Technology Industry Impact Report shows sector growth in Q1 2020

by Don Rodriguez

Employment growth in the technology sector along with wages totaling more than $20 billion are just a few examples of the good news highlighted in the latest quarterly Arizona Technology Industry Impact Report released by the Arizona Technology Council.

Specifically, data from the Q1 2020 report revealed a steady 3.45% growth in technology sector employment, with the wages exceeding $20.9 billion. Also, a Supply Chain Gap Analysis added to the report showed 76% of Arizona’s technology industry supply chain purchases — a $4.5 billion value — are sourced in-region. 

“Our Q1 2020 industry report shows that Arizona’s technology industry continues to grow steadily,” says Steven G. Zylstra, the Council’s president and CEO. “While we do anticipate a downturn due to the disruptions caused by the COVID-19 pandemic, our technology sector has become well-diversified, which will allow us to recover quickly.”

One of the most encouraging findings in the Q1 2020 report is that 29% of science, technology, engineering and math (STEM) graduates are staying in Arizona to work. This is attributed to:

  • 9,563 technology companies operating in Arizona
  • More than 197,000 total technology jobs
  • A 5.42% rise in technology wages over the past year
  • Average annual industry wages of $86,303 — 1.1 times the national average

Additional findings of the Q1 2020 report include:

  • The Arizona technology industry had a 3.74% job growth over the past year.
  • The state boasted two of its strongest years for venture capital investment — $944 million in 2018 and $864 million in 2019.
  • The state received more than $38 million in total tax contributions from Arizona technology firms.

The Council offers its quarterly Technology Industry Impact Report to provide its members, partners, leadership and the community at-large with an update on economic development related to the state’s technology sector. The quarterly report based on an analysis of data from a variety of sources is compiled by eImpact, an organization that creates web-based, data-reporting solutions designed to help cities, industries and planners drive effective policy, create new growth and engage stakeholders. 

Download or view the complete report on the Arizona Technology Council website at www.aztechcouncil.org/q1-2020_tech-report

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