Friday, November 21, 2008

Technology jobs up in region

Digital and robotics companies in the Pittsburgh region created 343 jobs in the year ended June 30, the North Shore-based Technology Collaborative said Thursday.

The gain marked the best year for technology job creation since 521 jobs were added in fiscal 2001, the development agency said.

However, that positive news was tempered by the loss of 99 positions, resulting in a net gain for the region of 244 jobs.


Eight companies set up or expanded their businesses during the past year, said the statewide agency, which helps to fund the growth of robotics, Internet security and digital technology ventures for military, commercial and health care uses.

Four startup companies closed, leaving the net gain in company operations at four. The total in that category is 55 new companies since 2000, with 43 of those remaining in business.

The job additions bring the total number of digital- and robotics-related jobs created since 2000 to 2,295, with net job creation at 1,406.

Those figures are up from 1,953 total new jobs and 1,162 net job gains at the end of last year.

"The 2008 job data reflects another strong year of growth for mostly early-stage robotics and digital companies in the region and throughout the Commonwealth," said CEO David Ruppersberger, CEO of the collaborative.

Jobs being created at digital and robotics companies are important for the region because they are high paying, averaging about $79,000 annually, Ruppersberger said.

Because funding to support the agency's $8.8 million budget is in place, and a number of companies have secured funding, the number of startups should increase this year, he said.

However, he said, "current economic conditions make the future less certain."

One of the organization's concerns is that promising companies that need new funding to expand operations, or even to survive, may find sources more limited -- specifically from banks and other lending institutions -- because of the ongoing national economic crisis.

In addition, the Technology Collaborative itself counts on $3.8 million in annual funding from the state Department of Community and Economic Development, which could be subject to cuts due to budget tightening in Harrisburg.

Gov. Ed Rendell in recent days has warned of the need to cut spending on some programs because of the economic downturn.

"We're set this year, but we have concerns about next year," Ruppersberger said.

"I think we will have a good year in 2009, a good year in terms of company formation and our program support. But how that plays out in terms of absolute (net) jobs at the end of the year, I don't know."



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