Software and Information Technology Careers in Maine
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Why IT
What IT jobs mean to Maine
- 68 of every 1000 private sector workers in Maine
are employed in software and information technology
positions
- Payroll for this workforce represents more than
9% of the state’s private sector payroll - over 1.5 billion dollars
- 2,800 new jobs have been filled in Maine’s
technology sector in the past eighteen months through the MESDA Jobs Board
- Maine’s software and IT salary rates are nearly
two times greater than the average for other industry
sectors in the state
- Maine’s software and IT employment growth rates
are more than 10 times greater than the average for
other industry sectors in the state
- Employees in Maine’s software and IT sector earned
an average annual wage of $53,900 in 2004, up 14
percent from 1999
Maine Software And IT Jobs Still Plentiful
Software and IT careers dominate the list of the fastest growing occupations. The industry needs to boost 'TechForce' ranks by emphasizing appropriate education, however.
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Maine Technology Cluster Overview - 2006
Maine is home to more than 1,400 active Software and Information Technology companies. While several large market leading microelectronics manufacturers operate in Maine, the state’s IT economy has traditionally been driven by small, entrepreneurial businesses. More than eighty percent of Maine’s technology firms have fewer than eight employees. The vast majority of Maine’s technology firms are software and services providers. Because of the state’s small internal market, many Maine firms serve national and international markets.
Approximately seven percent of Maine’s private sector workers are employed in software and information technology positions. Payroll for this workforce represents more than nine percent of the state’s private sector payroll. Payroll for software and IT workers in high-tech companies is half a billion dollars. High-tech industry workers, with an average annual wage of $53,900, earn $22,500 more per year than other private sector workers.
| Employee Class |
FT Emp. |
Payroll |
| Software & IT – High-tech |
16,000 |
$850,000,000 |
| Software & IT – Legacy |
17,000 |
$675,000,000 |
| |
33,000 |
$1,525,000,000 |
Measuring information technology revenues across all sectors is challenging. To state the income accurately means measuring only direct revenue from industry development activities and not reporting income from significant IT users. Revenue from industry activity is determined from calculating only those organizations with direct revenues (Information Technology/ Computer Software/ Hardware/ Internet Consulting/ Development/ Services Design/ Installation/ Hardware Manufacturing, Maintenance & Distribution). The value of productivity increases and sales income through non-traditional vehicles, such as online activity from conventional firms is not considered in these results. Therefore, while all revenues from a software producer are included, online sales from a bricks-and-mortar retailer are not. This defined sector of Maine’s economy produced more than three billion dollars in revenues. This industry sector generates more than seven percent of Maine’s Gross State Product and imported the majority of these dollars into the state.
The largest concentration of activity is in Cumberland County in southern Maine, anchored by Portland, the state’s largest city. More than fifty percent of the technology workforce is employed in Cumberland County where more than forty percent of the companies are located. The technology companies are attracted by Cumberland County’s well educated workforce. Cumberland County, the largest, with a population greater than 265,000, ranks significantly higher than the national average for Bachelor’s, Master’s, Professional and Doctorate degree attainment and college enrollment. York County, Maine’s second largest and fastest growing county is positioned in the seacoast region between Portland and Massachusetts, has attracted many start-ups and is home to a number of Information and Communication Technology (ICT) manufacturers. There are also clusters in Penobscot County, where firms have located around the University of Maine, and Kennebec County, home of the capital of Augusta.
MESDA: Maine’s Software and Information Technology Industry Association develops programs and services to support the following Maine technology clusters. Our current initiates and programs have been developed to support these clusters.
Microelectronics:
Generally speaking, Maine’s semiconductor sector has traditionally produced low power, high performance products in the power, interface, analog, mixed signal, logic, optoelectronic, and configurable products markets. Fairchild Semiconductor and National Semiconductor both are headquartered in South Portland, where they design and manufacture analog and digital semiconductor wafers. Smaller firms, such as Tundra Semiconductor, also manufacture semiconductors in Maine. Small firms, such as Enercon Technologies perform niche printed circuit board design and electronic and electromechanical products manufacturing. Other companies, such as Tibbetts Industries are reinventing themselves as R&D companies.
Telecommunications Equipment:
Broadcast Equipment: Maine has a niche in the microwave/broadcast equipment arena, particularly in antenna manufacturing. This expertise has its roots in the U.S. defense industry. In the late 1950s, the U.S. Government set up a large radar antenna system in Maine to watch over the horizon for planes coming from Russia. In the 1960s, the U.S. Government also created, outside of Bethel, the first receiving area in the United States for satellite transmissions. The construction in 1961 of "Telstar" communications satellite in Andover, Maine, marks the beginning of the global communications revolution. Many technologies developed by and for these facilities subsequently were commercialized, and workers spun off to form their own firms. Now, firms including Dielectric, Shively Labs, Mega, and RF Technology produce both equipment and software.
Telecommunications Services:
Call Centers: Call centers are located across the state tapping into access of an attractive workforce. Firms with call center facilities in Maine include leading consumer products, financial services, and health care firms such as L.L. Bean, T-Mobile Communications, Microdyne, Livebridge and Taction. With more than 110,000 miles of fiber optic cable and 100 percent digital phone switching technology in place, Maine leads the country with its telecommunications infrastructure.
Broadband Technology: Serial entrepreneurs Heather Blease and Steve Gilbert are working on new innovations for broadband and telecommunications products and services.
IT Services:
Maine firms provide custom computer programming services, database development, Internet Service Provision, network and telecom design/installation/consulting, web page design, systems integration, enterprise-wide applications and computer systems consulting. The major IT Services organizations include: Systems Engineering, Workgroup Technology Partners, xwave, Somix Technologies and Know Technology. Some organizations bridge IT with new software/platform products. PDA Chart (currently undergoing re-branding) is an example of a startup in the Health Information Technology arena. The IT sector is responsible for much of the productivity gains within Maine companies. The application of new technologies and services is critical for the growth of all emerging technology sectors. The IT infrastructure is as critical today to Maine businesses as the road, rail and utility network. Considerable R&D efforts are conducted as systems and services must continually be upgraded and expanded to create new economic opportunities and leverage new business models. Maine is also home to internationally recognized Cybersecurity organizations such as Sage Data Security and NMI InfoSecurity Solutions.
Software:
Maine has hundreds of small software vendors developing applications related to particular vertical markets described below. Some of these niches, such as GIS, CAD, and virtual reality, relate to the ocean’s key role in the Maine economy.
Satellite Applications: Software firms develop applications for the local satellite antenna industry (noted above).
Finance & Insurance: Portland is the birthplace of UnumProvident, the largest supplier of long-term disability insurance in the United States. Unum’s internal software programmers have spun off many small software firms with expertise in this vertical market. Maine is an attractive state for financial institutions and has seen technology start-ups surface to support this important sector. Visa and Citigroup Global Transaction Services continue to increase their technology workforce in Maine. Maine companies that bridge software development and the financial sector include BlueTarp Financial, Quantrix and Wright Express. These three successful businesses were founded and continue to grow in Maine.
CAD: Maine’s shipbuilding industry has spurred a small, related CAD niche. The local firm Aerohydro’s software helped design the hulls of a handful of boats that have won the America’s Cup sailing race. Aerohydro and TransformIT are excellent examples of international success stories.
Geographic Information Systems (GIS): Maine has dozens of software firms with GIS expertise, and is recognized as a GIS hub. The cluster is supported by the University of Maine’ Spatial Engineering program, one of three universities in the United States to offer advanced degrees in this field. Boeing has a facility in Maine to tap into this specialization. DeLorme Mapping, a major GIS firm, is headquartered in Maine as are the James W. Sewall Company and Blue Marble Geographics. Recent GIS software has been produced to help ships navigate the foggy coast of Maine (and greater New England).
Environmental Technology: Maine’s protection of the environment is well known and entrepreneurial companies are creating the technologies to monitor and offer stewardship of our ecological network.
Aqua Industry: Firms produce software to monitor the Gulf of Maine marine operations including wind, wave, visibility, air temperature, water temperatures at various depths, salinity and more. GoMOOS is now working with the USM Computer Science department in research and experimentation (R&E) efforts.
Multimedia/3D Animation/Entertainment: A cluster of 3-D and multimedia software developers are spread across Maine. Some of these firms supply the small local photography and film sector anchored by the original Kodak photography educational institution in the town of Camden. Penbay Media, Infusion Studios, Image Works, Goombah and a growing number of game developers are very active in this growing area.
Virtual Reality: Maine has a small cluster of virtual reality software firms. Some are suppliers to Bath Iron Works, a subsidiary of General Dynamics that builds the Aegis Destroyer battleship in Maine. TSI’s president, Chuck Benton, is moving his focus from robotics back to the VR realm.
Bioinformatics: Jackson Laboratory, the largest producer of laboratory mice in the world and a research leader in the human genome, is located in Bar Harbor. Many in-house computer programmers develop its specialized bioinformatics database, and these technologies are shared with the international science community. IDEXX Laboratories combines biotechnology with medical devices and information technology and is creating more than five hundred new jobs in Westbrook while helping that community reinvent itself as a magnet for technology organizations.
New Technologies/Services:
Maine is an entrepreneurial state and is positioning itself to remain active in the development of new technology sectors.
Nanotechnology: Interesting research and unique niches are gaining momentum in support of both the bio and manufacturing sectors. Nanospire is currently the most recognized local name.
Radio Frequency Identification (RFID): A handful of companies are developing devices that could have a significant impact and benefit to other economic sectors. Chipco and Parcomerged Media have moved beyond the startup phase.
Robotics: Current work crosses many areas from robotic surgical systems to precision welding of steel beams. Technology Systems, Inc. (TSI), in partnership with Applied Thermal Sciences (ATS), has initiated a new business unit (Precision Lightweight Structures) to commercialize high speed laser fabrication technology.
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