Weathering the storm

The economic slump has damaged many a high-tech company and made jobs harder to find, but engineers by and large remain optimistic about their career paths.

That's one of the chief findings of a new survey of T&MW readers. Nearly 90% of respondents indicated that they were "satisfied" or "very satisfied" with their engineering careers.

Still, while content with their own situation, a sampling of survey respondents interviewed by our magazine predicted a slow recovery from the troubles that have plagued electronics manufacturers. "It's still going to be tough," noted an engineer with Eurologic (Boxborough, MA). "I don't think the opportunities will fully recover for another five to eight years."

Like many Americans, test engineers in the past year have had to cope with job worries and meager pay raises—or no raises at all—as a result of sagging sales and overall low inflation. About 11% of survey respondents reported raises of less than 2%, while 30% got hikes between 2 and 4% (Table 1). Nearly a quarter of those who replied to our survey received no increase at all, while 9.1% took a pay cut. Just 12% enjoyed raises of 6% or more.

Overall, the survey revealed an average base salary of $68,900 (Table 2) and an average of 12.9 years in the engineering field. Those with management and budget authority earned an average base of $75,400, while those with MBA degrees made an average base of $77,400.

Among industry sectors, semiconductors paid the most, with an average of $79,400, followed by medical ($74,800), aerospace ($73,700), defense ($72,900), and communications ($71,300). Those working in contract manufacturing earned the least—an average of $59,700.

Salary also relates to company size: Firms with 1000 or more employees paid test engineers an average of $73,500, while companies with fewer than 100 employees showed average salaries of just $60,800. Among regions, California and the Southwest were tops, with engineers earning an average of $77,000 (Table 3). On the flip side, engineers in the Pacific Northwest reported the lowest average salary—$58,900.

With employment among electrical engineers rising to an unprecedented 7% in the first quarter of 2003, according to the Department of Labor, it is not surprising that most engineers are reluctant to change jobs. The T&MW survey found that less than 15% of respondents changed jobs in the last year, and where job changes took place, it was not the engineer's choice in nearly 60% of the cases. More than 55% of respondents said that their companies had laid off engineers in the past year.

"I don't see it getting any better," said a Honeywell engineer who participated in the survey. "We're busy, but the sales aren't there like they used to be."

The situation has caught the attention of professional societies, such as the Institute for Electrical and Electronics Engineers (IEEE), which is calling for lower government ceilings on the number of foreign technical professionals permitted to work in this country on temporary visas. Said IEEE-USA President-elect John Steadman: "While we realize the sluggish economy is responsible for much of the unemployment, we can't discount the role played by the continuing influx of foreign workers on temporary visas, and the dramatic increase in offshore outsourcing."

New college graduates also will need to hustle for work this year—particularly in the manufacturing sector, where employers say they will hire 6% fewer graduates this year than in 2002, according to a new study by the National Association of Colleges and Employers. Similarly, a 2003 survey by Duke University's Fuqua School of Management of graduating MBA students found that 40% had not found jobs, versus only 16% in a similar study conducted in the year 2000.

What skills does it take to get ahead in this tough job climate? For test engineers, our survey found that computer skills ranked number one, followed by communications/presentation skills, and project management know-how (Table 4). Joe Mangini, a lab supervisor for Winchester Electronics (Wallingford, CT), emphasized that computer skills are crucial, as is the willingness to be open-minded and flexible about technical skills to meet the needs of employers.

The ability to stay on top of the job remains crucial. "Technology changes too fast," said one engineer who writes software for automated test equipment. "You have to have the desire to constantly learn about new technology." His view was echoed again and again by many engineers in the survey.

Peter Romano, a test engineering supervisor for contract manufacturer Sanmina (San Jose, CA), cited the need for engineers to move fast in today's engineering environment: "We take on new customers with very short notice and have to develop test solutions in a very short time."

Among other dominant views that surfaced when survey recipients were asked about their "most difficult challenges" on the job:

• Budget constraints: "Doing more faster, with less money and staff." "Company refuses to pay for new test equipment." "Balancing priorities and efficient utilization of resources." "Maintaining quality as the budget crunch gets tighter."
• Personal concerns: "No raise in three years." "Improve morale of direct reports." "Managing change in a fast-growing company." "Not knowing if your company will be bought by a competitor." "Not getting laid off."
• Customer relations: "Dealing with irate customers." "Ever-changing customer needs." "Keeping the customer happy."
• Red tape: "Convincing VPs to keep up with the times." "Everything is a committee." "Influencing management to invest in employees and technology." "Management out of touch with reality."

Amid the frustrations, however, the engineers responding to the survey were clear about one thing: It's the technology itself that they like most about their jobs (Table 5). For example, Mark Haggman, a senior engineer with BSD Medical Corp. (Salt Lake City, UT) is part of a team that develops new systems for harnessing microwave energy to treat cancer patients. Not only does the work give him the opportunity to examine new technologies in great detail, but "I also like the fact that what we do saves lives."

Clearly, the T&MW survey reveals a high degree of frustration over such issues as pay, advancement, and the commitment of companies to new technology. What's more, there's the realization that electrical and electronic engineering today does not present the fast-growing opportunities it did a generation ago. Indeed, the Department of Labor estimates that job openings in the field will expand about as fast as the average for all occupations through 2010, with the biggest opportunities in communications equipment, defense, consumer electronics, and engineering services (Ref. 1).

Even so, most engineers participating in the T&MW survey still see their profession as satisfying. Would they recommend engineering to a youngster in high school? "Yes," said one Honeywell engineer. "I have been in this field for 25 years, and there are always ups and downs. I think everything is going to turn around."

Editor's Note: You can access the complete results of the 2003 T&MW career and salary report at www.tmworld.com/careers .