Arlington, VA, Sept. 8, 2004 -- The number of U.S. IT jobs increased by just 2% between the first quarter of 2003 and the first quarter of 2004, and demand for IT workers is expected to slow during the rest of the year, according to a survey released Wednesday by the Information Technology Association of America (ITAA).

The overall size of the U.S. IT workforce grew from about 10.3 million to 10.5 million jobs from 2003 to 2004, according to an ITAA telephone survey of 500 hiring managers from both IT and non-IT companies across the U.S. But hiring managers indicated they will seek to fill a total of 230,000 jobs in 2004, down from about 500,000 IT jobs filled in the past year.

Among the factors in the slow job growth include U.S. companies' continuing concerns about the economy, rising costs of health care and other benefits, increasing productivity among workers and offshore outsourcing.

Some job classifications can look forward to bright futures, however. The report indicates that technical support and network system design saw the largest year-to-year increases in employment, up 5%. And technical support scored the largest number of jobs—67,000—followed by network systems development and programming.

Given current concerns about terrorism, critical infrastructure protection and homeland security, information security appears to hold the greatest IT job growth potential over the next three to five years, the ITAA said.

Net profit fell 18%, to $1 million, for the quarter ended July 31.

During the quarter the company ramped production in China. In a press release, president and CEO Gary Fairhead said near-term results "will be negatively impacted by investment in China." He said China should show positive operating results in fiscal 2005.

Las Vegas operations were slow which the company attributed to normal seasonality. Mexico operations were busy, and Fairhead said the company has seen "renewed interest in Mexico as opposed to China."

Solectron, which owned 23.5% of ECS, sold the remaining 2.15% to an undiclosed group.

ECS officials said the deal shouldn't have negative repercussions for ECS, which doesn't distribute Solectron products.

In a press statement issued jointly by ECS and ST Electronics, the companies said the investment isn't expected to have a material impact on earnings in 2004.

ST Electronics designs and develops electronics systems mainly for industrial use. ECS provides IT services and sells software and hardware.

Kester (kester.com) will hold a lead-free mini-clinic at its booth during the ATE Show in Chicago on Sept. 28-30. Peter Biocca, senior market development engineer for lead-free implementation, and Gary Nicholls, Kester University administrator, will be on hand to answer future lead-free users' questions.

Kester's line of lead-free products will be on exhibit, and information on the Kester University lead-free training program will also be available.