<p>OH_DAD, unlike certain other people that shall remain unnamed, seems to be a respectable debater with valid points.</p>
<p>However, I would provide pushback on several points that he made</p>
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if one will at least concede that the output of the aggregate total of the engineering schools in the country has stayed relatively constant,
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<p>I do not concede this. The aggregate output of engineering schools has NOT remained constant, in fact it has declined significantly in recent years. A study that I read (which I shall attempt to locate) indicated that about 60,000 engineering bachelor's degrees are produced per annum in recent years, down from, I believe, something like around 90-100,000 in the 90's. And because the total number of bachelor's degrees (in all disciplines) continues to rise, this means that the percentage of engineering degrees conferred is at one of the lowest levels in recent times. </p>
<p>Furthermore, the total value of manufactured goods in the US continues to rise. Manufacturing, as a percentage of US GDP, has held steady for the last couple decades and will continue to remain so. </p>
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consider plastics
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<p>I agree with what has been said about consumer electronics. But not with plastics, if what you mean is bulk polymers. Is there a large international polymers import/export trade business? Not really. That's because these polymers are extremely bulky and therefore extremely expensive to transport. Furthermore, plastics manufacturing is extremely capital intensive, which means that the labor costs are vanishingly small. What that means is that there is little incentive to move plastics manufacturing offshore. After all, how much are you really going to save? Whatever you might save on labor costs will be eaten up by transport. </p>
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where are all the engineers for these entire manufacturing segments obtaining employment?
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<p>Again, obviously they are shifting to the manufacturing that has stayed in the US. Again, I would point to microchip fabrication, which is a tremendously capital intensive industry for which labor costs are not a compelling reason to move production. Intel, for example, has given no indications that they are going to move any of their US fabs to countries like China and India. Intel may ultimately build fabs in China and India, but not at the expense of Western fabs. Heck, Intel continues to EXPAND its Western fabs. For example, I noticed that Intel has announced a building of another fab in Israel. Israel is not a low-cost country. I know Intel has announced continued expansion of its production facilities in Oregon and Arizona. In fact, I think the Intel Arizona fab facility may soon be the largest such facility in the world. The same is true of the other Western semiconductor companies. </p>
<p>Or consider Boeing. Boeing is hiring like hotcakes for engineering positions in the Seattle area. Nobody is talking about moving aircraft manufacturing to China or India. The reason, again, is that aircraft manufacturing is so capital-intensive. It makes little sense to move production to save on labor costs when labor costs are such a small part of the equation anyway. </p>
<p>Then there is production and engineering jobs that have to stay here for pure proximity reasons. I would point to the growing boom in energy production. The US still has a lot of oil and gas, and somebody has to produce it. Somebody has to be out there doing the deepwater drilling in the Gulf of Mexico. Somebody has to be managing the reservoirs in West Texas. I don't see how any of these jobs can be easily outsourced, not unless you're talking about flying in engineers from China and India. Then consider all the refineries in the Gulf Coast and all the discussion of expanding refinery expansion in the US to improve gasoline supplies. Who is going to man those refineries? I foresee a steady increase in demand for chemical and petroleum engineers. </p>
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I do not consider "software engineering" to be engineering whatsoever....
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<p>On this point, I would have to disagree that software engineering cannot be considered engineering. I agree that Microsoft flinging around terms like MCSE is damanging, but that's not software engineering, that's systems administration, which is a different beast entirely. More to the point, ABET accredits Computer Science programs as engineering programs. If ABET considers that to be engineering, then I guess it's engineering. </p>
<p>I would also take a stand against the supposedly inexorable force of offshoring. The fact is, offshoring is not the specter that everyone thinks it is. Think of it this way - there have always been ways for companies to source cheaper labor. During the dotcom boom of the late 90's, why did all these Internet companies hire Silicon Valley engineers for 150-200 k a year plus stock options? Why didn't they just hire cheaper software writers from Canada or Mexico or wherever? Those countries had plenty of good and cheap coders. In fact, many of those Canadian and Mexican coders immigrated to Silicon Valley so that they could be the ones to earn 150-200k during the boom. Were all these companies being stupid? Even today, I see a lot of tech companies hiring engineering jobs located in Silicon Valley. Yeah, in Silicon Valley. Why offer those jobs, if it really is so easy to just hire all your engineers from India? Why doesn't Oracle fire its entire Redwood Shores engineering staff today and replace them all with Indians? Why doesn't Cisco shut down its entire San Jose engineering staff and replace them all with Indians? </p>
<p>The answer is that it is not that easy to do. Certain computing tasks can easily be offshored. Others cannot. In particular, those engineering jobs that require close interaction with management and with customers are very difficult to offshore. That is why these tech companies are actually continuing to hire Silicon Valley engineers.</p>
<p>Now don't get me wrong, it is true that they aren't hiring as many in Silicon Valley as before. Hence, this is really a race to demonstrate value. Everybody in the world needs to find his niche. I completely agree that those engineering jobs that have few independencies to the rest of the business, where you just sit alone in a room and write code, will probably be offshored. However, other engineering jobs have emerged that require close interaction with other business units, like marketing, like finance, like sales, etc. These jobs are less easily outsourced. </p>
<p>I would also point out that the reason why offshoring to India is popular is because of, unsurprisingly, low cost. However, India continues to get richer and richer, meaning that salaries are accelerating, which removes the impetus to offshore. You say that in 20 years time, all computing jobs will be outsourced. I would counter by saying that in 20 years time, Indian software salaries may be high enough that there will be little reason to offshore computing to India. </p>
<p>I think all of this gets to a basic misunderstanding of the value of free trade. The fact is, countries benefit as an aggregate from free trade. You're not going to win as a nation by erecting protectionist walls. Free trade of goods was beneficial to the US. Yes, some people (namely US factory workers) lost, but as a whole the country benefitted. Free trade of services will be similarly beneficial. Again, yes, some people will lose, but the country as a whole will gain. The US has been a high cost country for at least a century, and outsourcing and offshoring has existed for at least half a century. Yet the nation's economy has continued to grow and expand. The US has tremendous economic strengths, such as a strong entrepreneurial tradition, tremendously strong universities (especially the graduate schools), high labor and capital flexibility, an extremely stable legal and political system, and tremendous social mobility. The US should not be afraid of more free trade. Read the works of Schumpeter and how the creative destruction of capitalism ultimately produces higher standards of living. </p>
<p>I think that if any region of the world could really be hurt by outsourcing, it's not the US, it's Western Europe. Western Europe is also a high-cost place, and yet does not have the entrepreneurial tradition and capital/labor flexibility that the US does. </p>
<p>Finally, I would point out, relatively speaking, look at how marketable all the other bachelor's degrees are. For all its problems, an engineering degree is still more marketable than the vast majority of them. Some have said to pursue a degree in accounting, yet accounting jobs are also being outsourced to India. So it's the same thing. Some have said nursing, yet as I have shown, nurses make significantly less than do engineers, on average. I agree that in certain parts of the country, nurses may make more, but across the country, this is not true. And clearly, whatever career problems that the engineers have, it's surely better than what the English majors have to put up with. Or the PoliSci majors. Or the History majors. Or the Physics majors. Sure, an engineer can work until he's 30 and then get laid off. But so can an English major. So can a Psychology major. Hence, relatively speaking, engineering as an undergrad major is still a pretty good deal.</p>