Automation Alley 2006 Technology Industry Report
Transcription
Automation Alley 2006 Technology Industry Report
October 18, 2006 Automation Alley’s Second Annual Technology Industry Report: Driving Southeast Michigan Forward Prepared by: Scott D. Watkins, Consultant Caroline M. Sallee, Senior Analyst Foreword by: Patrick L. Anderson, Principal and CEO Anderson Economic Group, LLC 1555 Watertower Place, Suite 100 East Lansing, Michigan 48823 Tel: (517) 333-6984 Fax: (517) 333-7058 http://www.AndersonEconomicGroup.com © 2006, Anderson Economic Group, LLC Permissions for reuse granted given proper citations provided Foreword Foreword Amidst the depressing news about the domestic automobile industry in 2006, it would be easy to arrive at the conclusion that Southeast Michigan is doomed to a slow decline, a victim of the “rust belt” syndrome that had persisted since the 1980s. As this report documents, that would be a major mistake. Automation Alley is home to a diverse technology industry, one with high-paying jobs and opportunities that would excite even Henry Ford. Hidden by the recent news of high unemployment, layoffs, and plant closings is a significant and viable technology industry, one with above-average wages, high-skilled and high-knowledge jobs, groundbreaking discoveries, and investments by firms from around the world. This report, the Second Annual Technology Industry Report, commissioned by Automation Alley, provides hard evidence of the tremendous economic strength and the technological vitality within Automation Alley. It documents the size and scope of Automation Alley’s technology industry, using data on employment, payroll, and establishments in the technology industry that had never been assembled before the initial survey was published in 2005. Using the same definitions and data sources, this report documents again how, even in “bad” times, there is tremendous vitality here in Automation Alley. This report is a breakthrough in understanding the underpinnings of our regional economy. As a society, we have relied too long on an outdated categorization of private-sector jobs as either manufacturing, service, or agriculture, too often believing that “technology” magically arrived in our midst from afar. In fact, “technology” is not a product that can be assembled and sold; technology is a manner of producing products or providing services. When we define the technology industry, we look at the manner of producing the goods and services to see how technology is employed. Intensive use of advanced production processes and a reliance on knowledge workers define the technology industry here, much as they do in “Route 128,” “Silicon Valley,” and other leading technology clusters around the country. DEFINING “TECHNOLOGY” INDUSTRY CLUSTERS A hallmark of this effort is a rigorous definition of the technology industry, which is based on recently published research by the U.S. Department of Commerce, Anderson Economic Group, and a handful of others. In our definition, we identify six specific technology clusters: • Advanced Automotive • Advanced Manufacturing • Chemical and Material • Information Technology Anderson Economic Group, LLC i Foreword • Life Sciences • Other Technologies The methodology, sources, and specific sectors are all documented in this report, its appendices, and in Automation Alley’s First Annual Technology Industry Report: Driving Southeast Michigan Forward. KEY FINDINGS IN THIS REPORT 1. The technology industry is a significant part of Automation Alley’s economy. Automation Alley's technology industry is made up of private sector firms in the following technology clusters: Advanced Automotive, Advanced Manufacturing, Chemical and Material, Information Technology, Life Sciences, and Other Technologies. In 2004, employment in these clusters accounted for 15.2 percent of all employment in Automation Alley, and employees in these clusters took home 23.5 percent of all private sector payroll in the region. 2. Automotive still rules in Automation Alley. Despite the recent struggles of the domestic auto industry, the Advanced Automotive cluster is the cornerstone of the technology industry in Automation Alley, accounting for 38 percent of all technology jobs in the region in 2004. Indeed, today’s automobile industry is one of the leading technology producers and users in the global economy—a fact vividly on display throughout Automation Alley. 3. Non-automotive technology sectors have proven they can stand on their own in the face of a declining automotive sector. Outside of the employment decline in the Advanced Automotive cluster, Automation Alley's remaining technology clusters had 6,284 more jobs in 2004 than in 1998. This suggests that the diversification of the technology industry in Automation Alley is strong enough for the industry to continue growth even as the auto industry struggles. 4. From 2003 through 2004, Automation Alley added technology jobs in three of the six technology clusters. The most recent two years of data (2003 and 2004) show that the Life Sciences, Chemical and Material, and Advanced Manufacturing technology clusters added employment during a period of overall decline in employment. While the technology industry as a whole saw employment drop by 1.6 percent from 2003 to 2004, Automation Alley's Advanced Manufacturing cluster grew by 1.1 percent, the Chemical and Material cluster grew by 0.6 percent, and the Life Sciences cluster grew by 2.9 percent. 5. The Advanced Manufacturing cluster grew from 2003 to 2004, suggesting that high-tech manufacturing is here to stay. The 2003 to 2004 expansion of the advanced manufacturing industry (a 1.1 percent increase in employment and average wages up 4.4 percent to Anderson Economic Group, LLC ii Foreword $56,054) occurred despite the continuing struggles of the domestic auto industry. This suggests that advanced manufacturing is essential to numerous auto and non-auto industries, and that the technology has staying power even when automotive employment is shrinking. 6. The universities in Automation Alley continue to increase their enrollment of science and engineering graduate students, suggesting a strong future workforce for the region’s technology industry. Universities in Automation Alley saw science and engineering graduate student enrollment reach 10,739 in 2003, the most recent year for which the data is available. This is up from 9,719 in 2001 and 10,416 in 2002. As the high-skill, high-wage technology jobs require skilled workers, this is an indication of future growth of the region’s economy. 7. Universities in Automation Alley spent more than $1 billion on research and development in 2003. Research and development (R&D) spending by Automation Alley universities topped $1 billion in 2003, surpassing the $885 million expended on R&D in 2002, and well above the $645 million spent in 1998. Overall, 73 percent of university R&D expenditures in Michigan came from universities in Automation Alley. 8. The largest area of university research in Automation Alley was life sciences, which accounted for some 60 percent of all university R&D expenditures. The life sciences were the largest area of university R&D expenditures in 2003. More than $600 million was spent on life sciences R&D, with the largest share of the expenditures made by the University of Michigan ($426 million) and Wayne State University ($170 million). Eastern Michigan University and Oakland University also contributed to the overall life sciences R&D expenditures in Automation Alley. 9. Automation Alley’s Life Sciences technology cluster grew by nearly 1,000 jobs from 2003 to 2004, and jobs in the cluster paid an average wage of $87,174. The Life Sciences technology cluster represented the fastest growing cluster from 2003 to 2004, adding nearly 1,000 jobs in private establishments. The cluster also has the highest wages in the technology industry. Average life sciences technology wages were $87,174 in 2004, compared to a still impressive $65,701 for the technology industry as a whole. 10. The majority of life sciences technology jobs in Automation Alley are in the high-wage scientific research and development sector. Geographically, Wayne County has the largest life sciences employment, followed by Washtenaw, Oakland, and Macomb counties. Of the 34,510 total life sciences technology jobs in Automation Alley in 2004, 30,424 were in the scientific research and development sector, which had an average wage of $92,867. The rest were in pharmaceutical and medi- Anderson Economic Group, LLC iii Foreword cine manufacturing or medical equipment and supply manufacturing. Geographically, the Life Sciences technology cluster in 2004 had the most employees in Wayne County (15,296), followed by Washtenaw (7,831), Oakland (6,865), and Macomb (3,091). CONCLUSION As I wrote last year, the landscape of industry in America is shifting to a “new” economy that is a lot like the “old” economy, in that those companies, regions, and people that can produce the best products at reasonable prices will prosper. The “new” way of producing good products relies on technology for only part of the equation; the old-fashioned work ethic of employees, and the grit and determination of entrepreneurs still provide the foundation for success. The people in Automation Alley have always had the grit; this report confirms that they also have the technology. Indeed, Automation Alley already has one of the most intense concentrations of technology industry employment in the United States, and one that has already weathered significant economic storms without falling behind. This region, like every other region, will face challenges to its key industries and government institutions. Fortunately, the region has a terrific base of technological know-how, as well as skilled workers who earn high wages for highvalue work. That’s a record we can build upon, and one that I hope will help lead the region’s economic recovery in the years to come. Patrick L. Anderson is the founder of Anderson Economic Group, LLC, a business consulting firm headquartered in Michigan with clients across the country. He is the author of more than 100 published works including the book “Business Economics and Finance,” and was the winner of the 2004 Edmund A. Mennis prize for the best writing in business economics, given by the National Association for Business Economics. He grew up in North Oakland County, in the center of Automation Alley. Anderson Economic Group, LLC iv Table of Contents Table of Contents Foreword.................................................................i Defining “Technology” Industry Clusters ........................ i Key Findings In This Report ...........................................ii Conclusion ...................................................................... iv Introduction............................................................1 Purpose of Report ............................................................ 1 Overview of Report ......................................................... 1 Automation Alley: Regional Overview ........................... 2 Automation Alley’s Technology Industry ....................... 2 Automation Alley’s Technology Clusters ....................... 3 Indicators of Tomorrow’s Technology Today ................ 6 A Closer Look: The Life Sciences Technology Cluster .. 6 Automation Alley: Regional Overview ..................9 Geographic Overview ...................................................... 9 Population Data and Trends .......................................... 10 Workforce Data and Trends .......................................... 10 Additional Demographic Data ....................................... 12 Defining the Technology Industry........................13 The Technology Industry in Automation Alley.....15 Technology in Automation Alley: The Big Picture ...... 15 Technology Industry Clusters ....................................... 16 Advanced Automotive Cluster ...................................... 19 Advanced Manufacturing Cluster ................................. 21 Chemical and Material Cluster ...................................... 23 Information Technology Cluster ................................... 25 Life Sciences Technology Cluster ................................. 28 Other Technologies Cluster ........................................... 30 Indicators of Tomorrow’s Technology Industry ...33 Science and Engineering Graduate Students ................. 33 University Research and Development ......................... 34 Utility Patents ................................................................ 35 Homeland Security and Military Technology ............... 36 Anderson Economic Group, LLC TOC Table of Contents A Closer Look: The Life Sciences Cluster .......... 38 Life Sciences Technology Cluster by NAICS Sector ... 39 Geographic Clusters ...................................................... 42 University Research and Development ......................... 44 Research Centers In Automation Alley ........................ 45 Employers In Focus ...................................................... 46 Appendix A: Technology Definition Methodology ..................................................... A-1 Review of Existing Definitions ....................................... 1 Selecting NAICS to Include: First Cut ........................... 2 Selecting NAICS to Include: Second and Third Cuts ..... 2 Finalizing the Definition ................................................. 3 Technology Cluster Classifications ................................ 3 Additional Methodological Notes ................................... 4 Appendix B: Bibliography................................. B-1 Appendix C: Other Definitions of the Technology Industry ............................................................ C-1 American Electronics Association (AeA) ....................... 1 The Pittsburgh Technology Council ............................... 1 Carnegie Mellon and SSTI .............................................. 2 Daniel Hecker, United States Bureau of Labor Statistics 2 Anderson Economic Group (2001) ................................. 2 Appendix D: Demographic and Socioeconomic Data ................................................................. D-1 Appendix E: Automation Alley Technology Industry Data .................................................................. E-1 Data Collection and Estimation ...................................... 1 Data Adjustments ............................................................ 2 Appendix F: Project Team................................. F-1 Patrick L. Anderson ........................................................ 1 Scott D. Watkins ............................................................. 1 Caroline M. Sallee ........................................................... 2 Contributors .................................................................... 2 Anderson Economic Group, LLC TOC Introduction I. Introduction PURPOSE OF REPORT In 2005, we provided the first ever comprehensive assessment of the technology industry in Automation Alley. The report, Automation Alley’s First Annual Technology Industry Report: Driving Southeast Michigan Forward, quantified the size of the industry in terms of employment, establishments, and payroll. It also assessed areas of the technology industry that signal future advances, such as R&D spending and patent awards. This information was assembled to provide businesses, government officials, educational institutions, and residents in Automation Alley with a deeper understanding of the role technology plays in the region, and to present a benchmark for measuring changes in the industry over time. With the benchmark established, we are now, one year later, able to update our analysis to identify new trends in the industry, and to focus further on the strengths of Automation Alley’s technology industry. OVERVIEW OF REPORT This report opens with an overview of the Automation Alley region, followed by a discussion of how we define the technology industry, which we see as containing the following clusters: • Advanced Automotive • Advanced Manufacturing • Chemical and Material • Information Technology • Life Sciences • Other Technologies We then look directly at the technology industry in Automation Alley, quantifying its employment, number of private businesses, and payroll. Industry data is presented for 1998 and 2002 through 2004 to illustrate how the industry, and each of its clusters, have evolved in recent years.1 The report also assesses activities taking place today that signal future growth of the technology industry in Automation Alley. This includes quantitative measures such as patent awards, university research and development, and qualitative assessments of items such as workforce development programs and industry promotion activity. 1. Note that these clusters are composed of NAICS industry sectors that contain only private sector establishments. Our discussion of technology industry payroll, employment, and establishments refers only to private sector activities. Anderson Economic Group, LLC 1 Introduction We conclude the report with a new section highlighting one of Automation Alley’s technology clusters. This year we take a closer look at the growing Life Sciences technology cluster, digging deeper into the employment data and discussing some of the life sciences innovations occurring throughout the region. AUTOMATION ALLEY: REGIONAL OVERVIEW Automation Alley is an eight-county area in Southeast Michigan. The Automation Alley counties, as shown in Figure 4, “Automation Alley Regional Map,” on page 8, are Genesee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne. With a population of more than five million, Automation Alley makes up more than half of Michigan’s total population and half of total employment in the state. More detailed economic and demographic information for Automation Alley can be found in “Automation Alley: Regional Overview” on page 9 and in “Appendix D: Demographic and Socioeconomic Data.” AUTOMATION ALLEY’S TECHNOLOGY INDUSTRY In 2004, Automation Alley’s technology industry employed 332,531 people, representing 15.2 percent of all private sector employment in the region. The payroll for these employees totaled more than $21.8 billion in 2004—some 23.5 percent of the region’s overall payroll. The higher payroll share is a clear sign that jobs in Automation Alley’s technology industry typically provide higher wages than those in the general economy, and present significant opportunity for future economic growth. Changes in Recent Economic Cycle. As was expected given economic conditions, technology industry employment in Automation Alley experienced a slight decrease in the most recent period for which data is available. From 2003 to 2004, there was a decline of 5,000 technology jobs in the region. However, technology industry employment is above where it was in 2002, signaling that it has successfully withstood and bounced back from the nationwide recession that started in 2000, the uncertainty that followed September 11, 2001, and the continuing troubles in the domestic automobile industry. In contrast to the employment figures that are still below pre-recession levels, total technology industry payroll has increased by 14.1 percent, resulting in the average wage per technology job climbing from $52,904 in 1998 to $65,701 in 2004. This equates to a 3.7 percent annual average increase in wages, and outpaces the 2 percent annual inflation experienced during the same period.2 This increase, combined with the decrease in overall employment, suggests that the area is retaining the high-wage, high-skill technology jobs that are likely to define tomorrow’s economic landscape. 2. Measure of inflation based on GDP price deflator. Anderson Economic Group, LLC 2 Introduction Table 1, “Automation Alley Employment and Payroll by Technology Cluster, 2003 v. 2004,” on page 4, and Figures 1 and 2, on page 5, show the trends in Automation Alley’s technology industry from 1998 to 2004. AUTOMATION ALLEY’S TECHNOLOGY CLUSTERS While overall technology industry employment and payroll were slightly down from 2003 to 2004, it is notable that half of the industry’s clusters added jobs, and two saw significant increases in average wages. More specifically: • The Advanced Automotive cluster experienced a 1.6 percent decline in employ- ment from 2003 to 2004, while total payroll declined by 3.5 percent. This led to a decline in average wages from $63,706 in 2003 to $62,459 in 2004. • The Advanced Manufacturing cluster experienced a 1.1 percent increase in employment from 2003 to 2004. Similarly, total payroll increased by 5.5 percent from 2003 to 2004. This led to an increase in average wages from $53,691 in 2003 to $56,054 in 2004. • Automation Alley’s Chemical and Material cluster experienced some employment growth (0.6 percent), and a more substantial rise of 8.4 percent in payroll from 2003 to 2004, the highest among the technology clusters. This led to a rise in average wages from $51,112 in 2003 to $55,072 in 2004. • The Information Technology cluster experienced the largest fall in employ- ment (3.8 percent), but total payroll fell modestly (by 0.6 percent). As a result, the average wage in the cluster grew from $60,333 in 2003 to $62,306 in 2004. • The Life Sciences technology cluster was one of three technology clusters in Automation Alley that experienced an increase in employment between 2003 and 2004 (2.9 percent). Average wages in the cluster fell slightly from 2003, but are at a still impressive level of $87,174. • The Other Technologies cluster, which mainly consists of wholesale and service businesses with technology orientations, makes up 20 percent of Automation Alley’s technology industry. Between 2003 and 2004, total employment in the cluster fell by 3.7 percent. Average wages, however, rose from $69,724 to $70,300. See Table 1, “Automation Alley Employment and Payroll by Technology Cluster, 2003 v. 2004,” on page 4 for a complete look at the cluster by cluster change. Further data and discussion of the industry as a whole start at “The Technology Industry in Automation Alley” on page 15. Additional data on the technology industry is also presented in “Appendix E: Automation Alley Technology Industry Data.” Anderson Economic Group, LLC 3 Introduction TABLE 1. Automation Alley Employment and Payroll by Technology Cluster, 2003 v. 2004 Employment: 2003 Employment: 2004 Change in Employment 2003 Total Payroll ($1,000) 2004 Total Payroll ($1,000) Change in Total Payroll Advanced Automotive 129,863 127,832 -1.6% $8,273,114 $7,984,235 -3.5% Advanced Manufacturing 32,527 32,876 1.1% $1,746,405 $1,842,821 5.5% Chemical and Material 9,031 9,084 0.6% $461,595 $500,278 8.4% Information Technology 65,349 62,877 -3.8% $3,942,715 $3,917,606 -0.6% Life Sciences 33,532 34,510 2.9% $3,070,996 $3,008,378 -2.0% Other Technologies 67,485 65,352 -3.2% $4,705,342 $4,594,231 -2.4% Total Technology Industry 337,787 332,531 -1.6% $22,200,167 $21,847,549 -1.6% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 4 Introduction Anderson Economic Group, LLC FIGURE 1. Technology Industry Employment in Automation Alley, 1998-2004 FIGURE 2. Average Technology Industry Wages in Automation Alley, 1998-2004 5 Introduction INDICATORS OF TOMORROW’S TECHNOLOGY TODAY In addition to the technology industry data summarized above, there are other variables that are important to consider when assessing a region’s technology economy. These include public sector activities such as research grants, military programs, and university research. A number of private sector forces, such as patenting and entrepreneurship, are also important indicators of potential growth in the technology industry. Such data, which we present in “Indicators of Tomorrow’s Technology Industry” on page 33, indicates that future growth and diversification are likely for Automation Alley’s technology industry. The region’s businesses and universities continue to receive patents for new advances, and Automation Alley universities invested more than $1 billion in research and development in 2003 (see Figure 3). FIGURE 3. A CLOSER LOOK: THE LIFE SCIENCES TECHNOLOGY CLUSTER R&D Expenditures by Automation Alley Universities, ($000) New to this year’s report (Automation Alley’s Second Annual Technology Industry Report: Driving Southeast Michigan Forward) is the “closer look” section, in which we profile a specific sector of the technology industry. This year’s “closer look” focuses on the Life Sciences technology cluster, which includes private establishments working in scientific research and development, pharmaceutical and medicine manufacturing, and medical equipment and supplies manufacturing. “A Closer Look: The Life Sciences Cluster” begins on page 38. In this section, we found the Life Sciences technology cluster in Automation Alley to be alive and well. The majority of the jobs in the cluster are in the sci- Anderson Economic Group, LLC 6 Introduction entific R&D sector, which had a 2004 average wage of $92,867. There is also a significant assemblage of life sciences jobs and establishments throughout the region. The largest concentration of life sciences technology is in Wayne County (15,296 employees in 101 private establishments), followed by Washtenaw (7,831 employees in 92 private establishments), Oakland (6,865 employees in 156 private establishments), and Macomb (3,091employees in 59 private establishments). In addition to this private sector activity, Automation Alley is also home to significant research in the life sciences. In 2003, four Automation Alley universities combined for more than $600 million in life sciences R&D expenditures. The largest share was from the University of Michigan ($426 million) and Wayne State University ($170 million). Eastern Michigan University and Oakland University also contributed. Anderson Economic Group, LLC 7 FIGURE 4. Automation Alley Regional Map Genesee County Flint Blue Water Bridge 69 475 Port Huron 69 St. Clair County Bishop Bishop International International Airport Airport 69 75 Oakland County Livingston County Macomb County Oakland Oakland County County Airport Airport 94 South Lyon--Howell--Brighton 96 Detroit 275 94 Ann Arbor Wayne County 696 Detroit-Windsor Tunnel Ambassador Bridge Willow Willow Run Run Airport Airport Washtenaw County Detroit Detroit Metro Metro Airport Airport Canada 275 Monroe Monroe County Automation Alley 75 Automation Alley's HQ Canada Crossings Toledo 475 Data: ESRI Analysis: Anderson Economic Group August 2006 280 0 5 10 20 Miles Automation Alley: Regional Overview II. Automation Alley: Regional Overview GEOGRAPHIC OVERVIEW Located in Southeast Michigan, Automation Alley encompasses 5,244 square miles and is home to several large cities including Detroit, Ann Arbor, and Flint. As shown in Figure 4, “Automation Alley Regional Map,” on page 8, the area includes eight counties (Genesee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne), and borders Ohio to the south, and Ontario, Canada, to the east. Major interstates and an extensive road network allow Automation Alley businesses to access markets easily in both the United States and Canada. Major interstates including I-94, I-75, and I-96 connect Automation Alley with the rest of the United States. Automation Alley’s largest city, Detroit, is one hour from Toledo, Ohio, three hours from Cleveland, Ohio, and four hours from Chicago, Illinois, and Toronto, Ontario. The Ambassador Bridge, Detroit-Windsor Tunnel, and Blue Water Bridge provide convenient access to Canada for travel and commerce. Rail and water networks also facilitate trade between Automation Alley and the rest of North America. The Port of Detroit spans 35 acres along the Detroit River, providing an international shipping port for businesses in Automation Alley. According to the Detroit/Wayne County Port Authority, approximately seven million tons of overseas and Canadian cargo cross at the Port of Detroit each year. Automation Alley also has an extensive railroad network. In 2002, more than $22 billion of goods either entering or exiting the United States passed through Port Huron in St. Clair County, making it the second busiest rail port in the United States. That same year, the Port of Detroit railroad crossing saw more than $15 billion worth of cargo enter or exit the United States, making it the nation’s third busiest rail port.3 Several airports also service the area. Detroit Metropolitan Airport features three passenger terminals, as well as service for major businesses. In addition to being the major hub for Northwest Airlines, Detroit Metro Airport is also the world aviation headquarters for Ford Motor Company and General Motors Corporation. Smaller airports include Willow Run in Wayne County, Bishop International Airport in Genesee County, and the Oakland County International Airport in Oakland County. 3. U.S. Bureau of Transportation Statistics, U.S. Port Report by Rail, 2002, obtained at www.bts.gov/ntda/tbscd/reports/annual02/port/pt_2002_rail.html. Anderson Economic Group, LLC 9 Automation Alley: Regional Overview POPULATION DATA AND TRENDS With a population of more than five million, Automation Alley is home to more than half of Michigan’s total population. Between 2000 and 2005, Automation Alley’s population grew at a slightly slower rate than that of Michigan and below the 1 percent annual increase of the entire United States. See Table 2, "Automation Alley Population" below. TABLE 2. Automation Automation Alley State of Michigan United States Alley Population 1990 2000 2005 Annual Change 2000-2005 5,020,927 5,269,634 5,334,639 0.2% 9,295,297 9,938,444 10,120,860 0.3% 248,709,873 282,192,162 296,410,404 1.0% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau Population Density. As shown in Figure 5, “Population Density in Automation Alley,” on page 11, the region includes population-dense urban areas, a significant suburban ring, and sparsely populated rural and agricultural areas. The main population centers are Greater Detroit, Ann Arbor, and Flint. Population trends in recent years are bringing more population into areas farther from core population centers. Such areas include Livingston County, North and Northwest Oakland County, and North Macomb County. WORKFORCE DATA AND TRENDS Labor Force. According to the U.S. Bureau of Labor Statistics, half of Michi- gan’s labor force was located in Automation Alley in 2005. Unemployment in Automation Alley reached 7.4 percent in 2005. This is significantly above the 3.6 percent unemployment rate for the region in 2000. Unemployment in Recent Economic Climate. The unemployment rate in Michigan and Automation Alley was below that of the United States for almost all of the years between 1995 and 2000, and briefly declined to as low as 3 percent in 2000. However, unemployment throughout Michigan has been above the national average in recent years. In 2005, the unemployment rate for Michigan and Automation Alley fluctuated around 7 percent, while the national unemployment rate fell as low as 4.9 percent. See Figure 6, “Unemployment Rate in Automation Alley, Michigan and Nation,” on page 12, as well as the more detailed unemployment data presented in “Appendix D: Demographic and Socioeconomic Data.” Anderson Economic Group, LLC 10 FIGURE 5. Population Density in Automation Alley, 2005 ³ Saginaw G G ee nn ee ss ee ee C C oo uu nn tt yy Flint § ¨ ¦ Blue Water Bridge 69 E Port Huron S S tt .. C C ll aa ii rr C C oo uu nn tt yy § ¨ ¦ 475 § ¨ ¦ 94 O O aa kk ll aa nn dd C C oo uu nn tt yy M M aa cc oo m m bb C C oo uu nn tt yy t u 24 LL ii vv ii nn gg ss tt oo nn C C oo uu nn tt yy [ _ South Lyon--Howell--Brighton § ¨ ¦ Detroit 96 Ann Arbor W W aa yy n e C o u n t yy W W aa ss hh tt ee nn aa w w C C oo uu nn tt yy Detroit-Windsor Tunnel EEAmbassador Bridge t u 24 Detroit Metropolitan Wayne County Canada Automation Alley t u Monroe M M oo nn rr oo ee C C oo uu nn tt yy 223 t u 223 t u [ Automation Alley's HQ E Canada Crossings 23 23 t u 20 § ¨ ¦ 80 Data: ESRI Analysis: Anderson Economic Group August 2006 1 Dot = 200 2005 Total Population Toledo ¨ ¦ ¨ ¦§ § ¨ ¦ § 75 280 475 0 5 10 20 Miles Automation Alley: Regional Overview FIGURE 6. Unemployment Rate in Automation Alley, Michigan and Nation 11 Automation Alley Michigan Nation 10 9 Unemployment rate (%), seasonally adjuste d 8 7 6 5 4 3 2 1 0 Jan 90 Jan 91 Jan 92 Jan 93 Jan 94 Jan 95 Jan 96 Jan 97 Jan 98 Jan 99 Jan 00 Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Months Analysis: Anderson Economic Group, www.AndersonEconomicGroup.com Base Data: Bureau of Labor Statistics ADDITIONAL DEMOGRAPHIC DATA Generated Date: 4 August 2006 Further demographic data is available in “Appendix D: Demographic and Socioeconomic Data”. Data is presented for Automation Alley as a whole, and for each individual county. Anderson Economic Group, LLC 12 Defining the Technology Industry III. Defining the Technology Industry To analyze an industry’s size, scope, and role in a regional economy, it is necessary to first define the industry. To do this for the technology industry, we use a definition composed of specific industrial sectors identified by their North American Industry Classification System (NAICS) codes, which is how the United States Census reports industry data. The definition used in this report is consistent with that used in the 2005 report, Automation Alley’s First Annual Technology Industry Report: Driving Southeast Michigan Forward. Table 3 below presents our definition of the technology industry, by cluster. The methodology we employed to define the technology industry is described in greater detail in “Appendix A: Technology Definition Methodology.” TABLE 3. Definition NAICS of the Technology Industry by Cluster Industry Title Advanced Automotive 3361 Motor Vehicle Manufacturing 3362 Motor Vehicle Body & Trailer Manufacturing 3363 Motor Vehicle Parts Manufacturing Advanced Manufacturing 3329 Other Fabricated Metal Product Manufacturing 3331 Agriculture, Construction, & Mining Machinery Manufacturing 3332 Industrial Machinery Manufacturing 3333 Commercial & Service Industry Machinery Manufacturing 3336 Engine, Turbine & Power Transmission Manufacturing 3339 Other General Purpose Machinery Manufacturing 3345 Navigational, Measuring, Electromedical, & Control Instruments Manufacturing 3353 Electrical Equipment Manufacturing 3359 Other Electrical Equipment & Component Manufacturing 3364 Aerospace Product & Parts Manufacturing 3369 Other Transportation Equipment Manufacturing Chemical and Material 3241 Petroleum & Coal Products Manufacturing 3251 Basic Chemical Manufacturing 3252 Resin, Synthetic Rubber, Artificial Synthetic Fibers & Filaments Manufacturing 3253 Pesticide, Fertilizer, & Other Agricultural Chemical Manufacturing 3255 Paint, Coating & Adhesive Manufacturing 3256 Soap, Cleaners & Toilet Preparation Manufacturing 3259 Other Chemical Product & Preparation Manufacturing Anderson Economic Group, LLC 13 Defining the Technology Industry TABLE 3. Definition NAICS of the Technology Industry by Cluster (Continued) Industry Title Information Technology 3341 Computer && Peripheral Equipment Manufacturing 3342 Communications Equipment Manufacturing 3343 Audio & Video Equipment Manufacturing 3344 Semiconductor & Other Electronic Component Manufacturing 3346 Manufacturing & Reproducing Magnetic & Optical Media 5112 Software Publishers 5161 a Internet Publishing and Broadcasting 5171 Wired Telecommunications Carriers 5172 Wireless Telecommunications Carriers (except Satellite) 5173 Telecommunications Resellers 5174 Satellite Telecommunications 5179 Other Telecommunications 5181 Internet Service Providers and Web Search Portals 5182 Data Processing, Hosting, and Related Services 5415 Computer Systems Design & Related Services b Life Sciences 3254 Pharmaceutical & Medicine Manufacturing 3391 Medical Equipment & Supplies Manufacturing 5417 Scientific R&D Services Other Technologies 2111 Oil & Gas Extraction 4234c Professional and Commercial Equipment and Supplies Merchant Wholesalers 5413 Architectural, Engineering & Related Services a. Year 2002 NAICS 5161, 5171, 5172, 5173, 5174, and 5179 were substituted with year 1997 NAICS 5133 for 1998-2002 data analysis. b. Year 2002 NAICS 5181 and 5182 were substituted with year 1997 NAICS 5140 for 19982002 data analysis. c. Year 2002 NAICS 4234 was substituted with year 1997 NAICS 4214 for 1998-2002 data analysis. Anderson Economic Group, LLC 14 The Technology Industry in Automation Alley IV. The Technology Industry in Automation Alley TECHNOLOGY IN AUTOMATION ALLEY: THE BIG PICTURE The most recent industry data shows that Automation Alley was home in 2004 to more than 332,000 technology industry jobs, accounting for 15.5 percent of all employment in the region. Technology industries account for an even larger share of total payroll in the region (23.8 percent). This is a clear indication that technology industry jobs, on average, pay better than jobs in other industries. See Figure 7 below and Figure 8 on page 16. Automation Alley also compares quite favorably to Michigan and the United States in terms of total share of employment and payroll that can be attributed to the technology industry. Michigan’s technology industry accounts for more than 13 percent of total state employment, and more than 22 percent of all payroll in the state. Nationally, 9.4 percent of all employment and 15.5 percent of all payroll is in the technology industry. Technology Industry’s Share of Total Employment in Automation Alley, 2004 FIGURE 7. Anderson Economic Group, LLC 15 The Technology Industry in Automation Alley FIGURE 8. Technology Industry’s Share of Total Payroll in Automation Alley, 2004 Table 4 below shows technology industry employment, payroll, and wages in Automation Alley. While total technology employment in Automation Alley has declined since 1998, employment and payroll in 2004 remained above the 2002 mark. The wages of Automation Alley’s technology sector workers, however, remain substantially higher than the all-industries average wage, at $65,701 compared to $42,549. TABLE 4. Employment, Payroll, and Establishments - Technology Industry in Automation Alley Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 361,900 $19,146,016 $52,904 7,550 590 8,141 . . . . . . . . . . . . . . . . . . . . . 2002 317,753 $19,513,839 $61,412 7,657 526 8,183 2003 337,787 $22,200,167 $65,722 7,658 536 8,194 2004 332,531 $21,847,549 $65,701 7,632 518 8,150 -1.6% -1.6% 0.0% -0.3% -3.4% -0.5 Change from 2003-2004 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns TECHNOLOGY INDUSTRY CLUSTERS As noted earlier, we have defined the technology industry by NAICS industry codes, which group businesses by their primary activity. In total, we identified 43 four-digit NAICS sectors that represent the technology industry. We then Anderson Economic Group, LLC 16 The Technology Industry in Automation Alley grouped these sectors by business activity and identified six main technology clusters: • Advanced Automotive • Advanced Manufacturing • Chemical and Material • Information Technology • Life Sciences • Other Technologies The composition of Automation Alley’s technology industry, by cluster, is shown in Figure 10, “Employment by Technology Cluster in Automation Alley, 2004,” which can be compared with Figure 11, “Employment by Technology Cluster in Automation Alley, 1998,” to see how the industry mix has changed over time. You may also see “Appendix E: Automation Alley Technology Industry Data” for more detailed industry data tables. Employment Change: 2003 to 2004. Although Automation Alley’s total technol- ogy employment declined slightly between 2003 and 2004, certain clusters experienced job growth during this period. Despite a decline in the Advanced Automotive cluster, the Advanced Manufacturing cluster added 349 jobs between 2003 and 2004. This is a positive sign that the area’s technology related manufacturing industry is able to continue growing despite continued decline in automotive manufacturing. Other clusters that saw employment growth were the Chemical and Material cluster, which experienced an increase in employment of 0.6 percent (53 jobs) and the Life Sciences cluster which saw employment grow by 2.9 percent (nearly 1,000 jobs). FIGURE 9. Anderson Economic Group, LLC Change in Employment by Technology Cluster, 2003-2004 17 The Technology Industry in Automation Alley Anderson Economic Group, LLC FIGURE 10. Employment by Technology Cluster in Automation Alley, 2004 FIGURE 11. Employment by Technology Cluster in Automation Alley, 1998 18 The Technology Industry in Automation Alley ADVANCED AUTOMOTIVE CLUSTER Automation Alley’s Advanced Automotive cluster, which includes the industry sectors shown below in Table 5, is comprised of companies that use and develop technologies in the manufacturing and development of motor vehicles and motor vehicle components. This includes automobile manufacturing, truck trailer manufacturing, other motor vehicle electrical and electronic equipment manufacturing, motor vehicle brake system manufacturing, and other such businesses. Also included in the cluster are research units that focus on technologies such as vehicle safety and alternative energy sources. TABLE 5. The Advanced Automotive Cluster NAICS Industry Title 3361 Motor Vehicle Manufacturing 3362 Motor Vehicle Body & Trailer Manufacturing 3363 Motor Vehicle Parts Manufacturing The Advanced Automotive cluster employed 127,832 people in 2004, accounting for 38 percent of all technology workers in Automation Alley. As documented in Automation Alley’s First Annual Technology Industry Report: Driving Southeast Michigan Forward, employment in this cluster reached a high of over 169,000 in 2000. Since that time, however, the domestic automobile industry has struggled, and advanced automotive employment in Automation Alley has declined. In contrast, total payroll for this cluster has remained relatively stable. Average wages rose from $53,479 in 1998 to $62,459 in 2004. This longer-term trend was softened somewhat over 2003 to 2004 (the most recent years for which data is available), when average wages fell for the first time since 1998. See Table 6 below, and Figure 12 and Figure 13 on page 20, for employment, wage, and payroll data in this cluster. TABLE 6. Employment, Payroll, and Establishments - Advanced Automotive Cluster Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 163,485 $8,743,020 $53,479 362 200 562 . . . . . . . . . . . . . . . . . . . . . 2002 133,929 $8,156,553 $60,903 345 181 526 2003 129,863 $8,273,114 $63,706 376 188 564 2004 127,832 $7,984,235 $62,459 375 180 555 -1.6% -3.5% -2.0% -0.3% -4.3% -1.6% Change from 2003-2004 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 19 The Technology Industry in Automation Alley Anderson Economic Group, LLC FIGURE 12. Employment in Advanced Automotive Cluster, 1998-2004 FIGURE 13. Average Wages in Advanced Automotive Cluster, 1998-2004 20 The Technology Industry in Automation Alley ADVANCED MANUFACTURING CLUSTER Businesses in the Advanced Manufacturing cluster develop and utilize technologies for manufacturing processes not directly involving motor vehicles. This includes manufacturers of office machines; industrial manufacturing equipment; air and gas compressors; fluid power cylinders (e.g., hydraulic and pneumatic); electron tubes (cathode ray tubes); aircraft manufacturing; and process, physical distribution, and logistics consulting services. See Table 7 below. TABLE 7. The Advanced Manufacturing Cluster NAICS Industry Title 3329 Other Fabricated Metal Product Manufacturing 3331 Agriculture, Construction, & Mining Machinery Manufacturing 3332 Industrial Machinery Manufacturing 3333 Commercial & Service Industry Machinery Manufacturing 3336 Engine, Turbine & Power Transmission Manufacturing 3339 Other General Purpose Machinery Manufacturing 3345 Navigational, Measuring, Electromedical, & Control Instruments Manufacturing 3353 Electrical Equipment Manufacturing 3359 Other Electrical Equipment & Component Manufacturing 3364 Aerospace Product & Parts Manufacturing 3369 Other Transportation Equipment Manufacturing The Advanced Manufacturing cluster employed 32,876 people in 2004, 10 percent of all technology employment in Automation Alley. After exhibiting a decline in total employment between 1998 to 2003, the Advanced Manufacturing cluster experience employment growth of 1.1 percent from 2003 to 2004. The total number of advanced manufacturing firms fell from 2003 to 2004 (from 942 to 911), but total payroll nevertheless grew by 5.5 percent during that period, leading to a rise in the average wage for this cluster from $53,691 to $56,054. See Table 8, and Figure 14 on page 22 and Figure 15 on page 23 for more details on employment, payroll, and wages in the Advanced Manufacturing cluster. Anderson Economic Group, LLC 21 The Technology Industry in Automation Alley TABLE 8. Employment, Payroll, and Establishments - Advanced Manufacturing Cluster Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 46,886 $2,355,793 $50,245 970 93 1,063 . . . . . . . . . . . . . . . . . . . . . 2002 33,333 $1,791,339 $53,741 827 73 900 2003 32,527 $1,746,405 $53,691 878 64 942 2004 32,876 $1,842,821 $56,054 849 62 911 1.1% 5.5% 4.4% -3.3% -3.1% -3.3% Change from 2003-2004 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns FIGURE 14. Anderson Economic Group, LLC Employment in Advanced Manufacturing Cluster, 1998-2004 22 The Technology Industry in Automation Alley FIGURE 15. CHEMICAL AND MATERIAL CLUSTER Average Wages in Advanced Manufacturing Cluster, 1998-2004 The Chemical and Material cluster in Automation Alley, defined in Table 9 below, includes businesses engaged in the production of petrochemicals, inorganic chemicals and gases, plastics and resins, paints and varnishes, and explosives. TABLE 9. The Chemical and Material Cluster NAICS Industry Title 3241 Petroleum & Coal Products Manufacturing 3251 Basic Chemical Manufacturing 3252 Resin, Synthetic Rubber, & Artificial Synthetic Fibers & Filaments Manufacturing 3253 Pesticide, Fertilizer, & Other Agricultural Chemical Manufacturing 3255 Paint, Coating & Adhesive Manufacturing 3256 Soap, Cleaners & Toilet Preparation Manufacturing 3259 Other Chemical Product & Preparation Manufacturing The cluster’s 229 establishments employed more than 9,000 people in 2004, paying more than an average of $55,000 per year. Employment levels increased slightly for the second year in a row from 2003 to 2004, as shown in Table 10. The average wage, however, in this cluster rose by 7.7 percent from 2003 to 2004, rising to $55,072 despite a 3.4 percent drop in number of establishments. Anderson Economic Group, LLC 23 The Technology Industry in Automation Alley See Table 10 on page 24, Table 16 on page 31, and Figure 17 on page 25 for more details on employment, payroll, and wages in the Chemical and Material cluster. TABLE 10. Employment, Payroll, and Establishments - Chemical and Material Cluster Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 9,644 $482,564 $50,038 227 22 249 . . . . . . . . . . . . . . . . . . . . . 2002 8,312 $428,288 $51,526 220 20 240 2003 9,031 $461,595 $51,112 213 24 237 2004 9,084 $500,278 $55,072 202 27 229 Change from 2003-2004 0.6% 8.4% 7.7% -5.2% 12.5% -3.4% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns FIGURE 16. Anderson Economic Group, LLC Employment in Chemical and Material Cluster, 1998-2004 24 The Technology Industry in Automation Alley FIGURE 17. INFORMATION TECHNOLOGY CLUSTER Average Wages in Chemical and Material Cluster, 1998-2004 As presented in Table 11 below, the Information Technology cluster is comprised of electronics, computer, and telecommunications businesses. This includes manufacturers of computers and computer peripheral equipment; radio, television, and wireless communications equipment; and electronic capacitor, resistor, and connector devices. Also included are software publishers, wired and wireless telecommunication providers, Internet service providers, and custom computer programming services. TABLE 11. The Anderson Economic Group, LLC Information Technology Cluster NAICS Industry Title 3341 Computer & Peripheral Equipment Manufacturing 3342 Communications Equipment Manufacturing 3343 Audio & Video Equipment Manufacturing 3344 Semiconductor & Other Electronic Component Manufacturing 3346 Manufacturing & Reproducing Magnetic & Optical Media 5112 Software Publishers 5161 Internet Publishing and Broadcasting 5171 Wired Telecommunications Carriers 5172 Wireless Telecommunications Carriers (except Satellite) 5173 Telecommunications Resellers 5174 Satellite Telecommunications 25 The Technology Industry in Automation Alley TABLE 11. The Information Technology Cluster (Continued) 5179 Other Telecommunications 5181 Internet Service Providers & Web Search Portals 5182 Data Processing, Hosting, & Related Services 5415 Computer Systems Design & Related Services Note: To accommodate a change in the U.S. Census Bureau industry classifications, we used 1997 NAICS 5133 (telecommunications) in place of 2002 NAICS 5161, 5171, 5172, 5173, 5174, and 5179, and 1997 NAICS 5140 (information services and data processing services) was used in place of 2002 NAICS 5181 and 5182 for 1998-2002 data collection and analysis. In 2004, 19 percent of all employment in the technology industry in Automation Alley was in the Information Technology cluster, accounting for more than 62,000 jobs. From 1998 to 2004, the cluster experienced an increase in the number of firms and saw a rise in payroll. While the Information Technology cluster did experience a decline in employment, the cluster did see a 3.3 percent increase in average wages (from $60,333 to $62,306), as shown in Table 12 below. The number of information technology establishments also grew by 0.9 percent, for a total increase of 28 firms between 2003 and 2004. See Table 12, and Figure 18 and Figure 19 on page 27 for more details on employment, payroll, and wages in the Information Technology cluster. TABLE 12. Employment, Payroll, and Establishments - Information Technology Cluster Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 68,338 $3,363,941 $49,225 2,557 148 2,705 . . . . . . . . . . . . . . . . . . . . . 2002 66,999 $3,844,712 $57,385 2,959 144 3,103 2003 65,349 $3,942,715 $60,333 3,057 131 3,188 2004 62,877 $3,917,606 $62,306 3,095 121 3,216 Change from 2003-2004 -3.8% -0.6% 3.3% 1.2% -7.6% 0.9% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 26 The Technology Industry in Automation Alley Anderson Economic Group, LLC FIGURE 18. Employment in Information Technology Cluster, 1998-2004 FIGURE 19. Average Wages in Information Technology Cluster, 1998-2004 27 The Technology Industry in Automation Alley LIFE SCIENCES TECHNOLOGY CLUSTER The Life Sciences cluster of Automation Alley’s technology industry, defined in Table 13 below, includes businesses that develop and use technology in the manufacturing of life sciences equipment such as ophthalmic goods, surgical appliances and medical instruments, electromedical and electrotherapeutic apparatuses, basic organic chemicals, and pharmaceuticals. The cluster also includes providers of R&D in the physical, engineering, and life sciences. The cluster focused only on technology industries, and does not include more traditional health care and medical service sectors, such as hospitals and physician offices.4 TABLE 13. The Life Sciences Technology Cluster NAICS Industry Title 3254 Pharmaceutical & Medicine Manufacturing 3391 Medical Equipment & Supplies Manufacturing 5417 Scientific R&D Services The Life Sciences technology cluster employed 34,510 people in 2004, making up 10 percent of technology employment in Automation Alley. The jobs in this cluster paid an average wage of $87,174, the highest of any technology industry cluster in the region. The cluster experienced growth in the number of firms, employment, payroll, and wages from 1998 to 2003. The Life Sciences technology cluster was one of three to experience jobs growth from 2003 to 2004, growing by 2.9 percent. Figure 20 on page 29, and Figure 21 on page 30 illustrate these changes. The cluster also experienced gains in the total number of establishments. In 2003, there were 452 firms in this cluster; by 2004 this number had grown to 456, despite a slight drop in the number of large firms (from 34 to 32 firms). For more information on the Life Sciences technology cluster, please see our feature section, “A Closer Look: The Life Sciences Cluster” on page 38. 4. In 2004, Anderson Economic Group (AEG) published a report that defined the life sciences industry in Michigan. In that report, AEG looked at the entire life sciences industry, not just its technology components. The definition used here differs from that in the earlier report. Anderson Economic Group, LLC 28 The Technology Industry in Automation Alley TABLE 14. Employment, Payroll, and Establishments - Life Sciences Clustera Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 26,113 $1,737,532 $66,539 394 28 422 . . . . . . . . . . . . . . . . . . . . . 2002 31,896 $2,740,375 $85,915 413 35 448 2003 33,532 $3,070,996 $91,584 418 34 452 2004 34,510 $3,008,378 $87,174 424 32 456 2.9% -2.0% -4.8% 1.4% -5.9% 0.9% Change from 2003-2004 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns a. NAICS code 5417 includes an estimated portion that accounts for employment in NAICS code 95 that would have been placed in 5417 for the years 1998-2002, based on the 2003 classifications. Please see Appendix E for a full description of our methodology. FIGURE 20. Anderson Economic Group, LLC Employment in Life Sciences Cluster, 1998-2004 29 The Technology Industry in Automation Alley FIGURE 21. OTHER TECHNOLOGIES CLUSTER Average Wages in Life Sciences Cluster, 1998-2004 Businesses not classified into a specific technology cluster, but that use, develop, or support technology, are included in the Other Technologies cluster, which is presented below in Table 15. Among the types of businesses included in this cluster are architectural services, engineering services, and geophysical surveying and mapping services. TABLE 15. Other Technologies Cluster NAICS Industry Title 2111 Oil & Gas Extraction 4234 Professional & Commercial Equipment & Supplies Merchant Wholesalers 5413 Architectural, Engineering & Related Services Note: To accommodate a change in the U.S. Census Bureau industry classifications, we used 1997 NAICS 4214 (Professional and Commercial Equipment and Supplies Wholesalers) in place of 2002 NAICS 4234 for 1998-2002 data collection and analysis. In 1998, employment in the Other Technologies cluster made up 13 percent of total employment in the technology industry in Automation Alley. By 2004, the Other Technologies cluster’s share of total employment had grown to 20 percent, employing over 65,000 people. Average wages also grew steadily during this period, rising from $51,928 per year in 1998 to $69,724 in 2003. Anderson Economic Group, LLC 30 The Technology Industry in Automation Alley Some of the increase in Other Technologies employment was reversed from 2003 to 2004, as employment fell by 3.2 percent (2,133 jobs) in the cluster. Total payroll also fell (by 2.4 percent) from 2003 to 2004, but did so more slowly than did employment, leading to a rise in average wage to $70,300 in 2004. These changes are shown below in Table 16, and in Figure 22 below and Figure 23 on page 32. TABLE 16. Employment, Payroll, and Establishments - Other Technologies Cluster Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 47,434 $2,463,166 $51,928 3,040 98 3,138 . . . . . . . . . . . . . . . . . . . . . 2002 43,287 $2,552,572 $58,969 2,893 71 2,964 2003 67,485 $4,705,342 $69,724 2,716 95 2,811 2004 65,352 $4,594,231 $70,300 2,687 96 2,783 Change from 2003-2004 -3.2% -2.4% 0.8% -1.1% 1.1% -1.0% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns FIGURE 22. Anderson Economic Group, LLC Employment in Other Technologies Cluster, 1998-2004 31 The Technology Industry in Automation Alley FIGURE 23. Anderson Economic Group, LLC Average Wages in Other Technologies Cluster, 1998-2004 32 Indicators of Tomorrow’s Technology Industry V. Indicators of Tomorrow’s Technology Industry Thus far, we have focused on private sector activities in the technology industry. This information alone, however, fails to capture the full extent of the technology industry in Automation Alley. There is a broad range of additional technology industry activity occurring in the region, which we illustrate with the following indicators: • University Research and Development • Science and Engineering Graduate Students • University Patents • Private Sector Patents • Homeland Security and Military Technology This information provides a more rounded view of the technology activities taking place in Automation Alley today, and more importantly, provides a glimpse at the technologies that may shape the industry in years to come. SCIENCE AND ENGINEERING GRADUATE STUDENTS At the foundation of the technology industry is human capital, especially those trained in the science and engineering fields. As shown in Table 17, Automation Alley universities enrolled a total of 10,739 science and engineering graduate students in 2003, 63 percent of the total in the State of Michigan. This concentration of students is attractive to employers seeking a labor market rich with talent, provided that the students stay in the area after graduation.5 The data also demonstrates that Automation Alley’s universities are helping to prepare students for the technology jobs that continue to shape the economy. 5. This is perhaps illustrated best by the recent news that Google plans to move its AdWords division to Ann Arbor. Anderson Economic Group, LLC 33 Indicators of Tomorrow’s Technology Industry TABLE 17. Science and Engineering Graduate Student Enrollment in Automation Alley 1998 1999 2000 2001 2002 2003 Eastern Michigan University 624 607 656 658 701 765 Lawrence Technological University na na na na na 233 Oakland University 841 700 772 779 888 868 University of Detroit Mercy 441 408 407 402 415 533 University of Michigan 4,545 4,894 5,006 5,132 5,649 5,905 Wayne State University 2,059 2,277 3,729 2,748 2,763 2,435 Total 8,510 8,886 10,570 9,719 10,416 10,739 Source: National Science Foundation Note: 2003 was the first year that Lawrence Technological University had enrollment listed. Kettering University enrollment was not provided. UNIVERSITY RESEARCH AND DEVELOPMENT Universities throughout Automation Alley also undertake important research that directly and indirectly impacts the future of Automation Alley’s technology region. To see this, one need look no further than the TechTown development near Wayne State University, or the concentration of IT firms near the Ann Arbor campus of the University of Michigan. As shown in Table 18, Automation Alley universities have steadily increased their total R&D expenditures in recent years. From 1998 to 2003, the universities increased their R&D spending by approximately 56 percent. R&D expenditures in the last year alone increased by 14 percent, growing from $885 million in 2002 to just more than $1 billion in 2003. This accounts for some 73 percent of all Michigan university R&D expenditures.6 According to the National Science Foundation, the principal area of R&D expenditures by Automation Alley universities over the six-year period was in the life sciences industry. In 2003, this category accounted for 60 percent of total R&D expenditures in Automation Alley. The second area was engineering, accounting for 19 percent of spending; and third was social sciences, accounting for 11 percent.7 6. National Science Foundation, Academic Research and Expenditures: Fiscal Year 2003. 7. National Science Foundation, Academic Research and Expenditures: Fiscal Year 2003. According to the National Science Foundation, funding for the life sciences industry includes four categories: agricultural, biological, medical, and life sciences that are “not elsewhere classified.” In order to remain consistent with our definition of the life sciences industry and other data analyzed, agricultural sciences were excluded from our analysis. Anderson Economic Group, LLC 34 Indicators of Tomorrow’s Technology Industry TABLE 18. R&D Expenditures at Universities in Automation Alley (in thousands) 1998 1999 2000 2001 2002 2003 Eastern Michigan University NA $1,512 $4,118 $2,992 $3,164 $4,051 Kettering University $433 $647 $625 $1,161 $1,311 $1,295 Lawrence Technological University $104 $344 $821 $681 $539 $471 Oakland University $7,272 $6,422 $6,422 $7,397 $6,869 $6,175 University of Detroit Mercy $1,853 $1,177 $1,767 $1,236 $746 $548 University of Michigan $496,761 $508,619 $551,556 $600,523 $673,724 $780,054 Wayne State University $138,456 $146,832 $156,814 $175,984 $199,007 $213,717 Total $644,879 $665,553 $722,123 $789,974 $885,360 $1,006,311 Source: National Science Foundation Among the leading research universities in Automation Alley is Wayne State University (WSU), which ranks among the top 100 universities in the nation for R&D expenditures. Located in Detroit’s cultural center, WSU has a number of high-tech centers and research initiatives.8 At WSU’s Center for Automotive Research, graduate students have the opportunity to develop innovative technologies for the auto industry. WSU’s Institute for Manufacturing Research (IMR) combines scientists from a variety of disciplines with local industries to research new subjects in manufacturing development and has developed several commercialized products and processes.9 For 2006, IMR’s initiatives include a focus on material sciences and nanomaterials.10 Wayne State University’s Technology Transfer Office is also responsible for TechTown, a 47-acre, multi-million dollar research and business technology park located in downtown Detroit. TechTown is a growing community of entrepreneurs, investors, mentors, service providers and corporate partners, designed to attract high-tech companies. Since its opening in April 2004, TechTown has attracted 20 high-tech companies that focus on everything from microelectromechanical systems, to alternative energy sources.11 UTILITY PATENTS Patents granted to business and universities are another useful indicator of technological innovation. Table 19 on page 36 shows the number of utility patents (patents issued for inventions that perform useful functions) granted to Automa- 8. The Higher Learning Commission. 9. The Institute for Manufacturing Research Web site, available at: www.imr.wayne.edu. 10.The Institute of Manufacturing Research, Annual Report on Research Activities, FY 2005. 11. TechTown web site, available at: www.techtownwsu.org. Anderson Economic Group, LLC 35 Indicators of Tomorrow’s Technology Industry tion Alley universities over the five-year period from 2000 to 2004. Of the 629 patents granted to Michigan universities over this five-year period, nearly half were awarded to Automation Alley universities—the University of Michigan received 258 and Wayne State University received 41.12 TABLE 19. Utility Patents Granted to Universities in the Automation Alley Region 2000 2001 2002 2003 2004 University of Michigan 64 46 40 54 54 Wayne State University 7 12 11 5 6 Total 71 58 51 59 60 Source: U.S. Patent Office Private-Sector Patents. Patents awarded to businesses and individuals are also a measure of technological development and innovation. During the five-year period from 2000 to 2004, companies in the region received 11,693 utility patents out of the state total of 16,239. This means that 72 percent of all private patents in Michigan during this five-year period were awarded to businesses and individuals located within Automation Alley. HOMELAND SECURITY AND MILITARY TECHNOLOGY Another source of technological research and innovation in Automation Alley comes in the form of military facilities. This includes the Detroit Arsenal, which is home to the U.S. Army Tank-Automotive and Armaments Command (TACOM), the U.S. Army Tank Automotive Research Development and Engineering Center (TARDEC), and the National Automotive Center (NAC). The Arsenal, located in Warren, Michigan, recently expanded its staff to include 400 army personnel and 5,700 civilian workers. TARDEC is the nation’s laboratory for advanced military automotive technology, and NAC is a Department of Defense (DoD) / U.S. Army focal point for ground vehicle R&D.13 It has been at the forefront of research for advancements in alternative energy for use by military forces. TARDEC has partnered with several private companies and universities to develop alternative energy solutions. Developments range from solar power panels for individuals to alternative fuel solutions for military and commercial vehicles.14 Automation Alley universities also play a role in advancing military technologies. In 2003, Eastern Michigan University’s Coatings Research Institute (CRI) received $2.1 million from the DoD for an innovative project to protect military 12.The schools included were: Michigan State University, Michigan Technological University, University of Michigan, Wayne State University, and Western Michigan University. 13.TARDEC Web site, available at: www.tacom.army.mil/tardec. 14. TARDEC press release, April 20, 2006. Anderson Economic Group, LLC 36 Indicators of Tomorrow’s Technology Industry vehicles from biochemical hazards. Additionally, The U.S. Army Research Laboratory chose to house its $3.2 million Center for Innovative Materials Research at Lawrence Technological University.15 15. Eastern Michigan University and Lawrence Technological University Web sites; available at: http://www.emich.edu and http://www.ltu.edu. Anderson Economic Group, LLC 37 A Closer Look: The Life Sciences Cluster VI. A Closer Look: The Life Sciences Cluster The Life Sciences cluster, as presented earlier on page 28, is a key component of the technology industry in Automation Alley. In this section, we take a closer look at the cluster, digging deeper into the employment data and discussing some of the life science innovations occurring throughout the region. In 2004, there were more than 34,500 life science technology jobs located in Automation Alley, accounting for 10.4 percent of all technology industry employment in the region. More notable is the cluster’s payroll, which at more than $3 billion, represents 13.8 percent of all technology industry payroll in Automation Alley. The cluster’s share of payroll to share of employment ratio is a clear indication that jobs in the Life Sciences cluster, on average, offer salaries and wages above the technology industry average. TABLE 20. Life Sciences Cluster Employment, Payroll, and Establishments (1998-2004)a Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 26,113 $1,737,532 $66,539 394 28 422 1999 27,836 $1,963,232 $70,528 406 26 432 2000 30,522 $2,140,406 $70,125 399 33 432 2001 29,706 $2,344,756 $78,931 419 33 452 2002 31,896 $2,740,375 $85,915 413 35 448 2003 33,532 $3,070,996 $91,584 418 34 452 2004 34,510 $3,008,378 $87,174 424 32 456 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns a. NAICS code 5417 includes an estimated portion that accounts for employment in NAICS code 95 that would have been placed in 5417 for the years 1998-2002, based on the 2003 classifications. Please see Appendix E for a full description of our methodology. The cluster also experienced steady growth in recent years, adding an average of 1,400 new jobs a year between 1998 and 2004. More recently, the cluster has grown at a more modest rate, with 978 jobs added from 2003 to 2004 (2.9 percent). This however, is still significant growth when compared to the region’s overall economy, which lost 4,881 private sector jobs from 2003 to 2004 (0.2 percent decline), and the State of Michigan as a whole, which added only 10,693 private sector jobs from 2003 to 2004. In total, more than 9 percent of the employment increase in Michigan between 2003 and 2004 was in Automation Alley’s Life Sciences technology cluster. Growth in the cluster has not been limited only to employment. Payroll, and thus average wages, also grew significantly between 1998 and 2004. In 1998, the average wage in the cluster was $66,539. By 2004, the average wage had Anderson Economic Group, LLC 38 A Closer Look: The Life Sciences Cluster reached $87,174. The data does indicate that this growth in wages leveled off in recent years—the average wage actually dropped from a high of $91,584 in 2003 to $87,174 in 2004. LIFE SCIENCES TECHNOLOGY CLUSTER BY NAICS SECTOR As noted earlier, we define the Life Sciences technology cluster to include: • Pharmaceutical & Medicine Manufacturing (NAICS 3254) • Medical Equipment & Supplies Manufacturing (NAICS 3391) • Scientific R&D Services (NAICS 5417) As shown in Table 21 on page 40, scientific R&D services is by far the largest NAICS sector within the Life Sciences technology cluster. In 2004, more than 30,400 of the 34,510 life science technology jobs in Automation Alley were within the scientific R&D cluster. Additionally, as shown in Figure 24, the sector has added more jobs from 1998 through 2004 than the other life science technology sectors. Fortunately, this heavy concentration of scientific R&D jobs is economically beneficial. The average wage in the sector was $92,867 in 2004, which is 141 percent of the average technology industry wage, and 211 percent of the overall average wage in Automation Alley. Further, scientific R&D wages have grown significantly since 1998—their 2004 level was 29 percent above the 1998 level—though the growth has leveled off in recent years, with wages in the sector actually declining somewhat from 2003 to 2004. From 2002 to 2003, and again from 2003 to 2004, each sector of the Life Sciences technology cluster added jobs in Automation Alley. Over this two-year period, Automation Alley gained 110 jobs in pharmaceutical and medicine manufacturing, 185 jobs in medical equipment and supplies manufacturing, and 2,319 jobs in scientific R&D. Anderson Economic Group, LLC 39 A Closer Look: The Life Sciences Cluster TABLE 21. Employment in the Life Sciences Technology Cluster, by NAICS Sector (1998-2004) NAICS Sector 1998 1999 2000 2001 2002 2003 2004 3254: Pharma & Med Manufacturing 1,298 1,290 1,513 1,258 1,406 1,503 1,516 3391: Med Equip & Supply Manufacturing 2,827 2,863 3,220 3,059 2,385 2,539 2,570 5417: Scientific R&D Services 21,988 26,683 25,790 25,389 28,105 29,490 30,424 Total Cluster 26,113 27,836 30,522 29,706 31,896 33,532 34,510 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns TABLE 22. Average Wages in the Life Sciences Technology Cluster, by NAICS Sector (1998-2004) NAICS Sector 1998 1999 2000 2001 2002 2003 2004 3254: Pharma & Med Manufacturing $46,464 $50,538 $46,983 $56,014 $48,554 $45,100 $50,695 3391: Med Equip & Supply Manufacturing $34,146 $32,975 $33,131 $34,260 $35,854 $40,007 $41,297 5417: Scientific R&D Services $71,889 $76,156 $76,101 $85,449 $92,033 $98,394 $92,867 Total Cluster $66,539 $70,528 $70,125 $78,931 $85,915 $91,584 $87,174 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 40 A Closer Look: The Life Sciences Cluster FIGURE 24. Change in Life Sciences Technology Employment, by NAICS Sector, 1998-2004 Change in Life Sciences Technology Average Wages, by NAICS Sector, 1998-2004 FIGURE 25. Anderson Economic Group, LLC 41 A Closer Look: The Life Sciences Cluster GEOGRAPHIC CLUSTERS As shown by the data in Table 23 and Table 24, the Life Sciences technology cluster is well spread across Automation Alley. This provides a number of options to life sciences technology firms looking for a location near others in their industry. For example, Oakland, Washtenaw, and Wayne counties each have more than 5,000 scientific research and development jobs, and Macomb County adds another 2,666 scientific R&D jobs. An employer considering a location in Automation Alley could find a site in any of these counties and be close to a concentration of similar firms. A more detailed look at the geographic data on life sciences technology employment in Automation Alley reveals: • Wayne County leads Automation Alley in the number of life sciences technol- ogy jobs, with 2004 employment exceeding 16,200. Some 94 percent of this employment was in the scientific R&D field. The county also has a significant presence of pharmaceutical and medicine manufacturers (nine establishments and 358 employees), and medical equipment and supply manufacturers (576 employees at 45 establishments). • Oakland County has the most diversified concentration of life sciences technology in the region. The county has more than 500 employees in each of the three NAICS sectors. It leads the region in terms of the number of medical equipment and supply establishments (71) and pharmaceutical and medicine manufacturers (9, tied with Wayne County). It’s also near the top in scientific R&D establishments (76 v. 79 for Washtenaw County). • Washtenaw County also has a diverse life sciences technology industry. It has more scientific R&D establishments (79), and more medical equipment and supply manufacturing employees (631 working at 12 establishments) than any other Automation Alley county. With 7,150 scientific R&D employees, Washtenaw trails only Wayne County in terms of number of jobs in this well-paying field. • Macomb and Genesee counties also have notable life sciences technology activity. There are 410 employees working at 34 medical and equipment manufacturing establishments in Macomb County, and another 2,666 employees working in the county’s 24 scientific R&D establishments. Genesee County also has a significant assemblage of medical equipment and supply manufacturing, with 280 employees working in 21 establishments. Anderson Economic Group, LLC 42 A Closer Look: The Life Sciences Cluster TABLE 23. Life Sciences Technology Employment, by NAICS Sector, by County County Pharama & Med (NAICS 3254) Med Equip & Supply (NAICS 3391) Scientific R&D (NAICS 5417) Total Genesee - 280 51 331 Livingston - 59 20 79 Macomb 15 410 2,666 3,091 Monroe 13 4 38 55 Oakland 1,080 582 5,203 6,865 St. Clair - 28 - 28 50 631 7,150 7,831 358 576 15,296 16,230 1,516 2,570 30,424 34,510 Washtenaw Wayne Automation Alley Total Source: Anderson Economic Group, LLC TABLE 24. Life Sciences Technology Establishments, by NAICS Sector, by County County Pharama & Med (NAICS 3254) Med Equip & Supply (NAICS 3391) Scientific R&D (NAICS 5417) Total Genesee - 21 6 27 Livingston - 7 5 12 Macomb 1 34 24 59 Monroe 1 1 3 5 Oakland 9 71 76 156 St. Clair - 4 - 4 Washtenaw 1 12 79 92 Wayne 9 45 47 101 21 195 240 456 Automation Alley Total Source: Anderson Economic Group, LLC Anderson Economic Group, LLC 43 A Closer Look: The Life Sciences Cluster UNIVERSITY RESEARCH AND DEVELOPMENT Research conducted by universities is particularly important in the life sciences industry because it enables companies and organizations to conduct research that would otherwise not be supported. Medical technology and developments make up the majority of the life sciences industry, and developing a product or process in medicine often takes years of research. Private sector firms do not have the incentive to invest in such research when the odds of turning a profit are low. Therefore, the advances made in publicly funded labs are key to launching future advances in the life sciences. Given the importance of the research conducted by universities in the life sciences, private sector firms in the life sciences often locate near major centers of university R&D. Being able to interact with leading researchers and to hire graduates who have worked on forthcoming technologies in university labs is a competitive advantage that firms in the Life Sciences technology cluster highly value. In 2003, universities located within Automation Alley spent more than $600 million on research and development in the life sciences, up significantly from the 1999 level of $386 million. Leading the way was the University of Michigan, with nearly $426 million of life sciences R&D expenditures. Wayne State was second with more than $170 million. In total, Automation Alley’s universities accounted for 82 percent of all life science R&D expenditures among public universities in Michigan.16 TABLE 25. Expenditures for R&D in the Life Sciences (in thousands) University Eastern Michigan University 1999 2000 2001 2002 2003 $292 $424 $442 $1,678 $785 $4,118 $4,118 $4,743 $2,812 $3,193 University of Michigan $267,585 $301,790 $320,770 $358,254 $425,759 Wayne State University $114,217 $120,701 $140,180 $159,013 $170,498 Total $386,212 $427,033 $466,135 $521,757 $600,235 Oakland University Source: Anderson Economic Group, LLC Data: National Science Foundation, Academic Institutional Profiles 16.AEG analysis National Science Foundation Academic Research and Expenditures data from fiscal year 2003. Reporting universities include: Central Michigan, Eastern Michigan, Ferris State, Grand Valley State, Michigan State, Michigan Technological, Oakland, Saginaw Valley State, University of Michigan (all campuses), Wayne State, and Western Michigan. Anderson Economic Group, LLC 44 A Closer Look: The Life Sciences Cluster RESEARCH CENTERS IN AUTOMATION ALLEY With universities in Automation Alley being home to more than $600 million in life sciences R&D expenditures, it is not surprising that the region also has at least 25 university research centers exclusively for the life sciences, as shown in Table 26. TABLE 26. Automation Alley’s Main University Research Centers Kettering University Biomechanics and Bioengineering Laboratory Orthopaedic Biomechanics Laboratory Lawrence Technological University Biomedical Engineering Laboratory Oakland University Center for Biomedical Research Eye Research Institute University of Michigan Orthopaedic Research Laboratories Human Motion Simulation Laboratory Life Sciences Initiative (LSI) Molecular Biophysics Research Laboratory Nanotechnology Institute for Medicine and the Biological Sciences The Biological Station Center for Proteome Studies Center for Chemical Genomics Michigan Center for Biological Information (MCBI) Center for Organogenesis Center for Human Embryonic Research Wayne State University Bioengineering Center Research and Technology Center Brain Imaging Research Division Applied Genomics Technology Center (AGTC) Center for Molecular Medicine and Genetics Institute for Environmental Health Sciences Morris J. Hood Jr. Comprehensive Diabetes Research Center Karmanos Cancer Institute Kresge Eye Institute Source: Oakland County Michigan, Emerging Sectors Report, 2006 The majority of these university research centers focus on one of two primary areas: medical research or biomechanical research. Some of the work being done in these fields is discussed below. Anderson Economic Group, LLC 45 A Closer Look: The Life Sciences Cluster Biomechanical Research. Universities in Automation Alley have a variety of programs exploring the field of biomechanics (the study of mechanics in the living body). In an effort to support new and relevant research in the biomedical arena, Kettering University has developed a Biomedical Research and Design Laboratory (BRDL). The BRDL combines three fields of engineering (mechanical, electrical, and industrial) to provide technical expertise for the design and development of bioengineering products.17 Additionally, the University of Michigan has worked in collaboration with Ford, DaimlerChrysler, General Motors, TARDEC, and others to establish the Human Motion Simulation Laboratory. The laboratory researches human movements for applications in ergonomics (designing equipment for the workplace that reduces strain on operators). Medical Research. A significant number of university research centers in Automation Alley are devoted to medical research. With nine research centers and institutes, Wayne State University is home to one of the nation’s largest medical schools.18 In Ann Arbor, the University of Michigan’s Nanotechnology Institute for Medicine and Biological Sciences (M-NIMBS) combines nanoscale research in the biological and physical sciences. This research has been helpful in a variety of fields, and recently announced findings that could be used to make more effective cancer treatments.19 Additionally, Oakland University is home to the Center for Biomedical Research. This center conducts research in nine major biomedical fields, ranging from cellular responses to stress to tumor immunology. The Center has won several awards for their research and has received four Distinguished Biomedical Science Achievement awards since 2002.20 EMPLOYERS IN FOCUS Automation Alley is home to hundreds of businesses in the Life Sciences cluster. The firms below illustrate the intensity and diversity of the life sciences throughout Automation Alley. Asterand, PLC (Detroit, Wayne County). Asterand, PLC is a tissue research company headquartered in TechTown, a technology park adjacent to Wayne State University in Detroit. The company’s range of products and services include standard and custom procurement of tissue in frozen, fixed or fresh formats, matching blood, serum and plasma samples, cell lines, human tissue 17.Kettering University, Office for Research and Technology Transfer. 18.Wayne State University is the 5th largest medical school in America. U.S. News and World Report: America’s Best Graduate Schools, 2007. Report available at: http://www.usnews.com/ usnews/edu/grad/webextras/brief/sb_med_size_brief.php. 19.M-NIMBS Web site, available at: http://nano.med.umich.edu/. 20.Oakland University, Center for Biomedical Research Web site, available at:www2.oakland.edu/cbr/ Anderson Economic Group, LLC 46 A Closer Look: The Life Sciences Cluster derivatives, protein, slides, tissue microarrays, immunohistochemistry, in-situ hybridization, functional pharmacology, drug toxicity studies and gene expression profiling. Asterand-supplied tissues have provided researchers around the world with the necessary samples to aid in the discovery and development of medicines and treatments for a wide range of diseases and conditions which include rheumatoid and osteoarthritis, cancer, central nervous system diseases, cardiovascular diseases, diabetes and respiratory diseases. Asterand was formed in 2000 by Randal Charlton, who continues to serve as the firm’s CEO. With offices in Detroit and the United Kingdom, the company currently employs more than 90 professionals and provides services to researchers all over the world. Although headquartered in Detroit, Asterand is a fully listed public company on the London Stock Exchange (symbol ATD). Somanetics Corporation (Troy, Oakland County). Somanetics Corporation develops, manufactures, and markets medical devices throughout the United States, Japan, Europe, Canada, the Middle East, and Africa. Their INVOS system is the only commercially available non-invasive patient monitoring system that continually monitors changes in the brain’s blood oxygen levels. Somanetics also develops and markets the CorRestore system for use in cardiac repair and reconstruction, including heart surgeries called surgical ventricular restoration. The CorRestore system is unique because it may be used with a specific medical procedure required for the treatment of patients with congestive heart failure.21 Somanetics, which was founded in 1982, has approximately 50 full-time employees. The firm’s chief executive is Bruce Barrett, and is publicly traded under the symbol SMTS. DavisMade, Inc. (Burton, Genesee County). DavisMade, Inc. manufactures the “Standing Dani” and other custom-made pediatric mobile prone standers for children with special needs. The “Standing Dani” may be used indoors or outdoors, and each child is individually assessed to ensure optimal mobility and comfort. The company was recently featured on ABC’s hit TV show, Extreme Makeover Home Edition, as they provided a “KidSter Dani” for a five-year-old child with muscular dystrophy from Medfield, Massachusetts. DavisMade, Inc. was founded in 1985 by Dan Davis, whose daughter Dani Davis was diagnosed with cerebral palsy at age one. Davis refined his invention with assistance from Kettering University and University of Michigan-Dearborn researchers, and a SBIR grant worth $37,360. RJL Systems, Inc, (Clinton Township, Macomb County). RJL Systems Inc. is a pioneer of bioelectric impedance sciences, which involves using low levels of 21.This procedure is known as Surgical Ventricular Restoration, or SVR. Anderson Economic Group, LLC 47 A Closer Look: The Life Sciences Cluster electrical current to measure body fat, water, and cell mass. RJL designs and creates instruments and software to assess body composition relating to body fat, lean body mass, total body water, and intracellular-extracellular volume. Body composition analysis is important for tracking overall health and fitness, as well as progress made in therapeutic programs. Equipment manufactured by RJL Systems, Inc. has applications in research and development and clinics. RJL products are distributed throughout North America, as well as Central America, the Caribbean, and Europe. RJL Systems was founded in 1979 by Rudolph J. Liedtke, the company’s CEO and Director of R&D. The company has seven employees, and serves customers throughout the United States, Mexico, Canada, Central America and the Caribbean, and Europe. Rubicon Genomics (Ann Arbor, Washtenaw County). Rubicon Genomics focuses on the development of highly sensitive and highly specific non-invasive tests for cancer and other diseases using its proprietary MethylPlex™ technology. Rubicon has also discovered and developed a proprietary set of tumor markers and combinations of tumor markers (patterns) for specific indications. The company is a leader in the development of breakthrough methods for detection and interpretation of the complex DNA methylation patterns in tumor cells. MethylPlex amplifies and quantifies the exceedingly small amounts of abnormally methylated DNA that are released by diseased tissue into different body fluids such as blood and urine. Rubicon was founded in 2000 by John Langmore M.D. and Vladimir Makarov, M.D., who have grown the firm to 10 employees and annual revenues exceeding $2 million. Today, the company is engaged in multiple collaborations directed at commercializing leading-edge cancer diagnostics. GlyTag, LLC (Beverly Hills, Oakland County). GlyTag, LLC has developed a drug targeting system that increases the efficacy of medicines and drugs, while reducing undesirable side effects on non-problematic cells. So far, drugs tested with the GlyTag system have resulted in enhanced drug activity and less frequent dosing. They are currently in the pre-clinical testing stage with a new protein called “GlyB4” for treating breast cancer. Glytag is a small, privately held firm founded in 2004 by Jeffrey A. Loeb, M.D.O., a leader in the field of growth factor-heparin interactions and inventor of the GlyTag technology. Anderson Economic Group, LLC 48 Appendix A: Technology Definition Methodology Our definition of the technology industry is composed of specific industrial sectors. These sectors are identified by North American Industry Classification System (NAICS) codes, which is how the U.S. Census Bureau reports industry data.1 Because there is not a universally accepted definition of technology, we employed the following methodology to determine an accurate and concise definition of the technology industry. Specifically, this methodology involved: 1. Surveying existing definitions We reviewed definitions of the technology industry used in relevant industry reports, analyses, and other materials. 2. Making a first cut selection We made a first selection of industry sectors (as defined by NAICS codes) to be included in the definition. We based our decision at this step on the frequency with which a sector was cited in other studies. If the sector appeared in the U.S. Department of Commerce definition and one other definition, we included the industry in our definition. 3. Conducting an occupational test If an industry was included in one or two other studies, and met a specific standard concerning the share of occupations in an industry with a technology focus, it was included in our definition. 4. Refining from the 6-digit NAICS codes We took the selected 6-digit industry sectors back to the 4-digit level. This was done because estimates of employment and payroll are more available at the 4-digit level. 5. Breaking down the industry definition into technology subsectors Based on the definition of each NAICS code, as given by the U.S. Census Bureau, we classified each 4-digit NAICS code into one of the following technology clusters: Advanced Automotive, Advanced Manufacturing, Chemical and Material, Information Technology (including telecommunications), Life Sciences, and Other Technologies. REVIEW OF EXISTING DEFINITIONS In our first step we reviewed past reports and other sources involving the technology industry to determine what industry sectors are most commonly included when defining technology. We found that each document puts forth its 1. Our definition was done at the NAICS 4-digit level, as this is the most detailed level for which sufficient amounts of data is commonly available at the county level. A NAICS code can be between 2 and 6 digits, with each digit providing an additional level of detail. For example, NAICS code 325 represents chemical manufacturing, NAICS code 3254 represents pharmaceutical and medicine manufacturing, and 325411 represents medicinal and botanical manufacturing. Anderson Economic Group, LLC A-1 own definition. These definitions vary from focusing solely on information technology (American Electronics Association), to a definition incorporating wholesalers of technology equipment (Carnegie Mellon / SSTI). Of the existing definitions reviewed, which we list in “Appendix B: Bibliography” we identified six to further consult during our definition process. These six were selected based on their use of NAICS codes (as opposed to SIC codes, the precursor to NAICS) to define the industry, as well as the reputation of the source and the quality of analytic methods used. We took the definitions put forth in these six reports and constructed a “technology industry definition matrix,” which we present in “Appendix C: Other Definitions of the Technology Industry.” The appendix also includes a narrative summary of the six reports. SELECTING NAICS TO INCLUDE: FIRST CUT Upon reviewing the already established definitions of technology, we decided that the U.S. Department of Commerce, Office of Technology Policy definition used in the fourth edition of The Dynamics of Technology-Based Economic Development, would serve as the base for our definition.1 Specifically, if a NAICS code was used in the U.S. Department of Commerce definition, and at least one of the other five definitions, it was included in our definition. NAICS code 5416 (Management, Scientific, and Technical Consulting Services) which met the criteria at this step, was later excluded from our definition. Our analysis found inconsistencies in the use of “Management Consulting Services” as a classification, which resulted in significantly more employment in this sector in 2003 than in 2002. It appears likely that a large number of jobs previously classified as “5613-Employment Services” or as “5511-Management of Companies & Enterprises” were reclassified under “54161-Management Consulting Services.” Given that the reclassified employment was significant (likely about 17,000), and that the reclassified employees appear not to work in a technology-related occupation, we removed NAICS code 5416 from our definition. NAICS codes not meeting this criterion were retained for further analysis. SELECTING NAICS TO INCLUDE: SECOND AND THIRD CUTS If a NAICS code was not included after the first cut, we then further consulted the definitions of technology used by the AeA, Pittsburgh Technology Council, and Carnegie-Mellon/SSTI.2 If a remaining NAICS code was not included in 1. We based this decision on the fact that the U.S. Department of Commerce has used the definition on three previous editions of its Dynamics of Technology-Based Economic Development report; the definition was based in the 1999 BLS definition as presented by Daniel Hecker; and, as it is a government source, the report is assumed to be unbiased. Anderson Economic Group, LLC A-2 any of these definitions, it was excluded from our definition. If it was included in all three, it was included in our definition; however, no NAICS codes met this criterion. A quantitative analysis was then applied to NAICS codes that were included in one or two of the definitions presented by AeA, Pittsburgh Technology Council, and Carnegie-Mellon/SSTI. This involved assessing the occupational makeup of each industry, and keeping those industries in which more than double the national average of workers had technology-oriented occupations.1 Table 1 on page 4 summarizes this analysis for each industry on which we performed an occupational analysis. Industries that had a 10 percent or greater share of employment in technology occupations were included in our definition. FINALIZING THE DEFINITION After applying the above criteria we had a list of 186 6-digit NAICS codes. However, precise industry data is not commonly available at the 6-digit level for individual counties—the level of geography analyzed in this study. To accommodate this, our definition—as presented in Table 3, “Definition of the Technology Industry by Cluster,” on page 13 of the Introduction to the report—is comprised of each industry’s 4-digit NAICS code. While this broadens the definition to some extent, it allows far greater precision in estimating industry data for employment, payroll, and establishments where needed.2 TECHNOLOGY CLUSTER CLASSIFICATIONS Upon completing our industry definition, we identified technology clusters by classifying each NAICS as involving information technology, advanced manufacturing, advanced automotive, chemical and material, or life sciences. An “other technologies” classification was used for those not fitting a specified cluster. The composition of each cluster is presented in Table 3, “Definition of the Technology Industry by Cluster,” on page 13 of the report. 2. We did not further consult the definitions used by Anderson Economic Group (AEG) in 2001, or the BLS in 1999, as these definitions are very similar to that used by U.S. Department of Commerce, Office of Technology Policy in The Dynamics of Technology-Based Economic Development, fourth edition. This is largely due to the fact that both the 2001 AEG definition and the BLS definition were based on the 1999 BLS definition. 1. May 2004 occupation data was gathered at the 4-digit NAICS level (most detailed level available) from the BLS Occupational Employment Statistics Survey. At the national level we found 5 percent of all occupations were classified as Computer and Mathematical; Architecture and Engineering; and Life, Physical, and Social Science. 2. The U.S. Census Bureau does not disclose industry payroll data when doing so would make apparent an individual business payroll. Industry employment data is also frequently reported as a range (i.e. 0-19 employees) for more specific NAICS levels. Thus, some estimates were made based on broader industry trends. See “Data Collection and Estimation” in Appendix E. Anderson Economic Group, LLC A-3 TABLE 1. Occupational Analysis of Industries Considered for Inclusion in Technology Industry Definition Total Industry Employment Employment in Technology Occupations* Share of Employment in a Technology Occupation** 2111 - Oil and Gas Extraction 119,200 26,700 22.4% 3334 - Ventilation, Heating, AC, and Commercial Refrig Equipment Manufacturing 151,650 9,610 6.3% 3335 - Metalworking Machinery Manufacturing 199,230 13,950 7.0% 3359 - Other Electrical Equipment and Component Manufacturing 137,450 12,060 8.8% 37,700 4,280 11.4% 3399 - Other Miscellaneous Manufacturing 356,330 12,870 3.6% 4234 - Professional and Commercial Equipment and Supplies Merchant Wholesalers 637,820 111,510 17.5% 5161 - Internet Publishing and Broadcasting 29,250 10,210 34.9% 5171 - Wired Telecommunications Carriers 552,560 102,870 18.6% 5172 - Wireless Telecommunications Carriers (except Satellite) 192,100 29,100 15.1% 5173 - Telecommunications Resellers 111,800 25,320 22.6% 5174 - Satellite Telecommunications 16,520 2,000 12.1% 128,920 9,250 7.2% NAICS code - Industry 3369 - Other Transportation Equipment Manufacturing 5175 - Cable and Other Program Distribution 5179 - Other Telecommunications 6114 - Business Schools and Computer and Management Training 0000 - All United States Industries 7,460 1,760 23.6% 83,780 4,830 5.8% 128,127,360 6,419,460 5.0% Source: Anderson Economic Group, LLC Data: U.S. Bureau of Labor Statistics, Occupational Employment Statistics Survey (May 2004) * Technology occupations are those classified under the OCC Codes for Computer and Mathematical; Architecture and Engineering; and Life, Physical, and Social Science. **Industries with a 10 percent or greater share of employment in a technology occupation are included in our definition. ADDITIONAL METHODOLOGICAL NOTES Our definition was done at the NAICS 4-digit level, as this is the most detailed level for which sufficient amounts of data are commonly available at the county level. A NAICS code can be between 2 and 6 digits, with each digit providing an additional level of detail. For example, NAICS code 325 represents chemical manufacturing, NAICS code 3254 represents pharmaceutical and medicine manufacturing, and NAICS code 325411 represents medicinal and botanical manufacturing. Anderson Economic Group, LLC A-4 Our definition is based on 2002 NAICS codes. The 1998-2002 data used in our analysis is provided by 1997 NAICS codes. The U.S. Census Bureau introduced 2002 NAICS codes to account for new and emerging industries that could not be well classified using the 1997 definitions. Anderson Economic Group, LLC A-5 Appendix B: Bibliography In arriving at a definition of the technology industry, we reviewed a number of past reports with a range of definitions of the industry. A bibliography of these reports is presented below. Anderson, Patrick, Ian Clemens, and Christopher Cotton. Economic Diversification and High-Tech Employment in Oakland County. Anderson Economic Group, 2001. Anderson, Patrick, and Scott Watkins. The Life Sciences Industry in Michigan: Employment, Economic, and Fiscal Contributions to the State’s Economy. Anderson Economic Group, 2004. Cyberstates 2005. American Electronics Association, 2005. DeJonge, Alissa. Defining High Tech. CERC, 2001. http://www.cerc.com/ detpages/services951.html. Feinstein, Abel, and Sean P. McAlinden. Michigan: The High-Technology Automotive State. Center for Automotive Research in the Altarum Institute, 2002. Hecker, Daniel. “High-Technology Employment: A Broader View”. Monthly Labor Review, June 1999. High Technology and the Third Frontier. Ohio Department of Job and Family Services, Bureau of Labor Market Information, October 2003. Paytas, Jerry, and Dan Berglund. Technology Industries and Occupations for NAICS Industry Data. Carnegie Mellon Heinz School Center for Economic Development in conjunction with the State Science & Technology Institute, February 2004. State of the Industry Report 2005: The Pittsburgh Region. Pittsburgh Technology Council, 2005. The Dynamics of Technology-Based Economic Development: State Science and Technology Indicators, 4th edition. U.S. Department of Commerce, Office of Technology Policy, March 2004. Anderson Economic Group, LLC B-1 Appendix C: Other Definitions of the Technology Industry We reviewed a number of other publications before adopting the definition of “technology” used in this report. Of the reports listed in “Appendix B: Bibliography” we looked most closely at those that used NAICS codes to identify the technology industry. We documented these definitions in a matrix, which is presented as Table 1, “Technology Definition Matrix,” on page 3. Also, below you will find a brief narrative summary of the technology definition used in each of these reports.1 AMERICAN ELECTRONICS ASSOCIATION (AeA) AeA used 45 NAICS codes to define the technology industry. Its guiding principle was that “to be included in AeA’s core definition of high tech, an industry had to be a maker/creator of technology, whether it be in the form of products, communications, or services.” Industries included in AeA’s definition broadly fall into two categories—hightech manufacturing and high-tech services. AeA did not include a NAICS code if the high-tech portion did not represent a clear majority. The AeA definition of high-tech does not include the wholesale and retail trade of high-tech goods. AeA also leaves out biotechnology because, in their words, “there is no clear consensus on the definition of the biotechnology industry.” THE PITTSBURGH TECHNOLOGY COUNCIL The Pittsburgh Technology Council used 126 NAICS codes to define the technology industry in its 2005 “State of the Industry” report. The Pittsburgh Technology Council used three main criteria in determining if an industry qualified as being technology oriented. These criteria were: research and development activity; scientists and engineers employed; and specialty technology workers employed. The Council looked at the percentage of sales invested in research and development, the number of scientists and engineers employed in industries, and the number of specialty technology workers who are employed in typically nontechnology industries. Such workers might include information systems personnel, computer programmers, lab personnel, and engineers involved in heavy industrial processes. 1. North American Industry Classification System (NAICS) was adopted in 1997 to replace the Standard Industrial Classification (SIC) system as the industry classification system used by the statistical agencies of the United States. Anderson Economic Group, LLC C-1 CARNEGIE MELLON AND SSTI Carnegie Mellon’s report “Technology Industries and Occupations for NAICS Industry Data” identifies three major areas of technology: Technology Employers, Primary Technology Generators, and Secondary Technology Generators. Their work builds on a previous definition of technology industries identified by their 3-digit Standard Industrial Classification (SIC) code. In order to be defined as technology, an industry must be science and engineering intensive, with a share of employment in those occupations that exceeds three times the national average. Using this methodology, Carnegie Mellon classified industries as Technology Employers if their share of employment in science- and engineering-intensive occupations exceeded more than three times the national average (3.3 percent). To be classified as a Primary Technology Generator, an industry must exceed the U.S. average for research and development expenditures per employee ($11,297) and the proportion of full-time-equivalent R&D scientists and engineers in the industry workforce (5.9 percent). Secondary Technology Generators are those industries that meet only one of these two criteria. DANIEL HECKER, UNITED STATES BUREAU OF LABOR STATISTICS Economist Daniel Hecker of the U.S. Bureau of Labor Statistics (BLS) defined high-tech industries in his 1999 article “High Technology Employment: A Broader View.” In the article, Hecker considered industries as high tech if employment in both research and development and in all technology-oriented occupations accounted for a proportion of employment that was at least twice the average for all industries in the Occupational Employment Survey. Therefore, an industry is high tech if it has at least six research and development workers per 1000 workers and 76 technology-oriented workers per 1000 workers. This definition, which was based on SIC codes, includes high-tech manufacturing, information industries, and technology services. ANDERSON ECONOMIC GROUP (2001) In our 2001 report “Economic Diversification & High-Tech Employment in Oakland County” we referred to the definition given by Daniel Hecker of the BLS in “High Technology Employment: A Broader View.” The article provided a list of high-tech SIC codes. From this list, and with the relationships defined by the U.S. Census Bureau, we identified the appropriate NAICS industry groups to include in a definition of high-tech. This definition was done using NAICS codes at the 3-digit level. At the time few, if any, other definitions of the industry existed that were developed using the more accurate NAICS codes. Most others, including the BLS definition, were done using the older SIC data. Anderson Economic Group, LLC C-2 Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 211111 324110 324121 324122 324191 324199 325110 325120 325131 325132 325181 325182 325188 325191 325192 325193 325199 325211 325212 325221 325222 325311 325312 325314 325320 325411 325412 325413 325414 325510 325520 325611 325612 325613 325620 325910 325920 325991 325992 325998 332911 332912 Industry Crude Petroleum and Natural Gas Extraction Petroleum Refineries Asphalt Paving Mixture and Block Manufacturing Asphalt Shingle and Coating Materials Manufacturing Petroleum Lubricating Oil and Grease Manufacturing All Other Petroleum and Coal Products Manufacturing Petrochemical Manufacturing Industrial Gas Manufacturing Inorganic Dye and Pigment Manufacturing Synthetic Organic Dye and Pigment Manufacturing Alkalies and Chlorine Manufacturing Carbon Black Manufacturing All Other Basic Inorganic Chemical Manufacturing Gum and Wood Chemical Manufacturing Cyclic Crude and Intermediate Manufacturing Ethyl Alcohol Manufacturing All Other Basic Organic Chemical Manufacturing Plastics Material and Resin Manufacturing Synthetic Rubber Manufacturing Cellulosic Organic Fiber Manufacturing Noncellulosic Organic Fiber Manufacturing Nitrogenous Fertilizer Manufacturing Phosphatic Fertilizer Manufacturing Fertilizer (Mixing Only) Manufacturing Pesticide and Other Agricultural Chemical Manufacturing Medicinal and Botanical Manufacturing Pharmaceutical Preparation Manufacturing In-Vitro Diagnostic Substance Manufacturing Biological Product (except Diagnostic) Manufacturing Paint and Coating Manufacturing Adhesive Manufacturing Soap and Other Detergent Manufacturing Polish and Other Sanitation Good Manufacturing Surface Active Agent Manufacturing Toilet Preparation Manufacturing Printing Ink Manufacturing Explosives Manufacturing Custom Compounding of Purchased Resins Photographic Film, Paper, Plate, and Chemical Manufacturing All Other Miscellaneous Chemical Product and Preparation Manufacturing Industrial Valve Manufacturing Fluid Power Valve and Hose Fitting Manufacturing AeA Definition Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Carnegie Mellon / SSTI Definition: Aggregate x U.S. Department of Commerce, Office of Technology Policy x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 332913 332919 332991 332992 332993 332994 332995 332996 332997 332998 332999 333111 333112 333120 333131 333132 333210 333220 333291 333292 333293 333294 333295 333298 333311 333312 333313 333314 333315 333319 333411 333412 333414 333415 333511 333512 333513 333514 333515 333516 333518 333611 Industry Plumbing Fixture Fitting and Trim Manufacturing Other Metal Valve and Pipe Fitting Manufacturing Ball and Roller Bearing Manufacturing Small Arms Ammunition Manufacturing Ammunition (except Small Arms) Manufacturing Small Arms Manufacturing Other Ordnance and Accessories Manufacturing Fabricated Pipe and Pipe Fitting Manufacturing Industrial Pattern Manufacturing Enameled Iron and Metal Sanitary Ware Manufacturing All Other Miscellaneous Fabricated Metal Product Manufacturing Farm Machinery and Equipment Manufacturing Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing Construction Machinery Manufacturing Mining Machinery and Equipment Manufacturing Oil and Gas Field Machinery and Equipment Manufacturing Sawmill and Woodworking Machinery Manufacturing Plastics and Rubber Industry Machinery Manufacturing Paper Industry Machinery Manufacturing Textile Machinery Manufacturing Printing Machinery and Equipment Manufacturing Food Product Machinery Manufacturing Semiconductor Machinery Manufacturing All Other Industrial Machinery Manufacturing Automatic Vending Machine Manufacturing Commercial Laundry, Drycleaning, and Pressing Machine Manufacturing Office Machinery Manufacturing Optical Instrument and Lens Manufacturing Photographic and Photocopying Equipment Manufacturing Other Commercial and Service Industry Machinery Manufacturing Air Purification Equipment Manufacturing Industrial and Commercial Fan and Blower Manufacturing Heating Equipment (except Warm Air Furnaces) Manufacturing Air-Cond and Warm Air Heating Equip and Commercial and Industrial Refrig Equip Mfg Industrial Mold Manufacturing Machine Tool (Metal Cutting Types) Manufacturing Machine Tool (Metal Forming Types) Manufacturing Special Die and Tool, Die Set, Jig, and Fixture Manufacturing Cutting Tool and Machine Tool Accessory Manufacturing Rolling Mill Machinery and Equipment Manufacturing Other Metalworking Machinery Manufacturing Turbine and Turbine Generator Set Units Manufacturing AeA Definition Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition Carnegie Mellon / SSTI Definition: Aggregate U.S. Department of Commerce, Office of Technology Policy x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 333612 333613 333618 333911 333912 333913 333921 333922 333923 333924 333991 333992 333993 333994 333995 333996 333997 333999 334111 334112 334113 334119 334210 334220 334290 334310 334411 334412 334413 334414 334415 334416 334417 334418 334419 334510 334511 334512 334513 334514 334515 334516 Industry Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing Mechanical Power Transmission Equipment Manufacturing Other Engine Equipment Manufacturing Pump and Pumping Equipment Manufacturing Air and Gas Compressor Manufacturing Measuring and Dispensing Pump Manufacturing Elevator and Moving Stairway Manufacturing Conveyor and Conveying Equipment Manufacturing Overhead Traveling Crane, Hoist, and Monorail System Manufacturing Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing Power-Driven Handtool Manufacturing Welding and Soldering Equipment Manufacturing Packaging Machinery Manufacturing Industrial Process Furnace and Oven Manufacturing Fluid Power Cylinder and Actuator Manufacturing Fluid Power Pump and Motor Manufacturing Scale and Balance (except Laboratory) Manufacturing All Other Miscellaneous General Purpose Machinery Manufacturing Electronic Computer Manufacturing Computer Storage Device Manufacturing Computer Terminal Manufacturing Other Computer Peripheral Equipment Manufacturing Telephone Apparatus Manufacturing Radio and Television Broadcasting and Wireless Comm Equipment Manufacturing Other Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Electron Tube Manufacturing Bare Printed Circuit Board Manufacturing Semiconductor and Related Device Manufacturing Electronic Capacitor Manufacturing Electronic Resistor Manufacturing Electronic Coil, Transformer, and Other Inductor Manufacturing Electronic Connector Manufacturing Printed Circuit Assembly (Electronic Assembly) Manufacturing Other Electronic Component Manufacturing Electromedical and Electrotherapeutic Apparatus Manufacturing Search, Detection, Navig, Guidance, Aeronauy, and Naut Syst and Instrument Mng Auto Environmental Control Manufacturing for Residential, Comm, and Appliance Use Instruments and Mfg for Measuring, Displaying, and Cntrl Ind Process Variables Totalizing Fluid Meter and Counting Device Manufacturing Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals Analytical Laboratory Instrument Manufacturing AeA Definition x x x x x x x x x x x x x x x x x x x x x x x x Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Carnegie Mellon / SSTI Definition: Aggregate x x x x x x x x x x x x x x x x x x x x x U.S. Department of Commerce, Office of Technology Policy x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 334517 334518 334519 334611 334612 334613 335311 335312 335313 335314 335911 335912 335921 335929 335931 335932 335991 335999 336111 336112 336120 336211 336212 336213 336214 336311 336312 336321 336322 336330 336340 336350 336360 336370 336391 336399 336411 336412 336413 336414 336415 336419 Industry Irradiation Apparatus Manufacturing Watch, Clock, and Part Manufacturing Other Measuring and Controlling Device Manufacturing Software Reproducing Prerecorded Compact Disc (except Software), Tape, and Record Reproducing Magnetic and Optical Recording Media Manufacturing Power, Distribution, and Specialty Transformer Manufacturing Motor and Generator Manufacturing Switchgear and Switchboard Apparatus Manufacturing Relay and Industrial Control Manufacturing Storage Battery Manufacturing Primary Battery Manufacturing Fiber Optic Cable Manufacturing Other Communication and Energy Wire Manufacturing Current-Carrying Wiring Device Manufacturing Noncurrent-Carrying Wiring Device Manufacturing Carbon and Graphite Product Manufacturing All Other Miscellaneous Electrical Equipment and Component Manufacturing Automobile Manufacturing Light Truck and Utility Vehicle Manufacturing Heavy Duty Truck Manufacturing Motor Vehicle Body Manufacturing Truck Trailer Manufacturing Motor Home Manufacturing Travel Trailer and Camper Manufacturing Carburetor, Piston, Piston Ring, and Valve Manufacturing Gasoline Engine and Engine Parts Manufacturing Vehicular Lighting Equipment Manufacturing Other Motor Vehicle Electrical and Electronic Equipment Manufacturing Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing Motor Vehicle Brake System Manufacturing Motor Vehicle Transmission and Power Train Parts Manufacturing Motor Vehicle Seating and Interior Trim Manufacturing Motor Vehicle Metal Stamping Motor Vehicle Air-Conditioning Manufacturing All Other Motor Vehicle Parts Manufacturing Aircraft Manufacturing Aircraft Engine and Engine Parts Manufacturing Other Aircraft Parts and Auxiliary Equipment Manufacturing Guided Missile and Space Vehicle Manufacturing Guided Missile and Space Vehicle Propulsion and Propulsion Unit Parts Manufacturing Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing AeA Definition x x x Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Carnegie Mellon / SSTI Definition: Aggregate x x x x x x x x x x x x x x x x x U.S. Department of Commerce, Office of Technology Policy x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 336611 336612 336992 336999 339111 339112 339113 339114 339115 339116 339932 339991 339999 423410 423420 423430 423440 423450 423460 423490 511110 511120 511130 511140 511191 511199 511210 516110 517110 517211 517212 517310 517410 517510 517910 518111 518112 518210 519110 519120 519190 519191 Industry Ship Building and Repairing Boat Building Military Armored Vehicle, Tank, and Tank Component Manufacturing All Other Transportation Equipment Manufacturing Laboratory Apparatus and Furniture Manufacturing Surgical and Medical Instrument Manufacturing Surgical Appliance and Supplies Manufacturing Dental Equipment and Supplies Manufacturing Ophthalmic Goods Manufacturing Dental Laboratories Game, Toy, and Children's Vehicle Manufacturing Gasket, Packing, and Sealing Device Manufacturing All Other Miscellaneous Manufacturing Photographic Equipment and Supplies Merchant Wholesalers Office Equipment Merchant Wholesalers Computer and Computer Peripheral Equipment and Software Merchant Wholesalers Other Commercial Equipment Merchant Wholesalers Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers Ophthalmic Goods Merchant Wholesalers Other Professional Equipment and Supplies Merchant Wholesalers Newspaper Publishers Periodical Publishers Book Publishers Directory and Mailing List Publishers Greeting Card Publishers All Other Publishers Software Publishers Internet Publishing and Broadcasting Wired Telecommunications Carriers Paging Services Cellular and Other Wireless Communications Telecommunications Resellers Satellite Telecommunications Cable and Other Program Distribution Other Telecommunications Internet Service Providers Web Search Portals Data Processing, Hosting, and Related Services News Syndicates Libraries and Archives All Other Information Services On-Line Information Services AeA Definition Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition x x x x x x x x x x x x x x x x x x x x x x Carnegie Mellon / SSTI Definition: Aggregate U.S. Department of Commerce, Office of Technology Policy U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Table 1. Matrix of Technology Industry Definitions From Selected Sources (continued) NAICS 541310 541320 541330 541340 541350 541360 541370 541380 541410 541420 541430 541490 541511 541512 541513 541519 541611 541612 541613 541614 541618 541620 541690 541710 541720 541910 541921 541922 541930 541940 541990 611420 611710 811212 Industry Architectural Services Landscape Architectural Services Engineering Services Drafting Services Building Inspection Services Geophysical Surveying and Mapping Services Surveying and Mapping (except Geophysical) Services Testing Laboratories Interior Design Services Industrial Design Services Graphic Design Services Other Specialized Design Services Custom Computer Programming Services Computer Systems Design Services Computer Facilities Management Services Other Computer Related Services Administrative Management and General Management Consulting Services Human Resources and Executive Search Consulting Services Marketing Consulting Services Process, Physical Distribution, and Logistics Consulting Services Other Management Consulting Services Environmental Consulting Services Other Scientific and Technical Consulting Services Research and Development in the Physical, Engineering, and Life Sciences Research and Development in the Social Sciences and Humanities Marketing Research and Public Opinion Polling Photography Studios, Portrait Commercial Photography Translation and Interpretation Services Veterinary Services All Other Professional, Scientific, and Technical Services Computer Training Educational Support Services Computer and Office Machine Repair and Maintenance AeA Definition x x x x x x x Pittsburgh Anderson Economic Technology Group 2001 HighCouncil Definition Tech Definition x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Carnegie Mellon / SSTI Definition: Aggregate x x x x x x x x x x x x x x x U.S. Department of Commerce, Office of Technology Policy x x x x x x x x x x x x x x x x x x x x x x x x U.S. Bureau of Labor Statistics (1999, Converted From SICs) x x x x x x x x x x x x x x x x x x x x x x x x x x x Appendix D: Demographic and Socioeconomic Data The following are included in this appendix: • Table 1: Total Population by County in Automation Alley, 1990-2005 • Table 2: Labor Force by County in Automation Alley, 2000-2005 Anderson Economic Group, LLC D-1 Table 1. Total Population by County in Automation Alley, 1990-2005 Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County Census 1990 2000 430,459 436,141 115,645 156,951 717,400 788,149 133,600 145,945 1,083,592 1,194,156 145,607 164,235 282,937 322,895 2,111,687 2,061,162 2000 437,016 158,496 790,929 146,501 1,196,614 164,724 324,251 2,059,292 Population Estimates as of July 1 2001 2002 2003 438,842 440,653 442,386 163,860 168,980 173,003 800,411 807,977 815,557 147,942 149,225 150,888 1,202,176 1,202,962 1,208,013 166,053 167,367 169,521 328,224 332,395 335,578 2,050,659 2,039,491 2,027,900 2004 443,497 177,271 822,965 152,451 1,212,181 170,967 338,782 2,013,771 2005 443,883 181,517 829,453 153,935 1,214,361 171,426 341,847 1,998,217 Automation Alley 5,020,927 5,269,634 5,277,823 5,298,167 5,309,050 5,322,846 5,331,885 5,334,639 0.4% 0.2% Michigan 9,295,297 9,938,444 9,956,111 10,002,663 10,039,379 10,078,146 10,104,206 10,120,860 0.6% 0.3% 248,709,873 281,421,906 282,193,477 285,107,923 287,984,799 290,850,005 293,656,842 296,410,404 1.2% 1.0% United States Source: Anderson Economic Group, LLC Data: U.S. Census Bureau Anderson Economic Group, LLC % Annual Change 1990-2005 2000-2005 0.2% 0.3% 3.1% 2.7% 1.0% 1.0% 0.9% 1.0% 0.8% 0.3% 1.1% 0.8% 1.3% 1.1% -0.4% -0.6% Table 2. Labor Force by County in Automation Alley, 2000-2005 Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County Automation Alley Michigan United States Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County Automation Alley Michigan United States Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County Automation Alley Michigan United States 2000 Labor Force Employment Unemployment Unemployment Rate 214,453 204,846 9,607 4.5% 89,902 87,566 2,336 2.6% 434,968 419,406 15,562 3.6% 77,221 74,761 2,460 3.2% 677,683 658,456 19,227 2.8% 87,273 83,627 3,646 4.2% 185,980 181,558 4,422 2.4% 954,937 914,161 40,776 4.3% 2,722,417 2,624,381 5,157,374 4,967,218 142,583,000 136,891,000 98,036 190,156 5,692,000 3.6% 3.7% 4.0% 2002 Labor Force Employment Unemployment Unemployment Rate 210,463 194,952 15,511 7.4% 91,193 87,185 4,008 4.4% 425,810 399,712 26,098 6.1% 76,353 72,380 3,973 5.2% 652,782 618,532 34,250 5.2% 85,680 79,325 6,355 7.4% 185,153 178,535 6,618 3.6% 926,188 858,321 67,867 7.3% 2,653,622 2,488,942 5,038,821 4,695,148 144,863,000 136,485,000 164,680 314,785 8,378,000 6.2% 6.2% 5.8% 2004 Labor Force Employment Unemployment Unemployment Rate 213,704 195,897 17,807 8.3% 91,678 87,303 4,375 4.8% 422,696 394,481 28,215 6.7% 91,678 87,303 4,375 4.8% 643,206 607,417 35,789 5.6% 84,974 78,448 6,526 7.7% 188,183 180,023 8,160 4.3% 918,630 839,845 78,785 8.6% 2,654,749 2,470,717 5,078,979 4,719,343 147,401,000 139,252,000 Source: Anderson Economic Group, LLC Data: U.S. Bureau of Labor Statistics Anderson Economic Group, LLC 184,032 359,636 8,149,000 6.9% 7.1% 5.5% Labor Force 2001 Employment Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County 215,840 90,159 429,788 76,745 663,952 86,437 191,461 947,226 202,882 86,863 407,062 73,315 635,004 80,907 185,848 889,452 Automation Alley Michigan United States 2,701,608 5,131,908 143,733,000 2,561,333 4,864,600 136,933,000 Labor Force 2003 Employment Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County 210,561 92,333 425,539 76,952 647,234 86,131 185,149 923,610 193,104 87,879 397,084 72,254 611,425 78,965 177,629 844,173 Automation Alley Michigan United States 2,647,509 5,053,506 146,510,000 2,462,513 4,695,148 137,736,000 Labor Force 2005 Employment Genesee County Livingston County Macomb County Monroe County Oakland County St. Clair County Washtenaw County Wayne County 214,700 93,500 423,248 78,211 639,985 85,206 191,845 908,193 198,199 88,713 394,518 73,543 603,762 78,476 183,805 829,142 Automation Alley Michigan United States 2,634,888 5,097,457 149,320,000 2,450,158 4,753,822 141,730,000 Unemployment Unemployment Rate 12,958 6.0% 3,296 3.7% 22,726 5.3% 3,430 4.5% 28,948 4.4% 5,530 6.4% 5,613 2.9% 57,774 6.1% 140,275 267,308 6,800,000 5.2% 5.2% 4.7% Unemployment Unemployment Rate 17,457 8.3% 4,454 4.8% 28,455 6.7% 4,698 6.1% 35,809 5.5% 7,166 8.3% 7,520 4.1% 79,437 8.6% 184,996 358,358 8,774,000 7.0% 7.1% 6.0% Unemployment Unemployment Rate 16,501 7.7% 4,787 5.1% 28,730 6.8% 4,668 6.0% 36,223 5.7% 6,730 7.9% 8,040 4.2% 79,051 8.7% 184,730 343,635 7,577,990 7.0% 6.7% 5.1% Appendix E: Automation Alley Technology Industry Data The following are included in this appendix: • Table 1: Automation Alley Technology Clusters, 4-Digit NAICS Data, 1998 • Table 2: Automation Alley Technology Clusters, 4-Digit NAICS Data, 1999 • Table 3: Automation Alley Technology Clusters, 4-Digit NAICS Data, 2000 • Table 4: Automation Alley Technology Clusters, 4-Digit NAICS Data, 2001 • Table 5: Automation Alley Technology Clusters, 4-Digit NAICS Data, 2002 • Table 6: Automation Alley Technology Clusters, 4-Digit NAICS Data, 2003 • Table 7: Automation Alley Technology Clusters, 4-Digit NAICS Data, 2004 • Table 8: Technology Industry Employment and Payroll Comparison, • • • • • • • • • DATA COLLECTION AND ESTIMATION Automation Alley, Michigan and United States, 2004 Table 9: Genesee County Technology Clusters, 1998-2004 Table 10: Livingston County Technology Clusters, 1998-2004 Table 11: Macomb County Technology Clusters, 1998-2004 Table 12: Monroe County Technology Clusters, 1998-2004 Table 13: Oakland County Technology Clusters, 1998-2004 Table 14: St. Clair County Technology Clusters, 1998-2004 Table 15: Washtenaw County Technology Clusters, 1998-2004 Table 16: Wayne County Technology Clusters, 1998-2004 Table 17: Employment, Payroll, and Establishments—All Industry in Automation Alley, 1998-2004 The industry data used in this report is from the U.S. Census Bureau’s County Business Patterns (CBP) reports for 1998-2004. Employment, Payroll, and Establishment data was collected for each 4-digit NAICS code included in our technology industry definition. To accommodate changes in NAICS codes between 1997 and 2002, we used Census Bureau conversion tables to make appropriate substitutes. Industry data was collected for each of the eight counties in Automation Alley. Where specific data was not disclosed by the Census Bureau for an industry, we estimated employment and payroll based on the Census Bureau’s indicated range, similar time-series data, and overall employment within other areas of the 3-digit NAICS sector. Payroll data was estimated similarly. Often we used the average wage per job in the broader 3-digit NAICS sector, or in a like industry, and refined our estimate from there. CBP Data Online. U.S. Census Bureau, County Business Pattern data can be found online at http://www.census.gov/epcd/cbp. Anderson Economic Group, LLC E-1 DATA ADJUSTMENTS NAICS 95: Auxiliaries, except Corporate, Subsidiary, and Regional Managing Offices. From 1998 to 2002 CBP reports classified “Auxiliaries” under NAICS code 95. Establishments considered to be “Auxiliaries” were those that provided primary support services in 12 different areas, one of which was Scientific Research and Development (NAICS 5417), which is part of our life sciences cluster.1 As a result, 1998-2002 County Business Pattern data for NAICS code 5417 fails to account for Scientific Research and Development employment, payroll, and establishment that was classified as being an auxiliary. This changed in 2003 when auxiliaries were coded based on the primary support function that they provided, so 2003 CBP data on NAICS code 5417 includes auxiliary employees, payroll, and establishment. As a result, the 1998-2002 data for NAICS 5417 is not directly comparable to the 2003 data for NAICS 5417. To account for this reporting change, we adjusted the 1998-2002 data for NAICS 5417. The employment and establishment figures for the NAICS code were adjusted using a ratio of actual change to predicted change based on the realized annual growth rates in employment, payroll, and establishments in the region’s life sciences cluster from 1998 to 2002. As a result, the total employment, establishment, and payroll data for the years between 1998 and 2002 for NAICS 5417 do not match that reported in CBP reports. 1. The U.S. Census Bureau notes that auxiliaries usually “service only locations of the same enterprise, and generally do not produce any products nor provide services for the public, other business firms, or government. They may sell products or provide services, as a secondary activity, to the public or other business firms.” Other support functions that were coded 95 prior to 2003 are: 484000 Truck transportation; 493100 Warehouse and storage; 514210 Data processing services; 541100 Legal services; 541200 Accounting, tax preparation, bookkeeping, and payroll services; 541700 Scientific research and development services; 541800 Advertising and related services; 561300 Employment services; 561610 Investigation, guard and armored car services; 561700 Services to buildings and dwellings; 811000 Repair and maintenance. Anderson Economic Group, LLC E-2 Table 1. Automation Alley Technology Clusters, 4-Digit NAICS Data, 1998 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5133* 5140* 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 43,699 540 119,246 163,485 $1,948,607 $26,030 $6,768,383 $8,743,020 $44,592 $48,204 $56,760 $53,479 32 25 505 562 14 25 323 362 18 0 182 200 7,441 262 3,618 1,197 4,841 14,452 6,982 2,806 1,292 1,456 2,539 46,886 $280,728 $12,961 $193,315 $55,287 $265,154 $777,372 $379,055 $118,647 $51,121 $79,432 $142,721 $2,355,793 $37,727 $49,469 $53,431 $46,188 $54,773 $53,790 $54,290 $42,283 $39,567 $54,555 $56,212 $50,245 278 14 123 31 34 267 127 105 37 27 20 1,063 263 13 115 27 31 231 118 98 34 24 16 970 15 1 8 4 3 36 9 7 3 3 4 93 1,634 826 1,514 62 2,968 843 1,797 9,644 $76,642 $38,607 $72,380 $2,921 $168,729 $39,382 $83,903 $482,564 $46,905 $46,740 $47,807 $47,113 $56,849 $46,716 $46,691 $50,038 47 23 11 5 58 48 57 249 43 21 10 5 50 46 52 227 4 2 1 0 8 2 5 22 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Telecommunications Information & Data Processing Services Computer Systems Design & Related Services 1,765 775 62 4,216 2,235 3,127 15,430 22,793 17,935 68,338 $72,670 $30,965 $2,959 $144,269 $87,755 $239,423 $795,908 $900,235 $1,089,757 $3,363,941 $41,173 $39,955 $47,726 $34,219 $39,264 $76,566 $51,582 $39,496 $60,761 $49,225 29 25 4 102 18 137 572 425 1,393 2,705 24 21 4 95 14 134 532 369 1,364 2,557 5 4 0 7 4 3 40 56 29 148 3254 3391 5417** Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,298 2,827 21,988 26,113 $60,310 $96,532 $1,580,690 $1,737,532 $46,464 $34,146 $71,889 $66,539 23 241 161 425 19 237 138 394 4 4 22 30 2111 4214* 5413 Oil & Gas Extraction Professional & Commercial Equipment & Supply Wholesale Architectural, Engineering & Related Services 57 12,220 35,157 47,434 $2,525 $668,544 $1,792,097 $2,463,166 $44,298 $54,709 $50,974 $51,928 13 792 2,333 3,138 13 775 2,252 3,040 0 17 81 98 361,900 $19,146,016 $52,904 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 1998 Technology Industry Total 8,142 7,550 591 *1997 NAICS 5133 was used in place of 5161, 5171-5174, 5179; 1997 NAICS 5140 was used in place of 5181 and 5182; and 1997 NAICS 4214 was used in place of 4234. ** Includes estimated allocation to NAICS 5417 of employees, payroll, and establishments classified as NAICS 95 prior to 2003. See methodology for details. Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 2. Automation Alley Technology Clusters, 4-Digit NAICS Data, 1999 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5133* 5140* 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 41,164 637 122,354 164,155 $2,675,774 $28,996 $7,321,708 $10,026,478 $65,003 $45,520 $59,840 $61,079 25 30 502 557 10 30 325 365 15 0 177 192 6,697 231 3,421 1,422 4,506 13,989 7,199 2,381 1,345 1,359 1,163 43,713 $265,947 $11,979 $186,164 $69,278 $248,631 $788,943 $402,878 $116,572 $53,634 $80,297 $63,469 $2,287,792 $39,711 $51,857 $54,418 $48,719 $55,178 $56,397 $55,963 $48,959 $39,877 $59,085 $54,574 $52,337 275 13 122 32 35 263 120 104 37 29 21 1,051 264 12 116 26 32 229 108 99 34 25 18 963 11 1 6 6 3 34 12 5 3 4 3 88 1,562 786 1,560 60 3,147 734 1,750 9,599 $76,110 $38,639 $77,072 $2,956 $174,253 $35,081 $84,009 $488,120 $48,726 $49,159 $49,405 $49,267 $55,371 $47,794 $48,005 $50,851 46 22 12 2 60 44 56 242 42 20 10 2 52 42 52 220 4 2 2 0 8 2 4 22 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Telecommunications Information & Data Processing Services Computer Systems Design & Related Services 1,550 851 40 3,835 2,174 4,514 15,561 23,894 19,515 71,934 $73,967 $30,845 $2,133 $140,369 $90,789 $371,023 $803,855 $1,107,908 $1,131,871 $3,752,760 $47,721 $36,246 $53,325 $36,602 $41,761 $82,194 $51,658 $46,368 $58,000 $52,169 30 24 2 96 15 176 613 455 1,518 2,929 27 22 2 88 11 169 574 402 1,483 2,778 3 2 0 8 4 7 39 53 35 151 3254 3391 5417** Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,290 2,863 23,683 27,836 $65,194 $94,407 $1,803,631 $1,963,232 $50,538 $32,975 $76,156 $70,528 22 234 177 433 18 231 157 406 4 3 20 27 2111 4214* 5413 Oil & Gas Extraction Professional & Commercial Equipment & Supply Wholesale Architectural, Engineering & Related Services 53 12,136 37,648 49,837 $2,281 $711,951 $1,940,790 $2,655,022 $43,038 $58,664 $51,551 $53,274 14 794 2,336 3,144 14 776 2,247 3,037 0 18 89 107 367,074 $21,173,404 $57,682 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 1999 Technology Industry Total 8,356 7,769 587 *1997 NAICS 5133 was used in place of 5161, 5171-5174, 5179; 1997 NAICS 5140 was used in place of 5181 and 5182; and 1997 NAICS 4214 was used in place of 4234. ** Includes estimated allocation to NAICS 5417 of employees, payroll, and establishments classified as NAICS 95 prior to 2003. See methodology for details. Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 3. Automation Alley Technology Clusters, 4-Digit NAICS Data, 2000 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5133* 5140* 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 43,174 894 125,281 169,349 $2,929,511 $48,974 $7,595,482 $10,573,967 $67,854 $54,781 $60,628 $62,439 26 29 477 532 11 27 305 343 15 2 172 189 6,856 246 3,752 1,520 4,650 13,348 7,201 2,665 1,390 1,446 1,037 44,111 $271,927 $12,896 $208,612 $75,785 $257,730 $793,490 $482,625 $133,545 $54,953 $92,194 $55,358 $2,439,115 $39,663 $52,423 $55,600 $49,859 $55,426 $59,446 $67,022 $50,111 $39,535 $63,758 $53,383 $55,295 279 14 118 33 36 261 121 99 39 32 21 1,053 266 13 110 26 33 225 111 92 35 28 19 958 13 1 8 7 3 36 10 7 4 4 2 95 1,465 759 1,480 78 3,032 668 1,912 9,394 $72,900 $38,639 $74,745 $3,977 $171,016 $33,004 $92,839 $487,120 $49,761 $50,908 $50,503 $50,987 $56,404 $49,407 $48,556 $51,854 46 24 14 3 56 39 58 240 42 22 13 3 47 37 52 216 4 2 1 0 9 2 6 24 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Telecommunications Information & Data Processing Services Computer Systems Design & Related Services 1,099 852 21 3,365 1,817 3,116 16,271 20,623 22,917 70,081 $60,262 $41,652 $886 $123,408 $49,611 $333,822 $889,526 $1,062,654 $1,363,112 $3,924,933 $54,833 $48,887 $42,190 $36,674 $27,304 $107,132 $54,669 $51,528 $59,480 $56,006 28 22 1 94 13 166 673 491 1,607 3,095 26 19 1 89 10 158 631 450 1,565 2,949 2 3 0 5 3 8 42 41 42 146 3254 3391 5417** Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,513 3,220 25,790 30,523 $71,085 $106,681 $1,962,640 $2,140,406 $46,983 $33,131 $76,101 $70,125 23 226 181 430 19 221 153 393 4 5 27 36 2111 4214* 5413 Oil & Gas Extraction Professional & Commercial Equipment & Supply Wholesale Architectural, Engineering & Related Services 52 12,248 39,009 51,309 $2,182 $730,608 $2,191,398 $2,924,188 $41,962 $59,651 $56,177 $56,992 16 787 2,310 3,113 16 768 2,224 3,008 0 19 86 105 374,767 $22,489,729 $60,010 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 2000 Technology Industry Total 8,463 7,867 595 *1997 NAICS 5133 was used in place of 5161, 5171-5174, 5179; 1997 NAICS 5140 was used in place of 5181 and 5182; and 1997 NAICS 4214 was used in place of 4234. ** Includes estimated allocation to NAICS 5417 of employees, payroll, and establishments classified as NAICS 95 prior to 2003. See methodology for details. Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 4. Automation Alley Technology Clusters, 4-Digit NAICS Data, 2001 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5133* 5140* 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 37,349 1,019 109,943 148,311 $2,277,075 $43,433 $6,417,904 $8,738,412 $60,967 $42,623 $58,375 $58,920 26 31 466 523 9 29 308 346 17 2 158 177 6,421 189 3,489 1,547 4,000 11,849 7,130 2,382 1,340 1,560 1,012 40,919 $254,363 $8,861 $177,302 $73,479 $208,695 $624,215 $342,244 $111,824 $54,813 $99,746 $50,157 $2,005,699 $39,614 $46,884 $50,817 $47,498 $52,174 $52,681 $48,001 $46,945 $40,905 $63,940 $49,562 $49,016 244 12 113 33 34 253 122 98 39 31 20 999 233 11 103 28 31 222 109 92 35 27 18 909 11 1 10 5 3 31 13 6 4 4 2 90 1,511 846 1,403 52 2,601 537 1,793 8,743 $85,434 $45,073 $73,854 $2,759 $118,972 $27,035 $88,123 $441,250 $56,541 $53,278 $52,640 $53,058 $45,741 $50,345 $49,148 $50,469 51 24 16 3 58 36 56 244 47 22 15 3 50 35 51 223 4 2 1 0 8 1 5 21 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Telecommunications Information & Data Processing Services Computer Systems Design & Related Services 748 927 44 3,284 1,591 3,915 17,299 20,593 23,639 72,040 $40,143 $40,374 $1,934 $126,606 $75,210 $301,637 $930,604 $1,108,459 $1,383,236 $4,008,203 $53,667 $43,553 $43,955 $38,552 $47,272 $77,046 $53,795 $53,827 $58,515 $55,639 29 22 4 87 17 173 746 470 1,629 3,177 27 18 4 83 14 161 703 432 1,586 3,028 2 4 0 4 3 12 43 38 43 149 3254 3391 5417** Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,258 3,059 25,389 29,706 $70,466 $104,800 $2,169,490 $2,344,756 $56,014 $34,260 $85,449 $78,931 24 231 198 453 21 227 171 419 3 4 27 34 2111 4214* 5413 Oil & Gas Extraction Professional & Commercial Equipment & Supply Wholesale Architectural, Engineering & Related Services 50 12,357 36,777 49,184 $2,147 $753,314 $2,057,385 $2,812,846 $42,940 $60,963 $55,942 $57,190 12 747 2,281 3,040 12 732 2,201 2,945 0 15 80 95 348,903 $20,351,166 $58,329 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 2001 Technology Industry Total 8,436 7,870 566 *1997 NAICS 5133 was used in place of 5161, 5171-5174, 5179; 1997 NAICS 5140 was used in place of 5181 and 5182; and 1997 NAICS 4214 was used in place of 4234. ** Includes estimated allocation to NAICS 5417 of employees, payroll, and establishments classified as NAICS 95 prior to 2003. See methodology for details. Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 5. Automation Alley Technology Clusters, 4-Digit NAICS Data, 2002 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5133* 5140* 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 37,458 821 95,647 133,926 $2,492,654 $29,238 $5,634,661 $8,156,553 $66,545 $35,613 $58,911 $60,903 23 26 477 526 8 25 312 345 15 1 165 181 5,460 173 2,623 1,350 3,766 10,410 4,336 1,733 1,197 1,520 765 33,333 $229,724 $9,098 $157,945 $73,007 $208,304 $616,128 $228,206 $82,414 $58,259 $84,745 $43,509 $1,791,339 $42,074 $52,590 $60,215 $54,079 $55,312 $59,186 $52,631 $47,556 $48,671 $55,753 $56,875 $53,741 202 13 93 34 36 239 121 86 35 26 15 900 192 12 87 29 33 216 109 83 30 23 13 827 10 1 6 5 3 23 12 3 5 3 2 73 1,345 861 1,310 40 2,361 526 1,869 8,312 $82,232 $47,036 $68,001 $2,099 $112,976 $26,476 $89,468 $428,288 $61,139 $54,630 $51,909 $52,475 $47,851 $50,335 $47,869 $51,526 52 27 17 2 47 37 58 240 49 25 16 2 39 37 52 220 3 2 1 0 8 0 6 20 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Telecommunications Information & Data Processing Services Computer Systems Design & Related Services 988 599 31 2,517 1,616 3,707 17,007 19,931 20,603 66,999 $45,301 $27,601 $1,355 $95,541 $39,748 $284,073 $968,820 $1,087,445 $1,294,828 $3,844,712 $45,851 $46,078 $43,710 $37,958 $24,597 $76,632 $56,966 $54,560 $62,847 $57,385 20 20 6 72 13 167 679 463 1,663 3,103 18 17 6 70 11 156 633 423 1,625 2,959 2 3 0 2 2 11 46 40 38 144 3254 3391 5417** Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,406 2,385 28,105 31,896 $68,267 $85,512 $2,586,596 $2,740,375 $48,554 $35,854 $92,033 $85,915 21 209 219 449 17 207 189 413 4 2 30 36 2111 4214* 5413 Oil & Gas Extraction Professional & Commercial Equipment & Supply Wholesale Architectural, Engineering & Related Services 50 11,217 32,020 43,287 $1,997 $697,438 $1,853,137 $2,552,572 $39,940 $62,177 $57,874 $58,969 13 713 2,238 2,964 13 701 2,179 2,893 0 12 59 71 317,753 $19,513,839 $61,412 Total Advanced Manufacturing Total Chemical and Material Total Information Technology Total Life Sciences Total Other Technologies Total 2002 Technology Industry Total 8,182 7,657 525 *1997 NAICS 5133 was used in place of 5161, 5171-5174, 5179; 1997 NAICS 5140 was used in place of 5181 and 5182; and 1997 NAICS 4214 was used in place of 4234. ** Includes estimated allocation to NAICS 5417 of employees, payroll, and establishments classified as NAICS 95 prior to 2003. See methodology for details. Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 10/10/2005 Table 6. Automation Alley Technology Clusters, 4-Digit NAICS Data, 2003 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5161 5171 5172 5173 5174 5179 5181 5182 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 36,232 355 93,276 129,863 $2,356,501.00 $23,090.00 $5,893,523.00 $8,273,114.00 $65,039.22 $65,042.25 $63,183.70 $63,706.48 23 20 521 564 9 20 347 376 14 0 174 188 6,284 278 2,707 829 3,500 9,502 4,143 1,758 1,504 1,472 550 32,527 $275,484.00 $14,927.00 $163,273.00 $42,075.00 $197,192.00 $574,823.00 $217,240.00 $83,506.00 $58,855.00 $83,229.00 $35,801.00 $1,746,405.00 $43,838.96 $53,694.24 $60,315.11 $50,753.92 $56,340.57 $60,494.95 $52,435.43 $47,500.57 $39,132.31 $56,541.44 $65,092.73 $53,690.93 212 13 108 30 35 255 116 80 46 27 20 942 201 12 101 28 32 235 107 76 43 24 19 878 11 1 7 2 3 20 9 4 3 3 1 64 1,167 780 1,756 44 2,532 495 2,257 9,031 $75,526.00 $42,503.00 $81,030.00 $2,206.00 $130,913.00 $25,376.00 $104,041.00 $461,595.00 $64,718.08 $54,491.03 $46,144.65 $50,136.36 $51,703.40 $51,264.64 $46,097.03 $51,112.28 55 26 20 4 45 30 57 237 53 24 17 4 36 30 49 213 2 2 3 0 9 0 8 24 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Internet Publishing and Broadcasting Wired Telecommunications Carriers Wireless Telecommunications Carriers (Except Satellite) Telecommunications Resellers Satellite Telecommunications Other Telecommunications Internet Service Providers and Web Search Portals Data Processing, Hosting, and Related Services Computer Systems Design & Related Services 791 686 50 2,054 1,506 8,380 182 13,337 2,685 611 92 58 468 13,954 20,495 65,349 $36,123.00 $44,753.00 $2,241.00 $96,116.00 $34,869.00 $665,457.00 $8,350.00 $743,631.00 $133,878.00 $31,348.00 $7,071.00 $2,713.00 $22,204.00 $780,988.00 $1,332,973.00 $3,942,715.00 $45,667.51 $65,237.61 $44,820.00 $46,794.55 $23,153.39 $79,410.14 $45,879.12 $55,756.99 $49,861.45 $51,306.06 $76,858.70 $46,775.86 $47,444.44 $55,968.75 $65,038.93 $60,333.21 25 17 4 71 17 168 21 417 241 44 12 24 70 382 1675 3188 24 14 4 68 15 155 21 376 238 43 12 24 69 357 1637 3057 1 3 0 3 2 13 0 41 3 1 0 0 1 25 38 131 3254 3391 5417 Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,503 2,539 29,490 33,532 $67,786.00 $101,579.00 $2,901,631.00 $3,070,996.00 $45,100.46 $40,007.48 $98,393.73 $91,584.04 22 195 235 452 18 192 208 418 4 3 27 34 2111 4234 5413 Oil & Gas Extraction Professional and Commercial Equipment and Supplies Merchant Wholesalers Architectural, Engineering & Related Services 51 10,223 57,211 67,485 $2,303.00 $639,043.00 $4,063,996.00 $4,705,342.00 $45,156.86 $62,510.32 $71,035.22 $69,724.26 18 594 2199 2811 18 581 2117 2716 0 13 82 95 337,787 $22,200,167.00 $65,722.38 8194 7658 536 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 2003 Technology Industry Total Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 7. Automation Alley Technology Clusters, 4-Digit NAICS Data, 2004 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5161 5171 5172 5173 5174 5179 5181 5182 5415 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Est. (<=100) Large Est. (>100) 35,447 359 92,026 127,832 $2,481,376.00 $24,265.00 $5,478,594.00 $7,984,235.00 $70,002.43 $67,590.53 $59,533.11 $62,458.81 24 24 507 555 9 24 342 375 15 0 165 180 6,598 300 3,027 822 3,359 8,875 5,066 1,716 1,222 1,429 462 32,876 $285,150.00 $17,638.00 $166,294.00 $45,867.00 $191,527.00 $563,988.00 $304,007.00 $87,137.00 $66,328.00 $83,936.00 $30,949.00 $1,842,821.00 $43,217.64 $58,793.33 $54,936.90 $55,799.27 $57,019.05 $63,547.94 $60,009.28 $50,779.14 $54,278.23 $58,737.58 $66,989.17 $56,053.69 209 14 106 33 33 241 111 80 41 25 18 911 197 13 98 31 31 224 102 75 40 21 17 849 12 1 8 2 2 17 9 5 1 4 1 62 1,566 712 1,637 42 2,499 425 2,203 9,084 $105,533.00 $40,901.00 $79,228.00 $2,226.00 $141,247.00 $23,399.00 $107,744.00 $500,278.00 $67,390.17 $57,445.22 $48,398.29 $53,000.00 $56,521.41 $55,056.47 $48,907.85 $55,072.44 49 26 22 3 46 32 51 229 46 24 19 3 35 32 43 202 3 2 3 0 11 0 8 27 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Internet Publishing and Broadcasting Wired Telecommunications Carriers Wireless Telecommunications Carriers (Except Satellite) Telecommunications Resellers Satellite Telecommunications Other Telecommunications Internet Service Providers and Web Search Portals Data Processing, Hosting, and Related Services Computer Systems Design & Related Services 728 472 40 2,108 1,339 8,218 478 10,976 2,953 781 74 100 538 12,685 21,387 62,877 $37,247.00 $25,952.00 $1,973.00 $109,279.00 $60,537.00 $621,913.00 $15,944.00 $648,910.00 $166,573.00 $39,014.00 $8,392.00 $7,791.00 $20,826.00 $764,779.00 $1,388,476.00 $3,917,606.00 $51,163.46 $54,983.05 $49,325.00 $51,840.13 $45,210.61 $75,676.93 $33,355.65 $59,120.81 $56,408.06 $49,953.91 $113,405.40 $77,910.00 $38,710.04 $60,290.03 $64,921.49 $62,305.87 27 15 5 63 17 158 23 410 243 55 11 27 64 409 1689 3216 25 13 5 58 16 144 22 377 239 54 11 27 63 386 1655 3095 2 2 0 5 1 14 1 33 4 1 0 0 1 23 34 121 3254 3391 5417 Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1,516 2,570 30,424 34,510 $76,855.00 $106,133.00 $2,825,390.00 $3,008,378.00 $50,695.91 $41,296.89 $92,867.14 $87,174.09 21 195 240 456 18 191 215 424 3 4 25 32 2111 4234 5413 Oil & Gas Extraction Professional and Commercial Equipment and Supplies Merchant Wholesalers Architectural, Engineering & Related Services 43 10,129 55,180 65,352 $2,142.00 $636,945.00 $3,955,144.00 $4,594,231.00 $49,813.95 $62,883.30 $71,677.13 $70,299.78 17 627 2139 2783 17 611 2059 2687 0 16 80 96 332,531 $21,847,549.00 $65,700.79 8150 7632 518 Cluster Total Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 2004 Technology Industry Total Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 Table 8. Technology Industry Employment and Payroll Comparison, Automation Alley, Michigan and United States, 2004 Cluster Advanced Automotive NAICS Industry 3361 3362 3363 Motor Vehicle Manufacturing Motor Vehicle Body & Trailer Manufacturing Motor Vehicle Parts Manufacturing 3329 3331 3332 3333 3336 3339 3345 3353 3359 3364 3369 Other Fabricated Metal Product Manufacturing Agriculture, Construction & Mining Machinery Manufacturing Industrial Machinery Manufacturing Commercial & Service Industry Machinery Manufacturing Engine, Turbine & Power Transmission Equipment Manufacturing Other General Purpose Machinery Manufacturing Navigational, Measuring, Electromedical, Control Instruments Manufacturing Electrical Equipment Manufacturing Other Electrical Equipment & Component Manufacturing Aerospace Product & Parts Manufacturing Other Transportation Equipment Manufacturing 3241 3251 3252 3253 3255 3256 3259 Petroleum & Coal Products Manufacturing Basic Chemical Manufacturing Resin, Synthetic Rubber, & Artificial Synthetic Fibers Manufacturing Pesticide, Fertilizer & Other Ag Chemical Manufacturing Paint, Coating & Adhesive Manufacturing Soap, Cleaners & Toilet Preparation Manufacturing Other Chemical Product & Preparation Manufacturing 3341 3342 3343 3344 3346 5112 5161 5171 5172 5173 5174 5179 5181 5182 5415 Automation Alley Total Payroll (1,000s) Employment United States Total Payroll (1,000s) Employment $2,481,376 $24,265 $5,478,594 $7,984,235 42,077 2,892 159,599 204,568 $3,208,946 $95,490 $8,894,427 $12,198,863 216,793 143,888 689,063 1,049,744 $15,062,941 $5,105,848 $32,112,913 $52,281,702 6598 300 3027 822 3359 8875 5066 1716 1222 1429 462 32,876 285150 17638 166294 45867 191527 563988 304007 87137 66328 83936 30949 $1,842,821 15,269 2,125 7,135 2,179 6,301 19,086 9,194 3,227 3,870 3,493 1,700 73,579 $629,020 $88,737 $360,076 $90,311 $393,257 $1,133,975 $548,731 $139,894 $159,528 $193,087 $67,000 $3,803,616 270,268 172,044 136,323 93,694 87,779 276,533 401,333 138,818 153,928 372,643 40,631 2,143,994 $11,149,388 $7,425,891 $7,239,683 $4,332,371 $4,353,942 $13,074,561 $25,997,765 $5,927,758 $6,525,530 $24,419,208 $1,715,061 $112,161,158 1566 712 1637 42 2499 425 2203 9,084 105533 40901 79228 2226 141247 23399 107744 $500,278 1,737 5,509 2,973 409 3,987 3,519 3,756 21,890 $125,352 $393,969 $174,795 $12,823 $213,004 $250,682 $176,031 $1,346,656 103,927 165,209 93,947 31,916 66,127 107,653 111,871 680,650 $7,776,369 $10,648,103 $5,218,252 $1,561,960 $3,243,384 $4,997,663 $5,463,613 $38,909,344 Computer & Peripheral Equipment Manufacturing Communications Equipment Manufacturing Audio and Video Equipment Manufacturing Semiconductor & Other Electronic Component Manufacturing Manufacturing & Reproducing Magnetic & Optical Media Software Publishers Internet Publishing and Broadcasting Wired Telecommunications Carriers Wireless Telecommunications Carriers (Except Satellite) Telecommunications Resellers Satellite Telecommunications Other Telecommunications Internet Service Providers and Web Search Portals Data Processing, Hosting, and Related Services Computer Systems Design & Related Services 728 472 40 2108 1339 8218 478 10976 2953 781 74 100 538 12685 21387 62,877 37247 25952 1973 109279 60537 621913 15944 648910 166573 39014 8392 7791 20826 764779 1388476 $3,917,606 1,029 980 300 3,974 1,400 8,948 539 18,259 4,308 1004 155 105 903 15,810 26,178 83,892 $52,939 $62,000 $10,000 $166,720 $32,200 $668,689 $18,079 $1,089,744 $225,421 $49,103 $11,687 $4,100 $30,032 $940,973 $1,664,162 $5,025,849 125,859 151,193 22,993 373,729 33,232 325,623 37,049 781,411 262,062 46,555 18,379 8,269 60,449 365,919 1,105,098 3,717,820 $8,111,388 $9,712,590 $975,692 $20,159,643 $1,360,831 $34,866,418 $2,545,974 $45,280,444 $13,970,747 $2,211,090 $1,201,014 $582,735 $5,234,185 $21,767,462 $77,657,909 $245,638,122 3254 3391 5417 Pharmaceutical & Medicine Manufacturing Medical Equipment & Supplies Manufacturing Scientific R&D Services 1516 2570 30424 34,510 76855 106133 2825390 $3,008,378 7,792 7,708 41,134 56,634 $427,474 $381,395 $3,799,182 $4,608,051 246,297 308,798 640,936 1,196,031 $17,682,610 $14,579,822 $51,360,853 $83,623,285 2111 4234 5413 Oil & Gas Extraction Professional and Commercial Equipment and Supplies Merchant Wholesalers Architectural, Engineering & Related Services 43 10129 55180 65,352 2142 636945 3955144 $4,594,231 988 15,343 67,238 83,569 $58,105 $1,000,645 $4,547,028 $5,605,778 82,879 717,787 1,264,845 2,065,511 $6,564,684 $45,826,855 $75,926,057 $128,317,596 Cluster Total 35,447 359 92,026 127,832 State of Michigan Total Payroll (1,000s) Employment Advanced Manufacturing Cluster Total Chemical and Material Cluster Total Information Technology Cluster Total Life Sciences Cluster Total Other Technologies Cluster Total 2004 Technology Industry Total 2004 All Industry Total Technology Industry as Share of Total Industry 332,531 $21,847,549 524,132 $32,588,813 10,853,750 $660,931,207 2,187,493 $93,076,375 3,895,914 $147,721,534 115,074,924 $4,253,995,732 15.20% 23.47% 13.45% 22.06% 9.43% 15.54% Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC 8/14/2006 TABLE 9. Genesee County Technology Clusters, 1998-2004 Year: 1998 Employment Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences Total Payroll (1,000s) Average Wage $51,333 Total Establishments 21 Small Estab. 11 Large Estab. 20,738 $1,064,559 10 2,368 $120,405 $50,846 34 28 6 180 $6,265 $34,805 12 12 0 3,099 $126,593 $40,850 135 128 7 203 $5,011 $24,684 25 25 0 Other Technologies 2,008 $66,887 $33,310 157 154 3 1998 County Total 28,596 $1,389,720 $48,598 384 358 26 Employment Total Payroll (1,000s) Year: 1999 Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences Average Wage $55,501 Total Establishments 20 Small Estab. 10 Large Estab. 18,526 $1,028,216 10 2,445 $122,247 $49,998 34 27 7 173 $7,032 $40,647 12 12 0 2,862 $129,392 $45,210 135 129 6 234 $5,849 $24,995 30 30 0 Other Technologies 1,937 $71,396 $36,859 163 159 4 1999 County Total 26,117 $1,364,132 $52,112 394 367 27 Year: 2000 Employment Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences Total Payroll (1,000s) Average Wage $62,527 Total Establishments 20 Small Estab. 10 Large Estab. 17,124 $1,070,714 10 2,362 $130,844 $55,395 32 26 6 172 $6,817 $39,633 10 10 0 2,725 $121,621 $44,632 145 140 5 245 $6,239 $25,465 27 27 0 Other Technologies 1,819 $70,292 $38,643 162 159 3 2000 County Total 24,447 $1,406,527 $57,534 396 372 24 Employment Total Payroll (1,000s) Year: 2001 Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences 15,705 $984,020 2,114 139 Average Wage Total Establishments Small Estab. Large Estab. $62,656 24 14 10 $103,198 $48,846 31 25 6 $5,841 $42,021 11 11 0 2,692 $113,898 $42,310 149 146 3 243 $6,218 $25,588 27 27 0 Other Technologies 1,783 $76,763 $43,053 162 159 3 2001 County Total 22,676 $1,289,938 $56,886 404 382 22 Anderson Economic Group, LLC E-11 TABLE 9. Genesee County Technology Clusters, 1998-2004 (Continued) Year: 2002 Employment Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. 13,138 $825,449 $63,829 23 11 12 2,136 $103,256 $48,340 26 21 5 146 $5,507 $37,719 12 12 0 2,883 $127,932 $44,375 147 140 7 219 $5,636 $25,735 24 24 0 Other Technologies 1,335 $60,560 $45,363 149 149 0 2002 County Total 19,857 $1,128,340 $56,823 381 357 24 Employment Total Payroll (1,000s) Year: 2003 Advanced Automotive Advanced Manufacturing Chemical and Material Information Technology Life Sciences Average Wage Total Establishments Small Estab. Large Estab. 15,465 $1,114,960 $72,096 28 14 14 1,668 $88,300 $52,938 31 29 2 129 $4,196 $32,527 12 12 0 1,734 $77,839 $44,890 140 136 4 331 $9,057 $27,363 26 25 1 Other Technologies 1,519 $68,451 $45,063 135 133 2 2003 County Total 20,846 $1,362,803 $65,375 372 349 23 Employment Total Payroll (1,000s) Year: 2004 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 14,778 1076788 $72,864 30 18 12 2,576 143714 $55,790 26 24 2 Chemical and Material 120 3635 $30,292 12 12 0 Information Technology 1509 72015 $47,724 145 143 2 Advanced Manufacturing Life Sciences Other Technologies 2004 County Total 331 8866 $26,786 27 26 1 1313 57320 $43,656 135 134 1 20,627 1362338 $66,046 375 357 18 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 10. Livingston County Technology Clusters, 1998-2004 Year: 1998 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 3,540 $139,242 $39,333 22 12 10 Advanced Manufacturing 1,124 $43,016 $38,270 45 41 4 Anderson Economic Group, LLC E-12 TABLE 10. Livingston County Technology Clusters, 1998-2004 (Continued) Chemical and Material 609 $32,281 $53,006 12 10 2 Information Technology 394 $18,517 $46,997 67 67 0 Life Sciences 242 $7,000 $28,925 9 8 1 Other Technologies 671 $29,421 $43,847 86 86 0 6,580 $269,477 $40,954 241 224 17 Employment Total Payroll (1,000s) 1998 County Total Year: 1999 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 3,119 $135,798 $43,538 20 10 10 Advanced Manufacturing 1,076 $43,917 $40,815 46 44 2 Chemical and Material 642 $36,753 $57,247 12 9 3 Information Technology 463 $23,645 $51,069 81 80 1 Life Sciences 260 $7,378 $28,376 8 7 1 Other Technologies 835 $34,103 $40,842 87 86 1 6,395 $281,594 $44,033 254 236 18 Employment Total Payroll (1,000s) 1999 County Total Year: 2000 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 3,777 $170,638 $45,178 22 11 11 Advanced Manufacturing 940 $49,975 $53,164 45 44 1 Chemical and Material 645 $39,517 $61,266 12 8 4 Information Technology 515 $27,014 $52,454 80 79 1 Life Sciences 296 $8,395 $28,361 8 7 1 Other Technologies 843 $38,720 $45,931 99 98 1 7,016 $334,259 $47,642 266 247 19 Employment Total Payroll (1,000s) 2000 County Total Year: 2001 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 3,531 $154,247 $43,683 22 12 10 Advanced Manufacturing 999 $47,957 $48,005 45 44 1 Chemical and Material 679 $42,960 $63,269 13 9 4 Information Technology 529 $29,208 $55,214 85 84 1 74 $1,689 $22,824 10 10 0 Other Technologies 1,146 $53,019 $46,264 102 100 2 2001 County Total 6,958 $329,080 $47,295 277 259 18 Employment Total Payroll (1,000s) Life Sciences Year: 2002 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 3,210 $148,733 $46,334 23 13 10 Advanced Manufacturing 718 $34,108 $47,504 42 42 0 Chemical and Material 698 $43,419 $62,204 11 7 4 Information Technology 681 $37,927 $55,693 91 89 2 Anderson Economic Group, LLC E-13 TABLE 10. Livingston County Technology Clusters, 1998-2004 (Continued) Life Sciences 82 Other Technologies $30,475 12 12 0 881 $47,418 $53,823 108 107 1 6,270 $314,104 $50,096 287 270 17 Employment Total Payroll (1,000s) 2002 County Total Year: 2003 $2,499 Advanced Automotive 3,248 Average Wage $158,629 $48,839 Total Establishments Small Estab. Large Estab. 29 18 11 Advanced Manufacturing 719 $33,476 $46,559 41 41 0 Chemical and Material 735 $44,902 $61,091 13 9 4 Information Technology 593 $38,086 $64,226 90 88 2 77 $3,040 $39,481 12 12 0 Life Sciences Other Technologies 1,047 $50,569 $48,299 102 101 1 2003 County Total 6,419 $328,702 $51,208 287 269 18 Employment Total Payroll (1,000s) Year: 2004 Advanced Automotive 3,143 Average Wage $151,490 $48,199 Total Establishments Small Estab. Large Estab. 26 16 10 Advanced Manufacturing 711 $32,870 $46,231 42 42 0 Chemical and Material 782 $47,989 $61,367 13 9 4 Information Technology 559 $35,149 $62,878 92 90 2 79 $2,986 $37,797 12 12 0 Life Sciences Other Technologies 1,062 $58,747 $55,317 100 99 1 2004 County Total 6,336 $329,231 $51,962 285 268 17 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 11. Macomb County Technology Clusters, 1998-2004 Year: 1998 Employment Total Payroll (1,000s) Advanced Automotive 37,912 $2,212,977 Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. $58,371 166 116 50 10,431 $504,192 $48,335 285 266 19 Chemical and Material 1,761 $111,518 $63,327 24 20 4 Information Technology 4,232 $167,906 $39,675 275 261 14 662 $25,370 $38,323 53 53 0 Life Sciences Other Technologies 6,292 $310,642 $49,371 448 431 17 1998 County Total 61,290 $3,332,605 $54,374 1,251 1,147 104 Anderson Economic Group, LLC E-14 TABLE 11. Macomb County Technology Clusters, 1998-2004 (Continued) Year: 1999 Employment Advanced Automotive Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. 37,638 $2,384,947 $63,365 161 119 42 Advanced Manufacturing 8,161 $403,274 $49,414 284 266 18 Chemical and Material 1,800 $111,331 $61,851 22 18 4 Information Technology 4,430 $186,332 $42,061 286 276 10 Life Sciences 848 $34,797 $41,034 57 57 0 Other Technologies 5,976 $302,104 $50,553 449 435 14 1999 County Total 58,853 $3,422,785 $58,158 1,259 1,171 88 Employment Total Payroll (1,000s) Year: 2000 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 39,036 $2,520,578 $64,570 145 102 43 Advanced Manufacturing 7,910 $384,417 $48,598 281 264 17 Chemical and Material 1,834 $114,123 $62,226 25 20 5 Information Technology 3,970 $180,676 $45,510 311 301 10 Life Sciences 674 $28,005 $41,550 55 55 0 Other Technologies 5,969 $306,499 $51,348 443 432 11 2000 County Total 59,393 $3,534,298 $59,507 1,260 1,174 86 Employment Total Payroll (1,000s) Year: 2001 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 35,905 $2,026,816 $56,449 141 99 42 Advanced Manufacturing 7,708 $382,737 $49,654 258 241 17 Chemical and Material 1,680 $77,283 $46,001 24 19 5 Information Technology 3,855 $180,779 $46,895 321 311 10 Life Sciences 613 $25,469 $41,548 55 55 0 Other Technologies 5,140 $241,706 $47,025 428 420 8 2001 County Total 54,901 $2,934,790 $53,456 1,227 1,145 82 Employment Total Payroll (1,000s) Year: 2002 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 29,949 $1,789,638 $5,9756 154 106 48 Advanced Manufacturing 6,633 $354,157 $53,393 239 224 15 Chemical and Material 1,580 $73,840 $46,734 23 19 4 Information Technology 3,553 $180,641 $50,842 328 319 9 Life Sciences 697 $28,256 $40,926 54 54 0 Other Technologies 3,661 $187,282 $51,156 404 400 4 2002 County Total 46,073 $2,613,814 $56,732 1,202 1,122 80 Employment Total Payroll (1,000s) Year: 2003 Anderson Economic Group, LLC Average Wage Total Establishments Small Estab. Large Estab. E-15 TABLE 11. Macomb County Technology Clusters, 1998-2004 (Continued) Advanced Automotive 29,357 $1,847,759 $62,941 167 122 45 Advanced Manufacturing 7,301 Chemical and Material 1,699 $371,489 $50,882 264 250 14 $79,122 $46,570 27 22 5 Information Technology 3,306 $162,689 $49,210 334 324 10 Life Sciences 2,987 $231,918 $77,642 58 54 4 Other Technologies 13,016 $1,032,217 $79,3037 369 362 7 2003 County Total 57,666 $3,725,194 $64,599 1,219 1,134 85 Employment Total Payroll (1,000s) Year: 2004 Advanced Automotive 28,630 $1,760,216 Advanced Manufacturing 7,402 Chemical and Material 1,527 Information Technology Life Sciences Average Wage Total Establishments Small Estab. Large Estab. $61,482 162 120 42 $389,389 $52,606 256 241 15 $77,790 $50,943 25 20 5 3,185 $172,482 $54,154 327 318 9 3,091 $246,845 $79,859 59 55 4 Other Technologies 15,064 $1,122,931 $74,544 353 344 9 2004 County Total 58,899 $3,769,653 $64,002 1,182 1,098 84 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 12. Monroe County Technology Clusters, 1998-2004 Year: 1998 Employment Advanced Automotive Advanced Manufacturing Total Payroll (1,000s) 4,126 $257,316 Average Wage Total Establishments Small Estab. Large Estab. $62,364 10 5 5 250 $10,899 $43,596 11 10 1 Chemical and Material 29 $1,244 $42,896 2 2 0 Information Technology 145 $5,389 $37,166 24 24 0 10 $324 $32,400 3 3 0 Life Sciences Other Technologies 199 $9,251 $46,487 38 38 0 4,759 $284,423 $59,765 88 82 6 Employment Total Payroll (1,000s) 1998 County Total Year: 1999 Advanced Automotive Anderson Economic Group, LLC 4,233 $297,954 Average Wage $70,388 Total Establishments 10 Small Estab. Large Estab. 4 6 E-16 TABLE 12. Monroe County Technology Clusters, 1998-2004 (Continued) Advanced Manufacturing 267 $12,147 $45,494 15 14 1 Chemical and Material 65 $2,622 $40,338 5 5 0 Information Technology 159 $6,631 $41,704 29 29 0 13 $432 $33,230 4 4 0 208 $10,093 $48,524 37 37 0 4,945 $329,879 $66,710 100 93 7 Employment Total Payroll (1,000s) Life Sciences Other Technologies 1999 County Total Year: 2000 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. 4,580 $273,763 $59,773 8 3 5 305 $11,930 $39,114 13 12 1 Chemical and Material 60 $2,415 $40,250 5 5 0 Information Technology 163 $6,976 $42,798 26 26 0 16 $534 $33,375 4 4 0 204 $9,552 $46,824 32 32 0 5,328 $305,170 $57,277 88 82 6 Employment Total Payroll (1,000s) Life Sciences Other Technologies 2000 County Total Year: 2001 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. 4,616 $276,960 $60,000 10 6 4 2,27 $9,614 $42,352 11 11 0 Chemical and Material 71 $2,904 $40,901 5 5 0 Information Technology 137 $5,415 $39,526 30 30 0 18 $650 $36,111 4 4 0 343 $19,563 $57,035 24 23 1 5,185 $315,106 $60,773 84 79 5 Employment Total Payroll (1,000s) Life Sciences Other Technologies 2001 County Total Year: 2002 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. 4,012 $240,720 $60,000 8 4 4 201 $11,027 $54,860 14 14 0 Chemical and Material 59 $2,560 $43,389 4 4 0 Information Technology 122 $4,589 $37,615 25 25 0 11 $400 $36,363 5 5 0 326 $18,505 $56,764 19 18 1 4,731 $277,801 $58,719 75 70 5 Employment Total Payroll (1,000s) Life Sciences Other Technologies 2002 County Total Year: 2003 Advanced Automotive Advanced Manufacturing Chemical and Material Anderson Economic Group, LLC Average Wage Total Establishments Small Estab. Large Estab. 2,895 $148,425 $51,269 8 4 4 201 $9,621 $47,866 15 15 0 68 $3,134 $46,088 5 5 0 E-17 TABLE 12. Monroe County Technology Clusters, 1998-2004 (Continued) Information Technology 139 Life Sciences $44,122 28 28 0 32 $1,342 $41,938 6 6 0 400 $23,650 $59,125 21 20 1 3,735 $192,305 $51,487 83 78 5 Employment Total Payroll (1,000s) Other Technologies 2003 County Total Year: 2004 $6,133 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 3,028 $148,220 $48,950 9 4 5 Advanced Manufacturing 215 $10,866 $50,540 16 16 0 Chemical and Material 123 $5,766 $46,878 6 6 0 Information Technology 141 $6,422 $45,546 25 25 0 Life Sciences Other Technologies 2004 County Total 55 $2,294 $41,709 5 5 0 431 $25,455 $59,060 23 21 2 3,993 $199,023 $49,843 84 77 7 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 13. Oakland County Technology Clusters, 1998-2004 Employment Total Payroll (1,000s) Advanced Automotive 26,203 $1,347,329 $51,418 128 86 42 Advanced Manufacturing 16,302 $816,232 $50,069 338 298 40 Year: 1998 Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 1,785 $84,076 $47,101 69 62 7 Information Technology 41,306 $2,158,393 $52,254 1,301 1,217 84 2,182 $97,886 $44,860 134 129 5 Other Technologies 24,710 $1,379,173 $55,814 1,377 1,323 54 1998 County Total 112,488 $5,883,089 $52,300 3,347 3,115 232 Employment Total Payroll (1,000s) Life Sciences Year: 1999 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 26,862 $1,343,333 $50,008 144 101 43 Advanced Manufacturing 15,418 $848,055 $55,004 338 300 38 Chemical and Material 1,860 $86,926 $46,734 63 58 5 Information Technology 43,139 $2,374,326 $55,039 1,391 1,304 87 2,149 $106,872 $49,731 132 128 4 Life Sciences Anderson Economic Group, LLC E-18 TABLE 13. Oakland County Technology Clusters, 1998-2004 (Continued) Other Technologies 26,664 $1,530,717 $57,408 1,369 1,311 58 1999 County Total 116,092 $6,290,229 $54,183 3,437 3,202 235 Employment Total Payroll (1,000s) Year: 2000 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 28,749 $1,678,656 $58,390 144 103 41 Advanced Manufacturing 15,062 $856,545 $56,867 343 303 40 Chemical and Material 2003 $99,626 $49,738 62 55 7 41,335 $2,424,119 $58,646 1,454 1,368 86 2,803 $133,279 $47,548 130 123 7 Other Technologies 28,107 $1,709,802 $60,832 1,353 1,290 63 2000 County Total 118,059 $6,902,027 $58,463 3,486 3,242 244 Employment Total Payroll (1,000s) Information Technology Life Sciences Year: 2001 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 21,244 $1,166,116 $54,891 138 102 36 Advanced Manufacturing 1,3775 $714,338 $51,857 328 291 37 Chemical and Material 1,747 $85,393 $48,879 64 59 5 Information Technology 42,309 $2,462,756 $58,209 1,485 1,399 86 2,750 $148,239 $53,905 142 134 8 Other Technologies 26,592 $1,627,892 $61,217 1,324 1,269 55 2001 County Total 108,417 $6,204,734 $57,230 3,481 3,254 227 Employment Total Payroll (1,000s) Life Sciences Year: 2002 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 22,109 $1,275,266 $57,680 130 101 29 Advanced Manufacturing 11,921 $682,891 $57,284 290 261 29 Chemical and Material 1,857 $93,651 $50,431 64 58 6 Information Technology 38,753 $2,336,628 $60,295 1,473 1,393 80 3,612 $228,621 $63,294 141 133 8 Other Technologies 24,170 $1,518,132 $62,811 1,325 1,286 39 2002 County Total 102,422 $6,135,189 $59,901 3,423 3,232 191 Employment Total Payroll (1,000s) Life Sciences Year: 2003 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 23,137 $1,314,688 $56,822 150 112 38 Advanced Manufacturing 12,155 $694,056 $57,100 289 260 29 Chemical and Material 1,684 $90,424 $53,696 61 56 5 Information Technology 36,255 $2,328,070 $64,214 1,529 1,455 74 6,082 $408,842 $67,222 147 134 13 Other Technologies 32,927 $2,402,158 $72,954 1,271 1,215 56 2003 County Total 112,240 $7,238,238 $64,489 3,447 3,232 215 Life Sciences Anderson Economic Group, LLC E-19 TABLE 13. Oakland County Technology Clusters, 1998-2004 (Continued) Year: 2004 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 21,091 $1,258,194 $59,655 143 107 36 Advanced Manufacturing 11,731 $748,399 $63,797 286 262 24 Chemical and Material 1,529 $90,440 $59,150 59 54 5 Information Technology 34,596 $2,305,198 $66,632 1,550 1,478 72 Life Sciences 6,865 $467,560 $68,108 156 143 13 Other Technologies 30,303 $2,256,105 $74,452 1,241 1,191 50 2004 County Total 106,115 $7,125,896 $67,153 3,435 3,235 200 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 14. St. Clair County Technology Clusters, 1998-2004 Year: 1998 Employment Advanced Automotive Advanced Manufacturing Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. 2,469 $66,604 $26,976 21 13 8 312 $12,222 $39,173 24 24 0 Chemical and Material 642 $31,744 $49,445 7 5 2 Information Technology 536 $21,806 $40,683 31 30 1 68 $1,806 $26,558 11 11 0 269 $14,854 $55,219 56 56 0 4,296 $149,036 $34,692 150 139 11 Employment Total Payroll (1,000s) Life Sciences Other Technologies 1998 County Total Year: 1999 Advanced Automotive Average Wage Total Establishments Small Estab. Large Estab. 2,968 $93,991 $31,668 20 12 8 Advanced Manufacturing 372 $16,294 $43,801 28 28 0 Chemical and Material 642 $30,311 $47,213 10 8 2 Information Technology 547 $22,797 $41,676 36 35 1 56 $1,661 $29,660 11 11 0 463 $16,929 $36,564 54 53 1 5,048 $181,983 $36,051 159 147 12 Employment Total Payroll (1,000s) Life Sciences Other Technologies 1999 County Total Year: 2000 Anderson Economic Group, LLC Average Wage Total Establishments Small Estab. Large Estab. E-20 TABLE 14. St. Clair County Technology Clusters, 1998-2004 (Continued) Advanced Automotive 3,232 $106,921 $33,081 21 14 7 Advanced Manufacturing 4,38 $17,940 $40,958 26 25 1 Chemical and Material 684 $27,674 $40,459 12 10 2 Information Technology 570 $24,209 $42,472 39 38 1 56 $1,540 $27,500 8 8 0 Life Sciences Other Technologies 343 $13,330 $38,863 57 57 0 4,885 $191,614 $39,225 163 152 11 Employment Total Payroll (1,000s) 2000 County Total Year: 2001 Advanced Automotive 2,847 $89,313 Average Wage $31,370 Total Establishments 20 Small Estab. Large Estab. 14 6 Advanced Manufacturing 363 $16,312 $44,936 26 25 1 Chemical and Material 598 $25,918 $43,341 12 10 2 Information Technology 599 $25,629 $42,786 38 37 1 47 $1,282 $27,276 9 9 0 Life Sciences Other Technologies 243 $9,244 $38.041 49 49 0 4,697 $167,698 $35,703 154 144 10 Employment Total Payroll (1,000s) 2001 County Total Year: 2002 Advanced Automotive 2,160 $82,421 Average Wage $38,157 Total Establishments Small Estab. Large Estab. 18 13 5 Advanced Manufacturing 361 $17,040 $47,202 21 21 0 Chemical and Material 566 $26,055 $46,033 13 11 2 Information Technology 619 $26,969 $43,569 36 35 1 45 $1,256 $27,911 5 5 0 Life Sciences Other Technologies 240 $9,972 $41,550 55 55 0 3,991 $163,713 $41,021 148 140 8 Employment Total Payroll (1,000s) 2002 County Total Year: 2003 Advanced Automotive 2,328 $86,953 Average Wage $37,351 Total Establishments 18 Small Estab. Large Estab. 12 6 Advanced Manufacturing 577 $23,972 $41,546 27 26 1 Chemical and Material 726 $31,190 $42,961 15 12 3 Information Technology 825 $36,708 $44,495 44 43 1 43 $1,239 $28,814 4 4 0 Life Sciences Other Technologies 232 $9,388 $40,466 55 55 0 4,731 $189,450 $40,044 163 152 11 Employment Total Payroll (1,000s) 2003 County Total Year: 2004 Advanced Automotive Advanced Manufacturing Anderson Economic Group, LLC Average Wage Total Establishments Small Estab. Large Estab. 2,265 $90,827 $40,100 19 13 6 562 $23,984 $42,676 24 23 1 E-21 TABLE 14. St. Clair County Technology Clusters, 1998-2004 (Continued) Chemical and Material 700 $31,389 $44,841 14 11 3 Information Technology 843 $38,720 $45,931 50 49 1 28 $1,041 $37,179 4 4 0 238 $9,093 $38,206 54 54 0 4,636 $195,054 $42,074 165 154 11 Life Sciences Other Technologies 2004 County Total Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 15. Washtenaw Year: 1998 County Technology Clusters, 1998-2004 Employment Advanced Automotive Total Payroll (1,000s) 12,830 $769,924 6,041 307 Information Technology Life Sciences Advanced Manufacturing Chemical and Material Average Wage Total Establishments Small Estab. Large Estab. $60,009 24 11 13 $327,514 $54,215 78 70 8 $12,421 $40,459 11 11 0 4,296 $225,346 $52,455 271 262 9 2,414 $131,231 $54,362 73 69 4 Other Technologies 3,482 $178,067 $51,140 304 301 3 1998 County Total 29,370 $1,644,503 $55,993 761 724 37 Employment Total Payroll (1,000s) Year: 1999 Advanced Automotive Average Wage 13,132 $906,650 6,263 $331,283 $52,895 182 $8,268 $45,428 Information Technology 5,410 $314,905 $58,208 Life Sciences 2,430 $139,407 Advanced Manufacturing Chemical and Material $69,041 Total Establishments 26 Small Estab. Large Estab. 12 14 71 61 10 10 10 0 334 324 10 $57,369 79 76 3 Other Technologies 3,773 $196,710 $52,136 306 300 6 1999 County Total 31,190 $1,897,223 $60,828 826 783 43 Employment Total Payroll (1,000s) Year: 2000 Advanced Automotive Anderson Economic Group, LLC 11,744 $763,618 Average Wage $65,021 Total Establishments 20 Small Estab. Large Estab. 6 14 E-22 TABLE 15. Washtenaw County Technology Clusters, 1998-2004 (Continued) Advanced Manufacturing 6,845 Chemical and Material $434,462 $63,471 70 60 10 168 $6,970 $41,488 10 10 0 Information Technology 6,603 $449,134 $68,020 353 340 13 Life Sciences 2,360 $132,723 $56,238 85 82 3 Other Technologies 3,783 $209,312 $55,330 303 298 5 2000 County Total 31,503 $1,996,219 $63,366 841 796 45 Employment Total Payroll (1,000s) Year: 2001 Advanced Automotive Advanced Manufacturing Chemical and Material Average Wage Total Establishments Small Estab. Large Estab. 10,357 $756,910 $73,081 22 12 10 6,245 $265,206 $42,466 67 56 11 136 $6,726 $49,455 11 11 0 Information Technology 6,835 $401,022 $58,672 357 343 14 Life Sciences 2,363 $148,766 $62,956 90 86 4 Other Technologies 3,976 $224,509 $56,466 294 287 7 2001 County Total 29,912 $1,803,139 $60,281 841 795 46 Employment Total Payroll (1,000s) Year: 2002 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 7,738 $526,436 $68,032 26 10 16 Advanced Manufacturing 3,633 $169,828 $46,745 59 49 10 162 $7,637 $47,141 14 14 0 Information Technology Chemical and Material 6,071 $362,422 $59,697 339 325 14 Life Sciences 2,589 $171,254 $66,146 94 90 4 Other Technologies 3,840 $215,478 $56,114 265 257 8 2002 County Total 24,033 $1,453,055 $60,461 797 745 52 Employment Total Payroll (1,000s) Year: 2003 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 6,978 $485,521 $69,579 21 8 13 Advanced Manufacturing 2,679 $121,415 $45,321 64 58 6 454 $23,535 $51,839 16 15 1 Information Technology Chemical and Material 4,978 $311,212 $62,517 338 330 8 Life Sciences 6,633 $600,229 $90,491 99 92 7 Other Technologies 3,881 $236,519 $60,943 253 248 5 2003 County Total 25,603 $1,778,431 $69,462 791 751 40 Employment Total Payroll (1,000s) Year: 2004 Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 6,454 $65,661 $10,174 25 14 11 Advanced Manufacturing 2,445 $115,515 $47,245 62 56 6 567 $27,892 $49,192 16 13 3 Chemical and Material Anderson Economic Group, LLC E-23 TABLE 15. Washtenaw County Technology Clusters, 1998-2004 (Continued) Information Technology 5,196 $316,273 $60,869 340 331 9 Life Sciences 7,831 $581,280 $74,228 92 85 7 Other Technologies 3,784 $241,474 $63,814 258 253 5 2004 County Total 26,277 $1,348,095 $51,303 793 752 41 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 16. Wayne County Technology Clusters, 1998-2004 Year: 1998 Employment Total Payroll (1,000s) Average Wage Total Establishments Small Estab. Large Estab. Advanced Automotive 55,667 $2,885,069 $51,827 170 108 62 Advanced Manufacturing 10,058 $521,313 $51,830 248 233 15 Chemical and Material 4,331 $20,3015 $46,874 112 105 7 Information Technology 14,330 $639,991 $44,661 601 568 33 Life Sciences 1,159 $42,172 $36,386 101 99 2 Other Technologies 9,803 $474,871 $48,441 672 651 21 1998 County Total 95,348 $4,766,431 $49,990 1,904 1,764 140 Employment Total Payroll (1,000s) 57,677 $3,835,589 $66,501 156 97 59 9,711 $510,575 $52,576 235 223 12 Year: 1999 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 4,235 $204,877 $48,377 108 100 8 Information Technology 14,924 $694,732 $46,551 637 601 36 Life Sciences 1,408 $54,776 $38,903 99 96 3 Other Technologies 9,981 $492,970 $49,391 679 656 23 1999 County Total 97,936 $5,793,519 $59,156 1,914 1,773 141 Employment Total Payroll (1,000s) Advanced Automotive 61,107 $3,989,079 $65,280 152 94 58 Advanced Manufacturing 10,249 $553,002 $53,956 243 224 19 Year: 2000 Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 3,828 $190,338 $49,722 104 98 6 Information Technology 14,200 $691,184 $48,675 687 657 30 1,662 $72,149 $43,410 99 96 3 Life Sciences Anderson Economic Group, LLC E-24 TABLE 16. Wayne County Technology Clusters, 1998-2004 (Continued) Other Technologies 10,241 $566,681 $55,335 664 642 22 2000 County Total 101,287 $6,062,433 $59,854 1,949 1,811 138 Employment Total Payroll (1,000s) 54,106 $3,284,030 $60,696 146 87 59 9,488 $466,337 $49,150 233 216 17 Year: 2001 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 3,693 $194,225 $52,592 104 99 5 Information Technology 15,084 $789,496 $52,340 712 678 34 Life Sciences 1,787 $87,104 $48,743 99 97 2 Other Technologies 9,961 $560,150 $56,234 657 638 19 2001 County Total 94,119 $5,381,342 $57,176 1,951 1,815 136 Employment Total Payroll (1,000s) 51,610 $3,267,890 $63,318 144 87 57 7,730 $419,031 $54,208 209 195 14 Year: 2002 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 3,244 $175,619 $54,136 99 95 4 Information Technology 14,317 $767,604 $53,615 664 633 31 Life Sciences 1,222 $51,991 $42,545 96 93 3 Other Technologies 8,834 $495,225 $56,059 639 621 18 2002 County Total 86,957 $5,177,360 $59,539 1,851 1,724 127 Employment Total Payroll (1,000s) Year: 2003 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. 46,455 $3,116,179 $67,080 143 86 57 7,227 $404,076 $55,912 211 199 12 Chemical and Material 3,536 $185,092 $52,345 88 82 6 Information Technology 17,519 $981,978 $56,052 685 653 32 Life Sciences 17,347 $1,815,329 $104,648 100 91 9 Other Technologies 14,463 $882,390 $61,010 605 582 23 2003 County Total 106,547 $7,385,044 $69,313 1,832 1,693 139 Employment Total Payroll (1,000s) 48,443 $3,432,839 $70,863 141 83 58 7,234 $378,084 $52,265 199 185 14 Year: 2004 Advanced Automotive Advanced Manufacturing Average Wage Total Establishments Small Estab. Large Estab. Chemical and Material 3,736 $215,377 $57,649 84 77 7 Information Technology 16,848 $971,347 $57,654 687 661 26 Life Sciences 16,230 $1,142,415 $70,389 101 94 7 Other Technologies 13,157 $823,106 $62,560 619 591 28 Anderson Economic Group, LLC E-25 TABLE 16. Wayne County Technology Clusters, 1998-2004 (Continued) 2004 County Total 105,648 $6,963,168 $65,909 1,831 1,691 140 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Note: In 2003 the Census stopped classifying auxiliary industries as 95, and instead classified them with a primary industry, one of which is NAICS 5417, a part of the life sciences cluster. We adjusted for this at the regional level, but not at the county level, so the above tables may underestimate the size of the life sciences cluster in 1998-2002 based on 2003 classifications. TABLE 17. Employment, Payroll, and Establishments—All Industry in Automation Alley, 1998-2004 Total Employment Total Payroll (1,000s) Average Wage Small Est. Large Est. Total Establishments 1998 2,249,745 $82,039,774 $36,466 120,013 3,351 123,364 1999 2,295,450 $88,836,423 $38,701 120,156 3,512 123,668 2000 2,325,595 $93,507,179 $40,208 120,352 3,583 123,935 2001 2,279,847 $90,738,411 $39,800 120,401 3,476 123,877 2002 2,201,807 $90,172,639 $40,954 120,410 3,269 123,679 2003 2,192,374 $91,060,205 $41,535 120,181 3,343 123,524 2004 2,187,493 $93,076,375 $42,549 120,576 3,349 123,925 Source: Anderson Economic Group, LLC Data: U.S. Census Bureau, County Business Patterns Anderson Economic Group, LLC E-26 Appendix F: Project Team This project was managed by Scott D. Watkins, AEG’s Director of Marketing and Administration, and completed under the direction of Patrick L. Anderson, Principal and CEO. Mr. Watkins authored the report along with Caroline M. Sallee, a senior analyst with AEG. PATRICK L. ANDERSON Mr. Anderson, principal and CEO, founded the consulting firm of Anderson Economic Group in 1996. Since founding the firm, he has successfully directed projects for state governments, cities, counties, nonprofit organizations, and corporations in over half of the United States. Prior to founding Anderson Economic Group, Mr. Anderson served as the chief of staff of the Michigan Department of State, and as a deputy director of the Michigan Department of Management and Budget, where he was involved in the largest state privatization project in U.S. history and the landmark 1994 school finance reform constitutional amendment. Prior to his involvement in state government, Mr. Anderson was an assistant vice president of Alexander Hamilton Life Insurance, an economist for Manufacturers National Bank of Detroit, and a graduate fellow with the Central Intelligence Agency in Washington, D.C. Mr. Anderson has written over 95 articles published in periodicals such as The Wall Street Journal, The Detroit News, The Detroit Free Press, Crain’s Detroit Business. His book Business Economics and Finance was published by CRC Press in August 2004, and his paper on “Pocketbook Issues and the Presidency” was awarded the Edmund Mennis Award for best contributed paper in 2004 by the National Association for Business Economics. He is a graduate of the University of Michigan, where he earned a masters degree in public policy and a bachelors degree in political science. He has been a member of the National Association for Business Economics since 1983. SCOTT D. WATKINS Mr. Watkins is the director of marketing and administration at Anderson Economic Group. In this role he oversees the firm’s administrative staff and procedures and implements marketing strategies. He also works as a consultant on projects involving policy analyses, economic impacts, and market assessments. Among the clients for whom he has worked are the Michigan Chamber of Commerce, Michigan Retailers Association, Michigan State University, Wayne State University, and Collier County, Florida. He was also the author of the 2005 technology industry report for Automation Alley. Anderson Economic Group, LLC F-1 Prior to joining Anderson Economic Group, Mr. Watkins was an analyst in the automotive market and planning group at J.D. Power and Associates, and a marketing assistant with Foster, Swift, Collins, and Smith P.C. Mr. Watkins is a graduate of Michigan State University with a B.A. in marketing from Eli Broad College of Business and a B.A. in international relations from Michigan State’s James Madison College. CAROLINE M. SALLEE Ms. Sallee is a senior analyst at Anderson Economic Group, working in the public policy, economic, and fiscal analysis practice area. Her background is in applied economics and public finance, and her recent work includes the benchmarking of the Michigan’s business taxes with other states in a project for the Michigan House of Representatives. Ms. Sallee holds a masters degree in public policy from the University of Michigan and a bachelor of arts degree in economics and history from Augustana College in Rock Island, Illinois. CONTRIBUTORS Alexander L. Rosaen. Mr. Rosaen is an analyst at Anderson Economic Group, working in the economic and fiscal impact and policy and regulatory analysis practice areas. Mr. Rosaen holds a masters in public policy from the Ford School and the University of Michigan. He also has a masters of science and bachelors of science in mechanical engineering from the University of Michigan. Lisa Asmus. Ms. Asmus is an office assistant with Anderson Economic Group. She conducts economic and market research, collects and analyzes data, and contributes written analysis for reports. She also performs office management tasks, including accounts payable, inventory, and quality control. Ms. Asmus is a graduate of the James Madison College at Michigan State University. Anderson Economic Group, LLC F-2