Technical & Engineering Recruitment Market Commentary January 2014

There are not too many industries in Australia which found 2013 to be a particularly buoyant one, although for lots of companies it wasn’t so much a terrible year as one where they had to work very hard just to eke out average results. On the whole, the companies we deal with expect 2014 to be a better year. The declining dollar is assisting the competitiveness of those organisations which export or compete with imports. The world economy also seems to have stabilised and moved away from the frequent financial crises we’ve become used to over the past 5-6 years. Hopefully this will give companies the confidence to make significant investments in people and in their businesses in 2014.  

Building Services

We can’t really say that there’s been a great deal of change since our comments in the October Market Commentary. NSW is still the state with the better prospects and the recovery of the industry is reasonably broad-based. The story in the other states is varied with some major projects masking an otherwise choppy market. Having said that the outlook for 2014 appears to be more optimistic than 2013.

Consulting Engineering

The market has remained in a very similar position to the last quarter with new projects not starting until the end of January – as always we have the small to medium consultancies that specialise in retail and commercial developments that are consistently hiring both contract and permanent engineers across all disciplines.

Most of the big consultancies are waiting on confirmation of large projects and they will be looking to hire in the first quarter of this year.  Salaries have remained the same.  We are always interested in seeing new resumes for engineers of all levels.

Drafting

– Victoria

Overall the last quarter of 2013 was very quiet on the drafting front in Melbourne. Discussions with many clients led us to believe that there will be a slight improvement early 2014. This in many ways depends on upcoming tenders for projects being won.

– NSW

With the Christmas period the drafting market has been slow for contract and permanent positions.  We have a number of clients in infrastructure and manufacturing who will be looking to ramp up with contract and permanent drafters in all disciplines.  We would be looking to recruit drafters of all levels after the January long weekend. The lack of drafting positions and the abundance of experienced drafters looking for work has seen hourly contract rates fall.  Hopefully with a number of new projects in Sydney this will change in 2014.

Manufacturing

– Victoria

Towards the end of 2013 we experienced an increase in demand from our manufacturing clients wishing to identify their new recruits prior to the commencement of the New Year. This trend was also reflected in the demand for contract and on hired employees. It appears manufacturing is continuing to gain momentum, with a marked increase in demand, specifically from the food and packaging sectors.

With respect to permanent professional engineering we have been busy recruiting Project Engineers, Production Planners, Process Engineers, Supply Chain Managers and Sales Engineers.

On-hired industrial labour in Melbourne experienced an increase in demand. We are noticing an overall increase in confidence based on client requirements from the past quarter.

The electronics industry is looking bright and the forecast is extremely positive and encouraging for all skill levels. Food manufacturing is still consistent for packers and blenders, and there is some demand for picking/packing and forklift driving in warehousing and logistics. Unfortunately the automotive industry has not gained any strength.

– NSW

Sydney on-hired industrial labour was reasonably quiet, however overall we continued to experience steady demand. The prediction is that manufacturing will pick up from February onwards, with requirements for trades and semi-skilled people increasing.

 

Technology

Welcome to improved career prospects 2014!  At least that’s what we hope the year will bring after the year that could be described as promising much but delivering little that was 2013.   Early signs are still a little slow in terms of demand but invariably this is the case for the first weeks after the holiday period.  The falling Aussie dollar and a feeling that Europe and USA are emerging from a dark tunnel are positive indicators of a better 12 months ahead.  Recent activity has been driven by companies seeking to replace personnel who have departed, for whatever reason.  The acid test will be whether companies wish to take the plunge and expand their engineering R&D teams on the basis of new confidence in business prospects.  Salary pressures remain dogged, as candidates seek to move up and companies seek to keep a lid on their costs, due to competitiveness from other parts of the world for similar products and services. For example, pre GFC graduate entrant salaries were around $50k to $60k in most R&D situations.  Today they are much the same, 5 years later.  We have seen automotive candidates having to take a hit on salary after leaving the auto industry to find opportunities in a new sector.  Ultimately, it really comes down to whether you feel that taking a backward step salary-wise is a good move for the long term benefit of getting into a fresh industry where there are new technologies to be learned and your career can take off again.  Our advice is to look for the right opportunity and long term career satisfaction that, often, start-ups and small businesses offer, even if the package on the table is less than ideal.  Staying competitive as a candidate is just as vital as it is with a company seeking to compete in a tough market.  As Samaranch would say “Let the games begin!”

 

Some Useful Tips

  • Remember to register with LinkedIn if you have not done so already – it is a very powerful networking tool.
  • If you are currently looking for work, take the time to prepare for interview in advance.
  • Prospective employers are skilled at identifying and think favourably of  candidates who are prepared and have done their research.

 

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