Sea-change in engineering jobs market

Edited by the Engineeringtalk editorial team Oct 26, 2006

The UK's engineering jobs market has undergone a sea-change as the pendulum of demand has swung to "design and build" organisations - at the expense of traditional client companies.

The UK's engineering jobs market has undergone a sea-change according to Technojobs as the pendulum of demand has swung to "design and build" organisations - at the expense of traditional client companies.

Such is the verdict of Beechwood, the technical jobs specialist, which this week said a slowdown over the past two years in automotive and aerospace industries is to continue into 2007.

Major EPC organisations in and servicing the oil and gas, nuclear and power generation industries will fill the vacuum, to demand project engineers/managers and commercial designers.

Alongside power transmission and distribution projects, the trio has been fuelling demand for this narrow candidate pool since 2004, resulting in PM salaries today of up to GBP 65,000 per annum.

"However these managers - though not technical or engineering managers - are working in buoyant areas like on petrochemical, LNG and GTL projects", said Colin Woolford, Beechwood's Resourcing Manager in an interview with Technojobs.

"Typically, these large projects are based in the Middle East, such as Bahrain or Iraq, and clients include US-owned engineering or construction consultancies like Halliburton and Bechtel".

Based on 200 "live" vacancies on the agent's database, most of which are permanent, Woolford said the startling trend is "the shift away from aerospace and automotive placements".

A leading electronics, defence and aerospace recruiter yesterday confirmed the decline to Technojobs, saying the current climate was not only far from buoyant, it was "horrid".

"We don't follow the same slowdown as is typically seen in the IT market as the year-end approaches", said Kay Alexander of John Prodger Recruitment.

"Usually, except for the last couple of weeks prior to the Christmas holiday, we'll be reasonably buoyant all the way through".

"Usually at this time of year, candidates return from their summer holidays and say, 'I can't stand this placement any longer I want to move'".

"But this is not the case; we are currently suffering in terms of new candidates".

"The current climate on the market is horrible".

"We're witnessing a dwindling supply of CVs".

"Partly this is due to the skills shortage, but I find it hard to believe that this is the only reason".

In a statement, the firm explained vacancies for candidates are "plentiful", evidenced by a 15% rise in the volume of placements coming onto the agent's database in the last six months.

The defence jobs specialist did however add some good news: salaries have crept up for permanent commercial managers, and similarly, client organisations are "fighting over" systems engineers.

"These two roles are for Ministry of Defence projects and we expect demand [for these] to continue into January".

"In 2007, demand for permanent staff in the sector will be generated by the MoD's Watchkeeper project - a tactical unmanned air vehicle system".

"There's also a portfolio of defence communications projects".

"These, like the Watchkeeper programme, will take on some contractors, but mainly at the front end of the programme".

"This is because it takes quite a long time to intake a new permanent placement in the defence industry, due to security clearance as well the notice period, so contractors often fill the gap in the short term".

Asked whether more should be done to tempt permanent candidates to step into aerospace and defence, the agent replied: "It's something we have loudly suggested"".

"It added: "The defence industry is very, very slow to pick up on treats to attract candidates, such as lifestyle incentives".

"A survey we carried out 18 months ago revealed a distinct difference between our (private sector) telecomms customers and our (public sector) defence customers in terms of the 'sweeteners' offered, such as flexi-time, health cover and enhanced pensions".

"We have loudly suggested that the MoD and its supply chain should consider offering such job perks to attract candidates".

"[But] the defence industry is like a supertanker - it takes a long time to turn".