For Immediate Release       
January 25, 2006
Contact:
Cort Boulanger
(339) 222-2442

High Tech Council CEO Survey projects job growth for 2006
 But concerns over economy, anti-competitive policies remain

The results of the Massachusetts High Technology Council’s 2006 CEO High Tech Business Climate Survey point to a positive year for job creation in the state’s diverse technology economy. But it also indicates that a growing number of technology leaders are increasingly concerned about the state’s business climate.  The results of the survey, conducted each year since 1987, were presented today at the Council’s Annual Meeting, which featured a keynote address from Governor Mitt Romney.

“State leaders – Governor Romney in particular – have made progress in recent years to make Massachusetts more competitive, but there are still a number of challenges that have us concerned about the future,” said incoming Council Chairman and MKS Instruments Executive Chairman John Bertucci. “Even with a very successful 2005 for the Council, the anti-competitive impact of a potential health care tax, the high cost of housing, and a broken unemployment insurance system are all barriers to a more robust business climate.”

Bertucci noted that for the second straight year a majority of CEOs planned to grow their workforce in 2006.  The survey revealed that 55 percent of participating CEOs expect job expansion this year, a three percent increase from 2005. Only seven percent anticipate their company to reduce workforce.

The survey also revealed:

• 70 percent view Massachusetts as a good or outstanding place to run a high tech company – down from 84 percent in each of the last two years;
• 79 percent believe the state’s technology economy is “improving” or “holding steady,” down from 96 percent last year;
• 20 percent say the climate is improving, down from 38 percent last year; and
•  21 percent say the climate is worsening, up from four percent in 2005.

“These results are similar to 2002 or 1994 when the state was emerging from recession but are still competitive by historical standards,” said Council President Christopher R. Anderson, who last week was appointed by Romney to the state Board of Education.  “One of the major concerns of technology leaders is that the state needs to appropriately focus on finding the skilled workforce of the future.  The goal will be to make the state’s public education system more competitive with the best systems in the world.”

Bertucci noted that the most important economic news over the past year was the preservation of Hanscom Air Force Base and the Natick Solider Systems Center through the federal base closing process.  The state’s strategy was led by the Massachusetts Defense Technology Initiative (MassDTI), which was created by the High Tech Council and co-chaired by Romney and Senator Edward Kennedy.  MassDTI’s efforts ensured that the more than 33,000 base-related jobs remain and that Massachusetts retains its defense technology base that is so crucial to the state’s future.  With the ongoing leadership of Executive Director Alan Macdonald and the Council’s officers and staff, MassDTI will work to make Massachusetts more competitive for defense technology employers.

“MassDTI has worked collaboratively with political, academic and industry leaders to preserve the state’s defense technology base,” said Bertucci.  “With the successful base closing process behind us, MassDTI will build on that momentum by pursuing an aggressive agenda for the defense community.”

Anderson indicated that the Council would have an active public policy agenda for 2006.  These efforts will be aided by the development of MassTrack, a web-based system for assessing the voting records of state leaders and holding them accountable to the agenda of technology employers and employees.  MassTrack will be publicly launched this spring.

Bertucci replaces Paul Gudonis, CEO of FIRST, as Council Chairman.  Joining Bertucci on the leadership team are Vice Chairman Mike Astrue, interim CEO of Epix Pharmaceuticals, Treasurer James Regan, Chairman, President and CEO of Dynamics Research and Secretary Paul Gauron, a Senior Partner at Goodwin Procter.  All will serve two year terms.

The annual survey also helps set the Council’s public policy agenda this year.  Top priorities for technology employers include:

• Continue to develop and implement a statewide tech-based economic development plan;
• Maintain/enhance competitive business and personal tax climate;
• Reform the state’s K-12 education system, including developing a 21st century system for recruiting, retaining and training math and science teachers;
• Strengthen UMASS as a world-class public higher education system;
• Oppose a health care payroll tax and reduce medial costs through the use of technology, cost and quality transparency and medical malpractice reform; and
• Work with local communities to initiate housing development.

About the Massachusetts High Technology Council   
Created in 1977, the Massachusetts High Technology Council is composed of CEOs from the state’s top technology employers who work to make Massachusetts a more competitive place for technology growth.  The Council’s member companies are world leaders from across all technology sectors.  In 2004, the Council launched the Massachusetts Defense Technology Initiative (MassDTI), which led the strategy to save the state’s two top defense technology installations, Hanscom Air Force Base and the Natick Soldier Systems Center.

###

Attached: Powerpoint presentation of survey results