JUNE 2007

Sponsored by:
June 2007

Conducted by:
1

Summary

Methodology An email survey was sent to Design News magazine subscribers. The study was fielded during the month of May. Results of the survey were tabulated by Research Results, an independent research firm. Results are based on 1,225 usable replies. At a 95% confidence level, results are accurate with a margin of +/ - 2.8% Demographics • • • • • • Average age is 46. Average number of years as an engineer: 18; years in current job: 6.5. 95% have college degrees, with 46% having a Bachelor’s in Engineering and 19% having a Master’s. Of those with degrees in engineering, 40% have degrees in mechanical engineering; 27% in electrical engineering. 75% have some degree of supervisory responsibility, with 53% having budgetary responsibility. Respondents work in a large variety of industries, with automotive, aerospace, and medical among the top fields.

Compensation • • • Average annual salary is $78,000. Nearly a quarter of salaries over the past 12 months are above $100,000. Most salary increases were between 2% and 4%, with an average of 3%.

June 2007

2

Summary (continued)

Job Responsibilities • • Respondents supervise an average of three people. Project management, computer, and communication skills are viewed as the most important skills for career advancement.

Job satisfaction • • • 80% are satisfied with their careers; 73% are satisfied with their current jobs. 63% would recommend an engineering career to their children or friends. Over half feel their role as an engineer is respected and appreciated and that overall engineering is a respected profession. Nearly half feel they are fully using their engineering skills. Salary, feeling of accomplishment, and technical challenges are the top reasons for job satisfaction. Meeting deadlines, management issues, staying current with technology, and increased workload are the most difficult challenges in engineers’ current jobs.

• •

Outlook and Industry Trends • Over the next five years, respondents anticipate a more diversified workload, more outsourcing, and more emphasis on design work. 78% of companies are outsourcing, with an average of 9% of a company’s design work being outsourced.

June 2007

3

$3 0, 00 0
12% 16% 20%

June 2007
-$
0% 4% 8%

$4 0, 00 0 9

39 ,9 9

2%

-$ 49 ,9 9 9

$5 0, 00 0

6%

-$ 59 ,9 9 9

$6 0, 00

10%

0 -$ 69 ,9 9 9

$7 0, 00

15%

0 -$ 79 ,9 9 9

$8 0, 00

18%

0 -$ 89 ,9 9 9

$9 0, 00

14%

$1 00 ,0 00 -$ 10 9, 99 9 9 99 ,9 9

0 -$

11%

$1 10 ,0 00

9%

$1 20 ,0 00 9, 99 9

-$ 19

4%

$1 30 ,0 00 -$ 14 9, 99 9 ,0 00 -$ 25 0, 00 0 9, 99 9

-$ 12

What is your annual base salary?

5%

Average = $78,000

$1 50

3% 2%

4

In the past year, how did your salary level change?

50%

44%
Average = 3%

40%

30%

20% 13%

14%

14%

10%

4%

3%

4% 1% 2%

0%
Less than 2 to 4% 2% increase increase 4 to 6% 6 to 8% increase increase 8 to 10% increase 10 to over 20% No 20% increase increase increase Pay cut

June 2007

5

For how long have you been an engineer?

50%
Average = 18 years

41%

40%

30%

19% 20% 15% 15%

10% 3% 0% Less than 2 years

7%

2 to 5 years

6 to 10 years

11 to 15 years

16 to 20 years

More than 20 years

June 2007

6

In general, how satisfied are you with your engineering career?

Satisfied 58%

Dissatisfied 21% Very satisfied 22%

June 2007

7

Do you have supervisory and/or budget responsibility?

Supervisory, 22%

Both, 30%

Budgetary, 23%

Neither: 25%

June 2007

8

If you are supervising people, how has this changed during the past 2 years?

Less, 21%

More, 34%

Same, 45%

June 2007

9

What is the number of employees that you are supervising?

Today Fewer than 5 5–9 10 – 19 20 – 49 50 – 99 100 – 149 Average 60% 21% 10% 7% 1% 1% 3

2 years ago 64% 20% 8% 6% 2% 0% 3

June 2007

10

How many years have you worked in your present job?

40% 35% 30% 23% 25% 20% 15% 10% 5% 0% Less than 3 years 3 to 5 years 5 to 10 years More than 10 years 16% 31%
Average = 6.5 years

30%

June 2007

11

Has your company laid off engineers in the past 12 months?

No, 68%

Yes, 32%

June 2007

12

Have you personally been affected by layoffs in the past 12 months?
(among those whose companies have laid off engineers in the past 12 months)

Yes, 19%

No, 81%

June 2007

13

What skills do engineers need to get ahead in their profession today?

% of respondents

Project management skills Computer skills Communication/ presentation skills Team-building skills Language skills Marketing/ sales skills Finance/ accounting skills Other

89% 88% 88% 71% 45% 37% 36% 11%

June 2007

14

In an average week, how many hours do you work?

38% 40% 32% 30%

Average = 46 hours

20%

16%

10% 1% 0% Under 40 40 - 44 45 - 49 50 - 54

7% 4% 1% 1%

55 - 59

60 - 64

65 - 69

70 or more

June 2007

15

How has the number of hours you work each week changed over the past year?

Same number of hours, 59%

More hours, 30%

Fewer hours, 12%

June 2007

16

What factors have the greatest impact on your satisfaction with your current job?
% of respondents Salary Feeling of accomplishment Technical challenge Relationship with colleagues Advancement opportunities Benefits Job Security Feeling of recognition Location Relationship with boss Company's financial health Workload Leading a team Company size Physical or ergonomic environment at work (positive or negative) Travel Relationship with subordinates Managing people Other 45% 41% 40% 21% 20% 20% 20% 18% 15% 15% 10% 9% 4% 4% 4% 4% 2% 2% 3%

June 2007

17

How much of your company’s design work is outsourced?

30% 25% 25% 22%

Average = 9%

20%

17%

15% 9% 10% 4% 5% 4% 7%

0% None 1 - 10% 11 - 20% 21 - 30% 31 - 40% 41 - 50% More than 50%

June 2007

18

What specific design work is your company outsourcing?

% of respondents

Mechanical design CAD Board-level design Test & measurement Circuit design Systems design Applications engineering Other (structural, optomechanical, packaging)

37% 29% 26% 23% 22% 21% 17% 18%

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19

What is the most difficult challenge you face in your current job? (unaided)
% of respondents Meeting deadlines/time management Poor/ incompetent management Staying current with technology Increased workload Limited resources/workforce Staying motivated/interested in my job Multi-tasking Outsourcing portions of the company Limited budget to complete projects/getting funding for new projects Developing new products Dealing with demanding clients Low salary/small pay increases Corporate politics/bureaucracy Job security Dealing with co-workers Lack of advancement opportunities Lack of recognition from management 14% 13% 9% 9% 7% 6% 5% 5% 4% 3% 3% 3% 3% 3% 3% 3% 3%

responses 3% and over are shown; see data tables for all other responses

June 2007

20

How satisfied are you with your current position?

Very satisfied, 17%

Dissatisfied, 27%

Satisfied, 56%

June 2007

21

How actively are you seeking another job?

% of respondents

I'm always open to better opportunities Passively I'm happy where I am Actively

41% 24% 23% 13%

June 2007

22

Would you recommend this field to your son or daughter, or to a friend?

Yes, 63%

No, 37%

June 2007

23

I feel that I am appreciated and respected in my role as an engineer

50% 44%

40%

30%

24% 18%

20% 9% 10% 5%

0% Strongly agree Agree Neutral Disagree Strongly disagree

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I feel that I am fully using my engineering skills

40%

31% 29% 30% 25%

20%

9% 10% 7%

0% Strongly agree Agree Neutral Disagree Strongly disagree

June 2007

25

I feel that I am Underpaid and Overworked

40%

36% 30%

30%

18% 20% 14%

10% 2%

0% Strongly agree Agree Neutral Disagree Strongly disagree

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I feel that Engineering Work is Too Often Outsourced to China and/or Other Countries

40% 33% 30% 30%

20%

17% 15%

10% 5%

0% Strongly agree Agree Neutral Disagree Strongly disagree

June 2007

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Summary of Agreement Statements

% agreeing

Underpaid and overworked Appreciated and respected Too often outsourced to China and/or other countries Fully using engineering skills

54% 53% 45% 38%

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Educational Background

% of respondents

Bachelors degree in engineering Masters degree in engineering Two-year Associates degree in technical field Masters in business administration Bachelors in non-engineering field Advanced degree in non-engineering field Ph.D. in engineering Current student No college degree Other

46% 19% 10% 7% 5% 3% 2% 1% 5% 1%

June 2007

29

What is your degree in, specifically? (unaided)

% of respondents

Mechanical Engineering Electrical Engineering Business/ Management Electronics Computer Engineering/ Computer Science Industrial Engineering/ Industrial Technology Chemical Engineering Physics Manufacturing Mathematics Drafting

40% 27% 6% 6% 5% 4% 3% 2% 2% 2% 2%

responses 2% and over are shown; see data tables for all other responses

June 2007

30

What is your primary engineering discipline?

% of respondents

Mechanical engineering Electrical/electronics engineering/Electromechanical engineering Manufacturing engineering Controls engineering Software engineering Materials engineering Other

40% 30%

11% 5% 4% 2% 7%

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31

Are you working on more, the same, or fewer disciplines now than 12 months ago?

Fewer, 6% Same, 49% More, 44%

June 2007

32

What is your company’s major product line?

% of respondents

Automotive Aerospace Medical Defense Systems Communication Systems Industrial Controls Semiconductors Consumer Electronics Computers/Peripherals Instruments/Test equipment Contract Manufacturing Machine Tools Electronic Components Other (biotechnology, rail, resins)

12% 9% 9% 6% 6% 5% 4% 4% 4% 3% 3% 3% 2% 30%

June 2007

33

How many people does your company employ?

49% 50%
Average = 948

40%

30% 19% 20%

23%

9% 10%

0% Fewer than 100 101 to 500 501 to 999 1,000 or more

June 2007

34

In which region do you work?
Average salaries for each region are shown

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35

What is your age group?

40% 31% 30%

36%

Average = 46

18% 20% 12%

10% 2% 0% 18 - 25 26 - 34 35 - 44 45 - 54 55 - 64 65+ 2%

June 2007

36

Looking ahead over the next five years, where do you see the role of the engineer going?
(unaided)

% of respondents

Outsourcing engineering to other countries especially China, India Take on role as manager/project manager Serving as support/management for outsourced engineering Required to be more diversified/able to work in all areas of engineering More emphasis on design/more new products Engineering is declining Reduced to only high tech engineering/requires specialization in engineering Taking on non-engineering/administrative responsibilities Increased demand for computer/software engineering Less design/ more emphasis on integration Engineering becoming more important/growing More involved in sales/marketing Longer hours/heavy workload Will require more creativity/innovation Increased emphasis on system engineering Lower salaries Receive less respect

24% 15% 10% 7% 6% 6% 5% 5% 4% 3% 3% 3% 3% 3% 3% 3% 3%

responses 3% and over are shown; see data tables for all other responses.

June 2007

37

How important is being creative and innovative in your role as a design engineer?

Very Important

65%

Somewhat important

19%

Important

11%

Not very important

5%

Not at all important 0%

1%

20%

40%

60%

June 2007

38

Do your current design projects require you to be more creative and innovative than a year ago?

No, 50%

Yes, 50%

June 2007

39

Why are your current design projects requiring you to be more creative and innovative than a year ago?
(unaided; respondents saying yes)

% of respondents

Cost considerations/budget restrictions To stay ahead of the competition New technologies Designs becoming more complicated Demand for new products/new applications Innovation/ creativity sells products Faster to market/less time allocated to complete projects Everything needs to be better/quality requirements Making products smaller Customer demands Products require more features Do more with less attitude Change in responsibilities Have new and better ways to design Always new problems to solve Changes in the market

21% 15% 10% 9% 8% 8% 6% 5% 5% 5% 4% 3% 3% 3% 3% 3%

responses 3% and over are shown; see data tables for all other responses.

June 2007

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