Where are all the Engineers?

The US needs more engineers. A recent BCG and SAE International analysis highlights this critical issue and projects a gap of 400,000 new engineers annually. If you’re looking for a software, industrial, civil, or electrical engineer, you may know the challenges in finding talent for these roles. Let’s look at what could be at the root of this issue and the potential path to mitigate the shortage.

A Skills Gap with Economic Risk

While the statistics can vary depending on how they are sliced and diced, consulting firms BCG and SAE International depict the pain as one in three engineering roles in the US remaining unfilled each year through at least 2030. While the problem extends to Japan, Germany, and other countries, the talent deficit jeopardizes US competitiveness, and government initiatives intended to boost the economy.

Pile On Multiple Consequences

Aside from the missed economic opportunities, the problem of not enough engineers creates additional challenges. Infrastructure projects, including improved roads, bridges, utilities, and public facilities, could be impacted. Engineers play roles in cybersecurity, healthcare, biotechnology, and helping companies reach climate and environmental protection goals and more. As an employer, the competition to fill roles promises to be challenging for the foreseeable future.

Skills Misalignment

The engineer shortage is attributed to several factors, including a need for more STEM graduates and the retirement of current engineers. Data additionally suggests a need for more alignment between the skills taught in educational institutions and those required by the industry. Traditionally popular choices for undergraduate study— materials, chemical, aerospace, and mechanical engineering will see an oversupply of 41,000 qualified candidates in 2031, while the needs for software, industrial, civil, and electrical engineers are projected at a 186,000 deficit in the same timeframe.

Other drivers of skills realignment within the engineering domain include rapid growth in generative AI (GenAI) and shifts in the mobility industry, which drive the need for software engineers. While AI potentially reduces some talent requirements, engineers who can understand and interact with it are needed. Likewise, software engineers working on electric vehicles and sustainability will be pushed toward collaboration with mechanical and electrical engineers, with challenges requiring increasingly complex technical expertise.

A Leaky Talent Pipeline

Another culprit behind the talent shortage is people with engineering degrees who don’t end up working in the career. Fewer than half of 200,000 US engineering students earning degrees went on to an engineering role. Women, especially, tend to drop out from engineering at a rate much greater than their male counterparts. For example, only 4,000 out of 40,000 remain in the talent pipeline 11 to 15 years after completing their degree. Of men in the same timeline, 25,000 are still working in the field out of 160,000-degree earners.

Minority Groups Underrepresented

Despite investments and programs encouraging women to become engineers, the percentage of women graduating in the field remains at 20%. Black Americans, Latinxs, Native Americans, and Pacific Islanders are also underrepresented.

Attracting People to Engineering

Resolving the talent shortage in engineering will take a lot of work. It will involve cooperation between stakeholders and a closer alignment of the public and private sectors, including industry and professional organizations, educators, employers, and government. Multiple approaches are being discussed to tackle the issue. Here are some thoughts:

• Education and Outreach: Increase efforts to promote STEM education at all levels, from elementary through high school, to cultivate early interest. Implement programs that connect students with engineering through hands-on projects, competitions, and real-world problem-solving.
• Higher Education Incentives: Offer scholarships, grants, and other financial incentives to encourage students to pursue engineering degrees. Universities could also expand their capacity to admit and train more engineers.
• Curriculum Alignment: Update and align engineering curricula with industry needs to ensure graduates possess relevant skills. This includes integrating cutting-edge technology and practices into the coursework.
• Professional Training and Continued Education: Provide opportunities for existing professionals to update their skills through workshops, courses, and certifications. This can help current engineers transition into emerging fields within the sector.
• Attracting Global Talent: Streamline visa processes and create more welcoming immigration policies to attract and retain international engineering talent.
• Workplace Flexibility and Culture: Improve the work environment by offering better work-life balance, competitive salaries, and a supportive culture. This can help retain existing engineers and attract new ones to the field.
• Public-Private Partnerships: Collaborate with government bodies, educational institutions, and industry leaders and support funding and direct initiatives that boost the engineering workforce.
• Promotion of Diversity: Encourage diversity in the engineering sector by targeting underrepresented groups through specific outreach programs and inclusive hiring practices.

Bridging the Gap

Encouraging a new generation to pursue engineering, aligning education with industry needs, and creating an inclusive work environment are just the beginning. Ultimately, the question of “Where are the engineers?” isn’t just about numbers; it’s about building a resilient foundation for the future.