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Utah high-tech industry surges as the sector takes center stage - Third highest percentage growth in nation

By Tom Harvey
The Salt Lake Tribune

The job growth rate in the high-tech industry in Utah has surged to the third-highest percentage in the country, according to a report being released today.
Utah's 6.4 percent rate trailed only New Mexico's 15.5 percent and South Caro- lina's 8.3 percent from 2005 to 2006, the latest figures available, according to the report by the American Electronics Association.
"Cyberstates 2008" points to the growing importance in Utah of electronics and information-technology companies that over the past few decades have greatly diversified the state's economy beyond its former dependence on natural resource-based companies, said Jack Brittain, vice president of technology venture development at the University of Utah.
"But what's happened in the last few years is we've really caught fire," Brittain said.
Utah also ranked 14th among states and the District of Columbia and Puerto Rico for the number of high-tech workers per 1,000 private-sector jobs, indicating that sector's importance to the state's economy.
"Utah has a very vibrant sector in terms of job growth. This is the third straight year you've seen growth," said Josh James, senior research manager for the American Electronics Association, a technology industry trade group.
California had the biggest number of high-tech jobs in 2006, followed by Texas, with Utah weighing in at 26th, or 45,377 workers. But California and Texas were first and second in the July 1, 2007, Census Bureau population estimates, while Utah was 34th. Comparing Utah's 26th ranking in high-tech jobs to its 34th spot by population again points to the sector's importance to the state.
Utah also ranks 26th in the number of companies (4,172) in that industry.
"If you convert it to a per-capita basis, then we're off the charts," said Richard Nelson, president and CEO of the Utah Technology Council, a technology industry trade group.
Utah's average high-tech wage in 2006 was $58,681, compared with $34,727 in the state's entire private business sector, or 69 percent more.
But other American Electronics Association figures were troubling for Utah, particularly in comparing wages nationwide.
The state ranked 37th in average high-tech wages, and wages actually dropped $1,035 from 2005 to 2006, or 1.73 percent, in numbers adjusted for inflation.
James said it appears the decline came in the software sector but he couldn't point to a reason why, speculating it might have something to do with the loss of stock options.
In general, though, the software sector is robust in Utah, James said, its 321 companies ranking 12th-highest in the study.
"It's actually a pretty big industry in Utah," he said.
Brittain and Nelson said the tech industry's health has helped Utah's economy continue to perform well, even as the national economy has gone into a skid.
But Nelson said the industry's strength also has led to a shortage of high-tech workers in Utah.
"Our critical need is attracting and holding sufficiently qualified talent to fill our wealth of available high-paying jobs," he said.
Brittain also said the state's robust economy creates challenges because of the rising cost of living and in managing growth.
"We don't want to turn into a gridlocked San Jose," he said. "The lifestyle has been ruined there."

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