Portland’s Tech Employment Not Keeping Up With Industry’s Growth

Monday, February 23, 2015

Joanna Evoniuk, GoLocalPDX Contributor

Portland’s tech industry is one of the fastest growing in the nation, but there is a shortage of highly qualified employees in the sector.

In a ranking of the biggest metro areas in the U.S. by the Brookings Institute, Portland saw saw one of the largest increases high tech industries, such as semiconductor manufacturing and engineering.

These industries in Portland also made close to $60 billion in 2013, the eleventh highest for a city.

The city has been built a reputation nationally as a hub for tech-related industries, boasting Intel's headquarters and a number of successful tech startups, including Puppet Labs and Urban Airship. However, professionals agree Portland’s high tech sector needs more talented employees.

“There’s an enormous shortage,” said Sheri Dover, founder of PDX Code Guild. “But it’s worldwide—there’s a shortage everywhere.”

Jobs in Portland's Tech Industry
Between 1980 and 2013, employment in Portland’s high-tech industries increased by 1.1 percent, placing the city 39th among the 100 largest metro areas in Brookings’ ranking. With 115,920 employees in high-tech in 2013, Portland also had the 21st highest share of the city's total workforce employed in high tech industries.

Justin Abrahms, the director of product engineering at the software development company Quick Left, said Portland is becoming more of a tech town and has drawn a few notable programmers over the last years. However, companies experience difficulty finding more advanced programmers, Abrahms said.

“You see people reach this advanced level and scale back their work time, which can contribute to a scarcity of talent at the top end,” Abrahms said.

In the next five years, there is a projected shortage of one million tech programmers in the U.S., according to Dover. The solution is making tech careers more accessible to people, Dover said, and encouraging companies to hire more junior developers.

“We all need to take on the responsibility for nurturing new talent,” Dover said. “If everybody is only taking senior developers we are missing a huge opportunity.”

Many companies are hesitant to hire young programmers or applicants without a computer science degree. Yet Dover said less experienced employees are cheaper for companies, and can be trained fairly quickly. Boot camps and code schools also help people switching careers make the transition into programming.

Portlanders in high tech industries make less annually than the same professionals in some of the leading advanced-industry cities. Portland ranked 24th in annual yearly earnings of high-tech employees, with the average annual salary close to $90,000 a year, according to Brookings.

Lower wages are the cost of desirable cities like Portland, known for low cost of living and attractive surroundings, according to Bob Whelan, an economist at ECONorthest.

“The pay for a lot of job sectors is lower in desirable places to live,” Whelan said. “If you have a job where you can live anywhere, you're going to move to a place you want to—with a dozen just like you.”

A Growing Industry
The overall output of products and services by tech industries in Portland is among the best in the nation. Advanced industries in Portland accounted for 39.5 percent of total output for all industries in the area, the second-highest percentage in the U.S. Advanced industries increased output by 9.1 percent in Portland between 1980 and 2013, a growth only beaten by Austin, Texas.

The rise of a tech presence in the last years has helped Portland grow as global exporter, bringing a cash infusion to the state, Whelan said.

Staking a claim in the tech industry is crucial in a technological world, according to Jeff Marten, an entrepreneur and member of the Portland tech community. Companies who formally focused on other industries are integrating larger tech departments to keep up, Martens said.

“Technology is an increasingly important and growing sector around the world and in Portland,” Marten said. “Things are changing. Whole industries are affected by technology, when they didn’t have to before.”

Related Slideshow: 10 Takeaways From Portland’s Startup Week

In case you missed it, here are some of the highlights from Portland's Startup Week:

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#1

Women in Tech

The low number of women in the tech industry has become a national issue. At Portland’s Startup Week, events addressed what businesses and women can do about it.

Ingrid Alongi, Co- CEO of Quick Left, gave a presentation outlining ways companies can better include and encourage women in a male-dominated field. Interviewing techniques, team-building exercises, and open feedback channels were some of her seven ways leadership can address the problem.

“I wanted to talk about it on a personal level. It doesn’t take a lot of effort to do these things that are really impactful,” Alongi said.

A separate panel of local tech women professionals discussed ways to get women interested in the industry as well.

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#2

Parties

There may have been serious discussions and topics, but there were plenty of opportunities to cut loose and have fun. Every night, some sort of happy hour or party gave techies and startups the chance to mingle and enjoy food and drink.

PDX Code Guild Founder Sheri Dover said her organization’s party on Monday night was a great opportunity for new talent and experienced advisors to get to know eachother.

“It helps to get everyone together in the same room and build community,” Dover said.

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#3

Attracting Talent

Portland is a booming tech scene, but many tech companies are scrambling to find talented people to fill positions. Participants discussed ways to attract successful talent to the city and state. Founders and tech professionals agreed there are plently open seats to fill in the city.

Brian Henessy, the founder of Thread, said that many young adults move to the state for lifestyle reasons, rather than to make a fortune. Working with staff to meet their needs is one way businesses can draw employees, Henessy said.

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#4

New Generations in Tech

One way to get the needed talent is to create it. Part of Startup Week was to interest young adults or people seeking a change into starting a tech career. Dover said their event and others show people they can start a tech career without a computer science degree.

“In hopes to create more talent, you need to appeal to students and teach skills to help change the tech world,” Dover said.

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#5

Scott Kveton and The Cancled Event

A panel discussion by Ignite Bridgetown was canceled, surrounding a controversy with Scott Kevton.

When CEO of Qcut Crystal Beasley heard that Former Urban Airship CEO Scott Kveton, who stepped down last year after rape accusations, would be a speaker at Ignite Bridgetown, she reached out to organizers.

“It was way too soon for [Kveton] to represent the Portland tech scene,” Beasley said.

After organizers told Beasley the event would still include Kveton, she wrote a post on her blog protesting his involvement and the struggle of women in the tech industry.

Kevton then posted his own statement denying accusations against him, but removing himself from the event,“out of respect for the community.”

Afterwards, Ignite canceled the event, apologizing for any damage they may have caused.

Photo Credit: madame.furie via Compfight cc

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#6

Supporting Startups

Many organizations involved, such as UpGlobal who hosted the week, specialize in building, supporting and mentoring startups. These organizations are dedicated to helping Portland’s startup scene get the help it needs.

However, Hennessy observed there seemed to be more of those organizations involved than actual startups.

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#7

Community Encouragement

Startups who gathered for the week not only got the chance to share about their own companies, but also to learn and hear from others. Henessy said it was encouraging to see common themes at the events and discussions, revealing other startups had similar feelings and experiences.

“It feels good to know you’re not alone,” Henessy said.

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#8

Open Houses

Several startups held open houses during the week, giving people the chance to explore companies in Portland. Krystal South is the program manager of Oregon Story Board.

"Portland Startup Week brought the startup community to multiple locations throughout the city,” South said. “I was able to visit companies and spaces that I wouldn't have seen otherwise. It was great to see startups and entrepreneurs in their natural environments."

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#9

Bigger Than Portland

Although it was Portland Startup Week, companies from across Oregon came to the event. One discussion, “Startup Week Is Every Week, And Not Just In Portland,” featured startup-leaders sharing challenges from operating outside the metro area, and ways to create businesses in rural Oregon.

It also brought visitors from out-of-state.

"I met multiple people who were visiting Portland for Startup Week, who were interested in moving or starting their businesses in Oregon," South said. "Startup Week was a great cross-section of the community events that happen in the city year-round."

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#10

Start of a Culture

This was the first Startup Week for Portland, but attendees feel the event will continue to expand and evolve in years to come. Although the time was productive, Henessy said the event has room to grow.

With the positive energy surrounding the week, Henessy said he would not be surprised to see it acquire the culture and enthusiasm that surrounds Portland’s Design Week.