2013 tecna national survey of technology, policy & strategic issues
DESCRIPTION
This second annual survey by TECNA, a non-profit trade association of regional technology organizations which serves as a leading voice in growing the North American technology economy, provides current and future technology trends locally, regionally and nationally. The survey was conducted in partnership with CompTIA, the non-profit association for the IT industry.TRANSCRIPT
National Survey of Technology, Policy and Strategic IssuesOctober, 2013
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© 2013 Technology Councils of North America. All rights reserved.
Research Methodology and Background
About TECNA | CompTIA | TechVoiceAbout TECNAThe Technology Councils of North America (TECNA) represents almost 50 IT and Technology trade organizations who, in turn, represent more than 16,000 technology-related companies in North America. TECNA serves its members and the industry through its strong peer-to-peer network and its regional initiatives to raise the visibility and viability of the technology industry.
About CompTIACompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy.
About TechVoiceTechVoice is a newly-formed partnership of the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA), and participating regional technology associations. Collectively, we represent thousands of technology companies across the country employing millions of workers. We are dedicated to empowering and mobilizing the grassroots tech community to impact legislative and regulatory issues important to growth, innovation and job creation.
About This Research
The data for this quantitative study was collected via an online survey conducted during September 2013. A total of 1,763 senior (C-level) U.S. IT and business executives belonging to one of the regional technology associations affiliated with the Technology Councils of North America (TECNA) participated in the survey. This includes primarily U.S. based Councils, with a smaller degree of participation from Canadian Councils.
The margin of sampling error at the 95% confidence level for the overall results is +/- 2.4 percentage points. Sampling error is larger for subgroups of the data, such as region or company size.
As with any survey, sampling error is only one source of possible error. While non-sampling error cannot be accurately calculated, precautionary steps were taken in all phases of the survey design, collection and processing of the data to minimize its influence.
The study was conducted in conjunction with the Computing Technology Industry Association (CompTIA), with data collection support from Decipher, Inc.
CompTIA is a member of the Marketing Research Association (MRA) and conforms to its guidelines for survey best practices and research ethics. Any questions about the research methodology or data collection can be directed to [email protected].
Profile of Survey Respondents
Industry Sector Number of Employees
Job Level
47% Information technology (IT) or telecommunications10% Professional services (non IT)5% Financial/Banking/Insurance5% Healthcare/Medical5% Education4% Life sciences4% Advanced manufacturing (non IT sector)3% Media/Publishing/Entertainment2% Environmental or energy technology2% Government (federal, state, local)2% Retail/Wholesale1% AMTUC (Agriculture, Mining, Transportation, Utilities, Construction)1% Hospitality/Food/Beverage1% Advanced materials8% Other industry sector
29% Less than 1011% 10 to 1913% 20 to 499% 50 to 9915% 100 to 4994% 500 to 99918% 1,000 or more employees
52% CEO, President, Owner, etc.24% Executive - CIO, CTO, CFO, CMO, COO, VP or equivalent17% Management – Director, Team Leader or equivalent2% Consultant4% Other
Geographic Segmentation Categories
Northeast (n=460) Connecticut Technology Council (CTC) Greater Philadelphia Alliance for Capital & Technologies (PACT) Massachusetts Technology Leadership Council (MLTC) New Hampshire High Tech Council (NHHTC) New Jersey Tech Council (NJTC) New York Technology Council (NYTECH)
South (n=484) Austin Technology Council (ATC) Council for Entrepreneurial Development (CED) Chattanooga Technology Council Chesapeake Regional Tech Council (CRTC) Howard Tech Council Metroplex Technology Business Council (MTBC) North Carolina Technology Association (NCTA) Tampa Bay Technology Forum (TBTF) Technology Association of Georgia (TAG) Technology Association of Louisville Kentucky (TALK) Tech Birmingham
This report contains a number comparisons among geographic regions. The following groupings are based on standard U.S. Census Bureau categorizations.
Midwest (n=275) Illinois Technology Association (ITA) Minnesota High Tech Association (MHTA) Northeast Ohio Software Association (NEOSA) Technology Council of Greater Kansas City (KCNext) Wisconsin Technology Council
West (n=530) Arizona Technology Council (ATC) Colorado Technology Association Idaho Technology Council (ITC) Technology Association of Oregon (TAO) Utah Technology Council (UTC) Washington Technology Industry Association (WTIA)
Canada (n=NA) Tech South East
Section 1: Assessment of Business Conditions
56.450.8
66 68.8
59.354.6
67.773.2
Current Rating Projected Rating
Source: TECNABase: 1,763 senior U.S. technology and business executives
Business Sentiment Expected to Improve Modestly Over Next Six Months
Rating on a 100-point scale | 100=highest | 0=Lowest
Project Rating = next 6 months
46.3
62.166.4
56.4
66.0 68.8
2012 2013
Source: TECNABase: 1,763 senior U.S. technology and business executives
Business Sentiment Comparison YOYRating on a 100-point scale | 100=highest | 0=Lowest
5449
6467
58
52
6670
5852
6771
5651
67 69
Northeast
Midwest
South
West
Business Sentiment Segmentation: Regional Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
Northeast Midwest South West
57.0 58.2 58.0 59.461.464.3 65.5 64.0
2012
2013
Business Sentiment Segmentation: Regional Ratings YOY
Rating on a 100-point scale | 100=highest | 0=LowestAverage of 3 ratings: U.S. economy + tech sector + individual company rating
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
5751
6770
5550
6165
5651
66 68
Information Technology Sec-tor
Other Tech Sectors
Other Industry Sectors
Business Sentiment Segmentation: Industry Sector Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest
Source: TECNABase: 1,763 senior U.S. technology and business executives
IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
5549
64 65
5851
6770
5852
6873
5651
6569
Micro Firm
Small Firm
Medium Firm
Large Firm
Business Sentiment Segmentation: Regional Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest
<10 employees
10-99 employees
100-499 employees
500+ employees
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro=516, Small=604, Medium=261, Large=382
Section 2: Business Investment & Workforce
Many Businesses Plan to Increase Investments
Cost cutting
Capital expenditures (e.g. non technology)
Business travel
Staff training or professional development
Staffing levels in non-technical positions
Technology expenditures
Marketing/advertising expenditures
Staffing levels in technical positions
Investments in new products or business lines
7%
9%
11%
5%
7%
5%
6%
4%
4%
70%
59%
52%
53%
46%
44%
43%
39%
37%
23%
32%
37%
42%
47%
51%
51%
57%
59%
Planning Increases
Planning Decreases
No Change Expected
Timeframe: over next 6 months
Source: TECNABase: 1,763 senior U.S. technology and business executives
Cost cutting
Capital expenditures (e.g. non technology)
Business travel
Staff training or professional development
Staffing levels in non-technical positions
Technology expenditures
Marketing/advertising expenditures
Staffing levels in technical positions
Investments in new products or business lines
27%
33%
41%
42%
51%
52%
53%
57%
59%
23%
32%
37%
42%
47%
51%
51%
57%
59%
20132012
Expected Increases in Investment YOYExpected increased in investment | Timeframe: over next 6 months
Source: TECNABase: 1,763 senior U.S. technology and business executives
Planned Increase Northeast Midwest South West
Staffing levels in technical positions 54% 61% 58% 57%
Investments in new products or business lines 62% 61% 55% 59%
Marketing/advertising expenditures 49% 52% 49% 54%
Technology expenditures 49% 50% 50% 53%
Staffing levels in non-technical positions 44% 51% 46% 47%
Planned Increase Micro Firms Small Firms Medium Firms Large Firms
Staffing levels in technical positions 48% 69% 69% 45%
Investments in new products or business lines 54% 65% 62% 54%
Marketing/advertising expenditures 56% 60% 52% 29%
Technology expenditures 50% 52% 59% 43%
Staffing levels in non-technical positions 43% 56% 58% 29%
Business Investment Segmentation: Region and Company Size Ratings
Percent indicating a planned INCREASE in investment over next 6 months
Micro: <10 employees
Small: 10-99 employees
Medium: 100-499 employees
Large: 500+ employees
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro=516, Small=604, Medium=261, Large=382
Technology expenditures
Marketing/advertising expenditures
Staffing levels in non-technical positions
Investments in new products_x000d_ or business lines
Staffing levels in technical positions
50%
47%
41%
56%
45%
47%
47%
38%
58%
54%
52%
56%
54%
62%
70%
Information Tech Sector Other Tech Sectors Other Sectors
Business Investment Segmentation: Industry Sector Ratings
Percent indicating a planned increase in investment over next 6 months
Source: TECNABase: 1,763 senior U.S. technology and business executives
IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
Weak export market
Input/commodity price inflation
Overseas competition
Stock market volatility
Weak consumer demand
Disruptive technologies or business models
Access to credit/capital
Domestic competition
Weak corporate demand
Labor prices/availability of talent/employee turnover
Unexpected shock
Lower margins/downward pressure on pricing
Government regulation
General lack of confidence/paralysis
4%
5%
13%
12%
22%
16%
36%
19%
32%
31%
36%
22%
36%
47%
4%
5%
10%
12%
20%
27%
29%
33%
34%
34%
35%
38%
42%
44%
20132012
Executives Express a Range of Concerns that Could Derail Business Activity
Timeframe: over next 6 months
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast Midwest South West
General lack of confidence/paralysis 41% 47% 44% 45%
Government regulation 38% 42% 46% 42%
Lower margins/downward pressure on pricing 37% 31% 42% 39%
Labor prices/availability of talent/employee turnover 32% 31% 34% 37%
Access to credit/capital 33% 36% 26% 26%
Micro Firms Small Firms Medium Firms Large Firms
General lack of confidence/paralysis 51% 42% 43% 38%
Government regulation 41% 39% 42% 48%
Lower margins/downward pressure on pricing 23% 37% 51% 50%
Labor prices/availability of talent/employee turnover 26% 37% 46% 33%
Access to credit/capital 44% 33% 16% 13%
Threats to Growth Concerns Segmentation: Region and Company Size Ratings
Percent indicating a planned increase in investment over next 6 months
Micro: <10 employees
Small: 10-99 employees
Medium: 100-499 employees
Large: 500+ employees
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro=516, Small=604, Medium=261, Large=382
Significant surplus
Moderate surplus
Equilibrium, supply roughly equals demand
Moderate shortage
Significant shortage
2%
9%
14%
44%
25%
Perceptions of Tech Talent Availability
NET perception of a shortage = 69%
NET perception
of a surplus = 11%
Perceptions of quantity and quality of tech talent in respondents’ state/province/region
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast Midwest South West
39%48% 45% 44%
28%
24%20%
28%
Perceptions of Tech Talent Availability SegmentationPerceptions of quantity and quality of tech talent in respondents’ state/province/region
67%72%
65%72%
Perception of a significant shortage
Perception of a moderate shortage
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
Information Technology
Sector
Tech (Non ICT) Other Industry Sector
43% 42% 45%
31%
17%21%
Perceptions of Tech Talent Availability SegmentationPerceptions of quantity and quality of tech talent in respondents’ state/province/region
73%
60%66%
Perception of a significant shortage
Perception of a moderate shortage
Source: TECNABase: 1,763 senior U.S. technology and business executives
IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
Significant surplus
Moderate surplus
Equilibrium, supply roughly equals demand
Moderate shortage
Significant shortage
2%
10%
16%
50%
22%
2%
9%
14%
44%
25%
2013
2012
Perceptions of Tech Talent Availability YOY
Source: TECNABase: 1,763 senior U.S. technology and business executives
None of above - expect no hiring nor layoffs
Laying-off staff - positions reduced due to downsizing,_x000d_ slow sales or other business cycle issues
Laying-off staff - positions that_x000d_ have been permanently eliminated
Hiring staff - back-fill openings_x000d_ for existing headcount
Hiring staff - positions newly_x000d_ created or additional headcount
17%
8%
5%
31%
63%
Workforce Gains / Losses ProjectionsTimeframe: over next 12 months
Source: TECNABase: 1,763 senior U.S. technology and business executives
3% 2%
10%
59%
5%2%
30%
74%
9%7%
46%
72%
16%12%
49% 47%Micro
Small Firm
Medium Firm
Large Firm
Workforce Gains / Losses Projections Segmentation
<10 employees
10-99 employees
100-499 employees
500+ employees
Hiring staff - positions newly
created or additional headcount
Hiring staff - back-fill
openings for existing
headcount
Laying-off staff - positions that
have been permanently eliminated
Laying-off staff – positions reduced due
to downsizing, slow sales or other
business cycle issues
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro=516, Small=604, Medium=261, Large=382
Very unlikely
Somewhat unlikely
Neutral / don't know
Somewhat likely
Very likely
31%
12%
23%
19%
15%
Likelihood to Use More Foreign Workers (e.g. H1B Visa) Should They Become Available
Timeframe: over next 12 months
NET likely = 34%
NET unlikely = 43%
Source: TECNABase: 1,763 senior U.S. technology and business executives
14%21% 22% 22%
11%
14%21% 20%
Likelihood to Use More Foreign Workers (e.g. H1B Visa) Segmentation
25%
35%
43% 42%
Very likely
Somewhat likely
<10 employees
10-99 employees
100-499 employees
500+ employees
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro=516, Small=604, Medium=261, Large=382
Section 3: Public Policy Issues
9%
16%
38%
28%
8%
15%
30%
41%
12%
1%
State/Regional Government
Federal Government
Rating of How Government Represented the Interests of the Tech Sector
Just Okay
Represented Tech Interests
Very Well
Represented Tech Interests
Very Poorly
WellPoor
Timeframe: during past two years
Source: TECNABase: 1,763 senior U.S. technology and business executives
NET Well Just Okay NET Poor
26%
45%
29%31%
35% 34%
40%
36%
24%
45%
36%
20%
Northeast
Midwest
South
West
How State/Regional Government Represented the Interests of the Tech Sector Segmentation
Timeframe: during past two years
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
7%
18%
39%
30%
7%9%
16%
38%
28%
8%
2012
2013
Rating of How State/Regional Government Represented the Interests of the Tech Sector YOY
Just Okay
Represented Tech Interests
Very Well
Represented Tech Interests
Very Poorly
WellPoor
Timeframe: during past two years
Access to public data
Technology adoption in healthcare in rural and urban areas
Immigration Reform (e.g. foreign STEM skilled workers)
Modernization of telecommunications laws
Increased broadband deployment
Opportunities for tech transfer to create new tech companies
Government efficiency through use of technology
Technology Infrastructure in schools
Promotion of business between public sector & tech sector
Access to state/local grant funding for innovation/startups
Taxation and/or regulation reform
STEM education at the higher ed levels
STEM education at the K-12 level
Access to capital for technology companies
10%
14%
15%
18%
20%
21%
24%
25%
26%
37%
40%
41%
41%
46%
Preferences for Policy Actions
Source: TECNABase: 1,763 senior U.S. technology and business executives
Micro Firms
Small Firms
Medium Firms
Large Firms
Access to capital for technology companies 61% 51% 34% 27%
STEM education at the K-12 level 35% 38% 47% 49%
STEM education at the higher ed levels 31% 38% 53% 50%
Taxation and/or regulation reform 34% 41% 42% 43%
Access to state and local level grant funding for innovation/startups 53% 38% 20% 25%
Promotion of business between public sector & tech companies 26% 30% 22% 22%
Technology Infrastructure in schools 20% 23% 34% 29%
Government efficiency through use of technology 20% 23% 29% 26%
Opportunities for tech transfer to create new tech companies 24% 19% 19% 21%
Increased broadband deployment 20% 22% 16% 21%
Modernization of telecommunications laws 12% 16% 20% 27%
Immigration Reform (e.g. access to foreign STEM skilled workers) 10% 17% 21% 17%
Technology adoption in healthcare in rural and urban areas 13% 13% 16% 15%
Access to public data 12% 10% 7% 9%
Preferences for Policy Actions Segmentation
Don't know
Tax policy governing the repatriation_x000d_ of overseas profits
Personal tax rates that are generally too_x000d_ high on consumers
Too many tax deductions or loopholes for_x000d_ special interests or sophisticated taxpayers
Corporate tax rates that are generally_x000d_ too high on businesses
Tax code complexity and the time and burden_x000d_ required of businesses to manage taxes
12%
3%
9%
17%
22%
33%
Perceptions of Most Negative Aspects of Tax Policies
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast Midwest South West
Tax code complexity and the time and burden required of businesses to manage taxes 37% 30% 35% 31%
Too many tax deductions or loopholes for special interests or sophisticated taxpayers 19% 19% 15% 15%
Corporate tax rates that are generally too high on businesses 19% 26% 23% 22%
Personal tax rates that are generally too high on consumers 8% 10% 8% 10%
Tax policy governing the repatriation of overseas profits 4% 2% 4% 3%
Micro Firms Small Firms Medium Firms Large Firms
Tax code complexity and the time and burden required of businesses to manage taxes 38% 35% 29% 28%
Too many tax deductions or loopholes for special interests or sophisticated taxpayers 20% 16% 12% 17%
Corporate tax rates that are generally too high on businesses 17% 25% 30% 20%
Personal tax rates that are generally too high on consumers 9% 9% 11% 8%
Tax policy governing the repatriation of overseas profits 2% 2% 3% 6%
Tax Code Perceptions Segmentation
Lower-tier location_x000d_ for
tech startups
Mid-tier location_x000d_ for
tech startups
Top tier location_x000d_ for
tech startups
19%
44%
32%
23%
53%
20%
12%
42% 42%
8%
41%
47%
Northeast
Midwest
South
West
Self Assessment of Desirability of Local Area for Tech Startups
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
24%
69%
2%
23%
70%
4%
29%
62%
4%
32%
58%
6%
Northeast
Midwest
South
West
Most Executives Believe the Tech Sector Is Under-performing Its Potential
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast=460, Midwest=275, South=484, West=530
Perception of Tech Sector Performance YOY
3%
25%
66%
7%
2012
4%
28%
64%
5%
2013
Believe Tech Sector under-performing its potential
Believe Tech Sector performing at about its potential
Believe Tech Sector out-performing its potential
Don’t know
Source: TECNABase: 1,763 senior U.S. technology and business executives
Transportation capacity / quality
Commercial sector ecosystem
Early, mid and late-stage financing capacity
General infrastructure capacity / quality
Business friendly environment
Cost advantages
Research universities / R&D capacity
Entrepreneurship / innovation ecosystem
Skilled workforce
Quality of life
6%
10%
11%
15%
23%
25%
35%
45%
49%
56%
Perceptions of Factors Contributing to a Healthy Tech Sector in Region
Source: TECNABase: 1,763 senior U.S. technology and business executives
Northeast Midwest South West
Quality of life 47% 54% 51% 70%
Skilled workforce 52% 50% 45% 49%
Entrepreneurship / innovation ecosystem 42% 41% 40% 55%
Research universities / R&D capacity 47% 41% 38% 21%
Cost advantages 12% 29% 35% 25%
Business friendly environment 14% 19% 28% 28%
General infrastructure capacity / quality 15% 14% 17% 12%
Early, mid and late-stage financing capacity 18% 9% 9% 8%
Commercial sector ecosystem 14% 9% 11% 7%
Transportation capacity / quality 8% 8% 7% 3%
Perceptions of Factors Contributing to a Healthy Tech Sector Segmentation
Quality of life
Commercial sector ecosystem
General infrastructure capacity / quality
Research universities / R&D capacity
Entrepreneurship / innovation ecosystem
Business environment
Transportation capacity/quality
Workforce
Costs basis (inclusive of various business costs)
Early, mid and late-stage financing capacity
8%
11%
11%
12%
17%
26%
28%
34%
36%
44%
Perceptions of Factors that can Inhibit Tech Sector Growth / Performance
Source: TECNABase: 1,583 senior U.S. technology and business executives
Northeast Midwest South West
Early, mid and late-stage financing capacity 37% 58% 43% 44%
Costs basis (inclusive of various business costs) 62% 28% 24% 28%
Workforce 27% 32% 34% 40%
Transportation capacity / quality 23% 16% 46% 22%
Business environment 27% 31% 21% 25%
Entrepreneurship / innovation ecosystem 16% 25% 20% 11%
Research universities / R&D capacity 10% 10% 8% 18%
General infrastructure capacity / quality 12% 6% 13% 11%
Commercial sector ecosystem 8% 9% 10% 14%
Quality of life 11% 7% 8% 4%
Perceptions of Factors that can Inhibit Tech Sector Growth / Performance Segmentation
Advanced materials
Advanced manufacturing
Broadcasting / media and entertainment technology
Defense / military technology
Environmental or energy technology
Life sciences or healthcare technology
Information technology or telecommunications
2%
6%
4%
3%
12%
38%
35%
1%
5%
5%
5%
7%
34%
44%
Today2-Year Projection
Expectations of Sectors’ Ability to Drive innovation/startups/job growth
Source: TECNABase: 1,583 senior U.S. technology and business executives