State Job Loss Moves It from 31^st to 34^th Place in National Tech Rankings

Woburn, MA, November 19, 2003—New Hampshire’s high-technology industry lost 8,400 jobs between 2001 and 2002, according to Cyberstates 2003: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA. This 18 percent decline was the worst nationally, dropping the state’s ranking from 31^st to 34^th between 2001 and 2002.

Cyberstates 2003 shows that New Hampshire’s tech industry dropped from 46,200 jobs in 2001 to 37,800 workers in 2002. The state’s electronics manufacturing sector lost 5,700 jobs in 2002, followed by computer systems and design, which lost 1,250 jobs.

"The latest Cyberstates data clearly show that New Hampshire’s high-tech industry was hit hard by the 2001-2002 economic slowdown," said Anne Doherty Johnson, Executive Director, AeA’s New England office. "But we are confident that improvements in the state’s tech industry are underway. New Hampshire’s strengths include great quality of life for its workforce, a talented labor pool and a state government that understands the high-tech industry."

"Bottomline Technologies continues to be bullish on New Hampshire and on our growth prospects here," said Joe Mullen, President and Chief Executive Officer. "We have worked hard over the last year to restore financial balance. Moving forward, we're looking to stimulate growth, and that requires talent. Companies like Bottomline are selectively hiring. Serving a global marketplace, we could locate anywhere, yet we've selected New Hampshire because it has proven to be a solid source of capable, well-informed and energetic people. The fact that our state has a lower cost of living and can boast a stimulating environment, including a wealth of educational and recreational opportunities, also makes it easier for us to retain that talent."

Cyberstates 2003 also examines tech exports and venture capital investments. New Hampshire exported more than $850 million worth of high-tech goods in 2002, compared to $1.2 billion in 2001, a 27 percent drop. Similarly, venture capital investments in New Hampshire dropped by 17 percent, falling from some $270 million in 2001 to $220 million in 2002.

Nationally, Cyberstates 2003 shows that high-tech employment fell by 540,000 jobs, dropping to 6 million in 2002. However, using preliminary data, we estimate that the tech industry will lose 234,000 jobs in 2003.

For the first time, Cyberstates 2003 is based on the newly implemented North American Industry Classification System (NAICS). This more current and comprehensive system allows us to capture several sectors which we could not with the previous system. These include fiber optic cable manufacturers, semiconductor machinery manufacturers, and web search portals. Consequently, the data presented in this report are not comparable in any way to previous editions of Cyberstates.

Cyberstates 2003 is the seventh edition of AeA’s Cyberstates reports. The study includes seven chapters detailing national and state trends in employment, wages, and exports. Venture capital investments and research and development (R&D) expenditures are also examined. The report includes state rankings for each indicator. Cyberstates 2003 is based on the most current U.S. government data available.

What Does High Tech Mean for New Hampshire?

• 8,400 jobs lost between 2001 and 2002

• High-tech firms employ 73 of every 1,000 private sector workers in 2002, ranked 10^th nationwide

• High-tech workers earned an average wage of $62,587 (17^th ranked), or 74% more than the average private sector wage

• 2,800 high-tech establishments in 2001, ranked 32^nd nationwide

• High-tech exports totaled $858 million in 2002, ranked 29^th nationwide

• Venture capital investments of $222 million in 2002, down 17% from $269 million in 2001

• R&D expenditures of $775 million in 2000, ranked 36^th nationwide

New Hampshire’s National Industry Segment Rankings:

• 19^th in software publishers employment with 3,400 jobs

Source: Cyberstates 2003
Data are for 2002 unless otherwise noted.
2001 data are the most current for wages, payroll, establishments, and industry segment jobs.