Arizona’s High-Tech Industry Totals 109,400 Jobs
Arizona is the 4^th Largest Cyberstate by Semiconductor Employment

Scottsdale, AZ, April 26, 2005 – Arizona's high-tech industry employment fell by 6,600 from 116,100 in 2002 to 109,400 in 2003, the most recent year state data are available.  While Arizona was hit hard by the technology downturn, the high-tech job losses slowed in 2003 compared to 2002, according to Cyberstates 2005:  A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA.

In fact, a large part of this job loss occurred in Arizona’s most important technology sector, semiconductor manufacturing, which lost over 4,000 jobs between 2002 and 2003.  Arizona ranked 4^th by semiconductor employment nationwide.  Semiconductors also help to make Arizona the 6^th ranked state by high-tech exports.  Arizona exported $6.4 billion in high-tech goods in 2004, accounting for nearly half of all exports from the state. 

"The recent surge in venture capital investments in Arizona is a strong sign that things are turning around,” said Mike Harris, Executive Committee member of the AeA Arizona Council and managing director of AMT Capital Partners, LLC, managing a large fund dedicated to technology and semiconductor ventures.  "Venture capital jumped in Arizona by 54 percent, to $103 million.  This shows that Arizona remains an attractive location for technology companies to innovate."

Nationally, Cyberstates 2005 shows that the high-tech industry is slowly turning the corner.  High-tech employment was down by only 25,000 jobs out of 5.6 million workers in 2004.  U.S. high-tech exports were up by 12 percent for a total of $191 billion in 2004.  And, technology related venture capital investments were up for the first time in four years.

This eighth annual edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state by high-tech employment, wages, payroll, establishments, and trade.  Cyberstates also offers data on venture capital investments and R&D expenditures.

AeA members can purchase the report for $95; non-members for $190.  Visit www.aeanet.org to download the report, or call 800.284.4232 or 408.987.4200.

What Does High Tech Mean for Arizona?

·      109,400 high-tech workers (18^th ranked cyberstate)

·      6,600 jobs lost between 2002 and 2003

·      High-tech firms employed 58 of every 1,000 private sector workers in 2003, ranked 15^th nationwide

·      High-tech workers earned an average wage of $62,500 (21^st ranked), or 81% more than Arizona's average private sector wage

·      A high-tech payroll of $6.8 billion in 2003, ranked 18^th nationwide

·      5,800 high-tech establishments in 2003, ranked 18^th nationwide

·      High-tech exports totaled $6.4 billion in 2004, ranked 6^th nationwide

·      High-tech exports represented 47% of Arizona’s exports

·      Venture capital investments of $103 million in 2004, up 54% from $67 million in 2003

·      R&D expenditures of $4.1 billion in 2002, ranked 20^th nationwide

Arizona’s National Industry Segment Rankings:

·      4^th in semiconductor manufacturing employment with 24,100 jobs

·      4^th in defense electronics manufacturing employment with 8,100 jobs

·      17^th in engineering services employment with 14,200 jobs

Source:  Cyberstates 2005

Data are for 2003 unless otherwise noted.

2003 data are the most current for state employment, wages, payroll, establishments, and industry segment jobs.

Published by AeA, Advancing the Business of Technology

NOTE TO EDITORS: Press releases focusing on U.S. high-tech trade as well as on specific states are available on AeA’s website.

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About AeA
AeA, founded in 1943, is a nationwide non-profit trade association that represents all segments of the technology industry and is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs.  For more information, please visit http://www.aeanet.org.

This page was last updated on 04/27/05.