High Tech Council CEOs Project Job Growth for 2007

For Immediate Release March 7, 2007
Contact: Cort Boulanger (339) 222-2442

High Tech Council CEOs project job growth for 2007
But call for reforms in education, tax policies

The results of the Massachusetts High Technology Council’s 2007 CEO High Tech Business Climate Survey point to a positive year for job creation in the state’s diverse technology economy – with more than two-thirds of participating CEOs planning to add jobs this year. But it also indicates that technology leaders are increasingly concerned about the state’s tax climate and public education pipeline.

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 Deval Patrick.

“Education and fiscal issues came in as the top priorities for the Council’s CEO members,” said Council Chairman and MKS Instruments Chairman John Bertucci. “It is a global imperative for Massachusetts to improve its education system, particularly in math and science. And we must maintain a stable, predictable and competitive cost climate to compete in the global economy.”

Bertucci noted that for the third straight year a majority of CEOs planned to grow their workforce in 2007. The survey revealed that 68 percent of participating CEOs expect job expansion this year, a 13 point increase from 2006. Only four percent anticipate their company to reduce workforce in 2007.

The survey also revealed:

• 75 percent view Massachusetts as a good or outstanding place to run a high tech company – up from 70 percent in 2006;
• 88 percent believe the state’s technology economy is “improving” or “holding steady,” up nine points from last year but down from 96 percent in 2005;
• 14 percent say the climate is improving, down from 20 percent last year; and
• 12 percent say the climate is worsening, down from 21 percent in 2006.

“While the job and climate numbers are heading in the right direction there are still some concerns because of the growing threat of global economic and educational competition,” said Council President Christopher R. Anderson, who also serves as Chairman of the state Board of Education. “Massachusetts needs a long-term, technology based economic development strategy that builds on our core technology strengths and links to the state’s public education system.”

The Council also elected its slate of new directors and officers for 2007. Joining Bertucci on the leadership team are: new Vice Chairman, Joshua Boger, President & CEO of Vertex Pharmaceuticals; Treasurer, James Regan, Chairman, President & CEO of Dynamics Research; and Secretary, Paul Gauron, a Senior Partner at Goodwin Procter.

The annual survey helps set the Council’s public policy agenda this year. Top priorities for technology employers, as defined by the CEO survey, include:

• Supporting the development and implementation of a statewide tech-based economic development plan;
• Opposing new taxes and protecting existing competitive tax policies, including the creation of a more competitive state capital gains tax rate;
• Creating a world-class public K-12 education system, with a particular focus on math and science teachers;
• Reforming the state’s Unemployment Insurance system to make it competitive with other states; and
• Strengthening UMASS as a world-class public higher education system.

The Massachusetts High Technology Council – the state’s most prominent technology business lobbying group – is composed of more than 100 CEOs representing the state's top technology employers.  For 30 years, the Council has worked to make Massachusetts more globally competitive for the state’s diverse technology economy.  In 2004, the Council launched the Massachusetts Defense Technology Initiative (MassDTI), which works to grow the state’s defense technology cluster. Learn more at www.mhtc.org.
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