Key Findings

The Technology Association of Georgia is pleased to present our sixth annual State of the Industry: Technology in Georgia Report. Our original goal, set by TAG’s Board of Directors, was to be a primary repository of technology information.  In doing so, we recognized the valuable resource we would provide to decision-makers as they explored opportunities to settle and/or grow their business in Georgia. As with last year, the 2012 report is made available in a web-based format, and will continue to be linked to TAG and sponsor websites, which collectively receive over a million unique visitors every year. Rather than remove past reports, previous years will be archived and will be accessible as needed. TAG’s State of the Industry Report has become an essential tool for technology industry’s decision-makers.  It is our hope that this new format will continue to benefit our ever-increasing readership.

As with our previous reports, we complemented the core report with primary research. More than 150 technology decision-makers responded to our TAG Technology Decision-Makers Survey, addressing key questions about their views and opinions regarding the quality and quantity of the state's technology-based talent pool, as well as their needs and plans to hire and/or expand and spend in 2012 and beyond.  The results provide an insightful and improved understanding of Georgia's technology labor force.

We continue to expand our “Where Georgia Leads” campaign, with the addition of two more industry maps: Logistics Technology and Mission Critical - Data Centers. These interactive tools showcase these six robust technology clusters in the state and afford those who review the report opportunity to learn more about Georgia companies leading the way in each sector.

The technology industry is a major part of Georgia's economy and vital to the state's future. We have many strengths and the potential to grow even stronger. Like all states, there is always room for improvement and TAG will continue to support the needs of our technology industry.  We hope that the information provided through the State of the Industry: Technology in Georgia Report will add to the ongoing work to solidify Georgia’s position as a top technology state.

 

Best Regards,

 

Tino Mantella, TAG President

Todd Bell, 2012 Chairman of the Board

John Yates, 2012 Chairman of the State of the Industry: Technology in Georgia report

 

Click on the headings below to reveal the supporting data. Click again to hide.

Technology is a significant contributor to Georgia’s economy

Georgia companies producing technology products and providing technology services generated an economic impact of $113.1 billion in total industry sales in 2011. The tech industry also contributed 17 percent to the state’s gross domestic product (GDP). According to the economic impact analysis, more than 612,000 additional jobs can be attributed to the spending emanating from the technology sector.

 

Georgia's producers of technology products and services have a profound impact on the state's economy.  The technology sector encompasses a wide array of businesses from software publishers and e-commerce providers to medical equipment companies and aerospace manufacturers.  Combined, these technology companies produce a total economic impact in the state of $113.1 billion.  This includes direct industry output (sales) of $59.8 billion, which is 17 percent of the state's Gross Domestic Product.  As this direct impact ripples through the state's economy another $23.8 billion in indirect impact is generated along with $29.5 billion in induced impacts. Georgia's technology sector directly employs more than 200,000 workers, but a total of 612,147 jobs in Georgia were dependent on the technology sector as the indirect and induced economic impacts are considered.

Technology employment opportunities in Georgia are growing

Georgia’s technology sector added nearly 6,000 jobs in 2011 to reach employment of 253,000 workers. More hiring is planned; a survey of Georgia’s technology decision makers found that 71% plan to increase hiring over the next year and 85% plan to increase hiring over the next five years.

 

Georgia's technology workforce rebounded strongly in 2011, adding 5,934 jobs. Georgia's technology workforce still remains below its peak established in 2008, but the rebound in 2011 indicates a shift in momentum following two years of steep declines.

Source: U.S Bureau of Labor Statistics

Plans for hiring within the state's technology sector remained strong for the second year in a row, according to respondents in the Technology Decision-Maker survey. Over the next 12 months, 71.3  percent of survey respondents said the size of their technology workforce in Georgia will increase. Over the next 5 years, 84.7 percent of survey respondents said the size of their technology workforce in Georgia will increase.

Source: Technology Decision-Maker Survey, TAG - 2011

Note:  Pie charts do not equal 100 percent because 2% did not respond to this survey question


 

Georgia’s technology jobs pay more than the average non-technology job

Workers in Georgia’s technology sector earned wages, on average, of more than $81,000 in 2011. This is nearly 85% more than was earned by the average Georgia worker. Technology salaries are rising; 63% of Georgia’s technology decision makers expect wages to increase again this year, according to our survey. The direct payroll for technology employees was more than $20.5 billion in 2011.

 

Georgia's technology jobs are among the highest paying of any sector in the economy.  Although average annual wages for technology jobs have declined from the peak set in 2007, the average rebounded in 2011 and is back above $81,000.

Source:  U.S. Bureau of Labor Statistics

 

 

Georgia's total annual technology payroll rebounded in 2011 to $20.56 billion. Prior to the rebound last year, it had declined each year since establishing a peak in 2007. The rebound in payroll reflects the compound effect of an increasing number of technology workers hired and an increase in the amount of average wages paid. The total technology payroll represents a significant economic contributor to Georgia's overall economy as reflected by the sector's overall economic impact in the state.

Source:  U.S. Bureau of Labor Statistics

 

Georgia needs more technology talent to meet the growing demand

Georgia companies currently have more than 4,000 open technology jobs. 57% of respondents to the Georgia Technology Decision Makers survey said they currently have technology position openings and about one-third said they have difficulty filling these open positions due to a lack of technology talent. According to the survey, the most critical positions– such as systems administrators and application developers – are also the most difficult positions to fill.

 

 

 

Most open technology positions in Georgia are filled in less than three months, according to the respondents of the Technology Decision-Maker survey. This data showed that 36 percent of respondents said openings were filled in less than three months, but 18 percent said positions remained open for four to six months. Also, 31.3 percent of the respondents said they had difficulty filling open technology positions due to a lack of technology talent. A variety of application developer types were mentioned as the positions were Georgia lacks talent including Java developers and .Net developers.

Source: Technology Decision-Maker Survey, TAG - 2011

 

 

Technology Decision-Makers responding to the 2011 survey were aligned in assessing that technology positions most critical to their operations in Georgia were also among the most difficult technology positions to fill. Although not ranked in the same order, the top four responses in both categories were essentially the same. Not until the fifth spot was there a variation. Business intelligence analysts were rated as the fifth most critical position, while engineers were in the fifth-most mentioned category of technology worker that was difficult to fill.

Source: Technology Decision-Maker Survey, TAG - 2011

 

 

 

 

Technology is a significant portion of Georgia’s exports

Technology now accounts for more than one-third of Georgia’s total exports. Tech exports surged 13.5% in the most recent data to reach $9.9 billion in 2011.

According to preliminary export data released by the Georgia Department of Economic Development, the state exported $34.7 billion of commodities in 2010.  Four of the state's top 10 export categories were technology-related according to this data: aircraft/spacecraft, electrical machinery, optical/medical instruments, and plastics. Together these four categories accounted for nearly 32 percent of the state's total exports.  Other charts in this section report on export data compiled using the most recent final data from the U.S. Census Bureau.  The most recent final data available is for 2010.

Source: Georgia Department of Economic Development

 

 

Technology exports accounted for 34.3 percent of all of Georgia's exports in 2010, according to the Technology Association of Georgia's analysis of U.S. Census Bureau data.  Georgia's technology exports amounted to $9.9 billion out of a total export pie of $28.9 billion.  Technology made up a larger portion of the state's exports than the country overall. Technology's share of total U.S. exports was 30.4 percent.

Source: U.S. Census Bureau

 

 

Georgia's technology exports surged 13.5 percent from 2009 to 2010. In current dollars, this means the state's technology exports grew by more than $1 billion, increasing from $8.8 billion in 2009 to $9.9 billion in 2010.

Source: U.S. Census Bureau

 

 

 

 

 

 

Mobile and wireless projects are a key piece of the 2012 strategy for Georgia technology companies

Echoing the national trend, Georgia’s technology decision makers reported their most important technology initiatives for 2012 are mobile/ wireless projects.

Based on an aggregate ranking of responses in the Technology Decision-Maker Survey for 2011, there was a shifting in priorities regarding important technology initiatives from the previous year. Mobile/Wireless displaced security at the most important technology initiative. Training and certification appeared in the 2011 list at number 3, which replaced web 2.0 and social media initiatives (number 5 on last year's ranking).

Source: Technology Decision-Maker Surveys, TAG 2010 and 2011

 

 

 

Georgia’s venture capital market continues to lag behind key benchmark states

Georgia’s share of the venture capital market has slowly eroded since the technology bubble, according to a 13-year analysis of data, which places the state in jeopardy of consistently falling behind key benchmark states North Carolina and Florida.

Georgia's venture capital market continues to lag behind key benchmark states. California has long-dominated the venture capital market, but it has solidified its position in recent years and its companies now receive more than half of all venture capital placed. Georgia's share of the venture capital market has slowly eroded since the technology bubble, according to a 13-year analysis of data, which places the state in jeopardy of consistently falling behind key regional benchmark states North Carolina and Florida.

Source:  market share calculations based on data from the PricewaterhouseCoopers MoneyTree Report

 

 

 

Georgia must continue efforts to improve STEM education

Georgia's class of 2011 performed below the national average in 8 of 11 Advanced Placement exams offered in STEM-related subjects, according to the College Board.  Georgia students also performed below the national average on the math portion of the SAT, placing the state 49th overall in math SAT performance.

Georgia's class of 2011 performed below the national average in 8 of the 11 STEM-related AP exams.  Based on the percentage of students earning a 3 or higher, Georgia outperformed the national average only in Physics C: Mechanics; Physics C: Electricity and Magnetism and Calculus BC.

Source: College Board

 

 

Georgia is among the lowest performing states in the overall country with Math SAT scores in 2010. Despite improving scores by 13 points from the 1996 benchmark year, the performance by students on the Math portion of the SAT kept Georgia in 49th place.

Source: U.S. Department of Education

 

 

 

 

 

 

 

 

 

The importance of technology to the state’s economy suggests the need for a comprehensive state technology policy

An analysis by Georgia Tech found that Georgia trailed the national average in six of seven categories of science, technology and innovation legislation in 2010. Georgia ranked 28th overall in the number of such bills introduced for consideration.

In researching Georgia legislative typology as it relates to science, technology and innovation, GTRI's Office of Policy Analysis and Research found that 33 bills were introduced during the state legislature's 2011 session. The chart below tracks the legislative purpose of those bills as a percentage of the overall legislation introduced.  Of the 33 bills introduced, just five were passed, for an enactment rate of 16 percent. Nine bills contained the keyword "broadband," which was the most frequently used keyword in association with science, technology or innovation legislation.

Source: Georgia Tech Research Institute, Office of Policy Analysis and Research

 

 

The importance of technology to the state's economy suggests the need for a comprehensive state technology policy. An analysis by Georgia Tech found that Georgia trailed the national average in six of seven categories of science, technology and innovation legislation in 2010. Georgia ranked 28th overall in the number of such bills introduced for consideration.

Source: Georgia Tech Research Institute, Office of Policy Analysis and Research

 

 

 

Business satisfaction in Georgia is improving

Overall satisfaction with conducting technology business in Georgia increased 10% in 2011, according to a survey of technology decision makers in the state.  The satisfaction index, based on a 1-10 scale, improved to 7.5 from 6.8. Although the satisfaction ranking improved, the score remains in the range that indicates improvements still need to be made.

The respondents to the technology decision-makers survey were asked to rate their overall satisfaction with the climate for technology related business in the state of Georgia. On a scale of 1 to 10, where 10 means "completely satisfied" and 1 means "completely dissatisfied," the respondents in the 2011 survey rated Georgia a 7.48. This represents a significant improvement from the 6.79 rating in the 2010 survey. Nevertheless, in the algorithmic scale presented, this rating indicates the state has yet to differentiate itself as a technology location and remains at risk of losing technology-based businesses to states deemed more competitive.

Source: Technology Decision-Maker Survey, TAG - 2011