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Overall there has been very little change in the engineering, manufacturing and technical recruitment sectors over the past 3 months since our last market commentary. It is very quiet. We have however noticed an upturn in demand for on-hired employees (contractors, temps and casuals) over the past 2 weeks but we feel it is too early for us to be confident that this is a trend.
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We will be interested to observe what (if any) effect the Fair Work Act (effective 1st July) will have on hiring intentions in our sectors. There has been speculation that the unfair dismissal and adverse action provisions of the Act will make companies more cautious in employing permanent staff and instead use recruitment consultancies to hire them initially as on-hired employees.
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Following are our observations of the key recruitment markets we have been operating in since 1979.
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Construction Engineering & Management
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In line with earlier predictions, activity in the civil engineering sector is about to gather momentum, particularly in rail, water and other related infrastructure sectors. For example, award of the long awaited Wonthaggi desalination plant is imminent (decision was expected on June 30) and the two remaining consortia, whose teams include major contracting organisations, are busy preparing themselves in the event they are successful in winning the contract.
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Whilst funding for private construction and development projects is still hard to appropriate, there is a general buzz around with regards to the Australian Government’s $14.7 billion school building program which has commenced. This is providing some relief from economic uncertainty for the contracting, engineering and consulting companies that are responsible for its delivery.
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It is clear that many organisations working in the construction engineering and management sector are still in what can best be described as a period of consolidation, however our networks are telling us that they are optimistic about future potential in the medium term. Despite the reduced growth in this sector it is evident that there is still an undersupply of adequately qualified and experienced professionals seeking alternative career prospects. Consequently a concerted effort is still required by recruiters and employers alike to identify and attract candidates of high calibre.
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All enquiries and updated resumes can be directed to Paul Stride at pauls@australiawide.com.au or 03 9847 6500
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Consulting Engineering and Building Services
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The June quarter was a period of consolidation for many engineering consultancies. We didn’t see as many lay-offs and redundancies as we did in the previous 2 quarters, however there has been little requirement for new hires. Some companies have also taken the step of placing staff on a 9 day fortnight to manage costs.
There has been a trend for both contractors and consultants to request experienced engineers with Green credentials such as Greenstar and NABERS qualifications as clients are focusing much of their attention to refurbishment and upgrading of inefficient building systems to meet new environmental standards rather than new construction.
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The employment market is still generally a flat market with opportunities presenting themselves more for replacement roles rather than newly created roles. There are always exceptions to the rule and some electrical and mechanical contractors are still very busy and looking for experienced staff. In particular there are still opportunities for experienced AutoCAD Project drafters with experience in producing shop drawings for the HVAC industry.
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All enquiries and updated resumes can be directed to Simon Black at simonb@australiawide.com.au or 03 9847 6500.
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Automotive Engineering
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There has been some movement in new car sales in June boosted by the Federal Government 50% tax allowance on capital expenditure. The total sales of passenger cars, commercial vehicles and SUV’s was over 102,000. We have also learnt that new contracts have been won by a large tier 1 supplier to provide their systems to the new small GMHolden vehicle. However, the vehicle manufacturing industry continues to face international and domestic competitive pressures that will continue to shape its size, structure and workplace practices. Recent profit results are a further sign of the state of the industry. It is evident from reviewing advertised vacancies on Seek that new automotive employment opportunities in Melbourne are very limited at present. It also seems that retrenchments in the supplier sector have leveled out. We continue to remain hopeful for an increase in employment activity, however the signs are just not there yet as most of our clients are holding employee numbers steady.
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We are receiving calls from engineers with automotive experience to discuss transition opportunities into non automotive sectors such as infrastructure, rail, alternative energy etc. Whilst we would all think that this would be achievable it has not been as easy as first thought. Potential employers are being very selective about the skills and experience required. That said, we have had success in placing automotive engineers in the defence sector. It is important for candidates to remember not to define themselves by the industry sector they have come from but by the skills and competencies they will bring to their next position.
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All enquiries and updated resumes can be directed to Mercedes Toale at mercedest@australiawide.com.au or 03 9847 6500.
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Drafting
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The demand for drafters remains low and is still one of the worst affected areas of the downturn. There is however some optimism that the new financial year will bring new budgets and we may see a knock-on effect to the contract hire market.
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We have seen a few instances where companies have been left short-handed due to retrenchments and have requested contract labor to ensure projects are completed.
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We haven’t experienced a great deal of movement in rates for contract drafters and our current contractors are largely aware of the current environment and not asking for wage rises. In some instances, contractors are even offering to be flexible in their hourly rate expectations in order to gain the work.
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All enquiries and updated resumes can be directed to Gary Mullane at garym@australiawide.com.au 03 9847 6500.
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Electronics / Technology Engineering
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The question of the moment is "Are we seeing the green shoots of recovery emerging?" Current indicators suggest a cautious ‘yes’ but there are still organisations that are shedding staff and many are just holding on to what they have by the skin of their teeth. Nevertheless, there is a feeling that we may have hit the bottom and there is only one way we can go from here - up.
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In the technology sector there are hopes that hiring related to renewable energy, the national broadband communications initiative and defence may start to exceed redundancies in the second half of 2009. Employers are continuing to demand an exact fit, and this makes life tough for candidates as well as the poor old recruiter! Salaries are holding up fairly well, because the employer who needs an exact fit is generally prepared to pay a reasonable dollar to find and retain the engineer of their dreams. A few new positions (both permanent and contract) have appeared on the radar in the last few days, really quite suddenly – so we wait to see if this is a blip or the beginning of a trend. Electronics / Technology Engineering positions are, we predict with some trepidation, likely to increase over the next 3 months. Watch this space.
All enquiries and updated resumes can be directed to Roy Dickson at royd@australiawide.com.au or 03 9847 6500.
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Manufacturing Professionals
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Recruitment activity in the bulk of the manufacturing sector remains very subdued. There are a few sub-sectors which are powering along including building products and food. We have also noticed a strong upswing in electronics assembly in the past few weeks with selected companies (involved in telecommunications and third party manufacturing) requesting large numbers of casual staff through our industrial division. We expect that parts of manufacturing will benefit in the longer term with the proposed infrastructure projects.
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With the economy and future job prospects so finely balanced, both the union movement and management will have to show good faith in EBA negotiations now that the Fair Work Act has replaced Workchoices. Failure to do so could risk further economic hardship in manufacturing.
All enquiries and updated resumes can be directed to Jim Hughan at jimh@australiawide.com.au or 03 9847 6500.
Any feedback in relation to this commentary is welcomed at enquiries@australiawide.com.au
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Regards
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The Team at Australia Wide Personnel
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