Year Year Good Year Old School Flash Survey What Kind of Year was - - PowerPoint PPT Presentation

Old School Flash Survey

What Kind of Year was 2018 for NC’s Tech Sector?

Great Year Good Year Not a Good Year

Old School Flash Survey

What Kind of Year was 2018 for Your Organization?

Great Year Good Year Not a Good Year

Old School Flash Survey

In 2019 I Expect Our Organization To…?

Grow Stay the Same Reduce Employment

Old School Flash Survey

Today, My Biggest Issue To Growth is….

More Customers Finding Workers Taxes Regulation Other

USA Nonfarm Payroll Employment

• 200
• 100

100 200 300 400 500 600

2010-Jan March May July Sept Nov 2011-Jan March May July Sept Nov 2012-Jan March May July Sept Nov 2013-Jan March May July Sept Nov 2014-Jan March May July Sept Nov 2015-Jan March May July Sept Nov 2016-Jan March May July Sept Nov 2017-Jan March May July Sept Nov 2018 -Jan March May July Sept Nov

99 Straight Months of Employment Growth-Since September 2010, the Longest Continuous Private Job Growth in Our History

Source: US Bureau of Labor Statistics

North Carolina Payroll Employment

• 7
• 6
• 5
• 4
• 3
• 2
• 1

1 2 3 4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YoY % Chg U.S. North Carolina

November 2018 US: 1.7% NC: 2.3%

Source: Bureau of Labor Statistics/Haver Analytics Source: Bureau of Labor Statistics/Haver Analytics

Source: Bureau of Labor Statistics

North Carolina’s Unemployment Rate January 2008 - December 2018

13 13 12

2 4 6 8 10 12 14

One Year Five Year Ten Year

North Carolina Rank

Neighbor’s Rank

1 Year 5 Year 10 Year SC 10 11 11 TN 14 14 18 VA 19 28 26 GA 9 9 17 FL 7 3 2

% Job Growth By State Rankings

10 13 17

2 4 6 8 10 12 14 16 18

One Year Five Year Ten Year

North Carolina Rank

Neighbors Rank

1 Year 5 Year 10 Year SC 17 18 21 TN 24 31 23 VA 21 40 34 GA 29 17 29 FL 22 25 8

% Wage Growth By State Rankings

14 15 22

5 10 15 20 25

One Year Five Year Ten Year

North Carolina Rank

Neighbors Rank

1 Year 5 Year 10 Year SC 16 9 18 TN 13 11 11 VA 19 38 31 GA 8 8 25 FL 17 7 39

% GDP Growth By State Rankings

Employment Gains By Sector for the United States and NC

Source: US Bureau of Labor Statistics

0.2% 1.7% 2.0% 2.7% 1.4% 1.1% 2.3% 4.0% 1.7%

0.5% 1.8% 2.3% 3.7% 3.7% 3.1% 1.4% 3.4% 2.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

Government Leisure & Hospitality Education & Health Services Professional & Technical Services Financial Trade, Transport & Utilities Manufacturing Construction Total

North Carolina USA November 2017-2018

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: US Bureau of Labor Statistics QCEW

5 Year Job Growth 2012-2017 North Carolina Average 10.8%

Technology Data

• 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

Employee s

254,230

Establishment s

19,371 Tech Industry in North Carolina - 2017

5.9% 7.0%

Percentage of Total North Carolina Economy

Wages

$26,557,000

11.1%

7.1% 13.8% 20.5% 17.4% 17.2% 2.2% 8.9% 11.0% 7.7% 6.7%

0% 5% 10% 15% 20% 25% 2008-2013 2009-2014 2010-2015 2011-2016 2012-2017

North Carolina United ฀tates

5-Year Growth ฀ates for North Carolinas ฀otal ฀eh ฀etor 2012-2017

Total Tech Sector Growth Rate 2017 2.8% 1.4%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% North Carolina United States

16,400 17,230 18,220 18,870 19,371

2013 2014 2015 2016 2017

North Carolina Total Tech Establishments, 2013-2017

2,971 New Tech Establishments Over the Past 5 Years

Energy Tech

13,205

Environmental Tech

23,158

Makeup of Tech Industry

Life Sciences

80,409 5% 9% 32%

Percentage of Total North Carolina Tech Sector

IT 137,458 54%

North Carolina’s Technology Industry by Sub-Categories 2017

Tech Category Employment 2017 t 2017 Change 2016-2017 Change 2012- 2012-2017 Establishments 2017 s 2017 Energy Tech 13,205 0.0% 12.3% 383 Environmental Tech 23,158 1.8% 17.0% 1,522 Life Sciences 80,409 4.1% 12.0% 4,681 IT 137,458 2.6% 21.1% 12,785

North Carolina’s Technology Industry by Sub-Categories 2017

Tech Category Employment 2017 t 2017 Change 2016-2017 Change 2012- 2012-2017 Establishments 2017 s 2017 Energy Tech 13,205 0.0% 12.3% 383 Environmental Tech 23,158 1.8% 17.0% 1,522 Life Sciences 80,409 4.1% 12.0% 4,681 IT 137,458 2.6% 21.1% 12,785

North Carolina’s Technology Industry by Sub-Categories 2017

Tech Category Employment 2017 t 2017 Change 2016-2017 Change 2012- 2012-2017 Establishments 2017 s 2017 Energy Tech 13,205 0.0% 12.3% 383 Environmental Tech 23,158 1.8% 17.0% 1,522 Life Sciences 80,409 4.1% 12.0% 4,681 IT 137,458 2.6% 21.1% 12,785

4.1% 4.4% 8.6% 9.6% 12.0% 9.9% 17.7% 25.5% 21.4% 17.0% 9.3% 20.0% 28.4% 22.0% 21.1% 0.6% 8.8% 15.7% 14.5% 12.3%

0% 5% 10% 15% 20% 25% 30% 2008-2013 2009-2014 2010-2015 2011-2016 2012-2017

Life ฀iene s

฀nergy ฀eh

฀nviro ฀eh

I฀

North Carolina ฀eh ฀ub- ฀etor 5-Year Growth ฀rends 2008-2017

North Carolina’s Technology Industry by Sub-Categories 2016

Tech Category Category Employment, t, 2017 Change, 2016-2017 Change 2012- 2012-2017 Establishments s 2017 Tech Services Services 190,373 3.5% 24.6% 18,608 Tech Manufacturing g 63,857 0.9%

• 0.3%

763 Total Tech 254,230 2.8% 17.2% 19,371

12.6% 21.4% 28.0% 24.5% 24.6%

• 4.1%
• 2.1%

4.2% 0.7%

• 0.3%
• 10%

0% 10% 20% 30% 40% 2008-2013 2009-2014 2010-2015 2011-2016 2012-2017

฀eh Manufaturing ฀eh ฀ervies

North Carolina ฀eh ฀ervies vs. Manufaturing 5-Year Growth ฀rends 2008-2017

Tech Industry Jobs by County in North Carolina

Average Annual Earnings per Worker by Subsector, 2017

Tech Category North Carolina North Carolina (With Purchasing Purchasing Power) Power) National Average Energy Tech $130,200 $143,200 $147,200 Environmental Tech $96,600 $106,200 $78,900 Life Sciences $113,900 $125,300 $124,000 IT $112,000 $123,200 $138,500

Average Annual Earnings per Worker by Subsector, 2017

Tech Category North Carolina North Carolina (With Purchasing Purchasing Power) Power) National Average Energy Tech $130,200 $143,200 $147,200 Environmental Tech $96,600 $106,200 $78,900 Life Sciences $113,900 $125,300 $124,000 IT $112,000 $123,200 $138,500

Average Annual Earnings per Worker by Subsector, 2017

$143,200 $106,200 $125,300 $123,200 $147,200 $78,900 $124,000 $138,500 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000

Energy Tech Environmental Tech Life Sciences IT

NC with PP US

Average Annual Earnings per Worker by Subsector, 2017

Tech Category North Carolina North Carolina (With Purchasing Power) Power) National Average Tech Services $107,800 $118,600 $129,300 Tech Manufacturing $125,100 $137,600 $137,300 Total Tech $112,100 $123,400 $130,800

Average Annual Earnings per Worker by Subsector, 2017

Tech Category North Carolina North Carolina (With Purchasing Power) Power) National Average Tech Services $107,800 $118,600 $129,300 Tech Manufacturing $125,100 $137,600 $137,300 Total Tech $112,100 $123,400 $130,800

Average Annual Earnings for Tech Sector Employees, 2017 Adjusted for Purchasing Power

$123400 $130765

$0 $40,000 $80,000 $120,000 $160,000

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

NC Ranks 13th

1.8% 2.7%

• 1.3%

1.2% 2.0% 3.7%

• 0.1%

1.7%

• 2%
• 1%

0% 1% 2% 3% 4% 5% 2013-2014 2014-2015 2015-2016 2016-2017

North Carolina United ฀tates

฀otal ฀eh 1-Year ฀arnings Growth Inflation and Purhasing Power Adjusted 2013-2017

Economic Impact of Technology Sector on State Economy, 2017

Impact Employees Earnings (Millions) (Millions) Sales (Millions) (Millions) Direct Impact 254,230 $26,600 $86,300 Multiplier 3.24 1.99 1.90 Indirect & Induced Impact 569,300 $26,400 $78,000 Total Impact 823,530 $52,957 $164,272

Economic Impact of Technology Sector on State Economy, 2017

Impact Employees Earnings (Millions) (Millions) Sales (Millions) (Millions) Direct Impact 254,230 $26,600 $86,300 Multiplier 3.24 1.99 1.90 Indirect & Induced Impact 569,300 $26,400 $78,000 Total Impact 823,530 $53,000 $164,300

Tech Sector Contribution to State Economy, 2017

Direct Impact 254,200 Jobs 6% Indirect & Induced Impact 569,300 Jobs 13% Remaining Economy 3,507,000 Jobs 81% Direct Impact $26,600M wages 11% Indirect & Induced Impact $26,400M wages 11% Remaining Economy $187,000M wages 78%

19% of Jobs 22% of Wages

Technology Sector Employment as a Percentage of Total Employment (2017)

9.9% 9.2% 8.4% 8.4% 8.1% 7.9% 7.5% 5.9% 5.1%

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

Massachusetts Colorado California Virginia Maryland Washington Texas North Carolina New York

NC Ranks: 20th

0.88 0.89 0.91 0.94 0.95

0.00 0.20 0.40 0.60 0.80 1.00 1.20 2013 2014 2015 2016 2017

Location Quotient of North Carolina’s Total Tech Sector

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

60 80 100 120 140 160

2001 2004 2007 2010 2013 2016 2019 2022 2025 2028

American South United States North Carolina

Tech Sector Employment Growth, 2012-2017

6.7% 17.2%

• 30%
• 20%
• 10%

0% 10% 20% 30% Wyoming West Virginia Alaska North Dakota Louisiana Kentucky Oklahoma Arkansas Delaware Kansas Vermont Rhode Island New Mexico Mississippi Montana New Jersey Virginia Connecticut Alabama Texas Hawaii Pennsylvania Iowa Maryland Indiana Illinois Ohio Minnesota United States Nebraska Wisconsin Colorado South Dakota Maine Tennessee Idaho Arizona District of Columbia New York California Missouri Oregon South Carolina Massachusetts Georgia Michigan Florida New Hampshire Utah North Carolina Washington Nevada

NC Ranks 3rd

Growing more than twice as fast as the National average

Top 10 Ranked 11 - 40 Ranked 41 - 50

Tech Sector Employment Growth, 2012-2017

Technology Sector Employment Growth Rates (2012-2017)

17.2% 1.1% 11.8% 11.5% 8.4% 13.4% 17.4% 4.1%

• 0.3%
• 10%

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

21.1% 15.0% 24.4% 16.9% 14.4% 11.7% 27.0% 4.2% 3.9%

• 10%

0% 10% 20% 30% North Carolina Texas California New York Colorado Massachusetts Washington Maryland Virginia Total Tech Sector IT Tech Sector

IT Sector Employment Growth, 2012-2017

13.6% 21.1%

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% New Mexico Rhode Island Kansas Vermont Arkansas Kentucky Oklahoma Alaska Iowa Delaware North Dakota New Jersey West Virginia Mississippi Alabama Connecticut Virginia Maryland Minnesota Hawaii South Dakota Indiana Wyoming Pennsylvania Ohio Maine Montana Illinois Massachusetts Oregon Idaho Arizona Florida United States Georgia Nebraska Colorado Wisconsin Texas Tennessee Louisiana District of Columbia Missouri Michigan New York New Hampshire North Carolina South Carolina California Washington Utah Nevada

NC Ranks 6th

Top 10 Ranked 11 - 40 Ranked 41 - 50

Expected Tech Sector Employment Growth 2018-2023

Tech Occupations in North Carolina 2017 Total Tech Occupation Jobs 299,518 Median Hourly Wage $38.58 2012-2017 Employment Change 21.6%

Staffing Patterns of Tech Industries & Tech Occupations, 2017 Tech Industry Jobs

254,230

Tech Occupation Jobs

299,518

37% of tech

• ccupation jobs are

employed in tech industries.

Top Four Tech Occupations

Business Operation Specialists 32,003 Software Developers, Applications 24,712 Computer User Support Specialists 21,743

10.7% 8.9% 8.4%

Computer Systems Analysts 25,141

7.3%

12.4% 56.2% 32.8% 25.5%

Employment Growth Rate, 2012-2017 $32.49 $46.93 $42.96 $23.56

Top 10 Ranked 11 - 30 Ranked 31 - 50

Tech Occupations Growth, 2012-2017

Tech Occupations by County in North Carolina

How Competitive Is North Carolina?

Winning the Race

Percentage of Women Working in the Tech Industry

31.7% 35.6%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

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

NC Ranks #1 State

Higher Education R&D in Science & Engineering Fields Intensity

R&D As A Percentage of GDP (2016)

0.36% 0.55%

0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00%

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

NC Ranks 3rd

Technology Licenses and Options Executed From Universities (2017)

380

100 200 300 400 500 600

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

NC Ranks 8th

Start-Ups From Universities (2017)

41

20 40 60 80 100 120 140

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

NC Ranks 6th

Venture Capital Funding Per $1 Million of GSP, 2012-2017

$1611 $3745

$0 $5,000 $10,000 $15,000

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

NC Ranks 15th

Metric Value Rank IT Sector as a Percentage of Total Employment (2017) 3.2% 16 IT (Tech Core) Employment Growth (2012-2017) 21.1% 6 Expected IT Sector Employment Growth (2018-2023) 11.0% 8 Average Annual Wage for IT Sector Employees with Purchasing Power (2017) $123,206 12

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 (2017) 0.95 20 Technology Sector Employment Growth (2012-2017) 17.2% 3 Average Annual Wage for Technology Sector Employees with Purchasing Power (2017) $123,362 13 Percentage of Women in the Technology Workforce 35.6% 2 (1) Tech Industry Diversity Index 79.2 22

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 (2017) 6.9% 20 Tech Occupations Growth (2012-2017) 21.6% 6 Expected Tech Occupations Growth (2018-2023) 11.2% 5 Median Hourly Earnings Adjusted for Purchasing Power (2017) $42.45 4

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 Tech Occupations Rankings

Metric Value Rank Total R&D As a Percentage of GSP (2015)

2.4% 19

Business Performed R&D as a Percentage of Private Industry Output (2015)

2.0% 16

Higher Education R&D in S&E Fields as a Percentage of GDP (2016)

0.55% 3

Patents Issued per 1,000 Science & Engineering Workers (2016)

17.8 18

Venture Capital Funding Per $1 Million of GDP (2012-2017)

$1,611 15

Technology Licenses and Options Executed from Universities (2017)

380 8

Start-Ups from Universities (2017)

41 6

SBIR and STTR Funding Per $1 Million of GDP (2012-2017)

$132 17

Small Business Opening Rate vs. Closing Rate (2016)

2.1% 13

Change in Employment by Young Companies (2014-2016)

13.1% 6

Completed STEM Education Programs per 1,000 Enrolled Students (2017)

30.7 16

Percent Change in Tech & STEM Education Program Completions (2012-2017)

32% 16

Average In-State Tuition Cost (2018-2019)

$7,220 6

State Spending Per Student for Higher Education (2018)

$10,541 8

“Sir, the possibility of successfully navigating an asteroid field is approximately 3,720 to1.” (C-3PO to Han Solo in Star Wars)

The Intersection of Trends is Where the Future is Reimagined

NC Remains One

• f the Best

Technology States in the Country, and Looking Ahead…The Future Should Be Even Better