More than 46 percent of New England’s “emerging technology manufacturers” plan to add new jobs this year, which could create about 2,675 new jobs in the region, according to the latest employment trend report by CorpTech of Woburn, Mass.
The 113 Rhode Island companies that participated in the survey projected they would be adding a total of 654 new jobs in 1999. That would be an 8.8 percent increase to the group’s current workforce of 8,088 workers.
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That figure is a bit more optimistic than the numbers reported in the two previous years, according to the CorpTech report. They could, however, still be conservative figures.
The Rhode Island Technology Council, a statewide trade association, recently conducted its own survey of companies throughout the state. Its findings indicate local com
One reason for the increased need for workers is that many companies are doing business beyond the Ocean State’s borders. “Companies like CBSI and certainly firms like INSO are not dependent on the Rhode Island economy, because we do work outside of Rhode Island now,” Waugh said.
“There’s just a shortfall of tech workers,” he added. “I think we could do even better if we had the people.”
In January 1998, about 118 Rhode Island companies told CorpTech they had plans to add only 548 new jobs for a projected 5.3 percent growth rate. And the January 1997 survey indicated that 101 companies planned only to add 332 job for a 4.2 percent increase.
The more optimistic 1999 figures didn’t seem to surprise some local high tech entrepreneurs.
“We’ve already expanded tremendously,” said Christopher D’Iorio, president of NetSense Internet Solutions in Wakefield. NetSense was started two years ago with two employees, and now there are 12, according to D’Iorio. “I estimate we’ll be up to 20 or 22 in a year or so.”
Of the Rhode Island businesses that responded to CorpTech’s survey, Internet and telecommunications firms reported the largest expected job growth. Eleven companies in that category, which have 147 employees now, reported plans to add 70 jobs, giving the industry a 47.6 percent growth rate.
As he sees it, D’Iorio said it makes sense that companies would want to grow in the Ocean State.
“I worked in Silicon Valley I was flying around handling accounts for IBM and Microsoft,” he explained. “I’m from this area. It burnt me out.
“When I talk to other people who are technology company owners, they’re sick of the run-around,” D’Iorio said, adding some of his peers are following the same path and returning home to start businesses where the pace isn’t as hectic. “They’re getting their experience and then coming back to Rhode Island to start their businesses.”
New England ranked fourth in job growth out of the 13 geographic regions surveyed by CorpTech. The Woburn organization maintains a database on 45,000 manufacturers, research and development companies and contract service agencies throughout the country. A total of 3,400 technology companies – with specialties ranging from computer software to pharmaceuticals – participated in the January employment trend report.
“New England in general, while we’re having growth in technology, isn’t really having the same growth as some strong pockets of the country, like California,” said Deborah Nielsen, director of editorial operations for CorpTech.
As for Rhode Island’s individual performance in the survey, Nielsen said, “it’s strong, but certainly not the strongest.”
This year, companies in two other New England states reported plans to increase the number of jobs by more than 9 percent. In New Hampshire, 128 companies that responded said they plan to increase their total workforce of 9,943 by 860 jobs. That’s a 9.5 percent increase. Meanwhile, 80 Vermont companies reported plans for a 9.3 percent increase. Projections indicate those companies will expand the current workforce of 3,121 by 265 positions.
Growth in Maine and Massachusetts was expected to be slightly less. Connecticut was counted as part of the Metropolitan New York region, instead of New England.
Maine companies projected adding 378 jobs for an 8 percent increases. In Massachusetts, where 246 companies were surveyed, there were indications that some 1,884 jobs would be added. That is only 7.6 percent of the 26,685 people now employed with those businesses.
Northern California topped the list, with companies there predicting they will add almost 3,500 new jobs. That’s nearly 12 percent increase in employment. Southern California came in second on the regional list, with area companies indicating they plan to add 3,394 new jobs for a 9.1 percent growth rate.
One thing CorpTech doesn’t research, however, is where companies plan to find the people to fill these jobs in this time of low unemployment, particularly those involving computer programming skills. “We don’t really get involved too much in conversations with them on the challenges with that,” Nielsen said. “With the unemployment rate as low as it is right now, definitely it is proving to be a challenge.”
