech payroll of $2.7 billion in 2000, ranked 26^th nationwide

• 2,400 high-tech establishments in 2000, ranked 26^th nationwide

• High-tech exports totaled $598 million, ranked 31^st nationwide

• A decline of $133 million in high-tech exports between 2000 and 2001

• High-tech exports represented 17% of Utah’s exports

• Venture capital investments of $188 million, ranked 23^rd nationwide

• Venture capital investments declined by 72% between 2000 and 2001, dropping by $477 million

• R&D expenditures of $1.5 billion in 1999, ranked 30^th nationwide

• Home computer penetration reached 68%, ranked 2^nd nationwide

• Home Internet access totaled 54%, ranked 14^th nationwide

Utah’s National Industry Segment Rankings:

• 18^th in software services employment with 16,600 jobs

• 21^st in data processing and information services employment with 8,800 jobs

• 25^th in computers and office equipment employment with 3,700 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.