TROY ? A new report released by Automation Alley shows Southeast Michigan has experienced job growth in three key technology segments, has experienced rising research and development expenditures, and concludes that despite recent declines in the auto sector, the region has become economically diverse enough to stand on its own.
?Despite hard times in the automotive industry, the technology industry in Southeast Michigan still plays a major role in driving the economy of the Automation Alley region forward,? said Ken Rogers, executive director, Automation Alley.
?In 2004, technology jobs accounted for more than 15 percent of all employment in Southeast Michigan and nearly 24 percent of the region?s total payroll,? Rogers said. ?It is clear that the diverse technology industry, encompassing more than 330,000 technology employees and approximately 8,100 technology establishments, will continue to contribute to the long-term sustainability of the region?s economy.?
According to the report, between 2003 and 2004 the life sciences sector experienced the largest employment increase at 2.9 percent, bringing total employment to 34,500 life science technology jobs in 2004. Average wages fell slightly from 2003 but remained the highest in the region?s technology industry at $87,174. Since 1998, the life sciences sector has increased employment by nearly 25 percent and wages by approximately 24 percent.
The majority of life sciences technology jobs in the Automation Alley region are in the high-wage, scientific research and development sector, which has average wages of more than $92,000. Geographically, Wayne County has the largest life science employment with more than 16,200 jobs, followed by Washtenaw, Oakland and Macomb Counties.
In addition to life sciences, two other sectors of the region?s technology economy also added jobs between 2003 and 2004, with the advanced manufacturing sector growing by more than one percent, and the chemical and material sector growing by 0.6 percent. This growth represents more than 400 new technology jobs. Sectors experiencing job losses during this time include advanced automotive, information technology and other industries.
The report also asserts that Automation Alley continues to bolster the region by ensuring the future workforce remains strong and through impressive research and development initiatives. Universities in Automation Alley saw growth in their science and engineering enrollment for the third consecutive year. Since 2001, enrollment has increased approximately 10 percent to 10,739 in 2003. Additionally, universities in the region continue to invest in the development of new technologies, with more than $1 billion spent on research and development. Overall, 73 percent of university research and development expenditures in Michigan came from the Automation Alley region.
Research and development expenditures are particularly high in the life sciences sector of the region?s technology economy, accounting for 60 percent of the total research and development spending by universities in Southeast Michigan. In 2003, more than $600 million were spent by universities on research and development in life sciences, with the University of Michigan and Wayne State University leading the way with $426 million and $170 million in expenditures respectively.
As determined in the inaugural report, the new study utilizes a rigorous definition of the technology industry based on research conducted by the U.S. Commerce Department, Anderson Economic Group and others. This definition identifies six specific technology sectors within Southeast Michigan; advanced automotive, advanced manufacturing, chemical and material, information technology, life sciences and other technologies.
?The people who reside in the Automation Alley region have always had the old-fashioned work ethic and resolute entrepreneurial ambitions needed to drive this economy forward,? said Patrick Anderson, principal and CEO, Anderson Economic Group. ?What this report shows is that the region also has the right mix of skilled workers, technological infrastructure and university support needed to lead Southeast Michigan into the ?new? economy; one that relies on technology to remain globally competitive.?
Data from the study takes a variety of factors into account, including employment, number of private businesses, payroll, demographics, socio-economics and quality of life.
You can view the entire report by clicking on AutomationAlley.Com
