Report: Tech sector continues to fuel Austin's growth

Aug 27, 2014
Austin Business Journal

The technology sector is fueling Austin’s rapid growth and it’s projected to continue to do so, according to a Tuesday report by Wells Fargo Securities LLC


The 12-page Texas Economic Outlook cites broad-based economic growth in Austin and a 4.1 percent unemployment rate. Although professional and business services coupled with leisure and hospitality are local strengths, it’s the tech sector that remains the major economic driver, the report states


Apple Inc., IBM Corp. and National Instruments Corp. are adding tech jobs as they expand their local operations


“Less well-known firms, including Flextronics, Ottobock and Websense are also boosting tech-related employment,” Wells Fargo reported. “Professional and technical services employment is up 7.1 percent from a year ago, and solid gains have been seen among cloud computing, data processing and search.”


The report doesn’t name Round Rock-based Dell Inc., which employs an estimated 14,000 workers in Central Texas


The Texas economy has outperformed the nation for eight consecutive years. And indicators suggest that it’s unlikely that the strong economic performance is ready to slow down


“Austin’s economy will continue to post strong job gains in the medium term. Corporate relocations and expansions into the metro area will fuel gains in the coming years,” the report states. “The presence of major tech companies will help spin off related businesses.”



Print Article opens in new window