Michigan’s Tech Industry Totals 176,100 Jobs
High-Tech Manufacturing Employment Is Up; High-Tech Services Employment Is Down

Oakbrook Terrace, IL (April 2, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, today released its 11th annual Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2008: 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 176,100 workers with a total payroll of $13.2 billion in 2006, the most recent state data available. Michigan’s high-tech industry saw a net loss of 1,500 jobs. The largest job gains occurred in computer systems design and related services (+500 jobs) and electronic components (+400 jobs). These gains were offset by a drop of 1,800 jobs in engineering services, a drop of 600 jobs in R&D and testing labs, and a drop of 200 jobs in telecommunications.

Venture capital investments in Michigan totaled $105 million in 2007, ranking the state 25th nationwide by this metric.

“Michigan’s high-tech industry is continuing to recover from the bursting of the high-tech bubble in 2001,” said Ed Longanecker, Executive Director, AeA’s Midwest Council. “In the Wolverine State, tech manufacturing grew by 900 jobs in 2006, on top of 1,200 jobs added in 2005, and tech services contracted by 2,400 net jobs.”

“If we expect to see our services sectors rebound, we must improve the quality of science and math curricula in our schools, bolster the research capacities of our universities to study new technologies, and attract more of the best and brightest scientists and engineers from around the world to work in Michigan’s universities and technology companies,” added Ed Longanecker. 

Nationally, Cyberstates 2008 shows that the high-tech industry added jobs for the third consecutive year. Tech industry employment totaled 5.9 million, after adding 91,400 jobs in
2007. This is on top of job gains of 139,000 in 2006 and 87,400 in 2005.

This 11th 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.

Two other major AeA cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2008 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?

• 176,100 high-tech workers in 2006 (10th ranked cyberstate)
   

• 1,500 jobs lost between 2005 and 2006
   

• High-tech firms employed 49 of every 1,000 private sector workers in 2006, ranked 21st nationwide
   

• High-tech workers earned an average wage of $75,200 (18th ranked), or 79 percent more than Michigan's average private sector wage
   

• A high-tech payroll of $13.2 billion in 2006, ranked 13th nationwide
   

• 9,000 high-tech establishments in 2006, ranked 14th nationwide
   

• Venture capital investments of $105 million in 2007, down 17 percent from $127 million in 2005, ranked 25th nationwide
   

• 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 44,300 jobs
   

• 5th in engineering services employment with 38,300 jobs
   

• 9th in software publishers employment with 6,800 jobs

Source: Cyberstates 2008

Data are for 2006 unless otherwise noted.

2006 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)

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About AeA

AeA, the nation’s largest technology trade association, 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 03/28/08.              
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