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Engineering Close to Home
November 22, 2005
In my November Editor's Note, I contended that the US needs a significant technology investment to make American engineers worth up to 11 times more than their counterparts in emerging economies. Many readers responded, essentially, that a comparison between different countries' engineers is an apples and oranges comparison, with abilities and responsibilities differing significantly.
At least one test-and-measurement company in the developed world is acting as if it agrees. In conjunction with the dedication of a new R&D facility at the Rohde & Schwarz Munich headquarters, president and CEO Friedrich Schwarz cited the company's aggressive efforts to recruit homegrown engineers. He expressed satisfaction with the quality and quantity of graduating German engineering students, and he is hiring them at a rate that indicates he doesn't find the salaries they demand excessive. Schwarz also commented that, in contrast to many companies' approaches, the company keeps its manufacturing close to home.
The R&S approach seems to be successful, as the company has reported consistent year-on-year double-digit growth. But the 72-year-old family-owned private company can afford to be patient. Publicly traded companies fixated on quarterly results will continue to be mesmerized by the immediate savings they can apparently realize through outsourcing. The R&S experience might be the exception that proves the rule. Engineers in developed economies can expect to face significant effort in justifying substantial salary premiums.
Consider Delphi, the bankrupt US auto-parts supplier, which is planning to cut factory workers' pay and benefits packages up to 70%. To avoid a similar fate, US engineers will face significant pressure to demonstrate superior creativity and productivity--so I renew my call for the significant technology investment recommended by the
National Academies.
Posted by Rick Nelson on November 22, 2005 | Comments (0)
