the network economy – trends in oregon oregon connections telecommunications conference 2013...
TRANSCRIPT
The Network Economy – Trends in Oregon
Oregon Connections Telecommunications Conference 2013October 24, 2013
Presented byMichael Meyers
Business Oregon
Presentation Overview
• Current economic trends in Oregon.
• The Network Economy & Oregon’s Key Industry Groups.
• The growth and impact of data centers in Oregon.
• The Network Economy & increasing Oregon exports.
Oregon Employment Trends – What’s Going On?
1.50
1.55
1.60
1.65
1.70
1.75
1.80
1.85
1.90
2008 2009 2010 2011 2012 2013
Tota
l Em
plo
yment
(mill
ions
)
Oregon Employment, 2008-2013(Seasonally Adjusted)
CES Employment
LAUS Employment
Source: Current Employment Statistics and Local Area Unemployment Statistics, Bureau of Labor Statistics
Oregon Job Growth Spread throughout Private Sector
-8,000 -4,000 0 4,000 8,000 12,000
Leisure and hospitality
Health care and social assistance
Professional and business services
Retail trade
Manufacturing
Other services
Construction
Wholesale Trade
Information
Mining and logging
State government
Educational services
Federal government
Transportation, warehousing, and utilities
Financial activities
Local government
Employment Change
Industry Employment Change, Year-Over-Year, Aug 2012-Aug 2013
Source: Current Employment Statistics, Oregon Employment Department
Employment & Wages of Oregon’s Key Industry Groups
$90,100
$46,826
$45,381
$103,550
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
0
20,000
40,000
60,000
80,000
100,000
120,000
High Technology Advanced Manufacturing
Forestry & Wood Products
Outdoor Gear & Activewear
Ave
rage A
nnual W
age, 2
011
Emplo
yment, 2
011
Business Oregon Key Industry Groups (excluding Clean Tech)
Portland Metro Rest of Oregon Oregon Avg Wage
Source: Business Oregon; Bureau of Labor Statistics, Quarterly Census of Employment and Wages.
The Network Economy & High Technology
Semiconductors & Electronics
57,436
Software & Information Technology
32,559
Bioscience, 10,821
0
20,000
40,000
60,000
80,000
100,000
120,000
High Technology
Emplo
yment, 2
012
High Technology Employment in Oregon
Source: Business Oregon; Bureau of Labor Statistics, Quarterly Census of Employment and Wages.
The Network Economy & High Technology
Software breakout
11,946
9,131
6,731
3,668
1,083
0 5,000 10,000 15,000
Computer Systems Design & Related Services
Software Publishers
Telecommunications
Data Processing, Hosting, & Related Services
Other Information Services
Employment, 2012
Software & Information Technology Employment in Oregon
Source: Bureau of Labor Statistics.
The Rise of Data Centers in Oregon
Why are data centers growing worldwide?– Increased cloud computing & storage.
Why are data centers opening in Oregon?– Affordable, accessible electricity– Affordable, accessible water– Mild climate– Telecommunications capacity– Business incentives– No sales tax
Data Center Employment in Oregon Growing Faster than Average
Employment trend chart, showing Oregon & U.S. indexed over past 10 years
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Emplo
ym
ent (A
ll In
dexe
d to O
regon D
ata
Pro
cess
ing,
2002
)
Data Processing Employment
Oregon Data Processing U.S. Data Processing
Oregon All Industries U.S. All Industries
Source: Bureau of Labor Statistics.
Data Center Employment Concentrating in Oregon
Chart showing Oregon data center LQ change over past 10 years
0.680.73
0.930.96
1.021.08
1.201.26 1.26
1.221.17
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Locatio
n Q
uotie
nt (
Emplo
yment, U
.S. b
ase
)
Oregon Data Processing Location Quotient
Source: Bureau of Labor Statistics.
Data Centers Found throughout Oregon
Map of Oregon showing data center employment by county
Sources: Bureau of Labor Statistics, The Oregonian.
Economic Impact of Data Centers
ECONorthwest’s 2012 report on Facebook’s operations showed an impact of:
• 55 direct jobs.• $3.3 million in total compensation @
$59,400 annually per worker.• $47,200 average wage.• 73 indirect jobs and 59 induced jobs, for
a total of 187 jobs created.• Jobs multiplier of 3.4.• $10.3 million in labor income from all
jobs.• $8.2 million in wages from all jobs.
The Network Economy & Increasing Oregon Exports
Business Oregon’s Global Strategies team helps Oregon businesses access global markets.
– Export promotion grants.• Grants can be used to help
Oregon businesses with website development and language translations.
For More Information Contact…
Michael MeyersEconomist
Business Oregon121 SW Salmon St, Suite 205
Portland, OR [email protected]
(503) 229-6179: office(503) 539-2915: cell
www.Oregon4Biz.com