Software and Information Technology Jobs
MESDA's Industry Survey finds that Maine's software and information technology
companies currently employ more than 16,000 full-time professionals. These
figures do not include the estimated 17,000 software and IT professionals employed at traditional Maine companies. Maine employs approximately 33,000 full-time software and
information technology workers, which represents nearly 7% of the State's total
nonfarm work force and 9% of the private sector workers.
Maine traditionally has been a state of small, entrepreneurial businesses, and
this is true in the software/IT sector. More than a third of the industry is
comprised of firms with 1 to 3 employees. A striking number is the percentage of
survey respondents that are recent arrivals to Maine's economy.
While the considerable majority of Maine's technology establishments are
small; 90% have fewer than 16 employees, employment in the technology sector is
well balanced across organizational size. Organizations with 1 to 15 employees
account for 33% of the industry's employment, firms with 16 to 50 employees
report 25% of the base and establishments with 50 or more employees account for
40% of employment.
Software and Information Technology Wages
The salary results confirm the reputation that this industry has gained for
high-paying jobs. It illustrates significant employment opportunities, and
highlights the current shortage of technology workers. Employees in Maine's
software and IT sector earned an average annual wage of $53,900 in 2006. There is a substantial impact on the Maine economy
from wages in this sector. More than $1,500,000,000 was paid in payroll wages in
2006. Combined, all
software and IT jobs account for more than 10% of the state's total wages.
This industry sector has been growing rapidly, expanding its contribution to
the state economy over the past 5 years. It is expected to continue this rapid
growth trajectory, and will likely be an even more important component of the
state economy in the future.
Benefits for employees play an important role in the total value of the
compensation mix. Not surprisingly, larger organizations in this sector are
more likely to offer fringe benefits. MESDA is reviewing group benefit packages
for member companies. Consolidating costs through the Association Plan will
offer start-ups and smaller firms affordable benefits programs.
Geographic Concentration of Software and Information Technology Jobs
Predictably, the largest concentration of software and IT activity is
concentrated in Southern Maine with Cumberland County showing the highest
concentration of both businesses and employees. Greater Portland is the
apparent anchor location for this technology sector with an estimated
employment level of more than 7,000 professionals. The estimated workforce
increases to over 25,000 employees when including all other information
technology, call-center and help-desk workers. Significant activity is also
visible in Penobscot, Kennebec and York Counties. The University of Maine
exerts a substantial influence in Penobscot County's activity, as does the
State's Capitol in Kennebec County. York County's seacoast region, positioned
between Maine's largest city and Massachusetts has attracted a number of recent
start-ups and is home to a number of technology dependent manufacturing
companies.
Software and IT firms tend to cluster in geographic regions to access a
concentration of high-tech workers. The four clusters in Maine will be the
foundation for growth in this industry. Such clusters often start slowly and
shift into warp-speed as the industry begins to gain critical mass. The growing
base of companies in these clusters is creating a growing pool of information
technology suppliers: technology-literate attorneys, marketing specialists and
tech-specific educators.
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