Economic Impact SummaryMay 8, 2013

Methodology

2

Technology sector definition from TechAmerica Foundation’s annual Cyberstates report

52 industries—manufacturing, communications, software, engineering & tech services (R&D)

Adapted for Austin by including Computer and Computer Peripheral Equipment and Software Merchant Wholesalers (Dell, IBM, etc.)

Overview (2012)

3

Austin TechShar

e

GRP$97

billion$21

billion 21%

Employment1,142,39

6 105,667 9%Establishments 44,623 3,787 9%Source: Civic Analytics LLC, EMSITech Jobs Multiplier: 3.5

Austin’s Economic DriversEstimated Value Added , 2012 ($B)

4

Source: Civic Analytics LLC, EMSI

Lessors of Residential Properties

Offices of Lawyers

General Medical & Surgical Hospitals

Offices of Physicians

Custom Computer Programming

Engineering Services

Crude Petroleum & Natural Gas Extraction

Semiconductor & Related Device Manuf

Electronic Computer Manufacturing

CPE & Software Merchant Wholesalers

$0 $1 $2 $3 $4 $5 $6

$1.41

$1.47

$1.50

$1.62

$1.63

$1.82

$2.68

$2.81

$2.93

$4.88

Tech

Silicon Hills: Rebranding Time?Share of Total Employment in Tech Sector (2012)

5

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012-10%

0%

10%

20%

30%

40%

50%

60%

70%

16%

20%

40%

24%

44%

56%

Manufacturing

Dell cate-gory

Services

Source: Civic Analytics LLC, EMSI

Jobs: Software/Systems Design Driving GrowthChange in Total Employment, 2001-2012

6

Source: Civic Analytics LLC, EMSI

Compu

ter S

yste

ms D

esig

n

Engi

neer

ing

Serv

ices

CPE &

Sof

twar

e W

hole

sale

rs

Mea

surin

g & C

ontro

l Ins

trum

ents

Comm

unicat

ions

Equ

ipm

ent

Elec

troni

c Com

pone

nts

Compu

ter &

Per

iphe

ral E

quip

men

t

Sem

icon

duct

ors

-10,000

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

7,737

5,1954,253

767

-1,981 -2,322

-6,615

-7,867

Manufacturing

Services

Key Takeaways

7

Austin is maintaining competitive advantage in traditional strengths and developing new areas of specialization that will drive future growth

Austin economy has diversified but tech is still fuel for wealth creation—e.g., annual earnings estimated to be > 4x City of Austin budget

Talent availability is biggest challenge—Austin expected to have 2,400 openings for software developers 2012-17 and < 25% could be filled with regional graduates at current rate

Source: Civic Analytics LLC, EMSI, National Center for Education Statistics