Nobody needs to be told that these are hard times across the board for the engineering sectors. This is nothing new, though — engineering is cyclical by nature and you’d expect that companies would have well-established methods for riding out the downswings.
You might expect that, but you’d be wrong.
The annual survey from the Society of British Aerospace Companies (SBAC) shows that the credit crunch is starting to hit aircraft manufacturers and their suppliers. Orders are dropping away and the domestic market is falling. What is worrying is that research and development (R&D) and employment are both falling sharply.
Naturally, in a recession, companies seek to make cuts and efficiency improvements — that well-known euphemism for job losses — are often among the first places they look. R&D departments tend to be hit hard, as they do not contribute to the immediate bottom line and cost a disproportionate amount of money. Aerospace isn’t the only industry to see this trend — the pharmaceuticals industry, among others, is also trimming back its research budgets at the moment.
Ian Godden, SBAC chief executive, sets alarm bells ringing, however. ‘The danger to the future of what is a successful manufacturing and engineering industry to the
The job losses are also a worry; Godden said that, although there is a good influx of graduates and apprentices into the aerospace sector, there is a dearth of experienced engineers in their mid-30s and -40s and companies are considering recruiting them from other industries. They might have a job, because we’ve heard the same from the other industries — the defence, rail and space sectors have all told The Engineer about the shortage of experienced people in recent months. An indignified scuffle could be in the offing — good news for these engineers who will suddenly find themselves in demand, not so good for the companies competing for their services.
Companies need to think very carefully before they cut. Of course, savings have to be made, but if they come at the expense of potentially profitable technology development, or of stripping their companies of vital skills, they are likely to be a false economy.
Stuart Nathan
Special Projects Editor
Let’s get one thing straight….
There is no shortage of skills.
There never has been.
There isn’t now.
There never will be.
Only a shortage of willingness to pay for them.
Trust me – wages come down fast enough when its thought there’s a surplus.
Engineers, not bankers, are the backbone of any country. I am 61 years old and my company developed biomass systems, but I closed it due to lack of sales and no government help. I have just completed a Certificate in Ornamental Horticulture and own my own Nursery. Don’t give up hope regarding your future and don’t rely on any government to help you. I would have liked to have shaped the Energy future through my company as R&D was our business. Graham Cox
To survive an economic downturn, savings and therefore cuts have to be made and that’s a fact. The trick is to recognize, and then retain within the business, those assets that are vital for future growth and prosperity. No mean feat when the wolves are gathered at the door demanding a sacrifice. Strong leadership combined with good management is the key to success; that and the ability to maintain strategic vision in an increasingly uncertain world. And for my next trick…!
We manufacture industrial Mixers and whilst these are not aircraft parts or related to the aircraft industry they are large capital items and we benefit / suffer from a similar cyclic pattern in sales. It should be apparent that anyone engaged in the manufacture of large precision or expensive parts will have tailored their manufacturing process to this and will not be able to easily switch to another product or market easily particularly when almost all markets world wide are now depressed.
With reference to R&D again I cannot comment on the aircraft industry but can say our R&D efforts are ongoing and very much market driven and funded from continuing sales growth.
If this means good news for the engineers who find themselves in demand, then roll it on! Perhaps these companies will then start to pay appropriate salaries to engineers? If it’s not such good news for the companies competing for their services, then tough luck, they have always managed to pay other functions well enough.