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The state of the structural engineering industry—The nation, the business, the practitioners

May 2009 » Cover Story

The state of the structural engineering industry can only be viewed as a snapshot in time. As professionals and firms of all types react to the external forces of the economy, some of the impacts are universal. Commonalities include a realistic outlook for 2009 followed by an optimistic view of 2010. The brightest note to take away is that structural engineers still enjoy practicing structural engineering.

By Jennifer Goupil, P.E.

The state of the structural engineering industry can only be viewed as a snapshot in time. As professionals and firms of all types react to the external forces of the economy, some of the impacts are universal. Commonalities include a realistic outlook for 2009 followed by an optimistic view of 2010. The brightest note to take away is that structural engineers still enjoy practicing structural engineering.

The state of the industry
Overwhelmingly, respondents had a positive outlook on the profession of structural engineering; however, when compared with national Gallup poll data, results indicate that structural engineers are a bit more pessimistic than average Americans; see Figures 1 and 2. While only 16 percent of structural engineers are satisfied with the way things are going in the United States at this time, 54 percent of respondents are satisfied with the way things are going at their firm, company, or organization at this time and 57 percent responded they are satisfied with the way things are going at their jobs at this time.

When studying the data from Figure 3, it is clear that respondents are quite positive about life as structural engineers with 89 percent of respondents reporting they are glad to be an engineer.

Issues that have surfaced as the most important to the structural engineering profession include project funding, code changes, and recruiting and retaining talented engineers; see Table 1. Also vexing topics for more than half of the respondents include the industry’s ability to leverage technology effectively, engineering firms’ ability to improve worker productivity, and the litigious environment in the AEC industry.

The Obama Administration
With much attention being paid to the Obama Administration’s economic stimulus plan—the American Recovery and Reinvestment Act (ARRA)—as it relates to infrastructure, we wanted to learn how structural engineers anticipate the program will affect both jobs and firms. While approximately half of the respondents indicated that the ARRA would not positively impact their job or result in more work for their firms in 2009; the respondents were evenly split as to the effects of the stimulus plan for 2010; see figures 5 and 6.


Respondents decidedly indicated they anticipate the ARRA to positively affect public infrastructure projects (83 percent), but because 91 percent of the respondents to this survey indicated they work primarily in the private sector, it is no surprise that only 34 percent of these engineers anticipate that they will be positively affected by the stimulus plan.

Individual jobs, workload, and compensation
It also is no surprise that the economic challenge that is plaguing the nation is affecting structural engineers as well. Nearly every respondent (98 percent) indicated that they have experienced a project going on hold within the last six months. Additionally, 64 percent of structural engineers indicated that they experienced decreases in compensation during the last 12 months that were not based on merit. Of these, most experienced a salary freeze or no raise (63 percent), with a decrease or elimination of annual bonus affecting half (50 percent). Other decreases reported include reduced hours (33 percent), decrease or elimination of employer retirement benefit contribution (33 percent), and pay cuts (28 percent). Based on this data, there is no surprise that 50 percent of respondents anticipate that their compensation in 2009 will decrease as compared with 2008.

The bright spot is that the majority (44 percent) indicated that they are satisfied or very satisfied with both current earnings and benefits; while 24 percent indicate they are unsatisfied or very unsatisfied.



Figures 6, 7, 8, and 9 present the results of one question in which we asked respondents how much they agree with the statements. As shown, structural engineers tend to feel secure in their jobs (Figure 6) and their workloads have not changed significantly as a result of a departed co-worker (Figure 7). The responses vary to the statement relative to compensation and workload (Figures 8 and 9).

Firm pursuit and growth
Since most of our employment destiny is tied to our employer, we asked several questions regarding firm health. Despite the fact that 60 percent of respondents anticipate that the economic outlook for 2010 will be better as compared with 2009, and the fact that 41 percent anticipate that the AEC industry will be growing in 2010, the majority (59 percent) of respondents do not think that their firm will be growing next year.

The reason for this opinion may be the fact that 57 percent of respondents indicated that keeping a backlog of work was their firm’s greatest challenge for 2009; see Figure 10.

As this relates to the stimulus package, the structural engineers that responded to this survey indicate that as a group, only a small number (2-5 percent) anticipate an increase in the split from private- to public-sector work. This is evident in Figure 11. This chart shows the markets in which firms are currently pursuing work and compares that to the markets that structural engineers think show the greatest potential for growth. One can easily see that collectively, the firms are currently pursing work in market sectors in which they do not anticipate much growth. Again, as would be expected, the market sectors that respondents indicate show the greatest potential for growth are public-sector markets such as government, bridges, and transportation infrastructure.

Trends
Based on responses to the survey, we can conclude that structural engineers anticipate a consequential slow down in 2009. This will have financial impacts on firms and individuals alike. This should not surprise anyone. However, structural engineers remain confident that 2010 will offer improved opportunities for growth and earnings. During all of this, structural engineers remain enthusiastic about their profession and are dedicated to the trade.

About the survey
The online 2009 State of the Industry survey included 83 questions and was open to Structural Engineer subscribers from March 16-27, 2009. The results presented here are based on 347 completed surveys from respondents who said that they primarily engage in the structural engineering profession, including design, analysis, management, and construction of projects such as buildings, bridges, and other structures.

Survey respondents indicated they practice in 44 of the 50 states. Ninety-one percent of the respondents practice in the private sector and represent small-, mid-, and large-sized firms. Every job title is represented, from staff engineer through president/CEO, including every experience level.

 
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