Massachusetts Clean EnergyIndustry Report     2           0           1            2Prepared for the Massachusetts Clean E...
Cover photo by Julie Chen.
Table of Contents                                          Letter from MassCEC Chairman of the Board Richard K. Sullivan	 ...
Letter from MassCEC Chairman of the Board      Richard K. Sullivan      W                   elcome to the 2012 Massachuset...
AcknowledgementsThe 2012 Massachusetts Clean Energy Indus-          In addition, MassCEC thanks Kevin Doyle fortry Report ...
Introduction     M                 assachusetts is a hotbed of innova-     thirty-fold increase in installed solar        ...
chusetts employing 64,310 clean energy workers,      on assumptions and economic models, or areor 1.5% of all employees in...
KEY FINDINGS OF THE 2012 MA CLEAN ENERGY INDUSTRY STUDY     ■■   4,995                                             ■■     ...
Research FindingsClean Energy is a Large Industry                              Clean energy workers make upCluster in Mass...
The size of the cluster is impressive, demon-       1.2% for all Massachusetts jobs over the period,5              stratin...
Clean Energy is Generating an                              Company Size by NumberIncreasing Share of RevenueBusinesses rep...
Southeast, Central, and West. All areas, howev-                              their clean energy employment by 19.4% in the...
Sales and         18,686                                  10.6%                                                      distr...
2011-2012                               Business Type                 2012 Establishment Count      2012 Employment Count ...
Finding                                        4.7%Employees                                              10.7%           ...
Conclusions      C               lean energy continues to be a shining       overall weakness in the construction industry...
Appendix A: Research MethodologyIn June and July of 2011 and May and June          Over the two years of surveying, the re...
Firms in the database that did not complete an    There were no statistically significance differ-      online survey and ...
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  1. 1. Massachusetts Clean EnergyIndustry Report 2 0 1 2Prepared for the Massachusetts Clean Energy Centerby BW Research Partnership
  2. 2. Cover photo by Julie Chen.
  3. 3. Table of Contents Letter from MassCEC Chairman of the Board Richard K. Sullivan ii Acknowledgements iii Introduction 1 Key Findings of the 2012 MA Clean Energy Industry Study 3 Research Findings 4 Clean Energy is a Large Industry Cluster in Massachusetts 4 Clean Energy Employers in Massachusetts are Growing Rapidly 5 Clean Energy is Generating Jobs and Creating New Businesses 5 Clean Energy is Generating an Increasing Share of Revenue 6 Small Businesses Continue to Play a Key Role in the Clean Energy Cluster 6 Clean Energy Firms are Distributed Throughout the Commonwealth, but Growth is Uneven 6 Clean Energy is Generating Growth in Numerous Industries in Massachusetts 7 Challenges in the Construction Sector are Impacting Installation and Maintenance Firms 8 Multiple Technology Areas are Growing 9 Conclusions 11 Appendix A: Research Methodology 122012 Massachusetts Clean Energy Industry Report i
  4. 4. Letter from MassCEC Chairman of the Board Richard K. Sullivan W elcome to the 2012 Massachusetts harness these assets, increase the pace of proj- Clean Energy Industry Report. ect development, and access a pool of highly- This report follows our 2011 qualified, well-trained workers. groundbreaking study to gauge the size and growth of clean energy sector employment and Despite a tough economic environment across businesses. We are pleased to inform you that the globe, the Commonwealth’s clean energy the industry grew significantly over the past 12 industry is growing rapidly. Our survey shows months and expects even stronger growth in that there are now 71,523 employees working in the year to come. clean energy throughout the Commonwealth, up 11.2% from 2011. This growth outpaced the Massachusetts is winning awards for our overall economy by almost a factor of ten. Clean strong policies supporting energy efficiency energy continues to maintain its place as one of and renewable energy. Fertile ground for these our Commonwealth’s marquee industries with policies was laid when the Massachusetts 1.7% of the total Massachusetts workforce. legislature passed and Governor Patrick signed the Green Jobs Act creating the Massachusetts The clean energy sector is emerging as a pow- Clean Energy Center (MassCEC) in 2008. erful economic industry in Massachusetts that will continue to generate thousands of jobs in MassCEC is dedicated to increasing the pace the coming decades, and secure Massachusetts of clean energy growth, as the first state entity as a national and global leader in clean energy. in the nation created with clean energy eco- This report captures the full extent of the clean nomic development as our primary goal. We energy community that have joined the Com- are proud that Massachusetts is a recognized monwealth’s Innovation Revolution. clean energy leader that can accelerate the development and commercialization of new technologies with world-class researchers, dedicated entrepreneurs, experienced investors Richard K. Sullivan and strong policies. To build on this success, Chairman of the Board, we are assisting clean energy companies to Massachusetts Clean Energy Centerii 2012 Massachusetts Clean Energy Industry Report
  5. 5. AcknowledgementsThe 2012 Massachusetts Clean Energy Indus- In addition, MassCEC thanks Kevin Doyle fortry Report is the result of an extensive research his Massachusetts workforce outreach effortsprocess involving over 1,000 respondents. and would also like to acknowledge the indus-Again, this year, MassCEC sincerely thanks try associations that made a concerted effortall of the respondents for engaging with us to to encourage their members to respond to thegather this important data. This information survey: Environmental Business Council ofdepends on their willingness to generously New England; Marine Renewable Energy Cen-share their time and insights. ter (MREC); Massachusetts Association for Community Action (MassCAP); Mass Hydro-Research Team gen Coalition; Massachusetts ManufacturingThe publication of this report would not have Extension Partnership (MassMEP); Nationalbeen possible without the hard work and dedi- Association of Energy Services Companies;cation of the research team including: New England Carpenters Regional Council; New England Clean Energy Council; New■■ Phillip Jordan, BW Research England Geothermal Professional Associa-■■ Jamie Barrah, BW Research tion (NEGPA); New Fuels Alliance; Northeast■■ Veronica Williams, BW Research Energy Efficiency Council; Northeast Sustain-■■ Josh Williams, BW Research able Energy Association (NESEA); and Solar Energy Business Association of New England (SEBANE).MassCEC Staff■■ Martha Broad ■■ James Bowen■■ Tamika Correia■■ Sally Griffith■■ Arthur Natella2012 Massachusetts Clean Energy Industry Report iii
  6. 6. Introduction M assachusetts is a hotbed of innova- thirty-fold increase in installed solar tion and invention. From computers megawatts and a 108% growth in to life sciences to defense, the Com- electric energy savings from energy monwealth has been at the forefront of new, ex- citing technologies for decades. With a robust efficiency between 2007 and 2011. ecosystem including world-class universities, The clean energy industry creates jobs through- abundant venture capital, a large professional out the state and keeps the Massachusetts in- services industry, and a deep and talented labor novation engine running. pool, Massachusetts has emerged as a leader in clean energy development and integration. Market demand for clean energy products continues to increase. In 2011, the Massachu- The Commonwealth ranks second in the nation setts Clean Energy Center (MassCEC) released for private clean energy investment (and first a groundbreaking report as part of its require- on a per-capita basis), and Massachusetts-based ment to conduct an annual accounting of the companies have received 17%—or $62.8 mil- clean energy industry in Massachusetts. The lion—of the federal dollars awarded through the report demonstrated that due to a mix of lead- U.S. Department of Energy’s ARPA-E program, ing academic institutions; an active network of which is devoted to advanced energy research technologists, entrepreneurs, and investors; a projects that are transformational, sustain- highly skilled workforce; market-building public able, and bridge the gap between basic energy policy; and engaged government leaders, Massa- research and developmental and industrial in- chusetts was well positioned to take advantage of growing demand. The report also found that the novation. At the same time, the Bay State Commonwealth is home to a large and diverse has significantly increased its pro- clean energy economy. Specifically, the 2011 duction of renewable energy, with a report found 4,908 clean energy firms in Massa-1 2012 Massachusetts Clean Energy Industry Report
  7. 7. chusetts employing 64,310 clean energy workers, on assumptions and economic models, or areor 1.5% of all employees in the Commonwealth. based on incomplete or unverified employmentThese jobs are found in every county in Massa- counts from secondary sources. These sourceschusetts, across activities ranging from engineer- cannot capture in-depth employer informationing and research to manufacturing, and across because employers are not active participantsindustry sectors ranging from renewable energy in the energy efficiency. And employers reportedstrong growth; at 6.7% growth from 2010, the In order to obtain a more complete picture ofreport showed that clean energy firms were clean energy employers, the team conducted aadding employees at a rate more than six times survey of randomly selected Commonwealthhigher than in the economy overall. employers from industries identified as being potentially related to clean energy. To captureThis 2012 report provides updated information the breadth of the cluster, surveys wereregarding many of the findings in the 2011 re- administered online and by telephone to a listport. As with the 2011 report, this 2012 report of known clean energy employers as well as tois based on survey data gathered directly from a representative, clustered sample of companiesclean energy employers that have been identi- across the entire Commonwealth. This samplefied across a wide variety of industries in the included companies from all across the valueCommonwealth. This differentiates the report chain, from manufacturing to service and fromfrom other studies, which typically rely solely research and development to construction.on databases of known employers—those orga- This same method of employer identificationnizations that are members of industry associa- was used for the 2011 report, allowing us totions, have signed up for various clean energy effectively compare data from both years.incentives or programs, or have been otherwise The findings in this report are highly reliableidentified as conducting clean energy work. because they come straight from the source:Though these known-employer lists are impor- the clean energy employers of Massachusetts.tant in researching the clean energy economy, Further, the research refines and validates theanalyses based solely on such lists can under-count clean energy workers because they miss findings of 2011. Over the past twothe large number of companies engaged in years, the research team attemptedclean energy work that have not yet been iden- approximately 45,000 telephonetified as part of the cluster. Furthermore, most calls and sent over 10,000 emails toclean energy employment studies tend to rely employers. This massive survey effort, with2012 Massachusetts Clean Energy Industry Report 2
  8. 8. KEY FINDINGS OF THE 2012 MA CLEAN ENERGY INDUSTRY STUDY ■■ 4,995 ■■ 1.7% clean energy firms of total workers in the Commonwealth ■■ 71,523 ■■ 11.2% clean energy workers employment growth rate from 2011 to 2012 a combined margin of error of approximately considering the clean energy cluster a key +/-3.1% at a 95% confidence interval, yielded sector in Massachusetts. Though there are 930 survey responses. many reasons for the cluster’s strength, one factor is that the cluster has breadth and depth As a result of this intensive research effort, across multiple industries and technology the 2012 Massachusetts Clean Energy Industry areas. Despite uneven performance within Report provides comprehensive and reliable value chain activities, the breadth allows for the data on the number of clean energy firms cluster’s continued growth and strength in the and employees while validating the findings Commonwealth. from 2011. This report finds that The research also finds that Massachusetts clean Massachusetts has a large clean energy employers are growing significantly faster energy cluster with 4,955 clean than their peers in other sectors. Since 2011, energy firms that employ 71,523 clean energy employment has grown clean energy workers. For the purpose of this report, a clean energy firm is defined by 11.2%, nearly 10 times faster than as an employer engaged in whole or in part the overall 1.2% growth rate1 among in providing goods and services related to all industries in the Commonwealth renewable energy, energy efficiency, alternative over the same period. The 11.2% transportation, and carbon management. employment growth rate shows that the pace is Clean energy workers are defined as spending in fact quickening, outpacing the same period at least a portion of their time supporting the from 2010-2011 by more than 3,000 jobs. clean energy aspects of their businesses. Employers are also optimistic about their future prospects, anticipating 12.4% growth over the In addition to the overall numbers, there coming 12 months. are several important findings from this research. First, the 71,523 clean energy The following pages include detailed findings workers in Massachusetts represent of the research, including a review of the size, growth, distribution, and workforce needs of 1.7% of total employment in the clean energy employers in Massachusetts. Commonwealth, an increase from last year and a number large enough to warrant 1 EMSI Complete Employment, 2012.1.3 2012 Massachusetts Clean Energy Industry Report
  9. 9. Research FindingsClean Energy is a Large Industry Clean energy workers make upCluster in Massachusetts 1.7% of all workers in the Com-As reported in 2011, the passage of key legisla- monwealth and are found in nu-tive and policy initiatives, including the GreenCommunities Act, the Green Jobs Act, and the merous industries across the state.Global Warming Solutions Act,2 have paid off Of these 71,523 workers, 18,280 work primar-by producing a large and growing cluster of ily with installation and maintenance firms;companies. These initiatives, together with ex- 20,671 work in sales and distribution; 13,182panded incentive and training programs, have work for engineering and research firms;“cemented the state’s position as a national 11,162 work for manufacturers, and 8,229leader in smart, proactive policies promoting work for other types of clean energy compa-clean-energy development.”3 nies, such as legal, finance, and policy firms.Investments in clean energy have clearly pro- Clean energy firms work in many technology areas, led by energy efficiency and renewableduced dividends. Massachusetts is cur- energy. Specifically, 2,646 firms and 40,207rently home to 4,995 clean energy clean energy workers produce goods or ser-employers and 71,523 clean energy vices related to energy efficiency, while 2,205workers. firms and 29,777 clean energy workers work with renewable energy.42 “A Future of Clean Energy and Growth: Advancing Massachu- setts’ Clean Energy Leadership,” CleanEdge, April 2010. 4 Note that this includes overlap. Many of the firms reported work3 Id. with both renewable energy and energy efficiency technologies.2012 Massachusetts Clean Energy Industry Report 4
  10. 10. The size of the cluster is impressive, demon- 1.2% for all Massachusetts jobs over the period,5 strating Massachusetts’ position as a national nearly one-third of all clean energy companies leader in clean energy. Given the Common- grew, while only 13% cut their workforce. This wealth’s strong employer base, leading policies, finding highlights clean energy as a bright spot and clear commitment to growing the cluster, in jobs recovery in the Bay State. the potential for employment growth in the clean energy sector is significant. The research also found that respondents are optimistic about future growth. Overall, clean Clean Energy Employers in energy employers expect to have 8,881 more Massachusetts are Growing Rapidly clean energy jobs over the coming 12 months, Overall, clean energy firms in Massa- a 12.4% growth rate in clean energy employ- ment. Thirty-eight percent of employers chusetts have experienced impres- expect to have more clean energy workers in sive growth from July 2011 to June the coming year, while only 2.7% expect fewer. 2012, adding 7,213 new jobs—an In comparison, overall Massachusetts employ- 11.2% growth rate. Despite job growth of ment is projected to grow by 1.4% over the coming 12 months.6 90,000 Job Growth 12.4% Clean Energy is Generating Jobs and Growth 11.2% Creating New Businesses 6.7% Growth The 11.2% growth from 2012 is a combination Growth of new positions at existing clean energy firms, 60,000 repurposing of employees to support clean en- 60,274 64,310 71,523 80,405 ergy at existing firms, and new businesses. Of the new clean energy workers added over the last year, nearly three-quarters were reported as having been hired to new positions, while 30,000 26% were in existing positions to which clean energy responsibilities were added. 0 2010 2011 2012 2013 5 EMSI Complete Employment, 2012.1. (Projected) 6 Id.5 2012 Massachusetts Clean Energy Industry Report
  11. 11. Clean Energy is Generating an Company Size by NumberIncreasing Share of RevenueBusinesses report that their clean energy of Employees 2.8% 4.5% 3.5%revenues are increasing as a share of overall ■ 5 or fewerrevenue. Thirty-five percent of surveyed firms ■ 6 to 10 7.1%reported that 100% of their revenues are attrib- ■ 11 to 24uted to clean energy goods and services, while ■ 25 to 49 49.6% 16.5%56% receive at least half of their revenue from ■ 50 to 99clean energy work. This work is defined as ■ 100 or more 16.0%producing goods or services related to renew- ■ Don’t know/no answerable energy, energy efficiency, carbon manage-ment, or alternative transportation. Clean Energy Firms are Distributed Throughout the Commonwealth, butPercent of Revenue Growth is Uneven Clean energy employment can be foundFrom Clean Energy throughout the Bay State. The map below illus-Goods and Services 6.1% trates the clean energy employment concentra- tions of the four Green Community Regions in■ All of it Massachusetts. The Northeast has the great-■ Half to most of it est concentration of workers, followed by the 35.2%■ A quarter to 27.8% almost half of it NORTHEAST WESTERN■ Less than a quarter 10.4% 20.4% 32,362■ Don’t know/no answerSmall Businesses Continue to Play a 10,252 13,863Key Role in the Clean Energy Cluster CENTRALThe majority of the Commonwealth’s clean 15,046energy employers are small, with nearly two-thirds having ten or fewer permanent clean SOUTHEASTenergy employees.2012 Massachusetts Clean Energy Industry Report 6
  12. 12. Southeast, Central, and West. All areas, howev- their clean energy employment by 19.4% in the er, show significant employment, ranging from Southeast, 13% in the Northeast, 6.2% in the 10,252 clean energy workers in the West to Central, and 8.6% in the West. 32,362 clean energy workers in the Northeast. Clean Energy is Generating Growth in Despite solid gains last year, clean energy Numerous Industries in Massachusetts employment in the Southeast region actually In addition to the impressive size of the cluster, declined by 252 workers, or 1.6%. These losses the research shows that its diverse activities are were offset by growth in the Northeast and bolstering growth. Though specific industry Central regions at 17.5% and 17.4% employ- segments such as R&D, professional services, ment growth, respectively. The West also grew and sales are clearly important to the cluster, the by 6.2%, adding nearly 600 clean energy work- entire value chain of activities is well represented ers. Clean energy employers expect to grow in Massachusetts, as illustrated by Table 1 below. Table 1: Current Clean Energy Employment, Overall7 2012 2012 2011-2012 Percentage Percentage Primary Value Chain Establishment Employment Employment of total, by of total, by Activity Count Count Growth Rate Establishment Employment Manufacturing and 489 11,162 37% 10% 16% Assembly Engineering and 889 13,182 20% 18% 18% Research Sales and Distribution 917 20,671 11% 18% 29% Installation and 1,996 18,280 -12% 40% 26% Maintenance Other Activity (Finance, legal, policy, 705 8,229 44% 14% 12% and other support) Total 4,995 71,523 11% 7 Note that the total in each category is rounded to the nearest worker, which explains the difference with the totals reported herein.7 2012 Massachusetts Clean Energy Industry Report
  13. 13. Sales and 18,686 10.6% distribution Growth 20,671 Installation and 20,709 -11.7% maintenance Growth 18,280 Engineering 11,019 19.6% and research Growth 13,182There are many firms engaged in more than 8,173 Manufacturing 36.6%one activity, installation and mainte- and assembly 11,162 Growth 2011nance is the largest value chain Other Activity 5,722 43.8%activity by number of firms, while (Finance, legal, policy and Growth 2012 8,229sales and distribution firms employ other support) 0 5000 10000 15000 20000the most clean energy workers.More than one in three clean energy firms inMassachusetts is primarily engaged in instal-lation and maintenance, while nearly one in Multiple Technology Areas are Growingfive is an engineering or R&D firm. Sales and The research shows that clean energy firms indistribution and manufacturing are also clearly Massachusetts are working across a spectrumimportant segments of the cluster, making up of technology areas, and in many cases in14% and 10% respectively. more than one. Survey participants were first asked to list the major technology areas withChallenges in the ConstructionSector are Impacting Installation andMaintenance Firms Energy 36,590 9.9% efficiencyThe only segment of the clean energy economy 40,207 Growththat is experiencing a decline in employment isinstallation and maintenance, and the decline Renewable 23,714 25.6% energy Growthis significant at 12%. This decline reflects 29,777continued weakness in the construction sec-tor in the Commonwealth, as there are fewer Carbon 11,460 -13.9% managementconstruction firms and fewer workers at those 9,866 Growththat remain. Additionally, increased efficiencyand consolidation of firms has impacted Alternative 4,688 10.7% transportation Growthoverall employment in this area. Despite these 5,189 2011negatives, the mere fact that the industry grewby 11.2% despite a steep decline in its largest Other 4,414 52.2% Technology Growth 2012segment shows just how diverse and strong the 6,719cluster is in the Bay State. 0 10000 20000 30000 400002012 Massachusetts Clean Energy Industry Report 8
  14. 14. 2011-2012 Business Type 2012 Establishment Count 2012 Employment Count Employment Growth Rate Renewable Energy 2,205 29,777 26% Energy Efficiency 2,646 40,207 10% Alternative Transportation 403 5,189 11% Carbon Management 437 9,866 -14% Other Technology 723 6,719 52% which their employers are most closely asso- Massachusetts Clean Energy Firms ciated. Because researchers anticipated that Seek Educated, Experienced Workers many employers would be active in a number Massachusetts clean energy employers were of technology areas, multiple responses were asked targeted questions about their new clean permitted. energy workers in an attempt to understand the types of applicants that are achieving suc- Renewable energy is adding the most jobs, cessful employment outcomes. The 2011 study with an impressive 26% growth rate since demonstrated that Massachusetts employers 2011. Energy efficiency is also adding many value educational credentials, expecting higher jobs, as are “other firms” where most of the levels of education than their counterparts in professional services firms are located. Carbon other regions of the country. The 2012 re- management is smaller than reported in 2011, search underscores this finding, with employ- primarily because many firms that classified ers reporting that 58% of new clean energy themselves as engaged in carbon management hires were required to have a bachelor’s degree in 2011 were actually energy efficiency or or beyond, and another 14% were required to “other” firms. have an associate’s degree or certificate. At the same time, employers are seeking ex- Newly created positions 73.1% perienced workers, reporting that 64% of the Positions that new clean energy positions required previous required previous 64.2% work experience related to the job. work experience related to the position Required a bachelor’s Of the newly created positions, the largest degree or beyond 57.5% segment deals with technical work, such as technicians and production workers. Manage- Existing positions that added clean 26.9% ment and professional positions are the second energy responsibilties largest segment, followed by administrative Required an associate’s degree or certificate positions and sales positions. from an accredited college, but not a 13.5% bachelor’s degree 0% 25% 50% 75%9 2012 Massachusetts Clean Energy Industry Report
  15. 15. Finding 4.7%Employees 10.7% 38.9%■ Very difficult 45.6%■ Somewhat difficult■ Not at all difficult■ Don’t know/no answerDespite solid growth in the industry, nearly referrals, while about one-third reported posting85% of clean energy employers in Massa- the position online using a job board. About one-chusetts report some or no difficulty finding quarter of firms recruit directly out of collegesadequately prepared workers, with only 11% and schools, and a growing number (16%) arereporting great difficulty. Employers reported using social media to recruit new employees.that the greatest deficiencies of applicantsinclude lack of required technical skills, lack of When asked which method has been mostrequired education, and poor communication, successful for finding qualified applicants, 46%problem solving, and analytical skills. reported that word of mouth referrals were most successful, while online job boards wereMore than two-thirds of all firms that added cited only 17% of the time, and college recruit-workers over the past year use word of mouth and ing was cited by 7.4% of employers.8 45.6% Word of mouth/referral 16.8% Online job postings, such as Monster 7.4% College/School recruitment 4.0% Social media tools, such as LinkedIn 2.0% Workforce investment board referrals 0.7% Job fairs 0.7% Print advertising/Newspaper help 4.7% Other: Recruiters/staffing services 2.0% Other: Hire from within 0.7% Other: Headhunters 7.4% Other 8.1% Don’t know/no answer0% 10% 20% 30% 40% 50%8 Note that these questions were not asked of all employers, only those that added employees over the past 12 months.2012 Massachusetts Clean Energy Industry Report 10
  16. 16. Conclusions C lean energy continues to be a shining overall weakness in the construction industry, the example of Massachusetts’s innovation Commonwealth should do more to spur residen- economy, and this report underscores tial and commercial installations of clean energy its importance to the Bay State. The Massachu- goods and services. Given the research findings, setts clean energy cluster is growing at a rapid targeted help for small businesses will also pay clip of 11.2%, outpacing the overall economy dividends in this important cluster. nearly tenfold. The 4,995 clean energy firms and 71,523 clean energy jobs in the Commonwealth Continued commitment to education is clearly are responsible for 1.7% of all employment in critical to maintaining a thriving clean energy the state. The cluster shows no signs of slowing, cluster in the Commonwealth. Employers in either, with employers anticipating 12.4% growth Massachusetts require more education than their over the next 12 months. Such impressive growth counterparts in other states, and the importance certainly cements the cluster’s place as a marquee of a college degree is in evidence. Though Mas- industry in the Commonwealth. sachusetts ranks first in the nation for college degree attainment, more should be done to teach With only a few exceptions, this growth is students about STEM fields and clean energy ca- spread evenly throughout the Bay State, creating reers at the K-12 level, increase access to college, jobs in manufacturing, engineering, sales, and expand clean energy baccalaureate programs at professional services. The Commonwealth’s public universities, and develop targeted policies successes in the areas of renewable energy to maintain the Commonwealth’s high standard and energy efficiency technologies highlight a of living in order to ensure that the state is able to strong and vibrant ecosystem of firms. continue developing skilled workers and retain- ing them after graduation. There are a few areas of concern. Despite dramat- ic growth among most of the value chain activi- Massachusetts has long been a hub of technologi- ties, Massachusetts installation and maintenance cal innovation. By continuing to support this firms report declining employment. Though growing cluster, the Commonwealth can build the research suggests that this is mostly due to upon this success well into the 21st century.11 2012 Massachusetts Clean Energy Industry Report
  17. 17. Appendix A: Research MethodologyIn June and July of 2011 and May and June Over the two years of surveying, the researchof 2012, BW Research worked closely with team attempted approximately 45,000 telephonethe Massachusetts Clean Energy Center to calls and sent over 10,000 emails to employ-conduct a survey of clean energy companies ers.  The survey effort, with a combined marginin the Commonwealth. For the purposes of of error of approximately +/-3.1% at a 95% con-the survey, a clean energy firm is defined as fidence interval, yielded 1,401 survey responsesa company involved with an activity related from the samples in 2011 and 930 responses into the clean energy industry. The Clean 2012.  The 2011 survey fielded from June 30 toEnergy Industry is defined as being directly July 29, 2011 and averaged 15 minutes in lengthinvolved with researching, developing, and the 2012 survey fielded from May 8 to Juneproducing, manufacturing, distributing or 1 and averaged 10 minutes in length.implementing components, goods or ser-vices related to renewable energy, energy ef- Known Universeficiency or conservation, smart grid, energy The original list, developed from previousstorage, carbon management, and/or electric work efforts and databases from the Mas-or hybrid vehicles. Clean energy employ- sachusetts Clean Energy Center and part-ees are defined as full-time and part-time ner organizations, contains the companiespermanent employees who support the clean that are more likely to be active in the cleanenergy portion of the business, including ad- energy economy.  After duplicate cleaningministrative staff. and applying estimates from the survey data to account for companies that are no longerIn order to accurately capture data from the in business, do not have at least one Mas-cluster, surveys were administered online sachusetts location, or do not identify as inand by telephone to a list of known employ- the clean energy industry, as well as improve-ers as well as to a representative, clustered ments and additions since the first surveysample of companies from the NAICS effort, the 2012 known universe of firms isindustries identified by the Bureau of Labor estimated at 1,599 companies.  Statistics as being potentially related to therenewable energy, energy efficiency, and All firms in the database with email informa-alternative transportation sectors. tion were sent multiple online invitations.2012 Massachusetts Clean Energy Industry Report 12
  18. 18. Firms in the database that did not complete an There were no statistically significance differ- online survey and those without email infor- ences in the incidence rates (i.e., the percent- mation were called up to six times and asked age of firms that identified as clean energy) for to complete the telephone version. any of the 18 clusters. As such and because the 2011 sampling was more comprehensive (calls Of the estimated 1,599 firms in the known were made to 16,237 of the 17,245 firms in the universe, 445 completed a survey (28%). database as part of the 2011 project), the rates These employers have a mean of 21.36 clean for 2011 were carried over to 2012. Statistically energy workers per clean energy firm in the higher churn rates (i.e., the percentage of firms known database.  Therefore, the higher mean no longer in business, disconnected or wrong and increased universe in 2012 yield 34,170 number, etc.) were found in four of the 18 workers in the known universe, an increase of clusters and were applied to 2012. 35.7%.  Due to the high participation rate, the margin of error is low at a confidence level of In addition, 171 firms from the unknown 95% (approximately +/- 3.9%). universe identified as clean energy and com- pleted full surveys. Due to the more robust Unknown Universe and representative survey effort undertaken in This database for the unknown universe was 2011, the data utilized for extrapolations for drawn from BLS NAICS industries and InfoU- the unknown universe (with the exception of SA company listings. The list contains 16,783 the future growth statistic) were carried over firms, which were clustered by industry (agri- from 2011 (e.g., average clean energy employ- culture, manufacturing, sales/trade, services/ ment, percent breakdown by technology area, R&D, construction, and repair) and by size value chain activity, and geography). (small, medium, large).  Firms were randomly called within the clusters and the known firms Compared to the known universe, the level of were removed from the sample. In total, calls clean energy employment at “unknown” firms were made to 4,255 of the 16,783 firms in the is lower by a significant margin, with a mean of 2012 database and up to four attempts were 11 (compared to 21.36 in the known sample), made per firm, in order to determine whether and the overall number of clean energy firms there were significant differences in the inci- in the unknown universe is declining, resulting dence and churn rates between 2011 and 2012. in a decline of 4.6% in employment to 37,353.  13 2012 Massachusetts Clean Energy Industry Report
  19. 19. 55 Summer Street, 9th Floor Boston, MA 02110Phone: 617-315-9355 | Fax: |