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April 2, 2009

Does the U.S. Have Enough Engineers To Reach its Renewable Energy Goals?

I've heard some people say that there aren't enough engineers graduating from accredited programs in the United States these days and I'm wondering if that will impact this country's renewable energy goals. First, can you tell me if that is true and if it is, what should we do about it? -- Marvin E., Washington, DC.

Marvin, that's a good question. In fact, I have been getting a lot of calls from recruiters in the marine field looking for people recently (which is surprising, given the economy), and I have heard about of a bunch more engineering openings in a lot of other industries.

Overall throughout this country, there seems to be a shortfall of about 75,000 engineers, even in the current economic conditions, and even before all of the new activities in renewable energy that are supposed to start soon. This is approximately a year's graduating class for the whole country. I can't even begin to tell you how hard it is to find traditional electrical (vice electronic) engineers, and these engineers are key to any activity involving generating or transmitting electrical power.

The problem is that there has been a steady decrease in people even going into sciences and engineering to begin with, and then either dropping out, changing majors or changing fields once they graduate. My own friends and classmates in engineering now include ship brokers, lawyers, real estate agents, a senior exec in a fast food chain, even a chef and a farmer.

This is a real problem for any part of the economic recovery and especially for renewable energy, since as a rule of thumb, at least 5% of the cost of most new construction or manufacturing projects is engineering. This means that out of $1 billion of stimulus money approximately $50 million of that will be in engineering costs. With an average billing rate of about $75/hr, this is 666,666 manhours, or more than 333 engineers. The size of the stimulus package suggests that there is probably a need for an additional 60,000 or more engineers, beyond the current shortfall, and many of the shortfall will be in renewable energy fields, which will require even more complicated engineering than some of the basics, like building roads.

There is a lot of discussion about why there is a decline in people entering engineering and science, with a lot of arguments about declining educational standards or better opportunities in other fields, but the reality is that it is a problem.

And even when one becomes an engineer, there are retention problems in the field. There are a lot of exit strategies — for example, you can take the patent bar exam if you have a degree in engineering or science, without going to law school — and both of the patent attorneys I know are former chemical engineers. This means that every time a specific field slumps, a portion of the trained experts are lost for good.

I don't have a clue what to do in the short term, especially if the economy gets better enough that all of the engineers who have been holding off retirement because their 401Ks tanked actually retire.

But my favorite solution, in the long term, takes a page from my own career. I've worked with or for a lot of India Institute of Technology (IIT) grads. IIT was set up by Nehru to ensure that India had the technical people it needed for its future, though of course it has done a lot for the U.S. as well. IIT used to be very inexpensive, even by Indian standards, so IIT graduated a lot of engineers, economists and others over the years. Likewise, a lot of people I've worked with got a free engineering education from the Coast Guard Academy, the Naval Academy or the Merchant Marine Academy (including my father). Webb Institute of Naval Architecture is also tuition free, though privately supported. Perhaps a free federal institute of technology system might address this problem in the long term. And it might also be a source of research efforts.

For me, I've always looked at an engineering career as sort of like veterinary medicine — though it's as difficult as other fields you are capable of, and you earn a lot less, it's something you do for reasons other than money. However, this makes it hard to convince a lot of young people to go into engineering or to stay in.

The opinions expressed in this article are those of the author and do not necessarily reflect official policy of the Coast Guard or the Department of Homeland Security.

Reader Comments (14)
 
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April 2, 2009
Dear Mr Chris Barry:

I agree with you. I graduated from IIT Madras MS Ocean Engineering in 1982. I moved to North America in 1986. Now, I have three children. One of them have completed BS from IIT Chicago and MS from Univ. of Illinois. The BS alone cost $100,000.00 USD. It is yet to be paid by the student. US education is very expensive. Common people drop their college education because it is too expensive. The education standard is also not focused well. In the name of freedom, the education is scattered. For example to graduate Nursing or Law, one need to be good in mathematics and calculus. Secondly, there are many schools are small funded by state. The
faculties teach there are very old. No retirement age for them. The standard of education is lowered by these exceptional old and sick teachers.

The method of teaching is not innovative. Very restrictive with the text book and pafe to page and same assignment procedures year after year.

Practical method of teaching is to be implemented.

For sure the education should be kept away from business by the USA Govt. Why universities cost that much. There are very piratical tactics that the universities in USA follow. They attract the student with false information ad scholarship and funds. When the student grads decline in the first year, they withdraw all the funds and the student to get back the funds will be by the end their program.

USA govt should keep age limit for the professors to work in the universities. They should allow more young graduates with motivation and give them appropriate opportunities.

I know a university where the dean is 90 years old and he worked for 50 years services in the same department. What good it is for him and for the school that would improve the quality there.

Today, students are looking into value education. After computer infected world, the real science and engineering studies faded.
Comment 1 of 14
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April 2, 2009
Dear Mr Barry:

I am working on renewable energy from Houston, Texas. I have 25 years experiences from oil and gas deepwater and floating technology for harsh environment. I am publishing a paper on New OTEC system for 100mW power output. I am bringing all the latest technologies from oil and gas into OTEC. I have done ground work on the cost of my new OTEC proposal for 100mW. Amazingly, it cost only $265 million USD for 100mW power output from a floating vessel with all modern technology in built to make it cost effective.

Now my problem is how to build this industry for application and how to do this business.

Also, I have problem getting engineering support for this project.

The current USA Govt talks so much about renewable energy. However, there are no real help when some one has excellent concept and want to demonstrate and market that.

The reality is very difficult.

In Norway, this is feasible and the Govt helps lot the locals to develop innovations and apply and do business. Thus the economy flourish.
Comment 2 of 14
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April 3, 2009
It is incorrect to claim a "Shortage" of Engineers. When degreed Engineers work in other fields it is for higher pay and benefits. Consequently shifting to other fields is just an economic issue of low pay and benefits. The free market still works in the normal supply/demand fashion.
Obviously then, just pay more money to attract more quantity of Engineers. This is the standard economic response of markets. Nothing shows us that the market is not working, so, we are guaranteed that no shortage exists. Actually in fact, I claim many Engineers are underemployed or unemployed, or retire early(and can choose to unretire) so a surplus of excellent engineers is available that is far greater than the claimed shortage.
The false claim of a "shortage" has been used many times in the past to support actions to bring in low paid labor to depress wages further, maintaining the "low wage false shortage" condition.
Comment 3 of 14
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April 3, 2009
Dear Mr. Barry,
It's appreciated that you identify the US's lack of Engineers. Personal experience has shown me that this statement should have read we have a lack of "YOUNG" Engineers. I have >25 years in Research and Development of multiple Green/Renewable/Alternative areas, achieving major successes, however have been told by companies they want someone in their mid 30's, rather than exploit the massive knowledge a young 50 year old can offer while training a younger person. It's very sad that other countries respect age and lifelong knowledge and that I may need to work outside the USA again if unable to locate new employment here. randymayley@yahoo.com.
Comment 4 of 14
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April 3, 2009
The shortage is an issue, but Jerry hit the nail on the head. Follow the money. I graduated in 1989 from an accredited University with a BSEE (Power Concentration). The perfect background for moving into RE. I spent 5 years at Siemens working in the Power Industry, but all my college buddies were making twice the money working in high tech (telecomm to be specific). So after 5 years in the power industry I moved into Telecommunication.
I would love to work in RE, but every opportunity I come across would require that I take a cut in pay.
Another important point to make is that the RE industry, though new, is sold/distributed/installed by a very mature industry. RE projects get installed through existing installation channels (electrical/mechanical/civil contractors) and designed using existing Engineering firms. Those companies are already there and just upgrading their skills to take advantage of the coming opportunity. All-in-all, it's new technology coming into a very mature industry.
Bottomline, the salary levels are already set and someone entering this field in their 20's can look 2 cubicles over and see what they'll be making in 30 years. Over a long career you will just barely double the salary you were making when you started your job. In Telecom I doubled my salary immediately upon entering the field and I've doubled it again since being in the industry (1/2 way through my career). Margins are just way higher in other industries. Consulting firms and Contractors do not make any products. Their services and margins are pretty much set by industry standards.

db
Comment 5 of 14
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April 3, 2009
There is one thing to talk about the shortage and another with regards to job opportunities. My son graduated with a BS in Civil Engineering in December, '08, and he is still looking for a position for a new graduate. Where are all of these jobs you are talking about? They are typically looking for experience and in a specific area. If somebody has an opening out there for a new graduate, I would like to know.
Comment 6 of 14
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April 3, 2009
Yes - where are those jobs?

I graduated from Oakland University with a BSEE specializing in Power Conversion in 1976, and even won awards as an undergrad for a wind-energy project with a pure sine-wave output syncronizable to the AC line (nothing today but quite a feat then!). After working for a fortune 500 company until 1981, I started my own consulting business and generated over 200 products and more than two dozen patents for my customers over nearly 3 decades.

If anyone out there has a RE or other engineering project and think that $25/hour (I charged $175/hr. in the 90's) is not too exorbidant for a 55 year old power conversion engineer who is at the top of his field (that no longer seems to exsist) PLEASE DROP ME A LINE!
davidpacholok@sbcglobal.net
PS: I am an LLC so no witholding or other "employee expenses" exsist!
Comment 7 of 14
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April 3, 2009
Over my 30 years working in engineering, in every technical sector in which I participate, I've watched the trade media oscillate back and forth every few years between "not enough engineers!" and "engineering jobs leaving for overseas!". There is always a grain of truth in the excited pronouncements - but I agree with those commenters above, that these things tend to take care of themselves over time by that funny little mechanism called known as compensation.

I would add one other factor. I've added 8 years of solar design/installation experience to my engineering background, so I get frequent inquiries from RE employers. I would say that about 80% of the opportunities are either in California, New York, or New Jersey. Cost of living issues cause me to quickly decline every time, unless I can work remotely.

Simply increasing salaries offered to compensate isn't sufficient - there is always risk that things won't work out and employment will be lost. Taking on the potential risk of getting ourselves stuck in a high cost of living state without work is not something we're willing to do. The RE industry needs to seriously branch out to areas decimated by old industries going under, where cost of living is much lower, quality of life is still good, and many good technical people are looking for work. I see some encouraging trends in this regard, but the industry needs to move in this direction, in a big way.

Why is our government still spending trillions bailing out failed automanufacturers and zombie banks, when that money would be 100x better spent (if government insists on being involved, as it does) on helping healthy companies set up shop where new jobs are needed? I'm still looking for some real hope and change here, but not seeing any, sorry.
Comment 8 of 14
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April 3, 2009
I agree. Not only are we short on qualified engineers, but also architects.

My article: http://www.greenenergycafe.com/index.php/industry-development/106-the-engineering-gap

The interesting bit I've run into in speaking with Engineering educators is that appear to be of the mind that Mechanical Engineers without specific solar or wind training are up to the task.

I don't agree, but then again, I'm not an ME or PE.
Comment 9 of 14
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April 3, 2009
I would totally disagree with your analysis. My own experience as a 49 year old with an Honours in Mech. Eng. is that it is extremely hard to get a job as an engineer when you have been out of the field for several years. I worked for 20+ years in oilfield exploration and have not worked as an engineer since 2004. The last 2 years I have tried to get work again as an engineer with no success. I am fed up hearing there is a shortage of engineers!!!!!!
Comment 10 of 14
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April 4, 2009
As a culture,we need to get away from this obsession with the financial viability of a chosen career and choose a career that dare I say it actually provides the job satisfaction of knowing your job is contributing to a healthier society and environment.Hopefully the latest economic collapse will attract society back to real jobs with real long term benefits for the planet earth.Remember why you became renewable engineers in the first place and nurture your global consciences.
Comment 11 of 14
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April 6, 2009
It's interesting to see all the comments this article generated. I work in the energy engineering recruitment field and I tend to agree with the writer and most of the commentors.

There is a shortage of well qualified engineers with power utility experience in the 10-20 year experience range. The challenge that utilities and energy companies are facing is most want experience in that range and there aren't enough people out there with the experience. Hiring managers are unwilling to consider engineers who have left the field and now want back in. The mindset is "if you liked it why did you leave in the first place". Another constant complaint from managers is that young engineers all want to manage and no one wants to be an engineer. They feel that their stewards are not willing to "pay their dues" and are only interested in money.

There is published statistical data that suggests that beginning in 2012 fifty percent of utility engineers will begin to retire. In addition to retirement there is the challenge that the salaries are consistent from company to company. Almost everyday I have hiring managers tell me they won't bring 20 year experienced engineers in at the top of their salary range because they have other people in the department who have been there for x amount of years making less. Therefore there is little motivation for people to move. Add to that falling home prices, companies hesitancy to "buy the house" and other economic issues and it makes for a shortage.

From a recruitement standpoint the challenges we face are candidates who can't or won't relocate, a lack of stability in job history (most utilities are old school and consider job movement of every 3 years to be excessive although it's the national average), and candidates who's salary expectations are too high or who don't interview well.
Comment 12 of 14
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April 8, 2009
In the 1980's there was a large decline in available engineering jobs due to the oil bust, and the end of massive power plant build outs. In addition, 1983 graduated the largest class of engineers up until this year. It was a glut. Graduating engineers faced a daunting task of getting work where it didn't exist. I know. I was one of those people.

Companies didn't want to hire inexperienced college grads when experienced engineers were out there cheap. Consequently, there is about a 10 year void of experience from about 1983 to 1993 in American raised and trained engineers. On top of that, the baby bust happened and there were about 40% fewer graduates from 1993 to 2003.

However, availability of engineers has changed. This year's graduating class is the largest in history.

Deja vu. It's 1983 all over again.

Huge graduating class: Experienced engineers available at cheap prices, shrinking job pool.

Barry Marshall is right. There are enough engineers. Most of us 80's grads couldn't get on a single career path because the jobs didn't pay worth a flip. Consequently, most guys, I know, my age run their own businesses.

Employers, aka, older baby boomers, are looking for "Jiffy Pop" employees to show up all aired up and buttered. You know the kind. Specialists, single career path employees. Forget the graduates...they've raised their children and don't want to raise employees as well.

It's so bad for one major electric provider, that it is possible there will be no engineers left with over five years experience in less than four years

At this rate, the older baby boomers will retire, taking their knowledge with them and screw everyone else in the process.

Doesn't feel right, does it?

Get used to it. It's happening in the power industry right now.
Comment 13 of 14
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November 8, 2009
i dont know about the shortage of engineers, cause i am Umaine 09 graduate with B.S in electrical engineering technology, focus on Power engineering and i have not found job yet, which is forcing me to go over seas.
Comment 14 of 14
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