State of Technology 2018 How Is The Economy? USA Nonfarm Payroll - - PowerPoint PPT Presentation

State of Technology 2018

How Is The Economy?

USA Nonfarm Payroll Employment

• 200
• 100

100 200 300 400 500 600

87 Straight Months of Employment Growth- Since September 2010

Source: U.S. Bureau of Labor Statistics

USA Nonfarm Payroll Employment

• 200
• 100

100 200 300 400 500 600

87 Straight Months of Employment Growth-

Source: U.S. Bureau of Labor Statistics

Economic Dynamism (Churn)

6,246,000

• 5,879,000

1,358,000 1,249,000

• 8,000,000
• 6,000,000
• 4,000,000
• 2,000,000

2,000,000 4,000,000 6,000,000 8,000,000

Expanding Contracting Opening Closing

Jobs Gained and Lost

Net- + 109,000 Source: BLS Jan 2018, Data for 2nd Qrt 2017 Net- + 367,000 28% 30% 42%

Net New Jobs

1 to 49 50-249 Over 250

5 4 3 2 1

• 1
• 2
• 3
• 4
• 5
• 6
• 7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Y

• Y % Chg

U.S. North Carolina

November 2017 US: 1.4% NC: 1.6%

Source: Bureau of Labor Statistics/Haver Analytics

6

North Carolina Payroll Employment

North Carolina’s Unemployment Rate September 2009 –September 2017

Source: Bureau of Labor Statistics Source: Bureau of Labor Statistics

0.2% 1.9% 1.9% 2.6% 1.6% 0.3% 1.6% 2.3% 1.4% 1.0% 1.5% 2.8% 5.8% 0.7% 1.0% 0.1%

• 1.0%

1.7%

• 2%
• 1%

0% 1% 2% 3% 4% 5% 6% 7% Government Leisure & Hospitality Education & Health Services Professional & Technical Services Financial Trade, Transport & Utilities Manufacturing Construction Total

NC USA

December 2016-2017

Employment Gains By Sector for the United States and NC

Source: US Bureau of Labor Statistics

Cherokee Clay Graham Macon Swain Jackson Haywood Madison Buncombe Henderson Tran- sylvania Yancey Avery McDowell Rutherford Polk Watauga Caldwell Burke Cleveland Ashe Alleghany Wilkes Alex- ander Catawba Lincoln Gaston Surry Yadkin Iredell Stokes Forsyth Davie Rowan Cabarrus Union Rockingham Guilford Davidson Randolph Stanly Anson Mont- gomery Moore Rich- mond Caswell Person Chatham Wake Lee Warren Franklin Harnett Hoke Scot- land Robeson Bladen Columbus Brunswick Johnston Northampton Halifax Nash Wilson Edgecombe Wayne Sampson Duplin Pender New Hanover Onslow Jones Lenoir Greene Pitt Hertford Gates Bertie Wash- ington Martin Beaufort Hyde Tyrrell Dare Craven Pamlico Carteret

Growth above state average Growing below state average Losing Jobs

Source: EMSI - NC Department of Commerce

5 Year Job Growth 2011-2016 North Carolina Average 11.0%

NCTECH

• 87 separate 6-digit NAICS code sectors to characterize the Total Technology Sector
• The Total Technology Sector was further broken down into four sub-categories:
• Energy Technology
• Environmental Technology
• Life Sciences
• IT, Telecom, Hardware & Software (Tech Core)
• 65 separate 5-digit Standard Occupational Classification (SOC) codes
• Economic Modeling Specialists International (EMSI), based on the Bureau of Labor Statistics (BLS)

Quarterly Census of Employment and Wages

Methodology

The Difference Between Tech Industry Workers and Tech Occupational Workers

87 separate 6-digit NAICS 65 separate 5-digit (SOC) codes

North Carolina Technology Industry Summary Statistics 2016

Indicator Technology Sector State Total Employees 247,208 4,259,606 Establishments 18,868 270,802 Wages (millions) $25,409 $229,003

Employees

247,208

Establishments

18,868

Tech Industry in North Carolina- 2016

5.8% 7.0%

Percentage of Total North Carolina Economy

Wages

$25,409,000,000 11.1%

North Carolina’s Technology Industry by Sub- Categories 2016

Tech Category Employmen t 2015 Change 2015-2016 Change 2011-2016 Establishment s 2016 Energy Tech 13,198

• 0.9%

14.5% 378 Environmental Tech 22,738 1.5% 21.4% 1,524 Life Sciences 77,299 3.2% 9.8% 4,650 IT 133,974 3.8% 21.9% 12,316

North Carolina’s Technology Industry by Sub- Categories 2016

Tech Category Employmen t 2015 Change 2015-2016 Change 2011-2016 Establishment s 2016 Energy Tech 13,198

• 0.9%

14.5% 378 Environmental Tech 22,738 1.5% 21.4% 1,524 Life Sciences 77,299 3.2% 9.8% 4,650 IT 133,974 3.8% 21.9% 12,316

North Carolina’s Technology Industry by Sub- Categories 2016

Tech Category Employmen t 2015 Change 2015-2016 Change 2011-2016 Establishment s 2016 Energy Tech 13,198

• 0.9%

14.5% 378 Environmental Tech 22,738 1.5% 21.4% 1,524 Life Sciences 77,299 3.2% 9.8% 4,650 IT 133,974 3.8% 21.9% 12,316

Employment State of Tech Reports 2015-2018

11,962 20,601 71,805 116,329 13,198 22,738 77,299 133,974

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

Energy Environmental Life Sciences IT

Employment Growth

2015 2016 2017 2018

Plus the addition of 2,465 net new establishments

Energy Tech 13,198 Environmental Tech 22,738

Makeup of Tech Industry

Life Sciences 77,299

5% 9% 31%

Percentage of Total North Carolina Tech Sector IT 133,974

54%

Energy Tech Environmental Tech Life Sciences IT

Employment Growth Rate, 2011-2016

14.5% 21.4% 9.8% 21.9%

North Carolina’s Technology Industry by Sub- Categories 2016

Tech Category Employmen t, 2016 Change, 2015-2016 Change 2011-2016 Establishment s 2016 Tech Services 183,856 5.2% 24.5% 18,104 Tech Manufacturin g 63,352

• 2.5%

0.8% 764 Total Tech 247,208 3.1% 17.4% 18,868

Tech Industry Jobs by County in North Carolina

Average Annual Earnings per Worker by Subsector, 2016

Tech Category North Carolina North Carolina (With Purchasing Power) National Average Energy Tech $131,115 $155,719 $142,015 Environmental Tech $97,923 $107,373 $78,113 Life Sciences $111,168 $121,896 $120,368 IT $109,807 $120,403 $133,276

Average Annual Earnings per Worker by Subsector, 2016

Tech Category North Carolina North Carolina (With Purchasing Power) National Average Energy Tech $131,115 $155,719 $142,015 Environmental Tech $97,923 $107,373 $78,113 Life Sciences $111,168 $121,896 $120,368 IT $109,807 $120,403 $133,276

Average Annual Earnings per Worker by Subsector, 2015

$155,719 $107,373 $121,896 $120,403 142,015 $78,113 $120,368 $133,276 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Energy Tech Environmental Tech Life Sciences IT

NC with PP US

Average Annual Earnings per Worker by Subsector, 2016

Tech Category North Carolina North Carolina (With Purchasing Power) National Average Tech Services $106,238 $116,490 $125,024 Tech Manufacturing $121,999 $133,772 $132,017 Total Tech $110,277 $120,919 $126,338

Average Annual Earnings per Worker by Subsector, 2016

Tech Category North Carolina North Carolina (With Purchasing Power) National Average Tech Services $106,238 $116,490 $125,024 Tech Manufacturing $121,999 $133,772 $132,017 Total Tech $110,277 $120,919 $126,338

$116,490 $133,722 $120,919 $125,024 $132,017 $126,338 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 $135,000 $140,000 High-Tech Services High-Tech Manufacturing Total Tech

NC with PP US

Average Annual Earnings per Worker by Subsector, 2016

Economic Impact of Technology Sector on State Economy, 2016

Impact Employees Earnings (Millions) Sales (Millions) Direct Impact 247,200 $25,400 $81,600 Multiplier 2.52 1.70 1.67 Indirect & Induced Impact 375,000 $17,900 $54,500 Total Impact 622,200 $43,300 $136,100

Economic Impact of Technology Sector on State Economy, 2016

Impact Employees Earnings (Millions) Sales (Millions) Direct Impact 247,200 $25,400 $81,600 Multiplier 2.52 1.70 1.67 Indirect & Induced Impact 375,000 $17,900 $54,500 Total Impact 622,200 $43,300 $136,100

9.7% 9.1% 8.4% 8.4% 8.0% 7.8% 7.5% 5.8% 5.1%

0% 2% 4% 6% 8% 10% 12%

NC Ranks: 26th Technology Sector Employment as a Percentage of Total Employment (2016)

Tech Sector Employment Growth, 2011-2016

7.7% 17.4%

• 30%
• 20%
• 10%

0% 10% 20% 30%

Wyoming West Virginia Kentucky Louisiana Arkansas Oklahoma Alaska Delaware New Mexico Kansas Vermont Mississippi Virginia Alabama New Jersey Rhode Island Connecticut North Dakota Maryland Iowa Pennsylvania Ohio Hawaii Montana South Dakota Texas Minnesota Indiana Nebraska Idaho United States Colorado New Hampshire Wisconsin Tennessee South Carolina District of Columbia Illinois Florida Arizona Oregon Maine New York Massachusetts California Washington Missouri Nevada Georgia North Carolina Utah Michigan

NC Ranks 3rd

Growing more than twice as fast as the national

MICHIGAN MICHIGAN

Top 10 Ranked 11 - 30 Ranked 31 - 50

Tech Sector Employment Growth, 2011- 2016

IT Sector Employment Growth, 2011-2016

13.5% 21.9%

• 20%
• 10%

0% 10% 20% 30% 40%

New Mexico Vermont Kansas Kentucky Iowa Oklahoma Rhode Island West Virginia Arkansas Alaska Delaware Maryland Ohio North Dakota South Dakota Virginia Alabama Minnesota New Jersey Mississippi Florida Hawaii Connecticut New Hampshire Montana District of Columbia Louisiana Pennsylvania Idaho Oregon Arizona Nebraska Colorado Indiana United States Massachusetts Illinois Wyoming South Carolina Texas Wisconsin Georgia Tennessee New York Maine Michigan North Carolina Missouri California Washington Nevada Utah

NC Ranks 6th

Long Term Technology Sector Trends (Percentage Change in Employment Post 2001)

• 20%
• 10%

0% 10% 20% 30% 40%

2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027

North Carolina United States American South

MICHIGAN MICHIGAN

Top 10 Ranked 11 - 30 Ranked 31 - 50

Expected Tech Sector Employment Growth 2017-2022

Technology Sector Employment Growth Rates (2011- 2016)

17.4% 6.4% 13.6% 12.4% 7.7% 12.8% 13.7% 2.7%

• 2.0%
• 10%

0% 10% 20% North Carolina Texas California New York Colorado Massachusetts Washington Maryland Virginia

21.9% 16.4% 23.3% 18.3% 12.8% 14.0% 24.6% 2.0%

• 2.0%
• 10%

0% 10% 20% North Carolina Texas California New York Colorado Massachusetts Washington Maryland Virginia Total Tech Sector IT Tech Sector

Average Annual Earnings for Tech Sector Employees, 2016 Adjusted for Purchasing Power

$120,919 $126,338

$0 $30,000 $60,000 $90,000 $120,000 $150,000

Hawaii South Dakota Maine Vermont Nebraska Utah Montana Arkansas Mississippi Florida Kentucky Wyoming Iowa Wisconsin West Virginia New Mexico Nevada Kansas South Carolina Rhode Island Idaho Ohio Tennessee New Hampshire Maryland Connecticut Michigan Missouri New York Indiana North Dakota Alabama Arizona Oklahoma Louisiana Delaware District of Columbia Minnesota Colorado Alaska Pennsylvania Georgia North Carolina Oregon Illinois Virginia United States New Jersey Texas Massachusetts Washington California

NC Ranks 9th

Tech Occupations in North Carolina 2016 Total Tech Occupation Jobs 289,936 Median Hourly Wage $37.45 2011-2016 Employment Change 16.5%

Top Four Tech Occupations

Business Operation Specialists 34,551 Software Developers, Applications 24,172 Computer User Support Specialists 21,892

11.9% 8.3% 7.9%

Computer Systems Analysts 22,903

7.6%

12.7% 30.7% 29.3% 21.5%

Employment Growth Rate, 2011-2016

Business Operation Specialist s Software Developers, Applications

Top Four Tech Occupations

Computer User Support Specialists $31.34 $45.72 $23.06 Compute r Systems Analysts $42.89

Median Hourly Wage, 2016

Top Industries Employing Tech Occupations

Tech Occupations by County in North Carolina

MICHIGAN MICHIGAN

Top 10 Ranked 11 - 30 Ranked 31 - 50

Tech Occupations Growth, 2011-2016

How Competitive Is North Carolina?

32.7% 36.5%

0% 10% 20% 30% 40% 50%

Wyoming West Virginia North Dakota Louisiana Alaska Idaho Oklahoma Kentucky New Mexico Utah Montana Texas Mississippi Ohio Oregon Vermont Arkansas Michigan Alabama Colorado Nevada Hawaii Arizona Kansas Pennsylvania South Carolina Washington United States Virginia Illinois New Hampshire Florida Delaware Iowa Tennessee South Dakota Maryland Rhode Island Maine Connecticut Indiana New York Massachusetts California Nebraska Missouri Georgia New Jersey Minnesota Wisconsin North Carolina District of Columbia

NC Ranks Percentage of Women Working in the Tech Industry

Higher Education R&D in Science & Engineering Fields Intensity

R&D As A Percentage of GDP (2016)

0.37% 0.55%

0.0% 0.5% 1.0%

Nevada Maine New Jersey South Dakota Idaho Arkansas Oklahoma Florida West Virginia Delaware Louisiana Minnesota Kentucky Virginia Wyoming Illinois South Carolina Oregon Texas Tennessee Kansas Washington Alaska California Ohio Utah Arizona Indiana Missouri United States Hawaii Mississippi Nebraska New Mexico Georgia District of Columbia Vermont New York Montana Colorado North Dakota Iowa Wisconsin Connecticut Alabama New Hampshire Michigan Pennsylvania North Carolina Rhode Island Massachusetts Maryland

NC Ranks

Technology Licenses and Options Executed From Universities (2016)

311

100 200 300 400 500 600

Wyoming Maine District of Columbia Alaska Vermont Nevada West Virginia Delaware Rhode Island South Dakota Hawaii Connecticut Mississippi Oklahoma South Carolina Kentucky Montana Idaho Nebraska Utah Arkansas Louisiana New Mexico Alabama Kansas Wisconsin New Jersey North Dakota Tennessee Colorado Iowa Virginia Missouri Illinois Arizona New Hampshire Georgia Ohio Indiana Maryland Michigan Oregon Minnesota North Carolina Texas Washington Pennsylvania Massachusetts Florida New York California

NC Ranks 8th

Start-Ups From Universities (2016)

37

40 80 120 160

Maine Wyoming West Virginia District of Columbia South Dakota New Hampshire Alaska North Dakota Montana Mississippi Nebraska Rhode Island Hawaii Nevada Idaho Connecticut Oklahoma Vermont New Jersey Kansas Arkansas Delaware South Carolina Tennessee Louisiana Missouri Alabama Kentucky Wisconsin New Mexico Oregon Colorado Virginia Georgia Iowa Utah Michigan Minnesota Arizona Ohio Washington Illinois Indiana North Carolina Florida Maryland Pennsylvania Texas Massachusetts New York California

NC Ranks

Venture Capital Funding Per $1 Million of GSP, 2011- 2016

$2,326 $17,157

$0 $30,000 $60,000 $90,000

South Carolina Hawaii Iowa Montana Arkansas Kansas Oregon Delaware Alabama New Hampshire Nevada North Dakota Vermont New Mexico South Dakota Kentucky Indiana Florida Ohio Louisiana North Carolina Georgia Texas Tennessee Missouri Maine Maryland Michigan Oklahoma Minnesota Pennsylvania Illinois Virginia Colorado New Jersey Utah Washington District of Columbia United States New York Connecticut California Massachusetts

NC Ranks 22nd

Flash Survey Results

• 88% of respondents believe that 2017 was a ‘good’ or ‘great’ year for the tech

sector in North Carolina, 20% higher than 2016.

• When asked about their own businesses, 30% of respondents said 2017 was a

‘great’ year (up from 20% in 2016) and almost half of respondents thought 2017 was a ‘good’ year for their company.

• All respondents expected their business to grow or stay the same in 2018. No

respondents believed their business would experience contraction in 2018.

Flash Survey Results

4.34 4.29 3.8 3.79 3.68 3.6 3.59 3.51

1 2 3 4 5

Higher Education Assets Quality of Life Business Climate Technology Workforce Cost of Doing Business Innovation Ecosystem Technology Infrastructure Entrepreneurial Support

Factors Impacting the Competitive Position of North Carolina

Flash Survey Results

4.34 4.29 3.8 3.79 3.68 3.6 3.59 3.51

4.28 4.37 3.67 3.81 3.48 3.63 3.74 3.59

1 2 3 4 5

Higher Education Assets Quality of Life Business Climate Technology Workforce Cost of Doing Business Innovation Ecosystem Technology Infrastructure Entrepreneurial Support

Factors Impacting the Competitive Position of North Carolina

Metric Value Rank IT Sector as a Percentage of Total Employment (2015) 3.1% 17 IT (Tech Core) Employment Growth (2011-2016) 21.9% 6 Expected IT Sector Employment Growth (2017-2022) 10.7% 5 Average Annual Wage for IT Sector Employees with Purchasing Power (2016) $120,403 10

Indicates a state ranking of 15th or higher Indicates a state ranking between 16th and 35th Indicates a state ranking greater than 36th

Overall North Carolina IT Sector Rankings

Metric Value Rank

Technology Sector Location Quotients (2016) 0.94 23 Technology Sector Employment Growth (2011-2016) 17.4% 3 Average Annual Wage for Technology Sector Employees with Purchasing Power (2016) $120,919 9 Percentage of Women in the Technology Workforce 36.5% 2 (1) Tech Industry Diversity Index 71.86 21

Overall North Carolina Tech Sector Rankings

Indicates a state ranking of 15th or higher Indicates a state ranking between 16th and 35th Indicates a state ranking greater than 36th

Metric Value Rank Percentage of Tech Occupations As a Total of All Occupations (2016) 6.8% 20 Tech Occupations Growth (2011-2016) 16.5% 6 Expected Tech Occupations Growth (2017-2022) 9.8% 7 Median Hourly Earnings Adjusted for Purchasing Power (2016) $41.07 5

Indicates a state ranking of 15th or higher Indicates a state ranking between 16th and 35th Indicates a state ranking greater than 36th

Overall North Carolina IT Sector Rankings

Metric Value Rank Total R&D As a Percentage of GSP (2014) 2.3% 19 Business Performed R&D as a Percentage of Private Industry Output (2014) 2.0% 16 Higher Education R&D in S&E Fields as a Percentage of GDP (2016) 0.55% 4 Patents Issued per 1,000 Science & Engineering Workers, 2015 17.8 19 Venture Capital Funding Per $1 Million of GDP (2011-2016) $2,326 22 Technology Licenses and Options Executed from Universities (2016) 311 8 Start-Ups from Universities (2015) 37 8 SBIR and STTR Funding Per $1 Million of GDP (2011-2016) $116 19 Average Number of New Entrepreneurs (2016) 0.34% 15 Small Business Opening Rate vs. Closing Rate (2015) 1.52% 17 Completed STEM Education Programs per 1,000 Enrolled Students (2016) 28.6 14 Percent Change in Tech & STEM Education Program Completions (2011-2016) 26.3% 22 Average In-State Tuition Cost (2017-2018) $7,385 8 State Spending Per Student for Higher Education (2017) $10,598 7

Strengths Weaknesses

• Strong employment growth across 1-year and 5-year

timeframes

• Competitive wages with high purchasing power
• High levels of academic R&D funding for science and

engineering

• Top 10 state in rate of technology transfer from universities
• Highest percentage of women in the industry workforce
• Cheaper operational costs than traditional tech markets
• Tech growth numbers have slowed slightly from previous

reports

• Venture capital funding for industry in the state is ranked below

average

• Private innovation not matching university innovation
• Average performance in business dynamism

Opportunities Threats

• NC predicted to be 2nd fastest growing tech state in the next

five years

• Sector has large multiplying effect on total state economy
• Potential to grow minority presence in industry
• Higher educational requirements to meet job demand may

result in a labor shortage

• Start-ups may lack adequate access to capital
• Competition between other emerging tech states
• Talent wars
• Political uncertainty

Coming Soon 2019