High tech advanced technology – High tech

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Advanced Technology – High Tech Advanced Technology – High Tech, is one of Oregon’s and Clackamas County’s leading employment clusters. The high tech cluster experienced rapid growth over the past two decades. By 2008, Oregon’s high tech exports grew to $8.5 billion, making it the sixth largest exporter of high tech goods nationwide. High tech exports account for 44 percent of total exports in Oregon, the fourth highest concentration in the U.S. The high tech cluster is critical to the local and state economy since it pays significantly higher wages than those in most other industries and has favorable long-term growth prospects. Clackamas County’s high tech cluster includes dozens of industries that manufacture a variety of electronic components and software systems for computers, energy, transportation, aerospace, motor vehicles and defense-related products. Leading high tech industries in Clackamas County include: Flir Systems (thermal sensing devices for defense and civilian use), Tyco Electronics (electromagnetic connectors and relays), OECO (electromagnetic and power conversion devices for defense, commercial aerospace and medical sectors), Johnson Controls (auto and energy devices) and Xerox Corporation (production equipment and software). These industries export their goods and services throughout the U.S. and the world, and represent many of Clackamas County’s largest business establishments. Local high tech businesses within Clackamas County are fairly concentrated in Wilsonville, and small to mid-size businesses are located in Kruse Way, Milwaukie and Canby.

Economic Benefits to Clackamas County and the Metro Region Resources Clackamas County Business & Economic Development www.clackamas.us/business

Software Association of Oregon www.softwareassociationoforegon.ning.com

Workforce Investment Council of Clackamas County www.wicco.org

Oregon Institute of Technology www.oit.edu/portland/programs

Clackamas Community College www.clackamas.edu

Marylhurst College www.marylhurst.edu

TechAmericaOregon www.techamerica.org/oregon Worksource Clackamas www.worksourceclackamas.org

Contact Information Clackamas County Business & Economic Development 150 Beavercreek Road Oregon City, Oregon 97045 503-742-4329 www.clackamas.us/business

Consultants: FCS GROUP Cogan Owens Cogan, LLC Real Urban Geographics

The high tech cluster in Clackamas County includes 76 business establishments with more than 4,660 workers. The average wage of $61,047 in this cluster is well above the county-wide average for all jobs ($36,895). This cluster represents two percent of Clackamas County’s annual gross domestic product, and derives nearly 75 percent of its sales from customers located outside the county through domestic and foreign trade.

Direct Economic Benefits zz Over 4,660 direct full and part-time jobs zz 76 business establishments zz $285 million in direct wages paid to workers zz $1 million in direct business income (e.g., profits and lease revenues) zz $8 million in other miscellaneous income zz $5.4 million in local, regional and state taxes zz Over $1.4 billion in total direct regional economic output

In addition to these direct economic benefits focused in Clackamas County, additional secondary economic benefits are created as the direct wages and income are re-invested and circulated in the larger regional economy in the form of indirect and induced wages, business investment and consumer spending. The estimated annual secondary economic benefits for the greater Portland region from Clackamas County’s high tech cluster include: zz 7,400 secondary jobs zz $345 million in secondary wages zz $1.28 billion in secondary economic output

Advanced Technology – High Tech

The Oregon Employment Department forecasts new job openings for occupations in the high tech cluster. The leading job occupations in this cluster include: zz Semiconductor/electrical/electronic assemblers zz Managers and supervisors zz Industrial engineering technicians zz Computer software and systems engineers zz Computer hardware engineers zz Sales engineers zz Engineering managers zz Executive assistants zz Engineering technicians

Clackamas county Economic Landscape

Clackamas county Economic Landscape

Advanced Technology – High Tech

Career Opportunities

Advanced Technology – High Tech Cluster: Annual Economic Benefits Location Quotient for Cluster in Clackamas County Contribution to County Direct GDP Percent Exported Out of County Business Establishments in Clackamas County Average Direct Jobs Per Business Employment Direct Jobs in Clackamas County Secondary Employment Total Direct & Secondary Employment Average Wages Per Job in County Direct Value Added in Clackamas County Direct Wages (millions) Direct Business Income (millions) Other Income (millions) Business Taxes (millions) Total Direct Value Added (millions) Economic Output in Region Direct Impact (millions) Secondary Impact (millions) Total Economic Output (millions)

High-Tech Cluster 1.0 2% 75% 76 61

Total All Industries in County n/a 100% 40% 12,122 17

Cluster as Percent of County n/a 2% n/a 0.6% 353%

4,665 7,415 12,080 $61,047

212,140 143,934 356,074 $36,895

2% 5% 3% 165%

$284.8 $1.0 $8.0 $5.4 $299.2

$7,799 $1,196 $3,189 $953 $13,137

4% 0.1% 0.3% 1% 2%

$1,437 $1,275 $2,712

$24,387 $15,562 $39,949

6% 8% 7%

Advanced Manufacturing – High Tech Sector North American Industrial Classification System (NAICS) NAICS Codes: 334 Computer and Electronic Product Manufacturing. This includes establishments that manufacture computers, computer peripherals (such as printers), medical instruments, communications equipment and electronic components used in a wide variety of consumer and defense-related products. 335 Electrical Equipment, Appliances and Component Manufacturing. Industries in this sector manufacture products that generate, distribute and use electrical power. This includes both small and major electrical appliances and parts, such as motors, generators, transformers, gauges and switches. Devices that store electrical power (e.g., batteries) or transmit electricity (e.g., insulated wires and cables) are included in this sector.

Representative Advanced Manufacturing – High Tech Businesses in Clackamas County* Name Autodesk Flir Systems

Product Type

Location

Software Design/Support

Lake Oswego

Thermal Sensing Devices

Wilsonville

Johnson Controls

Electronic & Energy Devices

Canby

MEC Northwest

Printed Circuit Assembly

Canby

Micro Systems Engineering

Semiconductor Devices

Lake Oswego

OECO

Power Conversion Devices

Milwaukie

Sabrix

Software Design/Support

Lake Oswego

Sunstone Circuits

Printed Circuit Assembly

Mulino

Tyco Electronics Corp.

Electronic & Relay Devices

Wilsonville

Xerox Corp. Electronic Components Wilsonville * Sorted in alphabetical order. Includes businesses with 100+ covered workers. Source: Oregon Employment Department, 2006.

511210 Software Publishers. This sector is comprised of businesses that are primarily engaged in computer software publishing and/or reproduction. These businesses carry out the operations necessary to design, produce, document, distribute and provide related high tech support services.

Source: analysis by FCS GROUP and ECONorthwest. All data in this table, with the exception of estimated business establishments, direct jobs and average wages, are based on IMPLAN estimates for year 2006. Estimated business establishments, direct jobs and average wages are derived from the Oregon Employment Department, and the jobs reflect workers that are “covered” by unemployment insurance (not total employment). Location quotients are based on Clackamas County’s relative propensity to attract employers within the nine-county Portland-Vancouver region. Note: direct job estimates for Clackamas County reflects Oregon Employment Department data in light of IMPLAN data anomolies for this cluster.

Existing Advanced Manufacturing – High Tech Businesses: Annual Economic Output by General Location*

Advanced Technology – High Tech Strategic Market Opportunities zz Global demand for Oregon’s high tech exports is expected

to expand in the future as the U.S. emerges from its current recession. China emerged as Oregon’s leading trade partner in 2009, and Portland International Airport provides convenient direct air freight cargo access to China and other international markets. zz Clackamas County’s high tech economy was not significantly impacted by the most recent economic recession as it primarily focuses on energy, electronic parts, electromagnetic devices, transportation, aerospace and defense-related products. zz The expanding “green economy” is providing a new source of job growth and business investment in Clackamas County for products such as high efficiency appliances, renewable energy generation and storage devices, high-efficiency building products, and low-emission fuels. The role of advanced technologies, such as high tech manufacturing and systems design, are critical in the expanding green economy and should benefit existing and emerging technology companies within Clackamas County. zz The Oregon Employment Department forecasts most new job growth in the high tech cluster to occur in service sectors, such as systems design and software publishing. Job growth over the next 10 years in high tech services is

forecasted at 20 percent, which is well above the expected overall statewide growth forecasts. zz Clackamas County’s existing mix of high tech companies, convenient location (access to Portland, PDX Airport, Washington County and the I-205 and I-5 corridors), mix of entry level and executive housing options, variety of neighborhoods, Class A office and industrial employment centers and proximity to recreational areas (such as Mt. Hood, and the Clackamas and Willamette rivers) makes it an ideal place for creative professionals to live and work. The ability to appeal to both young creative class individuals and upper-income executives are positive assets for attracting high tech employees and investment.

* Reflects total economic output attributed to business activities measured in 2006 using the IMPLAN model for Clackamas County.