Supply Chain Reaction

When setting my schedule for EDS,  I first took a look at the schedule of events and noted which ones would be of particular interest and service to our EDN readers. One of those events was “Talent Pool in America” at 1pm Tuesday afternoon. 

The panel event, chaired by ECN editor in chief Alix Paultre, was indeed worth attending. Unfortunately, I’m one of the few people who now knows that. Less than a dozen EDS attendees came to the event. This had me scratching my head in wonder. Our talent pool here in the United States is dwindling, putting the US at extreme risk of losing its standing as a leading nation in terms of technology. Be that because our education system does not encourage STEM (science, technology, engineering, and math) interests with children, be that because engineers face increasing pressure in their work environments, be that because outsourcing has encouraged existing engineers to explore alternative careers, the reasons go on and on for this very complicated issue. 

Arrow’s Bill Mitchell during Monday’s keynote briefly touched on the talent pool situation, calling it “the industry’s biggest challenge.” Mitchell estimated that in the next five years 45% of engineers will retire. He also advocated the use of H-1B visas as a way to fill positions if there are no qualified American workers available. The debate, or perhaps a better word is "argument" (even better yet, "war") over whether H-1Bs are a good route to dealing with the talent shortage rages on here at EDN with two recent blog posts on the subject continuing to garner reader comments. (See “Wanted or not, H-1B visa process starts on April 1,” and “H-1B visa cap (and readers’ limits) reached.”)

So why the low attendance? Obviously talent in America is an important issue. Was it a case of bad lunch-break timing or perhaps industry denial? As the event began, Paultre suggested that the talent shortage may be seen as a “not my problem” issue by many distributors. I agree. There’s been a change in distribution that has not resonated with some as of yet. You’re not just companies who buy components in a big box, then split them into little boxes and ship to customers anymore. The distributors that will still be here in 10 years understand that they need to be EEs, supply chain product movers, demand chain value creators, and that they need to be able to service the full electronic supply chain from design to supply to end of life. Still, do the distributors who get this fully understand the staffing requirements or the talent that this entails in the near future? Equally important, it is unclear whether they are prepared to see their Baby Boomer-aged executives—those who have been with companies for decades and have proven themselves to be the go-to guys and gals over and over again—soon retire. Has the distribution industry accepted that it is aging? Look around the EDS show floor and you’ll see more gray heads this year than last.

Paultre also noted that finding panel participants for the topic was difficult. To discuss the shallow talent pool here in the US means discussing outsourcing, visas, shrinking salaries, the economics behind layoffs—none of which are topics that will particularly make you popular among a crowd of EEs.

Yet Paultre did manage to find three knowledgeable and prepared panelists—C&K Components’ Jean-Michel Bourin, Dean Technology’s Mike Meyer, and Laird Technologies’ Ellie Rovai—who spoke on the issues that are impacting the talent pool and what we could do to amend the situation. Between questions on how many people starting off in engineering now will last in the field through retirement and how to best defend our electronics supply chains against international competition resonated issues of social and corporate responsibility.

Bourin, who is based in France, noted cultural and social differences between US and European nations when it comes to engineering and education. Meyer pointed out that demand for electronics continues to increase here in the US, while the number of industry professionals continues to shrink, which represents a sort of disjointed supply and demand situation of its own. And Rovai noted that she isn’t sure the average American even knows what an engineer does. How do we encourage engineering as a career if the general public is under some disillusion as to where those Wiis, iPhones, and laptops came from?

Changes to this situation will best come about when we, as an industry and as individuals, get people excited about what we do. Remind them that Mario and Luigi aren’t the ones building the next-generation game systems. Change will also come about when more companies begin backing efforts to bring science and math back into the classroom and, moreover, to remind kids that STEM activities can be fun. National Instruments has done a great job of this with its Lego Mindstorms activities.

Share your thoughts on the talent pool and how as Americans we can keep competing. And stay tuned to this blog for more from EDS.