- Email: [email protected]
The industry's global career focus
44
Feature WORLD PUMPS
October 2009
Recruitment
The industry’s global career focus With an acknowledged shortage in trained engineers, many are asking how has globalisation affected recruitment in the pump industry? Here Chris Rowe, discusses how recent developments, including the current downturn, could revolutionise how professional engineers find careers.
I
n sophisticated engineering markets, the traditional models of supply and demand have all but disappeared, so far as skilled and senior appointments are concerned. In theory, when downturns release more people onto the jobs market, it eases pressure on recruitment but our experience suggests that this only holds good for semi-skilled and non-skilled people. Those with advanced and transferable skills between industries are almost always in demand. What’s more, the fall off in engineering apprenticeships and engineering gradu-
ates over the last decade, particularly in advanced economies such as the UK, is only now being addressed. An article written by Dr Daniel Park, of the MASS Consulting Group, identifies just how important the role of the qualified experienced engineer is. “Engineering is above all about adding value through realisation of technological progress,” Park comments in the article. “Engineers and engineering make a major impact in the day-to-day living of most of us – engineering qualifications and experience are a foundation for many different careers.”
Overseas help As recently as July 2007, the UK’s Institution of Engineering and Technology talked of a growing recruitment crisis in the engineering and technology sector, and a further analysis of this makes uncomfortable reading. The IET’s annual skills survey, which canvassed no fewer than 500 companies worldwide, revealed that UK businesses were turning to countries such as South Africa, India and China for help, with 48% of the companies surveyed recruited from overseas in the previous 12 months. In addition, the percentage of businesses expecting to have problems with recruiting suitably qualified candidates was rising. The institute’s chief executive, Robin McGile was forthright in his assessment of the position. “The engineering and technology sector is vital to the future prosperity of the UK’s economy and an increase in skills shortages puts the future growth, success and competitive advantage of many businesses into serious doubt,” he said. In one example, Bob Taylor, board director at E-ON highlighted how his company was dealing with the issue by bringing in trained engineers who have completed apprenticeships in Germany.
Figure 1. The organisation’s greatest asset is its people. www.worldpumps.com
0262 1762/08 © 2008 Elsevier Ltd. All rights reserved
Other key findings of the report identified the static nature of the proportion of qualified women in the engineering sector – just 7% – and the fact that 70%
46
Feature WORLD PUMPS
October 2009
India will offer strong growth prospects. Centrifugal pumps will remain the largest pump type, though diaphragm pumps and turbine pumps will post rapid gains. Utilities will exhibit the fastest growth among major pump markets.”
Figure 2. Global business drives harmonisation of markets, sectors and skills.
of companies in the UK were struggling to recruit the right people. Whilst this report indicates the size of the problem, I believe it also has pointers to some solutions. My recipe for finding the right people includes: t XPSLJOH XJUI SFDSVJUNFOU QBSUOFST PWFS UIF long-term to establish a bespoke programme t BDLOPXMFEHJOH UIBU SFDSVJUNFOU DBO CF B global, not just a national process t IBWJOH B SFMFWBOU SFBEJMZ BWBJMBCMF database ‘pool’ of talent t QPTTFTTJOH LOPXMFEHF BOE BXBSFOFTT PG the relevant media.
Globalisation In response to the increasing globalisation of markets, sectors and the skills pool, Rowe and Company Recruitment Consultants is opening a Southern Hemisphere office in Melbourne, particularly to service the AsiaPac markets, for which Australia is often the hub of activities. Talk of emerging markets can be quite confusing these days, as one of the effects of the global downturn has been to blur the margins between what is emerging, and what is recessing. Certainly, the increasing influence of Russia in oil production is taking all the recent models of global industry and re-shaping them. There are also some real hotspots of experience in the fluid handling and rotating machinery marketplace, such as the shipyards of Gdansk which have led to a significant export of talent to the world’s wealthy nations – but also created a dearth of ability in its ‘birthplace’. The radical expansion of the EU has been influential and the rise of the so-called BRIC sector (Brazil, Russia, India and China) will likely continue, despite the recessions. However, there is a real lack of continuity around. The so called Celtic Tiger, a period www.worldpumps.com
of rapid growth in Ireland’s economy, has been followed by a rapid slowdown, with the country’s latest budget an indication of the black hole that has opened up in that particular economy. On the other hand, while AsiaPac is by no means immune from global downturn, I believe it still retains appeal for the recruitment business. One of the great positives in a global economy is the harmonisation of industry that global business drives. We find that there is no longer a great divide between what a company in the Philippines wants from us and what we’re used to providing in the US or in Western Europe. However, it is vital to know the local labour laws and employment protection. The fact that decision makers are looking for much the same skills set wherever they exist does not mean that our service doesn’t require a local delivery.
A worldwide sector Talk of ‘post industrial’ societies, ie, those which have transferred their economic futures almost entirely into the service sectors, is both myopic and parochial. Since the pump industry is a worldwide sector, such views hold little relevance. As markets become more integrated and international borders become less rigid, however, it remains necessary to spot the changing geographical power base of the manufacturing sector, in order to meet local staffing needs. For example, almost all international companies now recognise the need to take advantage of lower overseas manufacturing costs and higher growth rates. Overall, market forecasts for the world pumps sector are far less gloomy than most. According to a 2008 report from Freedonian Market Research, “Global demand for fluid handling pumps will increase 4.4% annually through 2012. Developing areas such as China and
The globalisation of business and the trend towards fewer but bigger suppliers can create its own issues in their service sector. While English will continue to be the lingua franca of the pumps industry, I also see a bright future for any engineer with a working knowledge of say, Cantonese. We also identify a potential danger in the concentration of the industry into fewer and larger businesses, resulting in a move towards fewer specialist sales engineers. This can create a lack of understanding if the marketplace is technically complex. Other industry changes that can affect the requirements of employers include the new tendency of pump manufacturers to align with suppliers of complementary equipment such as pumps and mixers. The alliance between ITT and Atlas Copco is cited as one example. I agree with the assessment of the Frost and Sullivan survey of the world pumps market in the oil and gas industry – the capital intensive nature of the pump market, along with manufacturing costs, overheads and the stringent government rules and environmental regulations, is proving both complex and challenging. However, the rapid industrialisation and growing population of the Asia Pacific and Latin American regions are boosting the market. The Asia Pacific region is projected to remain the fastest growing market and is most likely to remain an attractive region. Without presuming to provide a forecast for the world pumps industry, I am positive that the major companies will tend to run lean on staff, but will not lose the pool of talent which cannot easily be replaced. The best recruitment consultancies will keep a database of industry professionals and will also have the expertise to conduct executive search globally.
Contact Chris Rowe Managing director Rowe and Company Recruitment Consultants Ltd Bedfordshire SG18 8AL Tel: +44 (0) 1525 875101 Mobile: +44 (0)7917 802490 Email: [email protected] www.roweandco.com
Feature WORLD PUMPS
October 2009
Recruitment
The industry’s global career focus With an acknowledged shortage in trained engineers, many are asking how has globalisation affected recruitment in the pump industry? Here Chris Rowe, discusses how recent developments, including the current downturn, could revolutionise how professional engineers find careers.
I
n sophisticated engineering markets, the traditional models of supply and demand have all but disappeared, so far as skilled and senior appointments are concerned. In theory, when downturns release more people onto the jobs market, it eases pressure on recruitment but our experience suggests that this only holds good for semi-skilled and non-skilled people. Those with advanced and transferable skills between industries are almost always in demand. What’s more, the fall off in engineering apprenticeships and engineering gradu-
ates over the last decade, particularly in advanced economies such as the UK, is only now being addressed. An article written by Dr Daniel Park, of the MASS Consulting Group, identifies just how important the role of the qualified experienced engineer is. “Engineering is above all about adding value through realisation of technological progress,” Park comments in the article. “Engineers and engineering make a major impact in the day-to-day living of most of us – engineering qualifications and experience are a foundation for many different careers.”
Overseas help As recently as July 2007, the UK’s Institution of Engineering and Technology talked of a growing recruitment crisis in the engineering and technology sector, and a further analysis of this makes uncomfortable reading. The IET’s annual skills survey, which canvassed no fewer than 500 companies worldwide, revealed that UK businesses were turning to countries such as South Africa, India and China for help, with 48% of the companies surveyed recruited from overseas in the previous 12 months. In addition, the percentage of businesses expecting to have problems with recruiting suitably qualified candidates was rising. The institute’s chief executive, Robin McGile was forthright in his assessment of the position. “The engineering and technology sector is vital to the future prosperity of the UK’s economy and an increase in skills shortages puts the future growth, success and competitive advantage of many businesses into serious doubt,” he said. In one example, Bob Taylor, board director at E-ON highlighted how his company was dealing with the issue by bringing in trained engineers who have completed apprenticeships in Germany.
Figure 1. The organisation’s greatest asset is its people. www.worldpumps.com
0262 1762/08 © 2008 Elsevier Ltd. All rights reserved
Other key findings of the report identified the static nature of the proportion of qualified women in the engineering sector – just 7% – and the fact that 70%
46
Feature WORLD PUMPS
October 2009
India will offer strong growth prospects. Centrifugal pumps will remain the largest pump type, though diaphragm pumps and turbine pumps will post rapid gains. Utilities will exhibit the fastest growth among major pump markets.”
Figure 2. Global business drives harmonisation of markets, sectors and skills.
of companies in the UK were struggling to recruit the right people. Whilst this report indicates the size of the problem, I believe it also has pointers to some solutions. My recipe for finding the right people includes: t XPSLJOH XJUI SFDSVJUNFOU QBSUOFST PWFS UIF long-term to establish a bespoke programme t BDLOPXMFEHJOH UIBU SFDSVJUNFOU DBO CF B global, not just a national process t IBWJOH B SFMFWBOU SFBEJMZ BWBJMBCMF database ‘pool’ of talent t QPTTFTTJOH LOPXMFEHF BOE BXBSFOFTT PG the relevant media.
Globalisation In response to the increasing globalisation of markets, sectors and the skills pool, Rowe and Company Recruitment Consultants is opening a Southern Hemisphere office in Melbourne, particularly to service the AsiaPac markets, for which Australia is often the hub of activities. Talk of emerging markets can be quite confusing these days, as one of the effects of the global downturn has been to blur the margins between what is emerging, and what is recessing. Certainly, the increasing influence of Russia in oil production is taking all the recent models of global industry and re-shaping them. There are also some real hotspots of experience in the fluid handling and rotating machinery marketplace, such as the shipyards of Gdansk which have led to a significant export of talent to the world’s wealthy nations – but also created a dearth of ability in its ‘birthplace’. The radical expansion of the EU has been influential and the rise of the so-called BRIC sector (Brazil, Russia, India and China) will likely continue, despite the recessions. However, there is a real lack of continuity around. The so called Celtic Tiger, a period www.worldpumps.com
of rapid growth in Ireland’s economy, has been followed by a rapid slowdown, with the country’s latest budget an indication of the black hole that has opened up in that particular economy. On the other hand, while AsiaPac is by no means immune from global downturn, I believe it still retains appeal for the recruitment business. One of the great positives in a global economy is the harmonisation of industry that global business drives. We find that there is no longer a great divide between what a company in the Philippines wants from us and what we’re used to providing in the US or in Western Europe. However, it is vital to know the local labour laws and employment protection. The fact that decision makers are looking for much the same skills set wherever they exist does not mean that our service doesn’t require a local delivery.
A worldwide sector Talk of ‘post industrial’ societies, ie, those which have transferred their economic futures almost entirely into the service sectors, is both myopic and parochial. Since the pump industry is a worldwide sector, such views hold little relevance. As markets become more integrated and international borders become less rigid, however, it remains necessary to spot the changing geographical power base of the manufacturing sector, in order to meet local staffing needs. For example, almost all international companies now recognise the need to take advantage of lower overseas manufacturing costs and higher growth rates. Overall, market forecasts for the world pumps sector are far less gloomy than most. According to a 2008 report from Freedonian Market Research, “Global demand for fluid handling pumps will increase 4.4% annually through 2012. Developing areas such as China and
The globalisation of business and the trend towards fewer but bigger suppliers can create its own issues in their service sector. While English will continue to be the lingua franca of the pumps industry, I also see a bright future for any engineer with a working knowledge of say, Cantonese. We also identify a potential danger in the concentration of the industry into fewer and larger businesses, resulting in a move towards fewer specialist sales engineers. This can create a lack of understanding if the marketplace is technically complex. Other industry changes that can affect the requirements of employers include the new tendency of pump manufacturers to align with suppliers of complementary equipment such as pumps and mixers. The alliance between ITT and Atlas Copco is cited as one example. I agree with the assessment of the Frost and Sullivan survey of the world pumps market in the oil and gas industry – the capital intensive nature of the pump market, along with manufacturing costs, overheads and the stringent government rules and environmental regulations, is proving both complex and challenging. However, the rapid industrialisation and growing population of the Asia Pacific and Latin American regions are boosting the market. The Asia Pacific region is projected to remain the fastest growing market and is most likely to remain an attractive region. Without presuming to provide a forecast for the world pumps industry, I am positive that the major companies will tend to run lean on staff, but will not lose the pool of talent which cannot easily be replaced. The best recruitment consultancies will keep a database of industry professionals and will also have the expertise to conduct executive search globally.
Contact Chris Rowe Managing director Rowe and Company Recruitment Consultants Ltd Bedfordshire SG18 8AL Tel: +44 (0) 1525 875101 Mobile: +44 (0)7917 802490 Email: [email protected] www.roweandco.com