establishments in two years
ne of the brightest stars in Colorado’s economic sky is the steady growth of high tech establishments over the last decade.
In the last two years alone, the state added 400 new tech establishments, bringing the total to 13,100 at the end of 2012. According to “Cyberstates 2013,” a report issued by the TechAmerica trade group, Colorado ranks 11th among all states for number of tech establishments.
The mark is a new record for Colorado, which has enjoyed yearly growth in the number of tech establishments since 2006, when the total stood at 11,634. That’s an increase of 12.6 percent. If we go back further to 2001, when the state had 10,597 establishments, the increase is a whopping 23.6 percent over the last 12 years.
So what, exactly, is a tech establishment? TechAmerica defines an establishment as a single economic unit – such as a factory, store or office – which produces goods or provides services. Usually, it is a single physical location and engaged in one, or predominately one, type of economic activity for which a single industrial classification may be applied. An establishment is not a “company.” In fact, most large companies have multiple establishments, representing their numerous locations.
At the end of 2012, the study reports there was a total of 407,600 tech establishments across the U.S., an increase of 2.3 percent over 2011. The gain of 9,100 marks the fifth straight year of increases in tech establishments.
Software services had the largest growth of establishments, increasing by 7,900. The growth in other sectors was more modest, with engineering and tech services increasing by 900, followed by Internet and telecommunication services at 300 and tech manufacturing at 100.
California led the nation with nearly 42,000 establishments, considerably more than second ranked Texas at 29,400. However, California only added a net 160 establishments, compared to nearly 580 added in Texas during the same period.
Florida, Illinois, and New York rounded out the top five states. All three states added establishments in 2012, although Florida added more than 950 while New York added a net 10.