Industry Update – AOE Conference October, 2012

Joe Lampinen, LEED AP

Director, Engineering Services

Introducing Kelly®

• Kelly® has been recruiting engineers for industrial clients since 1965 – 2012 is our 47th year in the engineering employment market

• 4th largest supplier of contract/project engineers in North America – Over $350M annual revenue in engineering services

• One of the largest employers of engineers in the USA – Over 7,500 engineering employees on project engagements any given week

• Large practices in product development, manufacturing, quality and plant/facilities engineering

• Serving aerospace, automotive, chemicals, consumer products, electronics, food & beverage, medical device, pharmaceuticals and oil & gas segments, among others

Issues in Industry

• Lean Six Sigma

• Project Management

• Sustainability

• Quality Engineering

• Reshoring

• Automation

Engineering in the USA

• Regarding the “Big 4” engineering disciplines in the USA – Civil

– Electrical

– Industrial

– Mechanical

• 812,848 total in the workforce

• 56% of these engineers have B.S., 26% have M.S./M.Eng.

• Median compensation in the range $70K to $80K

• This data not inclusive of – Chemical Engineers, Petroleum Engineers, Nuclear Engineers, Safety Engineers,

Environmental Engineers, Materials Engineers or other specialists

Engineering in the USA

• Demand for engineers

– 978,664 jobs posted over past 24 months – Positive monthly trend (from 35k/mo to 50k/mo)

• Demand variables – Discipline – Function – Industry – Geography – Other factors

• In many geographies, functions/industries, demand exceeds supply (negative unemployment)

• “Skills mismatch”

Engineering Demand by Industry

• Engineering Services – 43,900

• Power Generation – 13,675

• Aerospace – 12,102

• Medical Device – 9,765

• Pharmaceuticals – 9,207

• Semi-conductors and Processors – 8,374

• Automotive – 7,628

Civil Engineers

• 207,879 total civil engineers in workforce

• 101,909 job postings over past 24 months – Monthly postings have doubled from 3,000 to 6,000

• Most active employers are engineering services companies – URS, Bechtel, AECOM, CH2MHill, HNTB, Parsons, Jacobs

• Median compensation $72,000/yr

Electrical Engineers

• 152,020 total electrical engineers in workforce

• 169,483 job postings over past 24 months – Positive monthly trend, growing from 6,000/mo to 8,000/mo

• Most active employers during this period – GE, LockheedMartin, URS, Bechtel, SAIC, Eaton, CH2MHill

• Median compensation $75,000/yr

Industrial Engineers

• 217,062 total industrial engineers in workforce

• 470,168 job postings over past 24 months – Positive monthly trend from 15,000/mo to 25,000/mo

• Most active employers during this period – GE, LockheedMartin, Honeywell, Boeing, Bechtel, GM, 3M, Medtronic

• Median compensation $76,500/yr

Mechanical Engineers

• 235,887 total mechanical engineers in workforce

• 237,104 job postings over the past 24 months – Positive trend during the period from 8,000/mo to 12,000/mo

• Most active employers during the period – GE, Navistar, LockheedMartin, Bechtel, Siemens, Honeywell, URS,

Cummins

• Median compensation $74,000/yr

Questions/Discussion