Labor Market

Industry Profile

2018EDITION

FloridaInformation Technology

Industry

Prepared by the Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research

Florida Information Technology Industry Cluster

Exploring Florida’s Targeted Industries Florida’s geographic location ideally positions the state as a hub of commerce to all parts of the world. Florida’s competitive costs, comprehensive infrastructure and a large, diverse talent pool amongst other things have supported the expansion of a dynamic economy including the following key areas: aviation & aerospace, life sciences, manufacturing, information technology, financial & professional services and logistics & distribution. The industry profiles detail the benefits on Florida’s employment, wage-earning levels and how each industry is forecast to perform moving forward. In an ever increasingly competitive global market, Florida continues to position itself for future growth in key areas as evidenced in the following industry profiles.

Overview Florida’s Information Technology industry cluster began to develop in support of the nation’s space program and was further enhanced with the introduction of the IBM Personal Computer in Boca Raton in 1981. From these early efforts, Florida’s information technology industry cluster has matured into such diverse areas as digital media; modeling, simulation and training; photonics/optics; mobile technologies; and electronic shopping. The information technology industry cluster is defined as a combination of 50 different industry subsectors from both manufacturing (28) and nonmanufacturing (22). Industry subsectors within the cluster underwent a redefinition with the introduction of the 2017 North American Industry Classification System (NAICS). The subsectors included in the IT cluster are defined by Enterprise Florida, Inc. Employment Trends in the IT Industry The information technology industry had 30,378 establishments and employment of 270,914 in 2017. Employment was up 14,241 jobs (+5.5 percent) over the year.

Figure #1 Florida Information Technology Employment

2011 - 2017 (Not Seasonally Adjusted)

Source: Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, Quarterly Census of Employment and Wages Program (QCEW).

• The largest manufacturing subsectors in information technology in 2017 were search, detection and navigation instruments (9,837 jobs); semiconductors and related device manufacturing (confidential); broadcast and wireless communications equipment (3,647 jobs); and other electronic component manufacturing (2,924 jobs). The largest nonmanufacturing industries were custom computer programming services (39,956 jobs); wired telecommunications carriers (39,431 jobs); computer systems design services (37,915 jobs); and electronic shopping and mail-order houses (30,791 jobs).

• Within the information technology industry cluster, the electronic shopping and mail-order houses gained the most jobs over the year in 2017 (+4,969 jobs, +19.2 percent). In 2017, the electronic shopping and mail-order houses industry was reclassified from NAICS codes 454111, 454112 and 454113 to a single code - 454110. The subsector losing the most jobs over the year in the cluster was wired telecommunications carriers (-1,079 jobs, -2.7 percent).

Figure #2 Average Annual Wages for 2016 and 2017

Total, All Industries versus Information Technology

Source: Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, Quarterly Census of Employment and Wages Program (QCEW).

• The 2017 average annual wage for workers in the information technology industry was $83,076, exceeding the total average annual wage for all industries ($48,460) by 71.4 percent. This gap narrowed from 2016, when the information technology average annual wage exceeded the average annual wage for all industries by 72.8 percent.

• The average annual wage for all industries increased more than information technology’s average annual wage over the year and at a higher rate. The information technology’s average annual wage increased by $1,761 (+2.2 percent), while for all industries it grew by $1,405 (+3.0 percent).

• Software publishers had an average annual wage of $121,172 in 2017, the highest in information technology and 150.0 percent higher than the average wage for all industries. Consumer electronics repair/maintenance had the lowest average annual wage in 2017 ($34,996). Forty-two information technology subsectors had average annual wages that exceeded the wage for all industries ($48,460). Thirty-five information technology subsectors had annual wages greater than $60,000. Compared

to the average annual wage for all industries in 2017, most information technology subsectors had relatively high average annual wages.

Figure #3

Top Occupations in the Information Technology Industry Cluster for All Training Levels

Source: Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, Long Term Projections Program, forecast to 2025.

• The 15 largest information technology-specific occupations comprise about 37.3 percent of the total employment in the industry cluster.

• The largest information technology-specific occupation in 2017 is software developers, applications, which has a median hourly wage of $41.79.

• Among the fifteen largest industry-specific occupations, median hourly wages range from a high of $62.89 for computer and information systems managers, to a low of $13.34 for team assemblers.

• Thirteen of the fifteen largest information technology-specific occupations have a median wage greater than $20.00 per hour.

• Twelve of the fifteen largest occupations are projected to gain employment through 2025.

• Software developers, applications are projected to gain the most jobs (+4,770 jobs), while computer systems analysts are projected to grow the fastest (+26.72 percent) of the top 15 information technology-specific occupations from 2017 to 2025. Three of the 15 occupations are projected to lose employment, with computer programmers losing the most (-530 jobs, -6.85 percent).

2017

% of Median

Employment Industry Hourly Training

Occupation Title 2017 2025 Total Percent Total Wage Requirement

Total, All Information Technology Occupations 308,348 344,096 35,748 11.59

Software Developers, Applications 19,874 24,644 4,770 24.00 6.45 41.79 Associate Degree

Telecommunications Equipment Installers and Repairers 14,430 14,290 -140 -0.97 4.68 24.53 Postsecondary Vocational

Computer User Support Specialists 10,536 12,935 2,399 22.77 3.42 20.85 Postsecondary Vocational

Software Developers, Systems Software 9,662 11,243 1,581 16.36 3.13 47.22 Bachelor's Degree

Electrical and Electronic Equipment Assemblers 8,018 7,956 -62 -0.77 2.60 14.40 Postsecondary Vocational

Computer Programmers 7,742 7,212 -530 -6.85 2.51 34.79 Postsecondary Vocational

Computer Systems Analysts 6,292 7,973 1,681 26.72 2.04 39.24 Associate Degree

General and Operations Managers 5,872 6,805 933 15.89 1.90 54.51 Associate Degree

Computer Network Architects 5,713 6,708 995 17.42 1.85 33.67 Postsecondary Vocational

Network and Computer Systems Administrators 4,905 5,838 933 19.02 1.59 37.87 Associate Degree

Management Analysts 4,620 5,524 904 19.57 1.50 33.12 Bachelor's Degree

Computer Network Support Specialists 4,541 5,127 586 12.90 1.47 25.20 Postsecondary Vocational

Accountants and Auditors 4,539 5,121 582 12.82 1.47 30.16 Bachelor's Degree

Computer and Information Systems Managers 4,378 5,336 958 21.88 1.42 62.89 Bachelor's Degree

Team Assemblers 4,004 4,082 78 1.95 1.30 13.34 High School Diploma

2017-2025 Change

• Fourteen of the top 15 information technology-specific occupations require training beyond high school, with four requiring a bachelor’s degree. Higher wages are found in occupations with greater training requirements.

Figure #4

Top Occupations in the Information Technology Industry Cluster That Require a Bachelor's Degree or Higher

Source: Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, Long Term Projections Program, forecast to 2025.

• Approximately 14.7 percent of the occupational employment in information technology is concentrated in the 15 largest high skill occupations in this industry cluster.

• Median hourly wages for the top 15 high skill information technology occupations range from a high of $62.89 for computer and information systems managers to a low of $25.29 for human resources specialists.

• All fifteen largest high skill information technology occupations have a median wage greater than $25.00 per hour.

• Fourteen of the fifteen largest high skill occupations are projected to gain employment through 2025.

• Software developers, systems software are projected to gain the most jobs (+1,581 jobs) and market research analysts and marketing specialists are projected to grow the fastest (+24.90 percent) of the top 15 high skill information technology occupations from 2017 to 2025. Electronics engineers, except computer is the only occupation of the top 15

2017

% of Median

Employment Industry Hourly Training

Occupation Title 2017 2025 Total Percent Total Wage Requirement

Total, All Information Technology Occupations 308,348 344,096 35,748 11.59

Software Developers, Systems Software 9,662 11,243 1,581 16.36 3.13 47.22 Bachelor's Degree

Management Analysts 4,620 5,524 904 19.57 1.50 33.12 Bachelor's Degree

Accountants and Auditors 4,539 5,121 582 12.82 1.47 30.16 Bachelor's Degree

Computer and Information Systems Managers 4,378 5,336 958 21.88 1.42 62.89 Bachelor's Degree

Market Research Analysts and Marketing Specialists 3,028 3,782 754 24.90 0.98 28.53 Bachelor's Degree

Training and Development Specialists 2,840 3,163 323 11.37 0.92 27.20 Bachelor's Degree

Electronics Engineers, Except Computer 2,729 2,702 -27 -0.99 0.89 43.25 Bachelor's Degree

Industrial Engineers 2,436 2,543 107 4.39 0.79 33.85 Bachelor's Degree

Electrical Engineers 2,240 2,307 67 2.99 0.73 41.62 Bachelor's Degree

Producers and Directors 2,072 2,541 469 22.64 0.67 30.81 Bachelor's Degree

Human Resources Specialists 1,719 1,906 187 10.88 0.56 25.29 Bachelor's Degree

Sales Managers 1,428 1,629 201 14.08 0.46 60.14 Bachelor's Degree

Mechanical Engineers 1,306 1,336 30 2.30 0.42 41.22 Bachelor's Degree

Financial Managers 1,250 1,431 181 14.48 0.41 61.14 Bachelor's Degree

Marketing Managers 1,227 1,474 247 20.13 0.40 54.45 Bachelor's Degree

2017-2025 Change

high skill information technology occupations projected to lose employment from 2017 to 2025 (-27 jobs, -0.99 percent).

• All top 15 high skill information technology occupations require a bachelor’s degree.

• Employment in the information technology industry cluster is concentrated in the southeast, central and northeast parts of the state. These counties include: Broward, Miami-Dade, Hillsborough, Pinellas, Orange, Brevard, Palm Beach, Duval and Seminole.

Summary Of the six major industry sectors, the IT industry showed the largest growth, expanding 5.5% since 2016 (+14,241 jobs). The largest manufacturing subsectors in information technology in 2017 were search, detection and navigation instruments (9,837 jobs). Within the information technology industry cluster, the expansion of e-tailing helped the electronic shopping and mail-order houses gain the most jobs over the year in 2017 (+4,969 jobs, +19.2 percent). The 2017 average annual wage for workers in the information technology industry was $83,076, exceeding the total average annual wage for all industries ($48,460) by 71.4 percent. Software publishers had an average annual wage of $121,172 in 2017, the highest in information technology and 150.0 percent higher than the average wage for all industries. Consumer electronics repair/maintenance had the lowest average annual wage in 2017 ($34,996). Software developers are forecast to gain the highest number of jobs regardless of the training requirements. Software developers, applications is forecast to gain 4,770 jobs for all training levels; software developers, systems software is forecast to gain 1,581 jobs requiring a bachelor’s degree or higher.