2017 Machine Design Annual Salary & Career Report

October 16, 2017


Portions of the following post were taken from the September 2017 Machine Design Magazine.

We all like to keep up with salary levels within our chosen profession.  It’s a great indicator of where we stand relative to our peers and the industry we participate in.  The state of the engineering profession has always been relatively stable. Engineers are as essential to the job market as doctors are to medicine. Even in the face of automation and the fear many have of losing their jobs to robots, engineers are still in high demand.  I personally do not think most engineers will be out-placed by robotic systems.  That fear definitely resides with on-line manufacturing positions with duties that are repetitive in nature.  As long as engineers can think, they will have employment.

The Machine Design Annual Salary & Career Report collected information and opinions from more than two thousand (2,000) Machine Design readers. The employee outlook is very good with thirty-three percent (33%) indicating they are staying with their current employer and thirty-six percent (36%) of employers focusing on job retention. This is up fifteen percent (15%) from 2016.  From those who responded to the survey, the average reported salary for engineers across the country was $99,922, and almost sixty percent (57.9%) reported a salary increase while only ten percent (9.7%) reported a salary decrease. The top three earning industries with the largest work forces were 1.) industrial controls systems and equipment, 2.) research & development, and 3.) medical products. Among these industries, the average salary was $104,193. The West Coast looks like the best place for engineers to earn a living with the average salary in the states of California, Washington, and Oregon was $116,684. Of course, the cost of living in these three states is definitely higher than other regions of the country.

PROFILE OF THE ENGINEER IN THE USA TODAY:

As is the ongoing trend in engineering, the profession is dominated by male engineers, with seventy-one percent (71%) being over fifty (50) years of age. However, the MD report shows an up-swing of young engineers entering the profession.  One effort that has been underway for some years now is encouraging more women to enter the profession.  With seventy-one percent (71%) of the engineering workforce being over fifty, there is a definite need to attract participants.    There was an increase in engineers within between twenty-five (25) and thirty-five (35).  This was up from 5.6% to 9.2%.  The percentage of individuals entering the profession increased as well, with engineers with less than fourteen (14) years of experience increasing five percent (5%) from last year.  Even with all the challenges of engineering, ninety-two percent (92%) would still recommend the engineering profession to their children, grandchildren and others. One engineer responds, “In fact, wherever I’ll go, I always will have an engineer’s point of view. Trying to understand how things work, and how to improve them.”

 

When asked about foreign labor forces, fifty-four percent (54%) believe H1-B visas hurt engineering employment opportunities and sixty-one percent (61%) support measures to reform the system. In terms of outsourcing, fifty-two percent (52%) reported their companies outsource work—the main reason being lack of in-house talent. However, seventy-three percent (73%) of the outsourced work is toward other U.S. locations. When discussing the future, the job force, fifty-five percent (55%) of engineers believe there is a job shortage, specifically in the skilled labor area. An overwhelming eighty-seven percent (87%) believe that we lack a skilled labor force. According to the MD readers, the strongest place for job growth is in automation at forty-five percent (45%) and the strongest place to look for skilled laborers is in vocational schools at thirty-two percent (32%). The future of engineering is dependent on the new engineers not only in school today, but also in younger people just starting their young science, technology, engineering, and mathematic (STEM) interests. With the average engineer being fifty (50) years or old, the future of engineering will rely heavily on new engineers willing to carry the torch—eighty-seven percent (87%) of our engineers believe there needs to be more focus on STEM at an earlier age to make sure the future of engineering is secure.

With being the case, let us now look at the numbers.

The engineering profession is a “graying” profession as mentioned earlier.  The next digital picture will indicate that, for the most part, those in engineering have been in for the “long haul”.  They are “lifers”.  This fact speaks volumes when trying to influence young men and women to consider the field of engineering.  If you look at “years in the profession”, “work location” and years at present employer” we see the following:

The slide below is a surprise to me and I think the first time the question has been asked by Machine Design.  How much of your engineering training is theory vs. practice? You can see the greatest response is almost fourteen percent (13.6%) with a fifty/fifty balance between theory and practice.  In my opinion, this is as it should be.

“The theory can be learned in a school, but the practical applications need to be learned on the job. The academic world is out of touch with the current reality of practical applications since they do not work in

that area.” “My university required three internships prior to graduating. This allowed them to focus significantly on theoretical, fundamental knowledge and have the internships bolster the practical.”

ENGINEERING CERTIFICATIONS:

The demands made on engineers by their respective companies can sometimes be time-consuming.  The respondents indicated the following certifications their companies felt necessary.

 

 

SALARIES:

The lowest salary is found with contract design and manufacturing.  Even this salary, would be much desired by just about any individual.

As we mentioned earlier, the West Coast provides the highest salary with several states in the New England area coming is a fairly close second.

 

SALARY LEVELS VS. EXPERIENCE:

This one should be no surprise.  The greater number of years in the profession—the greater the salary level.  Forty (40) plus years provides an average salary of approximately $100,000.  Management, as you might expect, makes the highest salary with an average being $126,052.88.

OUTSOURCING:

 

As mentioned earlier, outsourcing is a huge concern to the engineering community. The chart below indicates where the jobs go.

JOB SATISFACTION:

 

Most engineers will tell you they stay in the profession because they love the work. The euphoria created by a “really neat” design stays with an engineer much longer than an elevated pay check.  Engineers love solving problems.  Only two percent (2%) told MD they are not satisfied at all with their profession or current employer.  This is significant.

Any reason or reasons for leaving the engineering profession are shown by the following graphic.

ENGINEERING AND SOCIETY: 

As mentioned earlier, engineers are very worried about the H1-B visa program and trade policies issued by President Trump and the Legislative Branch of our country.  The Trans-Pacific Partnership has been “nixed” by President Trump but trade policies such as NAFTA and trade between the EU are still of great concern to engineers.  Trade with China, patent infringement, and cyber security remain big issues with the STEM profession and certainly engineers.

 

CONCLUSIONS:

I think it’s very safe to say that, for the most part, engineers are very satisfied with the profession and the salary levels offered by the profession.  Job satisfaction is great making the dawn of a new day something NOT to be dreaded.

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