Technology sector growing in Utah, trade association says

SALT LAKE CITY — Despite the state experiencing one of the worst economic slumps in decades, Utah's technology industry has managed to prosper, according to information released Tuesday by the industry's trade association.

The Utah Technology Council said companies involved in the technology and life sciences sectors are continuing to grow at a rate higher than the national average.

Data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages show the number of technology and life science establishments in Utah grew from 5,628 to 5,816 from 2007 to 2008 — up 3.34 percent, said Richard Nelson, UTC president and chief executive officer.

"Utah is one of the healthiest states in the U.S. economy," he told the Deseret News.

The growth places Utah third among the neighboring states of Oregon, Colorado, Arizona, Washington and California. By comparison, the U.S. growth rate was 3.11 percent, Nelson said.

Utah's technology employee base grew from 74,420 to 76,027, an increase of 2.16 percent, compared to a U.S. growth rate of 1.71 percent, he said.

Utah's number of technology establishments and technology jobs per capita was nearly 40 percent higher than the U.S. average and almost 25 percent higher than the U.S. total for tech employment per capita, Nelson said.

The state's average annual wage for IT and life science employees also grew during this period, from $57,784 to $60,865.

"Our companies are paying more to attract and keep talent," Nelson said.

It's a trend that will likely continue, he said, and more jobs are anticipated.

Based on a recent industry survey, UTC estimates there are at least 1,000 engineering and computer science job openings in Utah.

With 50 companies identifying 730 job openings in the next 12 months, UTC projects there will be more than an additional 1,000 job openings in 2010.

Utah's technology industries continue to play a growing role in the state's economic foundation, he said.

"Total IT/LS industry wages in Utah grew from 9.37 percent to 9.82 percent of the state's wages from 2007 to 2008," he said in a release. "Despite the hard economy, the number of technology jobs, of technology companies, wages and the percentage of our state's total wages has grown."

Meanwhile, Utah exported more than $1.2 billion in computer and electronic products last year, as well as $450 million in medical-device products. That production has helped get the state recognized as a regional leader in the high-tech, life sciences and clean technology sectors, Nelson said.

"Our competitive standing among the surrounding states has risen, as well," he said.

"Times are still difficult, but our tech industries give Utah much to be optimistic about."

e-mail: jlee@desnews.com