Michigan’s Tech Industry Totals 177,600 Jobs
Venture Capital Investments in Michigan Rise 25 Percent in 2006

Oakbrook Terrace, IL (April 24, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, today released its 10th anniversary Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2007: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

Michigan remained the 10th ranked cyberstate employing 177,600 workers with a total payroll of $13 billion in 2005, the most recent state data available. Michigan’s high-tech industry saw a loss of 400 net jobs. The largest job gains occurred in tech manufacturing sectors. Defense electronics added 500 jobs, measuring and control equipment added 400 jobs, and electronic components added 200 jobs.

R&D expenditures in Michigan reached $16.7 billion in 2004, which in part supported the 44,900 workers in R&D and testing labs sector, the 2nd highest in the country. Venture capital investments in Michigan rose by 25 percent, totaling $101 million in 2006.

“Tech industry job losses in Michigan were by far the smallest they have been since the bursting of the high-tech bubble in 2001,” said Ed Longanecker, Executive Director, AeA Midwest Council. “Ironically, while much of the rest of the country is seeing its tech manufacturing base erode while its services sectors grow, Michigan is seeing just the opposite. Tech manufacturing in the Wolverine State grew by 1,200 jobs in 2005.”

“Nonetheless, one of our strongest sectors remains R&D and testing labs – a service sector – where we rank 2nd nationally,” continued Longanecker. “If we expect to keep this distinction and see our services sectors rebound, we need to improve the quality of science and math curricula in our schools, we need to bolster the research capacities of our universities, and we need to attract more of the best and brightest scientists and engineers from around the world to work in Michigan’s universities and technology companies. This will be the key to making Michigan an innovation economy in the years to come."

Nationally, Cyberstates 2007 shows that the high-tech industry is picking up. High-tech employment was up by 146,600 out of 5.8 million workers in 2006, the second year in a row that the U.S. tech industry has added jobs.

This 10th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.

A national and state-by-state analysis of the technology industry and international trade will appear in a forthcoming AeA report entitled Trade in the Cyberstates 2007: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2007 for $125; non-members for $250. Visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200.

What Does High Tech Mean for Michigan?

• 177,600 high-tech workers (10th ranked cyberstate)
   

• 400 jobs lost between 2004 and 2005
   

• High-tech firms employed 48 of every 1,000 private sector workers in 2005, ranked 21st nationwide
   

• High-tech workers earned an average wage of $73,200 (15th ranked), or 78 percent more than Michigan's average private sector wage
   

• A high-tech payroll of $13.0 billion in 2005, ranked 11th nationwide
   

• 9,100 high-tech establishments in 2005, ranked 14th nationwide
   

• Venture capital investments of $101 million in 2006, up 25 percent from $81 million in 2005
   

• R&D expenditures of $16.7 billion in 2004, ranked 2nd nationwide

Michigan’s National Industry Sector Rankings:

• 2nd in R&D and testing labs employment with 44,900 jobs
   

• 5th in engineering services employment with 40,100 jobs
   

• 9th in software publishers employment with 7,000 jobs

Source: Cyberstates 2007

Data are for 2005 unless otherwise noted.

2005 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by AeA, Advancing the Business of Technology (www.aeanet.org)

- # # # -

About AeA

AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, 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 04/23/07.              
Copyright © 2007 American Electronics Association.     All rights reserved.