If you’re searching for one definitive cause to the talent shortage,… Read More ‘However, recent history also suggests that the pool of available talent should be sufficient to meet industry’s needs now and in years to come-if we develop and use it more efficiently.”. For years employers have warned of an acute shortage of skilled engineers at all levels, and EngineeringUK has recently said the country needs 1.8 million new engineers … It’s a commitment needed by every company. The World Economic Forum suggests that by 2022 42% of total task hours will be managed by machines and algorithms. WHAT’S THE REASON BEHIND THE SHORTAGE OF ENGINEERS IN THE UK? In fact, less than half of surveyed Americans believe that manufacturing jobs are “interesting, rewarding, clean, safe, stable, and secure.” With such a dismal view of the industry, it’s little wonder why enrollment in these fields is stagnant or, worse, declining. The shortage of aerospace engineers is a growing problem that is being addressed, but not sufficiently nor quickly enough. Automation does not solve the engineering and manufacturing talent shortage, but it does help address the challenge in the meantime. The supply and demand for engineers is not much different than the supply and demand for any commodity. We identified 10 engineering occupations on the current SOL that, based on our demand forecast, we expect to have the largest increase in employment levels between 2014 and 2024. Analog/linear and RF/microwave design engineers are good examples. It's estimated that another 500,000 software developers will retire in the next few years. It grew from 2 percent in 2014 to 3.2 percent in 2015 . But it’s a short-term fix. Can money really fill the gap of 2.4 million manufacturing vacancies by 2028? The reality is that salaries for engineers have been stable over the past 10 years when adjusted for inflation according to a study released by IEEE-USA (Washington, D.C.). According to Billy E. Reed, president of the American Engineering Association (AEA), “These shortage reports appear just before immigration is to be introduced or considered by Congress. “It seems like every week we hear about a new startup or a design center. As a result, 64% of executives have found that automation helps them overcome the challenges of the talent shortage. Your email address will not be published. The types of engineering positions that are among the most difficult to fill continue to evolve. Read more. This means an increase in costs for the aviation industry and world travelers alike. Consider the automotive industry, one expert points out; the emotional response tied to the Big Three automotive brands is nowhere near as exciting as that tied with Tesla, known for its innovation. Real Shortage or Crying Wolf? Industry growth and demand are opening up more and more employment opportunities – and the only way to fill those positions is to be proactive about filling your talent pipeline. Although there are engineers who enjoy the flexibility of temporary work, many others prefer a more stable form of employment. This is interesting, considering the average unemployment rate for college-educated people usually hovers around 2 percent . Demand has changed since 2015. One side points out that wages have not gone up across the board for engineers, suggesting that there is no stark labor shortage. IEEE-USA president-elect Paul J. Kostek cites data from the National Science Foundation’s Science and Engineering Statistics system showing that 19% of people working as engineers in 1995 had not been formally educated as engineers, while more than 80% of those working as computer scientists, systems analysts and programmers—the areas of highest projected employment growth-have educational backgrounds in other fields. The U.S. Department of Commerce has released a study by the Information Technology Association of America (ITAA) showing a shortage of 70,000 computer scientists and systems analysts per year. Some claim that an unfavorable perception of the industry is the root cause of this disinterest. Did you check out our recent 2019 Hiring Insights in Engineering yet? It’s an extensive investment, but one that pays off by improving overall STEM education and sparking greater career interest. Getting involved at the college and high-school levels to promote STEM careers is one of the most proactive approaches to solving the talent shortage. Go check it out, then meet us back here. “The lack of software engineers is not a myth; there are currently about half a million unfilled computing jobs in the U.S.” according to Sylvain Kalache, co-founder at coding academy Holberton School. Maybe it’s because there aren’t enough engineers to do all the work. This lack of women in engineering and manufacturing is certainly perpetuating the talent shortage. A SHRM report suggests that almost 27% of workers in the manufacturing sector will retire within the next decade. ), which used a sophisticated input-output model of the U.S. economy to determine ranges of demand for high-tech talent by specialty in 89 industry/government/academic sectors. Were there to be a genuine shortage at present, there would be evidence of employers raising wage offers to attract the scientists and engineers they want. We’re told that 50% of the entire workforce is due to retire by 2020. It will certainly be a necessity for the engineer who wishes to fill those open slots coming up in the next 10 years. Overcoming the Engineering and Manufacturing Talent Shortage Unfortunately, there’s no one-size-fits-all approach to address the talent shortage in the engineering and manufacturing fields. Boom, Bust, and the Global Race for Scientific Talent, I detail five such 10-15 year cycles, some of which occurred during the lifetime of nearly everyone old enough to be reading this article. Only for a specific type. Many organizations hear the phrase talent shortage and act in a reactive manner, throwing money at the problem to gain the talent they need. Not only will getting more flexible on requirements help, but intentionally hiring more junior people can also open up the talent pool. You have 5G and a number of other technologies,” said Dave Fick, CTO of Mythic, an AI chip startup. A booming economy is one reason for the widening shortage of engineers. For example, global manufacturer Cummins, Inc. created its own initiative to address the skills gap, called the Technical Education for Communities program (TEC). Manufacturing index stays strong in November, Contactless measurement developed for COVID-19 tests, Institute receives grant to improve mask materials, Benefits of an open-source language for robots, Secure-by-design industrial products are increasingly important, Control Engineering hot topics, November 2020, China, U.S. leading manufacturing charge from COVID-19 shock. Only 3 in 10 parents consider advising their child to go into manufacturing. In June, the Association of German Engineers (VDI) reported that there were 76 400 vacant engineering jobs—an all-time high. Robert Rivers, chairman of the Manpower Committee of the AEA, says the 25,000 figure counts only the number of graduates in Computer Science. That means that there will be a shortage of one million software developers in the USA. Furthermore, while large organizations in the manufacturing/engineering fields have historically been the biggest sponsors of H-1B visas for foreign workers, that number has similarly decreased. They identify and discuss five concepts of shortage. Not only are you able to build your long-term talent pipeline, you’re also building employer brand awareness, which is highly valuable in attracting greater numbers of candidates. If a role is on the Shortage Occupation List, it is no longer subject to the Resident Labour Market Test. On the other hand, maybe it’s just that your company can’t afford to hire more people. “Our forecast indicates that the strong demand for electrotechnologists during the current period of economic expansion is likely to continue into the foreseeable future,’ says Mr. Kostek. The right solution depends upon a number of factors, including regional differences in skills demand and current STEM offerings, to name a couple. Last year, the number of teenage boys interested in a STEM career dropped from 36% to 24% while the number of teenage girls is stagnant at just 11%. More than three quarters of those surveyed view it as a prestigious career: over 80% say it provides good job stability, or good earning power. Unfortunately, there’s no one-size-fits-all approach to address the talent shortage in the engineering and manufacturing fields. Fortunately, one company has stepped up to make it easier for businesses to connect with available engineers. Girls are more interested in hands-on experience; they want to see the life applications of what they are learning.” Companies can take a proactive approach in getting the right role models in front of this young audience to boost their interest in STEM. These include processing jobs such as chemical engineers and manufacturing engineers in the aerospace industry. Whilst there is a current lack of skilled engineers to fill demand, the report does highlight that the profession is seen as a stable and fruitful career. It is not for all types of engineers. The U.S. Department of Labor and Statistics (BLS) ranks this profession as the second most needy in the country today, second only to health professionals. According to a few different estimates, about half of Data Engineers have a software engineering background. To more closely examine whether there is, indeed, an underproduction of scientists and engineers, the authors focus on the production of science and engineering PhDs. Well, it seems that searching for an answer leads to a political debate. Except it hits too close to home to ignore; your productivity, growth, customer service, and innovation are just a handful of areas that vacancies will negatively impact – and the talent shortage ensures that those vacancies will take at least three months to fill, according to surveyed manufacturers. Yes ! As such, one in three manufacturers are already using these tools and technologies to supplement low-skilled jobs in order to focus their recruiting efforts on higher-skilled roles. Take a look at this graphic from Deloitte and The Manufacturing Institute. As mentioned, only 11% of teenage girls are interested in STEM careers. It doesn’t guarantee that the people lured in by the money will stay for the long haul or that the future talent pool will miraculously grow as a result. Last year, mechanical engineers were in 5th place, electrical engineers were in 1stplace, and chemical engineers and control systems engineers were not in the top 5. 2) There is a long and damaging history of "alarm/boom/bust" cycles initiated by such shortage claims, going back at least to World War II. Many economists take issue with the industry’s argument, too. There are so many new products coming out even outside of the AI space. The unemployment rate for … Canada is facing a shortage of engineering talent. If there’s a shortage in engineering talent, then why has the unemployment rate been rising for software engineers overall? Not only are many companies lacking sufficient succession planning and knowledge transfer strategies, but there simply isn’t enough talent to fill the gap. Yes, there is a shortage of some critical engineering talent in some sectors. There are also oft-heard whisperings of a engineering shortage in India, though private colleges and "finishing schools" are going far to make up for the Indian deficiencies, the report said. Plus, it’s expensive. In the USA alone, there is, at this moment, almost 500,000 software developer jobs on the market. It’s a program that works with schools to identify and supplement gaps, helping them standardize teacher training, market-relevant curriculum, classroom tools and systems, and career guidance. It seems U.S. colleges and universities can’t produce enough graduates to meet the growing demand. The average US engineer wage sits at $91,010, reaching even higher depending on experience level and regional bias. Employment of software developers is projected to grow 21 percent from 2018 to 2028, much faster th… Required fields are marked *. The engineering and manufacturing industries are contending with historically-low unemployment rates in combination with the industry’s significant contribution to economic expansion. Higher wages and sign-on bonuses are common strategies – and Deloitte reports a 68% positive impact from companies who go this route. The estimate is that by 2021, there will be a shortage of 1.4 million software developers and only 400,000 software developer graduates. Finding the perfect candidate in the current market is going to prove highly difficult. Grab a cup of coffee and read on. There is an engineer shortage in Australia and if the numbers are anything to go by, this won’t be changing anytime soon, with the number of students studying engineering courses remaining stagnant for close to two decades. There is no single reason that accounts for the shortage of engineers; it is being driven by a complex mix of interlinking factors: Identity problem; The engineering industry has been plagued by an outdated image of spanners and dirty overalls for years, if not decades. If you added into the supply the number of graduates in engineering, science, mathematics and even some liberal arts (people that also work in IT), the total supply is several times what ITAA figured. But it’s not enough. There is really a shortage of software engineers and this shortage is going to expand up to one million by 2020.. What methods do you have to keep your knowledge and skills current? Otherwise, the shortage will continue and soon there will not be enough engineers to build or maintain new planes. How long will this strategy remain valuable? The Sr. VP of my company (a U.S. Fortune 500 tech company) very recently returned from a global summit of industrialized nations, and the one big recurring theme was that for ALL of the advanced nations (North America, Western Europe, Japan, etc. While we all agree that there is an engineering talent shortage, identifying the cause is a bit more elusive. Much of the anticipated shortage will be eliminated by simply training or retraining available engineers and nonengineers to fill these needed positions. A Microsoft general manager Shelley McKinley points to studies that show girls need more role models: “Where are the women STEM teachers? The study shows that the economy needs 95,000 new workers and that universities are only providing 25,000 graduates per year. According to the government’s study, for the engineering sector to gain enough candidates to reduce the skills shortage, they would need around 186,000 skilled recruits each year until 2024. Another revealing statistic gleaned from the study is that while employment of engineers has risen by 12% the past 10 years, the number of newly graduated engineers has actually declined by 17% over that same period. Conclusion. The IEEE-USA study was based upon data developed by Data Research Inc./McGraw-Hill (Houston, Tex. We’ve got the research to prepare for your 2019 hiring initiatives. Technical Education for Communities program (TEC), Microsoft general manager Shelley McKinley, Brightwing 2019 Hiring Insights in Engineering Guide. But the root causes of this talent shortage go deeper. Lack of Women in Engineering and Manufacturing. Hand-in-hand with STEM education investment is the opportunity to get more girls interested in careers in fields like engineering and manufacturing. When hiring, engineering firms find themselves looking far and wide for qualified talent. However, a more flexible approach to requirements will result in a wider range of available candidates. Whew! The STEM workforce in the US has long been home to a significant portion of talented foreign-born workers – about 20-25% according to the American Immigration Council. Search Products And Discover New Innovations In Your Industry!! Maybe it’s because there aren’t enough engineers to do all the work. Sometimes, the talent pool only seems limited because a company’s long list of requirements is so stringent. A recent report by Engineers Canada shows growth in mining, transportation, and energy, along with 95,000 Canadian engineers retiring by … At the end of the day, it’s clear that leaders in the engineering and manufacturing fields cannot remain silent about the talent shortage. “As the UK continues to go through a period of economic uncertainty, the skills shortage in engineering remains an ongoing concern for engineering companies in the UK,” said Joanna Cox, head of policy at the IET. The engineering and manufacturing talent shortage isn’t just a buzzword. The U.S. Department of Commerce has released a study by the Information Technology Association of America (ITAA) showing a shortage of 70,000 computer scientists and systems analysts per year. Before offering a more detailed analysis, it is worthwhile to examine two widely cited claims about shortages: the headline-grabbing statement by the former head of Apple, Steve Jobs, to President Barack Obama about an engineering shortage, and the recent claim by the president’s Jobs and Competitiveness Council that the economy needs to produce an additional 10,000 engineers each year to address a shortage and thereby sp… “. We dig into more detail below. Programming talent is also in high demand. By 2028, a continued shortage will translate to a potential loss of $454 billion in economic output – a massive 17% of the forecasted manufacturing GDP in the US. In 2001, enrolments in engineering … Possibly, that's because most engineers today deal exclusively with the digital domain. “Companies are taking action to reduce the skills shortages and skills gaps; however, there is a lot more to be done. It is common knowledge among the sector these days that there’s a skills shortage in the engineering industry. Baby Boomers – and even some older members of Generation X – are out the door, taking their knowledge and skills with them. Actually, people with a major in CS are a minority of the total number of people employed in industry in information technology. The number of female engineering graduates is higher – at 24% – but that’s still drastically uneven, despite the fact that women outnumber men in overall graduate school enrollment. A long-time buzzword in the engineering and manufacturing sectors – one you’d be tempted to tune out by now. The result is the tightest labor market in recent history. Your email address will not be published. In my recent book Falling Behind? The implications of such shortages are critical to U.S. growth, competitiveness, and security. This strategy goes hand-in-hand with valuable training programs as well as knowledge transfer initiatives – especially as your oldest generation of workers gets ready for retirement. The need to tackle this challenge is not dependent upon revenue size, organizational demographics, or reach. “There is a shortage of basically every type of engineer. Still, companies face the same problem. On the supply side of the equation, it would stand to reason that if there were such a severe shortage, then all engineers would constantly be getting offers for new employment at significantly higher incomes.”. How is American industry going to fill all of these openings? While this study did not include controls engineers, some extrapolation of these data has been made in the press to suggest that what is applicable to IT professionals must also apply to engineers in general. These occupations are both currently deemed to be in shortage and expected to be significantly in demand in the coming years. That said, we’ve seen companies find success in some of the following solutions. For the past eight years, engineering has held strong as one of the hardest jobs to fill according to ManpowerGroup Global’s talent shortage survey. The name matters little whether it is the ITAA, the American Electronics Association or the National Science Foundation, they are the same people representing the same vested interest in importing ever greater numbers of cheaper foreign workers. Companies are left to turn to domestic talent, which is a far smaller pool of professionals. There may, in fact be an engineering shortage, but it may be limited to a certain part of the country or a specific field of engineering. An automotive client spent six months trying to find a highly technical engineer with extensive experience in a long list of very specific skills. Whether you buy into the political argument or not, it is agreed that there is the on-going need for trained people. There is a lot of work for the rest of us! Its impact is both global and local. Search Products And Discover New Innovations In Your Industry. For many companies, it’s tempting to throw money at the problem and forget about it – offer higher salary packages to attract the right talent or invest in automation technology to relieve the demand for transactional labor. To aid in this effort, some manufacturers have already implemented short-term project opportunities for retiring individuals, allowing them to work in a smaller capacity in order to increase (or maintain) headcount while enabling greater knowledge transfer to junior employees. So while there may be a shortage, it clearly doesn't affect all companies equally. Unless you’ve been under a rock, you’ll know that for years there has been a shortage of software developer talent. Feel like there is not enough of you to go around? Experts have estimated that there’s only one qualified engineer for every 1.9 engineering jobs, so it’s not surprising that a worker shortage exists. We helped them pare that list down and expanded the search from local to national (introducing a relocation package), resulting in a wider array of highly qualified people who fit the job. Some U.S. companies claim there is an engineering shortage and the country should continue the H-1B visa program to bring in engineers from Europe and Asia to fill the void. There’s a shortage of engineers in the United States. Studies show that the US manufacturing workforce consists of just 29% of women workers. A Chronic Shortage of Software Engineers. Feel like there is not enough of you to go around? The right solution depends upon a number of factors, including regional differences in skills demand and current STEM offerings, to name a couple. All of our experts are in agreement that the IT talent shortage is real. There’s no denying that the engineering industry is experiencing a talent shortage. However, the number of international students has declined a massive 17% in recent years – primarily due to changes in visa regulation. It seems like a viable solution – for now. The fourth annual STEM survey by Emerson, a Missouri-based technology and engineering company, shows that 2 out of 5 Americans say the STEM worker shortage … We’ve seen the success of this strategy first-hand. This also is a signal to us to constantly keep up with the changes. There are currently over 100 jobs on this list from a number of sectors, and 53 shortage occupations from engineering alone. But Tesla is not what people initially think of when considering a career in manufacturing.

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