The local tech sector bottomed out in 2003 and is poised for a stronger 2004, The Ottawa Centre for Research and Innovation said Friday in its semi-annual survey of the sector.
Based on a survey of local tech firms, OCRI said employment levels have slipped only marginally in the past six months. As of December, OCRI said about 63,700 technology workers were employed in the nation's capital. That's a marginal decline of about 1.24 per cent from June's survey.
Compared to one year ago, the total is down by about 6.3 per cent.
The survey results are based on the responses from about 85 per cent of the 1,500 companies that were contacted.
Jeffrey Dale, president of OCRI, said the numbers suggest the worst is over for the local tech sector.
"The decrease in Ottawa's technology employment levels can be attributed to a handful of Ottawa's major players in the high tech community who announced employee downsizing prior to our June 2003 survey," Dale said in a statement. "The actual date of departure, however, did not take effect until the Fall 2003."
The numbers from OCRI do run somewhat contrary to figures released Friday morning by Statistics Canada.
By Statscan's measure, total tech employment fell by another 25 per cent from the end of 2002, to 43,000.
One obvious difference between the two reports is that Statscan has a much narrow definition of what qualifies as a tech company. OCRI, on the other hand, includes a number of firms that are more indirectly related, such as equipment suppliers, consultants and others who sell their services into the local high tech sector.
The other distinction is that OCRI's numbers are based on a survey of companies, while Statscan's labour numbers are based on household surveys.
Either way, there is optimism that 2004 will be a better year.
Dale cited the latest Metropolitan Outlook for Ottawa released by the Conference Board of Canada on Thursday. In its outlook, the board forecasts that local manufacturing will gain ground in 2004 as the market for telecommunications equipment recovers. The board forecasts growth of 3.1 per cent, good news for the tech sector.
"OCRI firmly believes - and many recent statistics support - that 2004 will see the technology sector begin to rebound," Dale added. "Recent contract announcements by major players in our region's technology industry are clear signs that increases in corporate spending, hiring, and venture capital investment that began at the end of 2003 will continue into 2004."
