Economic Challenges Behind and Ahead for BSCES Engineers

Economic Challenges Behind and Ahead for BSCES Engineers

by David Manugian, Town Planner/Engineer, Town of Ashland

 

In March 2004 BSCESNews reported on some of the economic challenges facing local civil engineers at the time and spoke to five senior engineers and executives about visions of the future of civil engineering in the area. In December 2011 BSCESNews corresponded again with Lisa Brothers of Nitsch Engineering, Rick Moore of Tetra Tech, Inc., and Mark Junghans of VHB/Vanasse Hangen Brustlin, Inc., as well as BSCES President Steve Rusteika of PMA Consultants LLC, to review how the profession’s outlook has changed in the intervening years.

 

“The outlook for the industry remains challenging,” wrote Lisa, summarizing a number of points from those addressed. Rick commented, “Governments at all levels have reduced resources (money and people) and there is no turnaround in sight.” According to US Bureau of Labor Statistics, the Massachusetts unemployment rate was approximately 5% in 2004. As of October 2011, the unemployment rate was approximately 7.6%. In 2000 there were approximately 232,000 civil engineers in the US, and that number was expected to increase to between 255,000 and 278,000. As of May 2010, there were approximately 249,000, or an increase of approximately 7%. This is in line with the national job growth of 7.4% between 1998 and 2008. However, the national payroll numbers show a 2% increase between November 2010 and 2011 for architectural and engineering services and show a slight decrease between October and November of this year. Thus significant volatility still exists.

 

In Massachusetts there are approximately 7,250 civil engineers. Whereas the Boston area had approximately 1.5 times the national average of 2 engineers per 1,000 population, the further west in the state one travels, the further the employment density drops, and Western Massachusetts has two-thirds the national average of engineers. The Boston metropolitan area has the sixth highest employment level (total numbers) for civil engineers in the country, after the Houston, Los Angeles, New York, Washington, and Seattle areas.

 

While job growth for the nation between 2008 and 2018 is expected to be approximately 10%, that for civil engineering in general is expected to be greater, at approximately 24%, with environmental engineering having an anticipated increase of 30% in the number needed between 2008 and 2018. “Nowadays, our role as civil engineers is shaped and informed by environmental requirements more than ever. Projects require us to be aware of a wider range of environmental regulations and approaches to design that place resource efficiency first,” wrote Mark.

 

The aging of the workforce mentioned in 2004 has increased, due in part to the economic downturn. In 1998 the “prime-age” work group of 25-54 (baby boomers and some gen-x) outnumbered those 55 and older by a 6 to 1 ratio. In 2018 the prime age work group (gen-y and millennials) will outnumber over-55 (baby boomers) in the workforce by only 2.5 to 1. The proportion of over-55 employees will have doubled in that period, from approximately 12% to approximately 24% of the workforce. At the same time, workers 24 and under are expected to decrease as a total proportion of the workforce from approximately 16% to approximately 12%. As the proportion of engineers over 55 continues to increase compared to the overall number of engineers, compensation models based on seniority and longevity simply will not work as they have in the past. Determining how to treat employees fairly while remaining competitive will be a significant challenge. And, particularly in the public sector, when the over 55 group does retire the profession could see some significant demographic shifts: “Many of these employees joined these public organizations in the sixties and seventies...this will create an urgency in two areas: loss of organizational memory and the need to fill numerous open positions” reflected Steve.

 

According to the 2010–2011 Occupational Outlook Handbook, the job outlook for civil engineers is encouraging: “Civil engineers are expected to have employment growth of 24 percent over the projections decade, much faster than the average for all occupations. Spurred by general population growth and the related need to improve the Nation’s infrastructure, more civil engineers will be needed to design and construct or expand transportation, water supply, and pollution control systems, and buildings and building complexes. They also will be needed to repair or replace existing roads, bridges, and other public structures. Because construction industries and architectural, engineering, and related services employ many civil engineers, employment opportunities will vary by geographic area and may decrease during economic slowdowns, when construction is often curtailed.” However, this outlook is based on the need to reinvest in the nation’s infrastructure, and so the growth could be quite dependent on significant national investment. Rick Moore observed, “It’s uncertain how deficit reduction at the federal level will impact infrastructure spending.”

 

In a CNBC study from summer 2011, Massachusetts ranked sixth in the nation as a top state for business, based on nine criteria for which each state was ranked. However, while the Commonwealth ranked very highly for access to capital, technology and innovation, and quality of life, it ranked poorly for cost of living and cost of doing business. Norfolk, Middlesex, and Plymouth counties are in the top 2% of wealthiest counties in the US by household income but also have a very high cost of living. The cost of living in Boston is approximately 30% higher than the national average, and this has an effect on the quality of life for the profession’s engineers. “Living further away from Boston makes their ability to balance work/life more difficult at a time when work/life balance is a major priority,” noted Lisa. “Many employees are trying to balance work, life and commitments so that flexibility is a huge asset going forward” echoed Steve.

 

Looking ahead, challenges include working in an aging population, planning for reduced government spending, and living in an area with a very high cost of living. Engineers and engineering firms may need to reconsider traditional roles as their aging cohorts simply outpace those positions available. A lack of diversity may hinder international opportunities.

 

However, Lisa, Rick, and Mark identified opportunities amongst the challenges. These included diversifying both employees and their skills; creating new relationships with government entities and contractors; resource efficiency and “smart” development; and international development. Steve sees “many companies allowing employee workplace flexibility more than ever.” Lisa wrote, “Diversity is good for business.” Rick suggested, “Seek out international opportunities and on the domestic front look for high-end, value-added technical areas.” And Mark pointed out that engineers are still necessary for day-to-day life and operation of the economy.