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Engineering Globalization


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Title: Engineering Globalization

Engineering Globalization
  • Engineers Week
  • February 21, 2006
  • Dr. Timothy Greene

Tonights Topics
  1. Engineering Globalization What is it and its
    impact on Southwest Michigan
  2. Highlights of what the College of Engineering and
    Applied Sciences has accomplished and the
    colleges direction

Engineering Globalization
  • Thesis
  • Engineering design has become a global commodity
  • Impact
  • Michigan engineering work can be sent anywhere in
    the world to be done
  • Engineering work from anywhere in the world can
    be sent to Michigan to be done

Value of Technology
  • 85 of measured growth in U.S. income per capita
    is due to technology change

-Rising Above The Gathering Storm
Some Worrisome Indicators
  • When asked in spring 2005 what is the most
    attractive place in the world in which to lead a
    good life, respondents in only one of the 16
    countries polled (India) indicated the U.S.
  • For the cost of one chemist or one engineer in
    the U.S., a company can hire about five chemists
    in China or 11 engineers on India
  • For the first time, this most capable high-energy
    particles accelerator on Earth will, beginning in
    2007, reside outside the U.S.

-Rising Above The Gathering Storm
Some Worrisome Indicators (cont.)
  • The U.S. is today a net importer of
    high-technology products. Its share of global
    high-technology exports has fallen in the last 2
    decades form 30 to 17 and its trades balance in
    high-technology manufactured goods shifted from
    plus 33 billion in 1990 to negative 24 billion
    in 2004.
  • Chemical companies closed 70 facilities in the
    U.S. in 2004 and have tagged 40 more for
    shutdown. Of 120 chemical plants being built
    around the world with price tags of 1 billion or
    more, one is in the U.S. and 50 in China

-Rising Above The Gathering Storm
Some Worrisome Indicators (cont.)
  • Fewer than one-third of US 4th grade and 8th grad
    students performed at or above a level called
    proficient in mathematics proficiency was
    considered the ability to exhibit competence with
    challenging subject matter. Alarmingly, about
    one-third of the 4th graders and one-fifth of the
    8th graders lacked the competence to perform
    basic mathematical computations.
  • US 12th graders recently performed below the
    international average for 21 countries on a test
    of general knowledge in mathematics and science

-Rising Above The Gathering Storm
Some Worrisome Indicators (cont.)
  • In 1999, only 41 of US 8th grade students
    received instruction from a mathematics teachers
    who specialized in mathematics, considerably
    lower than the international average of 71
  • In one recent period, low-wage employers, such as
    Wal-Mart (now the nations largest employer) and
    McDonalds, created 44 of the new jobs, while
    high-wage employers created only 29 of the new
  • In 2003, only three American companies ranked
    among the top 10 recipients of patents granted by
    the United States Patent and Trademark Office.

-Rising Above The Gathering Storm
Some Worrisome Indicators (cont.)
  • In Germany, 36 of undergraduates receive their
    degrees in science and engineering, In China, the
    figure is 59 and in Japan 66. In the U.S. , the
    corresponding figure is 32.
  • The U.S. is said to have 10.5 million illegal
    immigrants, but under the law the number of visas
    set aside for highly qualified foreign workers
    dropped to 65,000 a year from its 195,000 peak.
  • In 2004, China graduated about 500,000 engineers,
    India 200,000 and America 70,000
  • In 2001(the most recent year for which data are
    available), US industry spent more on tort
    litigation than on RD.

-Rising Above The Gathering Storm
Off-shoring Issues
  • Is it simply moving work to where these are
  • Cheaper hourly costs
  • Cheaper benefit costs
  • Fewer safety requirements
  • Fewer union problems
  • Fewer taxes
  • Or is it moving work to where
  • Customer growth is
  • Diversification
  • 24/7 service
  • Highly motivated workers Highly trained work force

Off-shoring Truths
  • Companies have long ago dropped national
  • Board of Directors have become truly
  • Growth markets are in developing countries
  • The new best universities are not in the U.S.
  • Companies that offshore are growing in both
    revenues and profits faster than those who have

Off-shoring Truths (cont.)
  • Companies that offshore have seen
  • Increased customer responsiveness (closer to the
  • Increased quality
  • Decreased material costs(closer to the suppliers)
  • Nearly every process can be bought offshore

Areas Where Companies Are Looking to Outsource
Work Processes
Human Resources 13 Billion
Engineering 27 Billion
Logistics Procurement 179 Billion
Info Tech 90 Billion
Analytics 12 Billion
Finance Accounting 14 Billion
Manufacturing 170 Billion
Customer Care 41 Billion
-Business Week 1/30/06
Proctor Gamble
  • CEO Alan Lafley wants 50 of all new Proctor
    Gamble products to come from outside U.S. by 2010
    versus 20 now.

-Business Week 1/30/06
General Electric
  • 19,000 back office process workers spun off into
    GenPact in 2004 saved 30 to 40 in back office
    process labor costs after the first year.

-Business Week 1/30/06
  • 60,000 employees in 70 nations need HR services
    (records, payroll, benefits, etc.)
  • Outsourced services to Convergys Corp. and expect
    to save 20 in processing costs in year one and
    30 in year two

-Business Week 1/30/06
To Where Are Companies Outsourcing?
Region Central and Eastern Europe China and Southeast Asia Latin America Caribbean Middle East Africa
Market Size 3.3 Billion 3.1 Billion 2.9 Billion 425 Million
Top-Ranked Countries Czech Republic, Bulgaria, Slovakia, Poland, Hungary China, Malaysia, Philippines, Singapore, Thailand Chile, Brazil, Mexico, Costa Rica, Argentina Egypt, Jordan, United Arab Emirates, Ghana, Tunisia
Up-and-Comers Romania, Russia, Ukraine, Belarus Indonesia, Vietnam, Sri Lanka Jamaica, Panama, Nicaragua, Colombia South Africa, Israel, Turkey, Morocco
-Business Week 1/30/06
What Can Not Be Off-shored
  • Face to face customer service
  • Face to face supplier relationships
  • On site design and engineering
  • Construction engineering
  • Consulting on site
  • Sales engineering
  • (on site problem solving)

How Do You Slow Off-shoring?
  • Innovation!
  • Those entities lead in innovation control
  • the market

Engineering Research and Americas Future
Meeting the Challenges of a Global Economy (2005)
  • http//

Engineering Research The Engine of Innovation
  • American success has been based on the
    creativity, ingenuity, and courage of innovators,
    and innovation will continue to be critical to
    U.S. success in the twenty-first century.

-Engineering Research and Americas Future
Examples of Recent Innovation
  • Transistors Integrated Circuits
  • Computerization Mass communication
  • Cell Phones Internet
  • Electromagnetic Radiation Radios
  • Fiber Optics, Cell Phones, MRI, Micro Waves, etc.

U.S. Status in Innovation
  • The United States must be an innovation-driven
    nation that can capitalize on advances in life
    sciences, physical sciences, and engineering
  • The United States risks becoming a consumer of
    innovations developed elsewhere rather than a

-Engineering Research and Americas Future
Trends in Innovation
  • A large and growing imbalance in federal research
    funding between the engineering and physical
    sciences on the one hand and biomedical and life
    sciences on the other
  • Increased emphasis on applied RD in industry and
    government-funded research at the expense of
    fundamental long-term research
  • Erosion of the engineering research
    infrastructure due to inadequate investment over
    many years

-Engineering Research and Americas Future
Trends in Innovation (cont.)
  • 4. Declining interest of American students in
    science, engineering, and other technical fields
  • 5. Growing uncertainty about the ability of the
    United States to attract and retain gifted
    science and engineering students from abroad at a
    time when foreign nationals account for a large,
    and productive, component of the U.S. RD

-Engineering Research and Americas Future
Imbalance in the Research Innovation Portfolio
Life Science Research in Physical Science Research in Engineering Research
1982 7 Billion 4.2 Billion 5 Billion
2002 25.5 Billion 4.8 Billion 8 Billion
  1. The federal RD portfolio be enhanced by
    increasing funding for research in engineering
    and physical science
  2. Long-tern basic engineering research should be
    reestablished as a priority for American
    industry. The federal government should design
    and implement tax incentives and other policies
    to stimulate industry investment in long-term
    engineering research

-Engineering Research and Americas Future
Recommendations (cont.)
  • 3. Federal and state government and industry
    should invest in upgrading and expanding
    laboratories, equipment, and information
    technologies and meeting other infrastructural
    needs of research universities ad schools of
    engineering to ensure that the national capacity
    to conduct world-class engineering research is
    sufficient to address the technical challenges
    that lie ahead.
  • 4. Considering the importance of technological
    innovation to the nation, a major effort should
    be made to increase the participation of American
    students in engineering.

-Engineering Research and Americas Future
National Academy of Engineering Institute of
Medicine Committee on Prosperity in the Global
Economy of the 21st Century National Academy of
  • Change
  • What are the top 10 actions, in priority order,
    that federal policy-makers could take to enhance
    the science and technology enterprise so that the
    United States can successfully compete, prosper,
    and be secure in the global community of the 21st
    Century? What strategy, with several concrete
    steps, could be used to implement each of those

-Rising Above The Gathering Storm
Committee Findings
  1. Report Rising Above the Gathering Storm
    Energizing and Employing America for a Brighter
    Economic Future
  2. Having reviewed trends in the United States and
    abroad, the committee is deeply concerned that
    the scientific and technical building blocks of
    our economic leadership are eroding at a time
    when many other nations are gathering strength

-Rising Above The Gathering Storm
Committee Findings (cont.)
  • 3. This nation must prepare with great urgency
    to preserve its strategic and economic security.
    Because other nations have, and probably will
    continue to have, the competitive advantage of a
    low-wage structure, the United States must
    compete by optimizing its knowledge-based
    resources, particularly in science and
    technology, and by sustaining the most fertile
    environment for new and revitalized industries
    and the well-paying jobs they bring.

-Rising Above The Gathering Storm
Committee Recommendations and Actions
  • 10,000 Teachers. 10 Million Minds and K-12
    Science and Mathematics Education
  • Recommendation A Increase Americas talent pool
    by vastly improving K-12 science and mathematics

-Rising Above The Gathering Storm
Committee Recommendations and Actions (cont.)
  • Best and Brightest in Science and Engineering
    Higher Education
  • Recommendation C Make the U.S. the most
    attractive setting in which to study and perform
    research so that we can develop, recruit, and
    retain the best and brightest students,
    scientists, and engineers from within the U.S.
    and throughout the world.

-Rising Above The Gathering Storm
Committee Recommendations and Actions (cont.)
  • Incentives for Innovation and the Investment
  • Recommendation D Ensure that the U.S. is the
    premier place in the world to innovate invest in
    downstream activities such as manufacturing and
    marketing and create high-paying jobs that are
    based on innovation by modernizing the patent
    system, realigning tax policies to encourage
    innovation, and ensuring affordable broadband

-Rising Above The Gathering Storm
The Final Solution
  • In a global, knowledge-driven economy,
    technological innovation the transformation of
    knowledge into products, processes, and services
    is critical to competitiveness, long-term
    productivity growth, and the generation of

-Engineering Research and Americas Future
  • Highlights of what the College of Engineering has
    accomplished and the colleges direction

CEAS Vision
  • A scholarly community dedicated to excellence
    through student-centered education and research
    emphasizing professional practice in engineering
    and applied science

Number of Bachelor Graduates
Research Award Dollars
CEAS Cornerstones
  • Definition
  • Experience based learning
  • Involving students with their profession as they
  • Faculty members and staff who are active in their
  • Purpose
  • Produce job ready graduates with the ability to
    grow in their profession and are life long
  • Attract outstanding students to CEAS
  • Increase the number who graduate
  • Enrich their learning
  • Graduate life long learners
  • Faculty members and staff who are technically

Examples of Engagement
  • Senior Design Conference
  • Real world examples and applied problems used in
  • Student design-build competitions
  • Sunseeker 6th in the Nation
  • SAE Formula One Race Car
  • ASCE Concrete Canoe
  • AIChE Chemical Car

Examples of Engagement(continued)
  • Definition
  • The discovery, application, and dissemination of
    new knowledge
  • Purpose
  • Move the profession and society forward by
    providing engineers, scientists and technologists
    with new capabilities
  • Opportunity to add resources to the college.
  • Faculty development assuring we are technically

Technology Curve
Basic Research
Applied Research
Technology Transfer (Application of New
Use (Deployment, Training, Service)

Technology Maturity Level
Time to Technology Maturity
Research Foci
  • Advanced Vehicle and Development Simulation
  • Product Design and Manufacturing
  • Life Sciences and Biotechnical
  • Engineering Education

  • Definition
  • If engineering knowledge can be digitized, it can
    be moved and performed anywhere in the world.
  • Companies now look for engineering and technology
    solutions world wide.
  • Purpose
  • Our graduates must be prepared to work in a
    global engineering and applied sciences industry.
  • Our faculty work in global disciplines.

  • Definition
  • Excellent communication skills
  • Excellent teamwork skills
  • Ability to lead others and be led by others
  • Ability to lead at work, in the profession and in
    the community
  • Excellent professional ethics and morals
  • Understand the issues including environmental,
    economic, social, political, safety, and diversity

  • Purpose
  • To graduate engineers, technologists, and applied
    scientists who are and will continue to be
    leaders in their profession and community.
  • To ensure our faculty continue to be leaders in
    their profession and community.

CEAS Katrina Fund Raiser
CEAS Mission
  • To educate our learning community for life-long
    excellence in responsible professional
    leadership. (Engagement and Leadership)
  • To increase knowledge through collaborative
    discovery, integration, application, and
    teaching. (Research)
  • To serve as a resource and partner to our
    constituents. (Globalization, Leadership,
    Research, and Engagement)
  • To prepare job-ready graduates for the global
    market. (Engagement and Leadership)