Biz Talk: Here’s a bright spot: high-tech

DAVE GALLAGHER

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The high-tech industry is a big reason Washington hasn’t been hit hard by the national economic slowdown, and Ken Myer is optimistic about that continuing.

Myer, president and CEO of the Washington Technology Industry Association, was in Bellingham last week to talk about changes to his association and its future. The organization recently changed its name and is embarking on new projects, including opening an office in Shenzhen, China.

Within the more than 1,000- member organization, there seems to be quite a bit of optimism about what’s happening in the industry statewide, including in Whatcom County.

WASHINGTON TECHNOLOGY INDUSTRY ASSOCIATION

Founded: 1984.
Membership: More than 1,000 companies, totaling more than 100,000 employees. The association recently began extending membership to companies with information technology departments and information technology professionals.
Local tie: Affiliated with the local Technology Alliance Group for Northwest Washington.
Details: www.washingtontechnology.org.

“The biggest challenge the companies are having is finding enough talent; there is simply more demand than supply for people, particularly with engineering degrees,” Myer said.

Demand continues in Washington state, he said, because the industry is hitting a new stage.

“For a time we just had Microsoft and some other smaller businesses, but now you’re seeing companies like Google and Yahoo! opening offices in the area, making this area more of a hub for technology,” he said.

Myers’ organization partners with the local Technology Alliance Group, so he’s been watching Whatcom County’s industry develop. At this point, Whatcom County has plenty of small companies; those businesses have the advantage of a nearby university to draw employees from, which should encourage further growth.

“When an area focuses on a particular segment of the industry, that’s a good opportunity for growth,” he said. “Whatcom County doesn’t seem to have reached that cluster stage yet, but it’s working its way in that direction.”

Myer, who has more than 20 years experience in the industry, including 15 at IBM, said he’s also optimistic because it seems venture capitalists haven’t been pulling back. During the dotcom bust a few years ago, venture capital dried up.

It’ll be interesting to see if the high-tech industry continues to keep Washington’s economy growing while the rest of the country works through the recession. Job growth seems to be the key right now, as it keeps the housing market from tanking, raises wages and keeps money circulating. According to the Employment Security Department, the high-tech industry has had the highest employment growth rates in the state, and it is projected to continue. If the industry does cool significantly, it could mean we’re joining the rest of the country in the economic slowdown.