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Market Commentary October 2010 - From Australia Wide
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Overall, our company experienced a rampaging surge in demand for skilled staff in the period from June through to August. Then, at the start of September, the phones stopped ringing. We suspect it was associated with the uncertainties caused by the Federal election. Hiring confidence seemed to have taken a sudden hit.
In the past couple of weeks however, two new trends appear to be emerging very strongly. Firstly, the clients (both existing and new) are calling through requirements again. Secondly, we appear to be entering a very challenging period for attracting candidates to jobs. We are finding that placing an advertisement on Seek is generating far fewer responses than even 2 months ago. We are now re-activating many of the strategies we used to attract candidates when we last had a severe skills shortage in 2007 / 2008 (as well as actively participating in social media which was not widely used as a recruitment tool a few years ago).
Automotive Engineering
It is pleasing to report that there has been a significant increase in the amount of automotive recruitment since the last quarterly market commentary. It is evident from the level of client enquires that recruitment in the automotive sector is once again heading in a positive direction. Although the GFC appeared to mask skill shortages, there is a now a concern that skill shortages will again be a limiting factor on placements.
As a result, our automotive candidates are feeling more confident about their career prospects. With the balance of power now moving back to the employee, coupled with a skills shortage on the horizon, employers are focused on building and retaining their talent pool.
In recent times we have been busy recruiting, both permanent and contract positions, specifically positions for Tier 1 suppliers. We have successfully recruited Production, Industrial and Quality Engineers and Purchasing and Engineering Management positions.
The automotive sector is constantly changing. Vehicle manufacturers need to conform to changing emission, safety regulations and fashion trends. Working in the automotive sector offers the opportunity to work in a very high-tech industry and to gain exposure to new technologies. It is an industry that requires highly qualified engineers. It is an exciting time for the industry; candidates should remember to keep their skills up to date.
Building Services
The quarter began confidently with demand for experienced building services consultants in all disciplines including Mechanical, Electrical, ESD, Hydraulic and Acoustic Engineering. Activity in September seemed to slow down and there was very little new enquiry during the month.
One area where there was no change in demand was in energy performance, plant efficiency, tri-generation and co-generation plant and water / wastewater efficiency. Green credentials such as Green Star and NABERS qualifications are still highly sought-after.
Consulting Engineering
In general terms the consulting engineering sector has still been static. We have had some very specific client requirements in the gas pipeline, meat processing and solar industries and civil/structural/architectural for retail commercial developments.
In Melbourne there has been much discussion surrounding the state government announcements for the major projects such as Parkville Comprehensive Cancer Centre, Peninsula Link project, 1200 Buildings Retrofit project, Major Projects Victoria's current projects, Rod Laver Arena and the Victorian Large Scale Solar Project. Following attendance at the recent Industry Capability Network seminar in Melbourne regarding these projects it was clearly evident that when they are approved, some consulting engineering companies will be very busy from 2011.
Business opportunities will also flow through to the contractors and construction companies at quite a pace. Overall it is anticipated that there will be a rush for employees to cover the demand. The 1200 Buildings Retrofit program will create literally hundreds of jobs itself.
Drafting
The start of the new financial year was rather disappointing with July not really bringing a surge in drafting activity. August saw an improvement as new projects and budgets were approved. Autocad and Solidworks positions were the most popular although contract durations ranged from 1 week to 3 months suggesting that clients were still being cautious in their future work outlook. A number of clients were issuing contracts with the option to convert to permanent if all went well and future work loads remained positive. In summary the drafting market is in reasonable shape but still has plenty of room for improvement.
Electronics, Software & Communications Engineering
Is the glass half full or half empty - that is the question. Some companies are growing cautiously and some are simply replacing anyone who decides to see what the grass is like in the next paddock. However, we have seen a recent mini surge for Electronic Hardware Design Engineers so perhaps there will be a similar push for Firmware Engineers in the months ahead - time will tell. As always, there is still a shortage in certain specific areas such as high speed semi custom design, and for C# developers with experience of development within a complete electronics system. The fact that some vacancies have arisen for key technical roles with some well known firms who have downsized begs the question as to whether they may have cut back too far and left themselves exposed to the inevitable voluntary resignation, which invariably follows compulsory lay offs. The close of the year should see. We confidently predict that a continued upward trend in most sectors should persist. Companies who used to hire 5 or 6 Engineers now hire 1 or 2 at a time, and those who used to hire 1 or 2 a year now are very cautious before dipping their toe in and committing to a major piece of expenditure. There are a couple of exceptions and well done to them, they know who they are! Salaries remain sluggish, especially in those smaller organisations where trading conditions can still be somewhat tough. Candidates should be prepared to move for the same money if its a move that you are really keen to make.
Manufacturing
Quite a number of our clients in the manufacturing sector are looking to put on staff in the lead up to the Christmas period as they are gaining indications that this will be the start of a buoyant spending period with the demand for their products likely to rise.
There is still hesitation to put on permanent staff so most of the labour increase will be taken up through the use of casual labour. However, in the trades areas and skilled occupations such as Technicians, CNC Operators, Welders, Fabricators, Middle Management, etc. where there are shortages, employers are still inclined to employ permanent staff. With unemployment decreasing, we are finding that there is a reduction in applications for positions, with a consequent drop in the calibre of candidates still on the market. This means that employers must be prepared to make offers to the right candidates without delay to ensure that they are not snapped up by other employers. |
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发表于 2012-10-31 12:23
