Global Shortage of Engineers Presents Challenges to Industry

By barb schmitz | Published: April 28, 2011

While many countries are grappling with high unemployment numbers, tech companies in Silicon Valley and other high-tech regions are waging wars with each other, fighting over talent. Prospects are being lured away from jobs, being offered perks such as iPads, stock options, and the opportunity to bring their dogs to work. The shortage of qualified engineers has grown significantly in the past six months, according to tech execs and recruiters, as venture capitalists begins pumping money back into market. In tech hubs such as Silicon Valley, Austin, New York, and Seattle, start-ups are once again booming and now in competition for the same pool of talent as more established companies.

In the U.S., hiring demands for all types of engineering jobs are on the rise again, 68% higher than at the recessionary low point, according to Wanted Analytics, a provider of business intelligence to the recruitment industry. The current demand is highest in manufacturing, driven primarily by the heavy-truck manufacturing, semiconductor, pharmaceutical, medical device, and aircraft manufacturing sectors. In Detroit, over 2,217 engineering jobs have been posted in the last 60 days.

Global Demand Increases

It’s not just the U.S. that’s suffering from a critical shortage of engineers. Many countries are experiencing a decline in the number of young people, especially women, studying engineering, and it’s causing great concerns for economies hoping to recover from global recession.

In the U.K, several industries are struggling with a shortage of engineering talent, including the aerospace, manufacturing and power generation industries. “Businesses cannot grow because of a shortage of trained workers,” says Vince Cable, British Business Secretary. “The pool of unemployed graduates is growing while there is a chronic shortage of science graduates and especially engineers.”

For centuries, Germany led the world in technological prowess. Today, however, young Germans have turned away from engineering. Ten years ago, there were twice as many engineering students at universities in Germany than today, according to the German Association of Engineers. According to the German Institute of Economic, there is a current need for 117,000 engineers, scientists, IT experts and technicians, causing grave concerns for German companies hoping to take advantage of the economic recovery.

Alarmed at what this shortage could mean in terms of global business initiatives, the country as now launched a nationwide publicity campaign encouraging young students to consider careers in engineers. “The lack of engineers is Germany’s number-one hindrance to innovation,” says Markus Roeser of Do Things, a coalition of 80 businesses, universities, and research institutes created to fill the engineering gap. “At stake is to keep Germany’s creative potential.”

Why Women are Still the Minority in Engineering

Many countries have undertaken similar campaigns to encourage women to study engineering. Over the period of 1980 to 1990, the proportion of women entering engineering careers ranged from anywhere from 10 to 20%. By 2000, however, that proportion was declining, and today the percentage of engineers who are female is less than 10%.

A recent study conducted by the University of Wisconsin-Milwaukee found that women were more likely to quit engineering jobs because of uncomfortable working environments than for family reasons. Nearly half of the women surveyed sited working conditions and issues such as a lack of career advancement and low salary as reasons behind leaving engineering jobs. One-third of the women surveyed who did not enter engineering after graduation did so because of their perceptions of the field being inflexible or the workplace culture as being non-supportive of women.

Recalling Retired Engineers

With a smaller number of engineering students at universities globally, some organizations and governments are reaching out to retirees for help. In South Africa, a recent Department of Public Works’ campaign is attempting to recall retired qualified construction engineers to help with skills training.

“This is a necessary move that could not have come sooner. It demonstrates a pragmatic and sensible approach on the part of our government to address the current skills shortage in engineering,” says Tess Marshall, managing director of engineering recruitment at Network Recruitment. “Our research revealed that the average age of professionals in the industry today was 50-55 years and though the new generation was qualified, it wasn’t necessarily experienced.”