June 2007 1

JUNE 2007

Sponsored by: Conducted by:

June 2007 2

Summary

Methodology

An email survey was sent to Design News magazine subscribers. The study was fielded during the month of May. Results of the survey were tabulated by Research Results, an independent research firm.

Results are based on 1,225 usable replies. At a 95% confidence level, results are accurate with a margin of +/ - 2.8%

Demographics

• Average age is 46.• Average number of years as an engineer: 18; years

in current job: 6.5.• 95% have college degrees, with 46% having a

Bachelor’s in Engineering and 19% having a Master’s.

• Of those with degrees in engineering, 40% have degrees in mechanical engineering; 27% in electrical engineering.

• 75% have some degree of supervisory responsibility, with 53% having budgetary responsibility.

• Respondents work in a large variety of industries, with automotive, aerospace, and medical among the top fields.

Compensation

• Average annual salary is $78,000.• Nearly a quarter of salaries over the past 12 months

are above $100,000.• Most salary increases were between 2% and 4%,

with an average of 3%.

June 2007 3

Summary (continued)

Job Responsibilities

• Respondents supervise an average of three people.

• Project management, computer, and communication skills are viewed as the most important skills for career advancement.

Job satisfaction

• 80% are satisfied with their careers; 73% are satisfied with their current jobs.

• 63% would recommend an engineering career to their children or friends.

• Over half feel their role as an engineer is respected and appreciated and that overall engineering is a respected profession.

• Nearly half feel they are fully using their engineering skills.

• Salary, feeling of accomplishment, and technical challenges are the top reasons for job satisfaction.

• Meeting deadlines, management issues, staying current with technology, and increased workload are the most difficult challenges in engineers’current jobs.

Outlook and Industry Trends

• Over the next five years, respondents anticipate a more diversified workload, more outsourcing, and more emphasis on design work.

• 78% of companies are outsourcing, with an average of 9% of a company’s design work being outsourced.

June 2007 4

What is your annual base salary?

2%

6%

10%

15%

18%

14%

11%

9%

4%5%

3%2%

0%

4%

8%

12%

16%

20%

$30,

000

- $39

,999

$40,

000

- $49

,999

$50,

000

- $59

,999

$60,

000

- $69

,999

$70,

000

- $79

,999

$80,

000

- $89

,999

$90,

000

- $99

,999

$100

,000

- $1

09,9

99

$110

,000

- $1

99,9

99

$120

,000

- $1

29,9

99

$130

,000

- $1

49,9

99

$150

,000

- $2

50,0

00

Average = $78,000

June 2007 5

In the past year, how did your salary level change?

13%

44%

14%

4% 3% 4%

1%

14%

2%

0%

10%

20%

30%

40%

50%

Less than2%

increase

2 to 4%increase

4 to 6%increase

6 to 8%increase

8 to 10%increase

10 to20%

increase

over 20%increase

Noincrease

Pay cut

Average = 3%

June 2007 6

For how long have you been an engineer?

3%

7%

15%

19%

15%

41%

0%

10%

20%

30%

40%

50%

Less than2 years

2 to 5years

6 to 10years

11 to 15years

16 to 20years

More than20 years

Average = 18 years

June 2007 7

In general, how satisfied are you with your engineering career?

Satisfied58%

Very satisfied22%

Dissatisfied21%

June 2007 8

Do you have supervisory and/or budget responsibility?

Both, 30% Budgetary, 23%

Supervisory, 22%

Neither: 25%

June 2007 9

If you are supervising people, how has this changed during the past 2 years?

Same, 45%

More, 34%Less, 21%

June 2007 10

What is the number of employees that you are supervising?

33Average

2%1%50 – 99

2 years agoToday

64%60%Fewer than 5

0%1%100 – 149

6%7%20 – 49

8%10%10 – 19

20%21%5 – 9

June 2007 11

How many years have you worked in your present job?

31%

16%

23%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than 3 years 3 to 5 years 5 to 10 years More than 10 years

Average = 6.5 years

June 2007 12

Has your company laid off engineers in the past 12 months?

No, 68%Yes, 32%

June 2007 13

Have you personally been affected by layoffs in the past 12 months?

(among those whose companies have laid off engineers in the past 12 months)

Yes, 19%

No, 81%

June 2007 14

What skills do engineers need to get ahead in their profession today?

% of respondents

11%Other

36%Finance/ accounting skills

37%Marketing/ sales skills

45%Language skills

71%Team-building skills

88%Communication/ presentation skills

88%Computer skills

89%Project management skills

June 2007 15

In an average week, how many hours do you work?

1%

38%

32%

16%

7%4%

1% 1%

0%

10%

20%

30%

40%

Under40

40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 ormore

Average = 46 hours

June 2007 16

How has the number of hours you work each week changed over the past year?

Fewer hours, 12%

More hours, 30%Same number of

hours, 59%

June 2007 17

What factors have the greatest impact on your satisfaction with your current job?

% of respondents

3%Other

2%Managing people

2%Relationship with subordinates

4%Travel

4%Physical or ergonomic environment at work (positive or negative)

4%Company size

4%Leading a team

9%Workload

10%Company's financial health

15%Relationship with boss

15%Location

18%Feeling of recognition

20%Job Security

20%Benefits

20%Advancement opportunities

21%Relationship with colleagues

40%Technical challenge

41%Feeling of accomplishment

45%Salary

June 2007 18

How much of your company’s design work is outsourced?

22%

25%

17%

9%

4% 4%

7%

0%

5%

10%

15%

20%

25%

30%

None 1 - 10% 11 - 20% 21 - 30% 31 - 40% 41 - 50% More than50%

Average = 9%

June 2007 19

What specific design work is your company outsourcing?

% of respondents

18%Other (structural, optomechanical, packaging)

17%Applications engineering

21%Systems design

22%Circuit design

23%Test & measurement

26%Board-level design

29%CAD

37%Mechanical design

June 2007 20

What is the most difficult challenge you face in your current job? (unaided)

% of respondents

3%Lack of recognition from management

3%Lack of advancement opportunities

3%Dealing with co-workers

3%Job security

3%Corporate politics/bureaucracy

3%Low salary/small pay increases

3%Dealing with demanding clients

3%Developing new products

4%Limited budget to complete projects/getting funding for new projects

5%Outsourcing portions of the company

5%Multi-tasking

6%Staying motivated/interested in my job

7%Limited resources/workforce

9%Increased workload

9%Staying current with technology

13%Poor/ incompetent management

14%Meeting deadlines/time management

responses 3% and over are shown; see data tables for all other responses

June 2007 21

How satisfied are you with your current position?

Satisfied, 56%

Very satisfied, 17%

Dissatisfied, 27%

June 2007 22

How actively are you seeking another job?

41%I'm always open to better opportunities

13%Actively

23%I'm happy where I am

24%Passively

% of respondents

June 2007 23

Would you recommend this field to your son or daughter, or to a friend?

No, 37%

Yes, 63%

June 2007 24

I feel that I am appreciated and respected in my role as an engineer

9%

44%

24%

18%

5%

0%

10%

20%

30%

40%

50%

Strongly agree Agree Neutral Disagree Strongly disagree

June 2007 25

I feel that I am fully using my engineering skills

7%

31%

25%

29%

9%

0%

10%

20%

30%

40%

Strongly agree Agree Neutral Disagree Strongly disagree

June 2007 26

I feel that I am Underpaid and Overworked

18%

36%

30%

14%

2%

0%

10%

20%

30%

40%

Strongly agree Agree Neutral Disagree Stronglydisagree

June 2007 27

I feel that Engineering Work is Too Often Outsourced to China and/or Other Countries

15%

30%

33%

17%

5%

0%

10%

20%

30%

40%

Strongly agree Agree Neutral Disagree Stronglydisagree

June 2007 28

Summary of Agreement Statements

53%Appreciated and respected

38%Fully using engineering skills

% agreeing

45%Too often outsourced to China and/or other countries

54%Underpaid and overworked

June 2007 29

Educational Background

1%Other

1%Current student

% of respondents

5%No college degree

2%Ph.D. in engineering

3%Advanced degree in non-engineering field

5%Bachelors in non-engineering field

7%Masters in business administration

10%Two-year Associates degree in technical field

19%Masters degree in engineering

46%Bachelors degree in engineering

June 2007 30

What is your degree in, specifically? (unaided)

% of respondents

2%Drafting

2%Mathematics

2%Manufacturing

2%Physics

3%Chemical Engineering

4%Industrial Engineering/ Industrial Technology

5%Computer Engineering/ Computer Science

6%Electronics

6%Business/ Management

27%Electrical Engineering

40%Mechanical Engineering

responses 2% and over are shown; see data tables for all other responses

June 2007 31

What is your primary engineering discipline?

% of respondents

7%Other

2%Materials engineering

4%Software engineering

5%Controls engineering

11%Manufacturing engineering

30%Electrical/electronics engineering/Electromechanical engineering

40%Mechanical engineering

June 2007 32

Are you working on more, the same, or fewer disciplines now than 12 months ago?

Fewer, 6%

More, 44%Same, 49%

June 2007 33

What is your company’s major product line?

3%Instruments/Test equipment

% of respondents

30%Other (biotechnology, rail, resins)

2%Electronic Components

3%Machine Tools

3%Contract Manufacturing

4%Computers/Peripherals

4%Consumer Electronics

4%Semiconductors

5%Industrial Controls

6%Communication Systems

6%Defense Systems

9%Medical

9%Aerospace

12%Automotive

June 2007 34

How many people does your company employ?

19%

23%

9%

49%

0%

10%

20%

30%

40%

50%

Fewer than 100 101 to 500 501 to 999 1,000 or more

Average = 948

June 2007 35

In which region do you work?

Average salaries for each region are shown

June 2007 36

What is your age group?

2%

12%

31%

36%

18%

2%

0%

10%

20%

30%

40%

18 - 25 26 - 34 35 - 44 45 - 54 55 - 64 65+

Average = 46

June 2007 37

Looking ahead over the next five years, where do you see the role of the engineer going?

(unaided)

% of respondents

3%Receive less respect

3%Lower salaries

3%Increased emphasis on system engineering

3%Will require more creativity/innovation

3%Longer hours/heavy workload

3%More involved in sales/marketing

3%Engineering becoming more important/growing

3%Less design/ more emphasis on integration

4%Increased demand for computer/software engineering

5%Taking on non-engineering/administrative responsibilities

5%Reduced to only high tech engineering/requires specialization in engineering

6%Engineering is declining

6%More emphasis on design/more new products

7%Required to be more diversified/able to work in all areas of engineering

10%Serving as support/management for outsourced engineering

15%Take on role as manager/project manager

24%Outsourcing engineering to other countries especially China, India

responses 3% and over are shown; see data tables for all other responses.

June 2007 38

How important is being creative and innovative in your role as a design engineer?

1%

5%

11%

19%

65%

0% 20% 40% 60%

Very Important

Somewhat important

Important

Not very important

Not at all important

June 2007 39

Do your current design projects require you to be more creative and innovative than a year ago?

No, 50%Yes, 50%

June 2007 40

Why are your current design projects requiring you to be more creative and innovative than a year ago?

(unaided; respondents saying yes)

% of respondents

3%Changes in the market

3%Always new problems to solve

3%Have new and better ways to design

3%Change in responsibilities

3%Do more with less attitude

4%Products require more features

5%Customer demands

5%Making products smaller

5%Everything needs to be better/quality requirements

6%Faster to market/less time allocated to complete projects

8%Innovation/ creativity sells products

8%Demand for new products/new applications

9%Designs becoming more complicated

10%New technologies

15%To stay ahead of the competition

21%Cost considerations/budget restrictions

responses 3% and over are shown; see data tables for all other responses.