This document analyzes the economic impact of the technology sector in Austin, Texas in 2012. It finds that the tech sector accounted for 21% of Austin's GDP and 9% of employment. The largest drivers of Austin's economy were computer and computer peripheral equipment and software wholesalers, as well as engineering and computer programming services. While manufacturing employment declined from 2001-2012, computer systems design and engineering services grew substantially. The analysis concludes that Austin's tech sector continues to fuel economic growth but that a lack of available talent, especially software developers, poses a challenge.

1. Economic Impact Summary
May 8, 2013

2. Methodology
2
 Technology sector definition from TechAmerica
Foundation’s annual Cyberstates report
 52 industries—manufacturing, communications,
software, engineering & tech services (R&D)
 Adapted for Austin by including Computer and
Computer Peripheral Equipment and Software
Merchant Wholesalers (Dell, IBM, etc.)

3. Overview (2012)
3
Austin Tech Share
GRP $97 billion $21 billion 21%
Employment 1,142,396 105,667 9%
Establishments 44,623 3,787 9%
Source: Civic Analytics LLC, EMSI
Tech Jobs Multiplier: 3.5

4. Austin’s Economic Drivers
Estimated Value Added , 2012 ($B)
4
Source: Civic Analytics LLC, EMSI
$1.41
$1.47
$1.50
$1.62
$1.63
$1.82
$2.68
$2.81
$2.93
$4.88
$0 $1 $2 $3 $4 $5 $6
Lessors of Residential Properties
Offices of Lawyers
General Medical & Surgical Hospitals
Offices of Physicians
Custom Computer Programming
Engineering Services
Crude Petroleum & Natural Gas Extraction
Semiconductor & Related Device Manuf
Electronic Computer Manufacturing
CPE & Software Merchant Wholesalers
Tech

5. Silicon Hills: Rebranding Time?
Share of Total Employment in Tech Sector (2012)
5
16%
20%
40%
24%
44%
56%
0%
10%
20%
30%
40%
50%
60%
70%
Manufacturing
Dell category
Services
Source: Civic Analytics LLC, EMSI

6. Jobs: Software/Systems Design Driving Growth
Change in Total Employment, 2001-2012
6
Source: Civic Analytics LLC, EMSI
7,737
5,195
4,253
767
-1,981
-2,322
-6,615
-7,867
-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
10,000
Computer
Systems Design
Engineering
Services
CPE & Software
Wholesalers
Measuring &
Control
Instruments
Communications
Equipment
Electronic
Components
Computer &
Peripheral
Equipment
Semiconductors
Manufacturing
Services

7. Key Takeaways
7
 Austin is maintaining competitive advantage in
traditional strengths and developing new areas
of specialization that will drive future growth
 Austin economy has diversified but tech is still
fuel for wealth creation—e.g., annual earnings
estimated to be > 4x City of Austin budget
 Talent availability is biggest challenge—Austin
expected to have 2,400 openings for software
developers 2012-17 and < 25% could be filled
with regional graduates at current rate
Source: Civic Analytics LLC, EMSI, National Center for Education Statistics