Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
December 27, 2013 01:00 AM

Auto suppliers struggling to find qualified engineers

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By David Sedgwick, Crain News Service

    DETROIT (Dec. 27, 2013) — As North American vehicle production rises, suppliers are scrambling to find many types of engineers: mechanical, software, electrical, manufacturing—you name it.

    In November, a survey of 100 North American suppliers revealed that 90 percent planned to expand their engineering staffs. Of those, 75 percent said they were having trouble finding candidates, according to the survey by the Original Equipment Suppliers Association (OESA).

    Suppliers “have got so many vehicle programs to launch that it's crazy,” said Neil De Koker, president emeritus of OESA. “There's a tremendous amount of overtime.”

    Software engineers are in especially high demand as auto makers add infotainment, collision avoidance systems and other high-tech gadgetry.

    The additional content is straining the engineering resources of suppliers at a time when auto makers are expanding their lineups.

    In 2014, auto makers will launch 33 new vehicles in North America, up from 18 this year, according to automotive research firm IHS Automotive of suburban Detroit. The glut of new products has triggered an acute shortage of experienced engineers, as auto makers prepare for the launches.

    As a result, suppliers often have to settle for engineers with less experience and train them. According to the survey, 45 percent of respondents said they needed to boost their training budgets by more than 10 percent.

    Suppliers' “hope is that these engineers will stay with them,” Mr. De Koker said. “The minute you train them, they're worth more.”

    Not surprisingly, compensation is rising. Thirty-two percent of respondents said they expect to increase bonuses next year.

    Mr. De Koker said a supplier executive recently told him that a candidate for an engineering job had verbally committed to join his company—only to renege when an auto maker offered $20,000 more.

    The OESA survey did not ask suppliers to divulge their pay scales. But data from Michigan State University's (MSU) College of Engineering show that starting salaries are rising.

    This year, the average starting salary for MSU engineering graduates is $62,900, up from $56,200 in 2008. Starting salaries for computer scientists average $71,900, up from $60,600 five years ago.

    Those salaries are likely to rise more, said Garth Motschenbacher, director of employer relations at MSU's College of Engineering.

    “We are not producing enough engineers,” he said. “Over the next 18 months, you're going to see some huge jumps in salaries.”

    While engineers of all types are in short supply, competition for software engineers is especially fierce.

    “It's a bidding war,” said Manuela Papadopol, global marketing director for Elektrobit, a software developer in Nuremberg, Germany.

    Elektrobit, which helps develop software for Ford Sync, maintains technical centers in suburban Detroit and Seattle. The company has about 100 U.S. employees, mostly engineers, and it wants to expand its work force 20 percent next year.

    It won't be easy. “We have to fight Microsoft and Amazon and Google for talent,” Mr. Papadopol said. “It's the reality.”

    This report appeared in Automotive News, a Detroit-based sister publication of Tire Business.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    EU approves Yokohoma's Trelleborg Wheel Systems purchase
    2
    Continental EV strategy stays consistent
    3
    Should you trust the 3PMS winter tire symbol?
    4
    Saudi tire plant backers target construction in 2024
    5
    Hankook Tire confirms arrest of Chairman Cho Hyun-bum
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION