U.S. Engineers Face Stiff Competition from Outsourcing

Julie Shenkman
Posted by in Technology


Engineering may be an endangered profession for Western engineers. Many electronic companies, OEMs, chip vendors, design houses and contract manufacturers, in fact, all of the major electronic and telecom equipment vendors, have been planning deep cost-reduction measures. Skill sets and talents in overseas firms are catching up to their stateside counterparts. Outsourcing has been accelerating in the fields of IT software and services, data conversion, 2D and 3D CAD/CAM/CAE, advanced simulation, prototyping, testing, PLM, product design, and process engineering. For some U.S.-based firms, this means layoffs and not filling job vacancies. Most hiring these days is taking place in lower cost Eastern Europe and parts of Asia-Pacific. The sobering truth is that most electronic companies today compete on pricing. Consumers and corporate users of IT products expect an excellent product at hugely discounted pricing. Manufacturers are not only forced to reduce costs, but must spice up products with more features and functions while adding extra services. This accelerating trend has been underscored by rapid manufacturing outsourcing and shifts in production to lower-cost overseas facilities. While these competitive conditions aren't forcing engineers to leave the profession, many see these emerging threats as reason enough to dissuade their children from pursuing engineering careers. Some are suggesting that aspiring engineers should consider studying Mandarin or another Asian language in case lucrative job offers begin streaming in from, say, Shanghai. For an additional perspective, check out this video. Alex A. Kecskes has written hundreds of published articles on health/fitness, "green" issues, TV/film entertainment, restaurant reviews and many other topics. As a former Andy/Belding/One Show ad agency copywriter, he also writes web content, ads, brochures, sales letters, mailers and scripts for national B2B and B2C clients.
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  • Roxie
    Roxie
    Great post!
  • Destry
    Destry
    Great post!
  • Leatrix
    Leatrix
    I'm impressed!
  • James P.
    James P.
    Engineering outsourcing is nothing new. I first noticed it in the 1970's. Before that, I noticed the egress of manufacturing in the 1960's. Why?  You need to look no further than the US Tax code.
  • innocent joachim
    innocent joachim
    I like the job.

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