engineering globalization engineer’s week dinner 2006 dr. timothy greene

Engineering GlobalizationEngineering Globalization

Engineer’s Week Dinner

2006

Dr. Timothy Greene

Tonight’s Topics:Tonight’s Topics:

1. Impact of Engineering Globalization on Southwest Michigan

2. College of Engineering & Applied Sciences accomplishments and direction

Engineering GlobalizationEngineering Globalization

Thesis:• Engineering design has become a global commodity

Impact:• Michigan’s engineering work can be sent anywhere in

the world• Engineering work from anywhere in the • world can be sent to Michigan

Value of TechnologyValue of Technology

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

-Rising Above The Gathering Storm

Some Worrisome IndicatorsSome Worrisome Indicators

• Only 1 of 16 countries polled listed the US as the most attractive place in the world to “lead a good life”

• Cost:

• For the first time, this most capable high-energy particles accelerator on Earth will, beginning in 2007, reside outside the U.S.


Engineers 1 US = 11 China

Chemists 1 US = 5 India

• The U.S. is a net importer of high-technology products.

• US global high-technology exports have fallen from 30% to 17% over 20 years

• US trade balance in high-technology manufactured goods shifted from $33 billion (1990) to -$24 billion (2004).

Worrisome Indicators: Worrisome Indicators: High TechnologyHigh Technology


Worrisome Indicators: Worrisome Indicators: Chemical CompaniesChemical Companies

• Chemical companies closed 70 facilities in 2004 and have tagged 40 more for shutdown.


US = 1

World Chemical Plants +$Billion Dollars

China = 50All

Others = 69

• About 1/3 of 4th graders and 1/5 of 8th graders lacked the competence to perform basic math computations.

• US 12th graders recently performed below the international average for 21 countries on a general test of mathematics and science

• In 1999, only 41% of US 8th graders received instruction from a teacher who specialized in mathematics; lower than the international average of 71%

Worrisome Indicators: Worrisome Indicators: Math & Science SkillsMath & Science Skills


Worrisome Indicators:Worrisome Indicators:Low-wage vs. High-wage employersLow-wage vs. High-wage employers


44% of new Jobs

29% of new Jobs

Low wage High wage

Worrisome Indicators: World-wide Worrisome Indicators: World-wide Undergraduate Degrees in Science and EngineeringUndergraduate Degrees in Science and Engineering


0%

10%

20%

30%

40%

50%

60%

70%

Japan 66% China

59%

Germany 36% US

32%

Worrisome Indicators: Worrisome Indicators: 2004 Graduates of Engineering2004 Graduates of Engineering


70,000

200,000

500,000China

US

India

National Academy of Engineering & Institute of National Academy of Engineering & Institute of Medicine Committee on Prosperity in the Global Medicine Committee on Prosperity in the Global Economy of the 21Economy of the 21stst Century National Academy Century National Academy

of Scienceof Science

• Change:• 10 actions federal policy makers could take• Enhance science & technology in the US• Compete, prosper, and be secure in “Global Community”• Strategy for implementation


Committee FindingsCommittee Findings

1. Report: Rising Above the Gathering Storm – Energizing and Employing America for a Brighter Economic Future

2. Having reviewed trends in US and abroad, the committee is concerned that scientific and technical building blocks of economic leadership are eroding at a time when many other nations are gathering strength


Committee Findings (cont.)Committee Findings (cont.)

3. The US must prepare to preserve its strategic and economic security. Because other nations have the competitive advantage of a low-wage structure, the US must compete by optimizing its knowledge-based resources, particularly in science and technology, and sustain the most fertile environment for new and revitalized industries and the well-paying jobs they bring.


Committee RecommendationsCommittee Recommendations

10,000 Teachers, 10 Million Minds, and K-12 Science and Mathematics Education

Recommendation A: Increase America’s

talent pool by vastly improving

K-12 science and mathematics

education



Sowing the Seeds Through Science and Engineering Research

Recommendation B: Sustain and strengthen the nation’s traditional commitment to long-term basic research that has the potential to be transformational to maintain the flow of new ideas that fuel the economy, provide security, and enhance the quality of life.



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.


Incentives for Innovation and the Investment Environment

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 access



Off-shoring IssuesOff-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 & trained work force

Off-shoring TruthsOff-shoring Truths

• Companies have long ago dropped national loyalties• Board of Directors have become truly

internationalized

• 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 not

• Companies that offshore have seen• Increased customer responsiveness (closer to the

customers)• Increased quality• Decreased material costs(closer to the suppliers)

• Nearly every process can be bought offshore

Off-shoring Truths (cont.)Off-shoring Truths (cont.)

What can not be off-shoredWhat 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)

A New Approval to Off-shoringA New Approval to Off-shoring

Off-shore companies are buying U.S. companies to get the face to face relationships

Tata Technologies (2,000 Indian engineers – automotive design) recently bought Incat International (700 U.S. engineers – Novi, Michigan) currently having 100 engineers for U.S. office

-Business Week 1/30/06

Proctor & GambleProctor & Gamble

CEO Alan Lafley wants 50% of all new Proctor & Gamble products to come from outside U.S. by 2010 versus 20% now.


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.


General Electric

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


DuPont

Areas where companies are looking to Areas where companies are looking to outsource work processoutsource work process

Manufacturing

$170 Billion

Logistics & Procurement

$179 Billion

Info Tech

$90 Billion

Finance & Accounting

$14 Billion

Human Resources

$13 Billion

Engineering

$27 Billion

Analytics

$12 Billion

Customer Care

$41 Billion


Five Offshore Practices That Pay Off:Five Offshore Practices That Pay Off:

1. Go offshore for the right reasons

2. Choose your model carefully

3. Get your people on board

4. Be prepared to invest time and effort

5. Treat your partners as equals


Leading Companies in the Off-shoring – Leading Companies in the Off-shoring – Outsourcing WorldOutsourcing World


Business Services

Software DevelopmentCall Centers

To Where Are Companies Outsourcing?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


Outsourcing to AfricaOutsourcing to Africa

• South Africa has over 500 call centers• Lufthansa• General Electric

• Cairo-based Xceed Contact Center• Microsoft• General Motors• Oracle• Carretour


Engineering Research and America’s Engineering Research and America’s Future: Future:

Meeting the Challenges of a Global Meeting the Challenges of a Global Economy (2005)Economy (2005)

http://www.nap.edu/books/0309096421/html/index.html

http://www.nap.edu/books/0309096421/html/index.html

Engineering Research: The Engine of Engineering Research: The Engine of InnovationInnovation

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 America’s Future

How Do You Slow Off-shoring?How Do You Slow Off-shoring?

Innovation!

Those entities lead in innovation

control the market

Examples of Recent InnovationExamples of Recent Innovation

Transistors Integrated Circuits

Computerization Mass communication

Cell Phones & Internet

Electromagnetic Radiation Radios & X-rays,

Fiber Optics, Cell Phones, MRI, Micro Waves, etc.

U.S. Status in InnovationU.S. Status in Innovation

The US must be an innovation-driven nation that can capitalize on advances in life sciences, physical sciences, and engineering

The US risks becoming a consumer of innovations developed elsewhere rather than a leader.


Trends in InnovationTrends in Innovation

1. A large and growing imbalance in federal research funding engineering & physical science vs. biomedical & life science

2. Increased emphasis on applied R&D in industry and government-funded research at the expense of fundamental long-term research


3. Growing uncertainty about the ability of the US to attract and retain gifted science and engineering students from abroad

4. Erosion of the engineering research infrastructure due to inadequate investment over many years

Trends in Innovation (cont.)Trends in Innovation (cont.)


Imbalance in the Research – Imbalance in the Research – Innovation PortfolioInnovation 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

RecommendationsRecommendations

1. The federal R&D portfolio be enhanced by increasing funding for research in engineering & physical science

2. Long-term basic engineering research should be reestablished as a priority for US industry. The federal government should design and implement tax incentives and other policies to stimulate industry investment in long-term engineering research


3. Federal & state government and industry should invest in upgrading and expanding laboratories, equipment, and information technologies and meeting other infrastructural needs of research universities and schools of engineering to ensure that the national capacity to conduct world-class engineering research is sufficient to address the technical challenges.

4. Considering the importance of technological innovation to the nation, a major effort should be made to increase participation of US students in engineering.

Recommendations (cont.)Recommendations (cont.)


5. All participants and stakeholders in the engineering community should place higher priority on encouraging women & underrepresented minorities to pursue careers in engineering.

6. A major federal fellowship-traineeship program in strategic areas (e.g. energy; info-, nano-, and biotechnology; knowledge services, etc.) should be established to ensure that the supply of next generation scientists and engineers is adequate.



7. Immigration policies and practices should be streamlined to restore the flow of talented students, engineers, and scientists worldwide into US universities and industry.

8. Links between industry and research universities should be expanded and strengthened.

9. Multidisciplinary discovery-innovation institutes should be established on the campuses of research universities to link fundamental scientific discoveries with technological innovations to create products, processes, and services.



The Final SolutionThe 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 wealth.


Highlights of what the College of Engineering has accomplished and the

college’s direction

CEAS VisionCEAS Vision

A scholarly community dedicated to excellence through student-centered education and research

emphasizing professional practice in engineering and applied science

Robo-Bronco

Number of Bachelor GraduatesNumber of Bachelor Graduates

0

50

100

150

200

250

300

350

2000-01 2001-02 2002-03 2003-04 2004-05

Master’s EnrollmentMaster’s Enrollment

050

100150200250300350400450500550

2000 2001* 2002 2003 2004

*CS Moved to CEAS

Ph.D. EnrollmentPh.D. Enrollment

0

5

10

15

2025

30

35

40

45

50

2000 2001* 2002 2003 2004

*CS Moved to CEAS

Research Award DollarsResearch Award Dollars

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2000-01 2001-02 2002-03 2003-04 2004-05

CEAS CornerstonesCEAS Cornerstones

EngagementEngagement InnovationInnovation

GlobalizationGlobalization LeadershipLeadership

EngagementEngagement

Definition• Experience based learning• Involving students with their profession as they learn• Faculty members and staff who are active in their

professions

Purpose• Produce job ready graduates with the ability to grow

in their profession

Examples of EngagementExamples of Engagement

• Senior Design Conference• Real world examples and applied problems used in

classes• Student design-build competitions

• Sunseeker – 6th in the Nation• SAE Formula One Race Car• ASCE Concrete Canoe• AIChE Chemical Car

Examples of EngagementExamples of Engagement(continued)(continued)

Examples of Engagement Examples of Engagement (continued)(continued)

•CEAS Learning Communities•Cooperative Education & Internships •Student and faculty research •Student and faculty Professional societies

• Faculty leadership in local, regional, and national positions

• Student conferences –National and international conferences

Examples of Engagement Examples of Engagement (continued)(continued)

• Laboratory extensive curricula• Volunteer projects

• Habitat for Humanity• Rockets program• Intel Science and Engineering Fair (hosted)• Etc.

• Industry plant tours• Industry visits to campus• Faculty and alumni mentoring• NSF REU programs

InnovationInnovation

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

current

Technology CurveTechnology Curve

Time to Technology MaturityTime to Technology Maturity

Basic Research Applied Research Technology Transfer

(Application of New Technology)

Use

(Deployment, Training, &

Service)

Tec

hnol

ogy

Mat

urity

Lev

elT

echn

olog

y M

atur

ity L

evel

CEAS

Research FociResearch Foci

• Advanced Vehicle and Development Simulation

• Product Design and Manufacturing• Life Sciences and Biotechnical• Engineering Education

GlobalizationGlobalizationDefinition• 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.

Examples of GlobalizationExamples of Globalization

How we might teach it•Certificate in globalization•Faculty-led tours•Study abroad•Faculty and student exchanges (visiting scholars)•International conferences (attended or sponsored)•Examples within classes•Twinning•University to university agreements•Foreign language minors

LeadershipLeadershipDefinition• 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

LeadershipLeadershipPurpose• 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 RaiserCEAS Katrina Fund Raiser

CEAS MissionCEAS 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)

Committee Recommendations and Committee Recommendations and Actions (cont.)Actions (cont.)

• Action A-1: Annually recruit 10,000 science & mathematics teachers by awarding 4-year scholarships and thereby educating 10 million minds

• Action A-2: Strengthen the skills of 250,000 teachers through training and education programs at summer institutes, in master’s programs, etc.

• Action A-3: Enlarge the pipeline by increasing the number of students who take AP and IB science & mathematics courses.



• Action B-1: Increase the federal investment in long-term basic research by 10% a year over the next 7 years.

• Action B-2: Provide new research grants of $500,000 each annually, payable over 5 years, to 200 of our most outstanding early-career researchers.

• Action B-3: Institute a National Coordination Office for Research Infrastructure to manage a centralized research-infrastructure fund of $500 million per year over the next 5 years.

• Action B-4: Allocate at least 8% of the budgets of federal research agencies to discretionary funding.



• Action B-5: Create in the Department of Energy (DOE) an organization like the Defense Advanced Research Projects Agency (DARPA) called the Advanced Research Projects Agency-Energy (ARPA-E).

• Action B-6: Institute a Presidential Innovation Award to stimulate scientific and engineering advances in the national interest.



• Action C-1: Increase the number and proportions of US citizens who earn physical-sciences, life-sciences, engineering, and mathematics bachelor’s degrees by providing 25,000 new 4-year competitive undergraduate scholarships each year to US citizens attending US institutions.

• Action C-2: Increase the number of US citizens pursuing graduate study in “areas of national need” by funding 5,000 new graduate fellowships each year.

• Action C-3: Provide a federal tax credit to encourage employers to make continuing education available (either internally or through colleges and universities) to practicing scientists and engineers.



• Action C-4: Continue to improve visa processing for international students and scholars

• Action C-5: Provide a 1-year automatic visa extension to international students who receive doctorates, or the equivalent in science, technology, engineering, mathematics, or other fields of national need at qualified US institutions to remain on the U.S. to seek employment. If these students are offered jobs by U.S.-based employers and pass a security screening test, they should be provided automatic work permits and expedited residence status.



• Action C-6: Institute a new skills based, preferential immigration option.

• Action C-7: Reform the current system of “deemed exports”


• Action D-1: Enhance intellectual-property protection for the 21st century global economy

• Action D-2: Enact a stronger research and development tax credit to encourage private investment in innovation

• Action D-3: Provide tax incentives for U.S.-based innovation

• Action D-4: Ensure ubiquitous broadband Internet access.



engineering globalization engineer’s week dinner 2006 dr. timothy greene

Documents

gathering storm slide

gathering storm us

gathering storm engineers1

michigan slide

gathering storm energizing

gathering storm japan

direction slide

worrisome indicators