CTA: PwC report says tech industry a key driver of US economic growth

SPOKANE (Scrap Monster): The Consumer Technology Association (CTA) has released a new report that highlights the impact caused by consumer technology industry on US economic growth. The report titled “US Economic Contribution of the Consumer Technology Sector”, prepared by PricewaterhouseCoopers LLP (PwC), focuses also on the employment opportunities generated by the industry.

According to the report, the consumer tech industry directly supported nearly 4.7 million jobs. It generated $1.9 trillion in output, $931 billion of value added, $435 billion in labor income, and $192 billion in tax payments in the United States. The sector directly accounted for 5.2% of the country’s Gross Domestic Product (GDP). Adding up the indirect and induced effects, the sector provided 15.3 million jobs and contributed $3.5trillion of total output, $1.8 trillion of value added, $ 1.0 trillion of labor income, and $413 billion in taxes in 2015. The economic activity represented 10.3% of US GDP. For each direct job generated in the consumer tech sector, another 2.25 jobs are supported throughout the rest of the economy.

The exports of goods and services directly and indirectly attributable to the consumer tech sector accounted for 17% of the total US exports in 2015. The exports from the sector amounted to $379 billion in 2015. Also, the exports from the consumer technology sector accounted for 11% of the total sector output. The exports supported nearly 1.5 million US jobs during the year, contributing $14 billion in tax payments. Including indirect and induced effects, tax payments amounted to $39 billion. The data provided by the US Department of Commerce, International Trade and Administration indicates that computer equipment registered 22% growth in exports during 2002-2015.

The PwC report notes that the consumer technology sector accounted for 10.3% of US GDP, 9.6% of labor compensation and 8.4% of US employment in 2015. The average compensation of the employees in consumer technology sector was well above the national average.

California emerged as the leader in terms of total economic output generated by the sector during 2015.The state’s economic output of the sector totaled above $700 billion, followed by Texas with over $350 billion and New York (over $240 billion). These top three states together accounted for nearly $380 billion in total workforce compensation in 2015.

According to Gary Shapiro, president and CEO, CTA, the study underlines the fact that consumer technology industry is a critical component of the US economy. He also expressed the commitment of the organization to working with the new administration in order to bring the benefits of technology to all Americans. Shapiro added that the tech industry will continue its contributions to cement the country’s position as a global leader in innovation.

The recent report updates the PwC report that measured the economic output of the consumer technology sector as of 2008. PwC notes that since that time, a lot of changes have occurred in the consumer technology sector and to the overall US economy. Though the two reports are not strictly comparable, impacts of the sector have grown more or less in line with the overall economy, during this period.