2011 Salary Survey

The Authority
on Emerging
Technologies for
Design Solutions
electronicdesign.com
Copyright 2011 by Penton Media Inc.

All rights reserved. The contents of this publication
may not be reproduced in whole or in part without
the consent of the copyright owner.
2011Annual
Salary Survey
Report
Top50Employers
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Dear Reader,
wo of Electronic Designs most

popular articles of the year are our annual salary survey and our
annual list of the Top 50 Employers in Electronic Design. This
year, we expanded the focus of our salary survey to include the
faces of the engineering lifecycle. We sent out a survey to the
incoming class of EEs, working engineers and those that are in
the later stages of their careersthose EEs who are thinking
about retirement.

To help us in finding out more about the incoming class, we partnered
with the IEEE. We were rewarded with more than 5,000 responses from undergrads, post-graduate students and recent grads. Among other things our
survey shows how they view their education, their current perceptions of the
profession and their dream jobs.

In our traditional salary survey, we asked working engineers our usual
set of questions, which will give you insight into the financial aspects of the profession including salary, benefits and more. We also asked our readers a series
of questions about how they keep up with the profession, in other words, how
they educate themselves to keep pace with emerging technologies.

Finally, we decided to take a look this year at engineers nearing the
end of their careers. We wanted to know how they were planning to handle
their retirement yearspersonally, professionally and financiallyor if they were
planning to retire at all.

Beyond the salary survey, weve included our Top 50 Employers in
Electronic Design, a very popular feature that we did earlier this year. The list
includes both EOEMs and manufacturers of end products.

No matter which stage of this great profession that you find yourself in,
were sure that youll find these two features both interesting and informative.
Regards,
Joe Desposito
Editor-in-Chief
Electronic Design
Jay McSherry | Contributing EDITOR
jaymcsherry@earthlink.net
Faces Of The
Engineering
Lifecycle
With this special edition of our annual Salary Survey, we take you on a comprehensive tour of
the engineering career, from students and new grads looking for or working their first jobs to
experienced veterans getting ready to retire.
tion, their current perceptions of the profession, and their

dream jobs.
We also decided to take a look at engineers at the culmination of their careers to see how they were planning
for life after engineering, both financially and professionally. Perhaps not surprisingly, many were planning
to stay connected to the profession as teachers, mentors,
and philanthropists, continuing to find ways to benefit
society even after their official careers are complete.
Of course, we also present our usual look at the salaries and opinions of working engineers. All told, nearly
8000 members of the engineering community participated
in our research this yearthe most comprehensive examination of the engineering profession of its kind.
ach year around this time, we survey engineering professionals for a look at the
latest compensation trends and the issues that are most important to them.
This year weve expanded our coverage to include the views of the
incoming class of engineering students, as well as recent graduates,
for their emerging opinions of the profession.
To do this we teamed up with the IEEEthe
worlds largest professional association for engineersand surveyed more 5000 undergrads, postgraduate students, and recent grads. Among other
things, our survey shows how they see their educa3
that isnt fostered in graduates from other majors, said a senior at Rutgers University. Companies recognize this and generally offer good
career paths for graduates with this type of training.
One confident student at the University of Utah put it another way:
Biotechnology is still a growing industry. Besides, if I cant find a
job, I will make one.
Despite the difficulties that some see for the engineering job market,
an overwhelming 92% of the engineering students we surveyed said they
would still recommend engineering as a career path to another young
person looking to choose a profession. I never went into engineering for
the salary potential, said a junior at Notre Dame. I went into it because
its something I thought (and was correct in thinking) Id enjoy.
More than a third (36%) of the students who responded said theyre
involved in corporate-sponsored projects, while 42% work with professors in technology labs on projects for commercial applications as
part of their curriculum. And 45% said theyve entered technology/
design contests at their school.
On average, students said that about two-thirds of what they learn in
school is theoretical engineering (gaining a fundamental understanding of
engineering principles) compared to learning how to apply those theoretical principles to real-world problems. But is this really the best approach?
Nearly 63% of the students we surveyed believe they would benefit more
if colleges put a greater emphasis on teaching practical applications.
Each engineering course should have labs associated with them so
that the students can apply the theoretical understanding of the material
into a practical design and observe how devices are actually made,
said a junior at Temple University.
A student at Boise State University put it this way: Students that
dont already have a firm grasp on what engineering covers dont
really get the most from their classes. For example, when teaching op
amps, maybe we should understand why we use them. What do they
do for us? What are some practical applications where you would see
an example of this circuit?
The Incoming Class Speaks Out

Are engineering students learning whats needed? And whats their take on the profession in
this difficult job market?
College has always been a time of anxiety and excitement. But for
engineering students, that sense of uncertainty has grown along with
the growth of the global economy. Its not simply a matter of competition with foreign counterparts, although that definitely factors into the
equation. The global economy means that more products are coming
to market far faster. But that doesnt merely shrink design cycles. It
also means new technologies arise at a far faster clip.
Four years can be an eternity in product development and technological growth, but engineering students are challenged to plan a curriculum without being certain that their areas of specialization will still
be in demand when they graduate. Its hardly likely, but it remains a
nagging doubtis it possible that some part of a hard-won engineering education will be outmoded by the time graduation rolls around?
About 88% of the engineering students we surveyed said they began
their college careers as engineering majors, while the rest switched
over to engineering after trying something else. Nearly 42% said they
made the choice to pursue an education in engineering on their own,
while about a third (32%) said a teacher or professor influenced them
and 34% said a parent or other family member involved in engineering
influenced them. About 21% said a parent not involved in engineering
helped them choose their major.
Only 59% of engineering students today believe a career path in engineering and the potential for salary advancement is as promising now as
it was when they first started pursuing their engineering education.
Too many experienced engineers are currently unemployed, said
a postgraduate student attending the University of Colorado in Denver.
There doesnt seem to be a stable career path. Job security appears to
have disappeared.
One postgraduate student at Virginia Tech complained: When I
entered my studies in medical physics we were told there was a huge
demand and that everyone got a job. Now my friends who have graduated spend months searching and end up taking any job they can find,
even if its not at all what they wanted.
But most undergrads remain upbeat about the prospects for a good
living in engineering. I still think that engineering graduates have a
unique skill set in problem solving and generally getting stuff done
Factors Recent Graduates Rate Most Important In

Choosing Their First Job
1. Opportunity for advancement
2. Opportunity to benefit society
3. Salary
4. Hours required
5. Travel time to/from
work
6. Health benefits
Nearly four in five engineering students have a Facebook page, and

most (52%) also belong to LinkedIn. A third have Twitter accounts,
and 87% watch videos on YouTube. Engineering-related videos on
YouTube are watched by 60%, and one in five peruses engineering
channels on the video site. And nearly a third have posted videos of
their own on YouTube.
Most engineering students believe that social networking sites will
continue to play a key role in their lives once theyve graduated from
school, with close to two-thirds (62%) saying that social networking
sites will be useful tools in their future engineering work.
Starting Salaries
Whats in your wallet?
Under 30,000
61%
30,000-39,999
10%
40,000-49,999
6%
50,000-59,999
70,000 or more
5%
10%
A Tough Road For Recent Graduates
Some of the students we spoke to complained about being subjected

to outdated textbooks, teaching materials, and techniques, while others
complained about the spotty quality of tenured professors, too few labs,
and a general lack of funding,
Tenured professors (of which there are many) are uninterested in
teaching, claimed a student from Syracuse University. And 80% of
the courses taken toward my PhD were a complete waste of my time,
skill, and money.
One of the major issues at my university is the issue of budget,
said a senior at San Diego State. Of course, every university across
the nation, especially public ones, has had to deal with this problem.
However, I feel that budget cuts have directly affected engineering,
which is a hands-on practice. One or more labs for classes have been
cancelled, giving students less opportunity to try their hand at what I
would call real-world engineering.
Engineering graduates face uncertain times in todays faltering economy, particularly when job growth in so many sectors is expected to
remain flat over the next few years. Also contributing to this climate of
uncertainty is offshoring, the increasing reliance on international engineering talent, especially as China and India begin to flex their hightech muscle. Whats more, the shrinking defense budget being proposed
by some in Washington could also drive competition for new jobs.
If there is a hot spot in this rather chill assessment, its that high-tech
companies must hire new engineering talent if they are to maintain
their competitive edge. Shrinking staff through attrition is all too often
a shortcut to stagnation.
Is there anything that newly minted graduates can do to sharpen
their own competitive edge? Make certain that your skills are as
cutting-edge as the companies you hope to find a berth in. Seminars,
workshops, and continuing education are excellent ways to preserve or
increase your market potential.
Only a slight majority (58%) of the recent graduates we surveyed said
theyd landed a job, with the rest either still looking for work or finishing up an internship. Of those who were working, more than half (56%)
landed their first job after obtaining their bachelors degree, while 33%
Working Toward The Future
About 20% of undergraduate students say they take online courses.

Nearly three out of four plan to go on to obtain a postgraduate (masters or doctorate) degree, while most of the rest havent made up their
minds yet. Of those who plan to continue their education, the majority
(53%) plans to pursue their postgraduate degrees immediately after
graduation, while 26% will hold off until theyve landed their first job.
Undergraduate students keep themselves busy. Nearly half (43%)
work part-time or full-time jobs while attending school, while 86% either
currently participate in or plan to participate in internships or co-op programs. A slight majority (53%) of those who work while attending school
are employed in an engineering-related field, and on average working
students put in about 20 hours a week on the job. Only about one in four
(24%) said their employer provides some sort of tuition assistance.
Todays crop of engineering students is a fairly entrepreneurial
bunch. About 20% plan to start their own company within five years
of graduating, and another 29% said they probably would strike out on
their own at some point in their career.
My dream is to start up a high-tech company in the telecommunication field, said a student at Vanderbilt. As a PhD student at the university, I like working in research positions. And since my area of expertise
is wireless communications, Id like to start something in this field.
Average Starting Income Of Recent Grads

By Company Size
Small firm (fewer than 100 employees)
$33,647
Medium-size company (100 to 999 employees)
$38,405
Large organization (More than 1000 employees)
$44,808
Factors Recent Graduates Rate Most Important

In Choosing Their First Job
1. Opportunity for advancement
2. Opportunity to benefit society
3. Salary
4. Hours required
5. Travel time to/from work
6. Health benefits
7. Vacation time
8. Bonuses
9. 401(k) matching
The Rise Of Social Media
10. Relocation opportunity
Not surprisingly, todays engineering students are decked out with

the latest technology. About 90% use mobile devices (the Android
platform is the smart phone of choice, used by 24% of those polled),
and 45% either plan to get an iPad or already own one.
11. Tuition reimbursement

12. Pension plan
13. Stock options
5
Recent GraduatesWhere Are They Now?
Employed full-time 44%
said theyd waited until theyd achieved their masters or doctorate before heading off to work.
Entrepreneur 1%
For those who held off, it might have been worth
Unemployed/
PostEmployed Contract
the wait. Incomes for recent graduates with advanced
seeking work 31%
graduate
part-time worker/
studies or
8%
consultant
degrees average nearly $46,800, or about 25% more
internship
5%
than the $37,400 starting pay for those with only their bachelors degrees.
11%
Nearly 43% of the recently employed grads had a job lined up
before they graduated, while another 40% found their first job within pretty much dead, really. So even though the salary may not be the best,
six months of leaving school. About one in four (26%) learned about its definitely better than being jobless right out of college. Hopefully I
the job from company recruiters on campus, and another 21% found can gather experience and move up the ladder in the near future.
their first job online, either at an Internet job site or company Web site.
But it pays to have friends. Nearly 40% learned about their first job by The Real World
way of a referral from a friend, colleague, or family member.
Some of the recent grads we surveyed were fortunate to land their
The good news is that nine out of 10 recent grads who have landed a dream jobs right out of school. I had wanted to work at NASA since
job were able to find work in an engineering-related field, and 60% felt I was a kid, said a recent engineering graduate from Maryland. To
confident that there was a clear path to growth at the company theyd have the opportunity to work there now is just amazing.
chosen to start their careers at.
But even some of those who were fortunate to find work quickly
often
found themselves in situations that either werent rewarding
Nearly three out of four of those surveyed said they were generally satisfied with their first job. Also, many saw it as an opportunity to develop enough or didnt fit the job description. My employer was not honest
new ways of thinking, acquire new skills, learn how to work under pres- about what my job would be or about the hours required for the job,
declared a recent grad from Oklahoma. The job itself was something
sure, and network with people who could be important to their careers.
The tasks were coordinated according to my level of experience, that in my opinion didnt require a college diploma.
but challenging enough that I was able to learn and grow quickly, said
The majority (52%) of recent grads still seeking to land their
a recent graduate from Lakehead University in Ontario.
first job said they were looking to get into the bigger firms, where
Another recent grad put it this way: At first I was not satisfied, because they expect the money and career opportunities to be better. And
I felt what I was doing wasnt engineering work. I did more actual engi- that shouldnt be so surprising. Among their recently employed
neering before I graduated. After about eight months, I had the oppor- peers, 70% at large organizations say they see a clear path to career
tunity to change departments. At that point, I was doing what I felt was growth, compared to only 43% who landed their first jobs at smaller companies.
more suited to engineering.
But young engineering professionals are quickly learning that satisMany still looking to land their first job out of school found themfaction with the job doesnt always extend to satisfaction with the pay. selves frustrated with the current job prospects. There just arent
Barely half (56%) of those surveyed felt they were being adequately many opportunities available right now, complained one recent grad
compensated for the work they were doing. In fact, only about a third from Hawaii. Most of the employers that I had a chance to meet with
said their total pay was on par with what they believed other recent wanted certifications and experience in addition to my BS in engineerengineering graduates were making, while close to 40% felt their take- ing. Its very frustrating since Im a recent graduate just hoping to gain
home pay was less competitive.
any kind of work experience.
Its hard finding a decent engineering job nowadays, said one
Companies are not willing to train new graduates. They always
recent grad of the University of Texas at Arlington. I graduated with expect you to have some experience within their field, another recent
a degree in electrical engineering, but it was my software skills that graduate complained. They see the new graduate as an expense more
landed me a job. The EE job market in Jacksonville (where I live) is than a potential answer for their needs. Another factor is outsourcing.
6
Landing the offer

Before graduation
40%
40
Within one month of graduating
21%
35
Within 6 months of graduating
20%
30
Within a year of graduating
6%
20
It took more than a year
7%
15
Its been over a year; still no luck
7%
25
10
5
0
Many big companies have a freeze on local hiring. They would rather
employ and train employees overseas.
Many recent grads are finding that while their education provided
them with a broad set of knowledge, most employers are seeking specialized skills. Thats a difficult situation new graduates face, said a
recent grad from Maine. I cannot wait for the ideal job opportunity,
so I have to move to other options in my top preference list. But its
practically impossible to have in-depth knowledge and experience in
every area.
Some recent grads felt their education left them ill prepared for their
first jobs in engineering. I wish we had done an actual non-trivial chip
design with tape-out and lab characterization, rather than talk about
the process all the time in school, one complained.
Another felt unprepared in parts procurement. In college, you usually learn to use generic parts, but the bits and pieces on how to decide
which, out of a thousand, components do the same thing would be a
valuable asset.
One simply put it this way: I wish we were explicitly taught why things
are done the way they are, instead of a lot of focus on how they are done.
Dream Jobs
Many students imagine themselves in dream jobs designing stateof-the-art products like renewable energy, biomedical engineering,
robotics, nanotechnology, virtual reality, and defense systems and
hope to work for leading technology centers like Apple, Google,
NASA, Microsoft, IBM, and Intel.
I want to work for Google, maybe in security or software development,
fancied one sophomore now studying at the University of Minnesota.
My dream job is to be a deep brain stimulation development engineer, mused one graduating senior. I would like to design the circuitry of medical devices.
I am torn between the desire to run my own technology company and the desire to be a CTO of an existing technology company,
dreamed one sophomore enrolled at Lehigh University. I see myself
happiest being a liaison between the IT staff and the board of directors.
The combination of technological prowess and social skills that such a
position requires would be perfect.
I want to work in applied robotics and artificial intelligence, said
a senior at the University of Alabama at Birmingham. Id like to
research how the brain works so we can replicate it and help people
with things like Alzheimers and other types of memory loss.
My dream job is one geared towards programming AI modules for
either videogames or real-life robots, said a junior at Notre Dame. I
dont mind corporate grunt work, but its not something Id see myself
doing for the rest of my life.
Im sort of stuck between renewable energy and music technology,
the former having more jobs and a higher salary, but the latter being
more in line with my hobbies and interests, said a freshman at the
Georgia Institute of Technology.
My dream job is research and development in robotics, most likely
my own company, contracting to the military or government, said a
senior at the University of Nevada, Reno.
The future lies in space travel, envisioned a junior at the New
Jersey Institute of Technology. As a power-engineering student, I see
tremendous potential for new energy technologies that can be safe,
compact, and economical for future space endeavors. One day, mankind will be mining asteroid belts for ores, traveling across systems
at incredible speeds, and harnessing the power of stars for abundant,
reliable energy. I hope to explore every stage of these concepts so that
one day, this may become a reality.
Whats your Dream job?
breeds hesitation, which breeds stagnation. Congress could end this

uncertainty by passing a long-term reauthorization of the program.
Obama also highlighted the important role that infrastructure investments play in the economic health of our country. Jensen believes that
Congress should recognize that infrastructure in the 21st century must
include a robust and intelligent electrical grid.
The recent blackout in parts of Southern California, Arizona, and
Mexico demonstrates that our grid needs to be strengthened. Emerging technologies offer innovative ways to increase the reliability and
efficiency of the system.
A reliable, efficient, and affordable electric grid and IT infrastructure can power job growth across our country, Jensen said. Investing
in our nations electrical infrastructure not only creates jobs today but
also lays the foundation for a strong economy tomorrow.
Engineering Salaries
Remain Stable For 2011
For the second consecutive year, compensation
levels stay flat as OEMs continue to ride out the
recession.
Pay Increases Remain Flat
Increases in pay have been tough to come by in recent years for

engineers. Last year, raises averaged a paltry 1.2%, and this years
raises were barely half that amount. Across the country, engineers
report an average total compensation of $104,370 in 2011 (in salary
and bonuses), compared to $103,680 last year. The situation today
seems a lifetime away from 2008, when average engineering incomes
hit a peak of $106,271 and pay raises were nearly 4%.
In todays environment, salary advancement seems to be nonexistent, said a project engineer in Ohio. Any meager increases that
might be doled out are quickly consumed by rising employee contributions to benefits.
Design & development engineers earned average base salaries of
$92,484 this year and total compensation of $100,700. Engineering
managers saw the biggest boost in their paychecks in 2011, on average
Hunkering down and holding onin this, engineers are really
no different from professionals in other market sectors. With the

unemployment rate pegged above 9% for the foreseeable future and
not expected to return to a natural rate until 2016, engineers will
likely have to learn to be happy with the job they have rather than the
job they want. Compensation, meanwhile, is expected to remain flat
over at least the next few years, which may see some engineers losing
financial ground to inflationan unusual trend in what is typically a
well-paid profession.
The continued globalization of engineering will likely dampen
domestic employment growth to some degree. There are many welltrained, English-speaking engineers worldwide willing to work at
much lower salaries than U.S. engineers.
The rise of the Internet has made it easy for part of an engineering
project previously done by engineers in this country to be completed
by their counterparts overseas. Still, the reality is there will always be a
need for onsite engineers to interact with other employees and clients.
During his speech to a joint session of Congress last month, President Barack Obama specifically cited small businesses as a key to job
creation. Everyone here knows that small businesses are where most
new jobs begin, Obama said. And you know that while corporate
profits have come roaring back, smaller companies havent.
IEEE-USA President Ron Jensen believes that to help encourage
job growth in the engineering sector, Congress should reauthorize the
Small Business Innovation Research (SBIR) program and invest in
Americas technology infrastructure.
SBIR is a competitive, federally funded program that helps small
companies conduct research into new technology. However, because
Congress has failed to pass a long-term SBIR reauthorization, companies cannot be sure of the programs reliability.
High-tech entrepreneurs are job creators, and our country should
do everything we can to support them, Jensen said. Congress failure to reauthorize the program for more than a year at a time has created uncertainty among small technology companies, and uncertainty
Non-Cash And Indirect Cash Rewards

You Expect To Receive In 2011
Health benefits
63%
401(k) match
57%
Time off
40%
Further education/training
20%
Pension plan
18%
Stock purchase plan
16%
Stock options
15%
Professional organization dues
15%
Company-paid phone line
13%
Tuition reimbursement
14%
Factors That Affect Your Bonuses

And Other Direct Cash Payments In 2011
Performance of company or division
50%
Personal performance
49%
Company profit sharing
25%
Patent awards
11%
Project milestone completion
9%
Retention bonus
4%
Certification/training
3%
Signing bonus
2%
earning $119,366 in base salary and $131,556 in total compensation.

About half (53%) of the corporate managers we surveyed work in
small companies and startups (annual revenues under $5 million), and
the ones we spoke to take home an average base salary of $108,078
and total compensation of $120,865.
Engineers are evenly split over whether engineering offers the same
opportunity for salary advancement as it did five years ago. I see
reports that new grads are earning average salaries of $50k to $65k, so
I think the potential to begin there and advance up the career path is
still there, said a hardware engineer in Michigan.
There seem to always be jobs in engineering versus other fields
and there are not enough engineers graduating each year, so that
should push salaries up due to supply/demand, noted a design engineer from Colorado.
Average Salaries
By Engineering Title
Base
salary
Total
compensation
Software engineering manager
$130,107
$141,762
Vice president/VP of engineering
$124,357
$137,226
Technical director/
director of engineering/R&D/
engineering manager
$113,170
$125,335
Chief engineer/senior engineer/

lead engineer/principal engineer
$107,630
$116,693
Department head/section head
$105,750
$115,885
Group leader/project team leader/project

manager
$103,437
$112,966
Applications/systems engineering manager
$100,274
$110,388
President/owner/CXO/
other executive management
$98,025
$109,364
Software engineer
$99,384
QC/evaluation/test manager
$92,923
Systems engineer/
applications engineer
$93,351
$102,750
Consulting engineer/scientist
$88,538
$98,680
Other (please specify)
$89,078
$98,340
Manufacturing/production manager
$86,500
$93,341
Design engineer/project engineer/R&D

engineer
$83,879
$90,427
Member of technical staff
$83,280
Test engineer
Manufacturing/production engineer
Average Salaries By
Geographic Region
The industry is changing, but the opportunities are still out there,
said a consumer electronics engineer from Texas. Engineers must
shift their thinking and be prepared to migrate to new opportunities in
order to remain successful.
But some survey respondents were less bullish. Five to 10 years
ago, companies still saw the value in core product experience as
something that needed to be retained and passed on, stated an engineering manager from Connecticut. With the expanding reliance on
sourced labor and little permanent hiring of young engineers, there
are few people to carry the knowledge forward. The average age of
engineers is climbing and reduced enrollments in engineering majors
are creating a perfect storm of the need to turn elsewhere (offshore) to
fill those needs.
Geographic location plays a big role in income levels, and the Pacific
region is still on top with total incomes averaging $117,984, followed
by the West South Central region ($116,416). Next up was the New
England states ($108,838) and the Mid-Atlantic region ($106,295).
The market segment you work in is another major factor thats
influencing pay. Chip houses led the way in engineering pay again this
year, at $141,272, followed by computer OEMs ($119,496), military
contractors ($113,313), communications systems ($113,266), and
medical electronics firms ($106,969).
But no matter where you work, chances are youre working harder
for the money than ever before. This year, engineers on average claim
to be putting in a whopping 65 hours a week on the job, including 41
hours at the office, 11 hours at home, seven hours at other locations,
and six hours on call.
Average Salaries By Job Function
Base salary
Total compensation
Engineering management
$119,366
$131,556
$107,172
Executive/operating management
$108,078
$120,865
$104,144
Design & development engineering
$92,484
$100,700
Other engineering
$85,723
$94,029
Base salary
Total compensation
ICs and semiconductors
$125,849
$141,272
Computer systems/boards/
peripherals/software
$109,360
$119,496
Government/military
$106,327
$113,313
$89,827
Communications systems/
equipment
$103,625
$113,266
$80,290
$87,801
Medical electronics
$97,085
$106,969
$74,558
$80,192
Avionics/marine/space
$99,791
$106,729
Test and measurement equipment
$92,974
$100,875
Average Salaries By Industry
Base salary
Total compensation
$91,772
$100,743
Pacific
$107,441
$117,984
Software
$91,547
$99,899
West South Central
$106,352
$116,416
Research & development
$90,562
$99,204
New England
$100,101
$108,838
Components and subassemblies
$92,260
$99,105
Mid-Atlantic
$98,362
$106,295
Automotive electronics
$89,706
$97,725
West North Central
$96,918
$104,790
Consultant
$85,726
$95,892
Mountain
$90,583
$99,545
Consumer electronics
$87,729
$95,328
East North Central
$89,239
$97,124
South Atlantic
$88,110
$95,435
Industrial controls systems/

equipment
$85,604
$94,038
East South Central
$88,656
$94,769
Contract design or manufacturing
$74,914
$82,588
EE ll eec ct r
to
r noi c
n iDce s iDgens M
i g
ag
n a zMi n
a eg sa z
20
i 11
n e A
n
s n2
ua
0 l1 Sa
1 lAar
ny
n u
S uarlv e Sa
y Rle ar
p o ryt / ST o
u pr v
50
e yEmRp e
lo
p yoe r st
I think companies are expecting more work from fewer individuals, commented an R&D engineer from Pennsylvania This
was established during the recession, and I dont see that expectation
changing back to where it was previously.
One department lead engineer in California put it this way:
Corporate America is squeezing the life out of every employee
possible. Ive survived four layoffs and essentially absorbed the
workload of six other colleagues. My pay has changed by 3%,
up thankfully. The only place growing is upper management and
their friends.
Certain perks made a comeback in 2011. Nearly 57% of survey
respondents say they expect to see 401(k) match plans from their
companies this year (compared to only 49% last year), and 63%
were back to getting company-paid health benefits (compared to
57% in 2010).
There were some glimmers of hope on the employment outlook in
this years survey, as 33% of survey respondents say their company
plans to increase the number of engineering jobs in the coming year,
up from 29% a year ago. Whats more, nearly half (48%) say their
organization is having difficulty finding qualified candidates for open
engineering positions, compared to 42% last year.
Due to job market growth in the sector, and competitive career
recruitment, my company has been forced to step up the game to
Average Salaries By Type Of Design
Work You Do
Base salary
Average Salaries
By Size Of Company
Base salary
Total compensation
$10 billion or more
$116,361
$126,416
$5 billion to $9.9 billion
$108,812
$118,798
$1 billion to $4.9 billion
$109,197
$120,695
$500 million to $999.9 million
$106,197
$115,648
$99,104
$107,357
$99,263
$106,843
$91,757
$100,208
$91,404
$100,201
$5 million to $9 million
$85,804
$93,451
Less than $5 million
$80,474
$88,607
Base salary
Total compensation
40 years or more
$93,391
$103,161
35 to 39 years
$112,423
$122,739
30 to 34 years
$109,995
$119,154
25 to 29 years
$105,500
$114,879
20 to 24 years
$97,008
$106,218
15 to 19 years
$89,784
$98,571
10 to 14 years
$82,749
$90,645
5 to 9 years
$71,688
$79,278
1 to 4 years
$57,857
$62,865
Less than 1 year
$51,053
$59,107
Average Salaries By Years

Of Engineering Experience
Total compensation
retain top talent, offered one development engineer currently with the
International Automotive Components Group. Wage increases and
additional benefits have been reinstated this year.
The toughest positions to fill are in analog design (38%), software
(37%), systems engineering (36%), power electronics (29%), and
mechanical design (27%).
Despite the tough job market, most engineers remain bullish
on the profession. The majority (55%) still find themselves sufficiently challenged intellectually with the projects they work on,
while only 10% claim theyre not. Nearly two-thirds (63%) feel
adequately compensated for the work they do. And, 86% would
recommend engineering as a career path to a young person looking
to choose a profession.
Comparing other career choices with engineering can show
how engineering is still a very promising and challenging career
today, said a senior engineer with more than 30 years of experience. Considering the current economic crisis in the USA and in
most other industrialized nations, engineering continues to be a
leading technologically oriented career that has more opportunities for employment than other choices. Technology is advancing
faster than ever, so engineering is the best career choice to keep up
with technology, and keeping up with technology is the best bet
for any profession.
ICs and semiconductors
$128,250
$142,992
Computer product design (supercomputers,

mainframes, workstations, servers, PCs,
notebooks/laptops, peripherals, boards,
etc.)
$113,552
$123,222
Military electronics products
$107,012
$114,338
Communications systems and equipment

(local-area/wide-area networking products,
wireless, cellular, RF and microwave,
Bluetooth, etc.)
$101,986
$111,941
Avionics, marine, or space
$102,382
$110,296
Software design/development/programming
$100,920
$110,2011
Medical electronics products
$100,713
$109,975
Power design
$95,193
$103,914
Automotive electronics products
$91,046
$99,831
$89,303
$98,407
Research & development
$89,605
$97,581
Safety/security
$87,379
$97,010
Test and measurement equipment
$88,055
$95,845
Components and subassemblies
$88,675
$95,736
Staying Smart
Consumer electronics products
$87,858
$95,449
Industrial controls systems and equipment

(including robotics)
$86,518
$95,422
Engineering remains a field that requires constant education to keep

up with emerging technologies as well as the latest applications. In
fact, staying current with new and emerging technologies is the num10
The universities today teach you how to solve problems, but they
dont teach you about leadership, contract negotiations, or the legal
hurdles that can affect engineers, observed an engineer from North
Carolina.
Many of the new hires and interns have the engineering knowledge, but many of them lack basic Unix skills, quipped a senior MTS
from Wisconsin. They have grown up on Windows PCs and are
not prepared for working on real systems. It takes them much
longer to become self-sufficient.
But not everyone sees it this way. Internships and co-op
assignments are more common today, so many new graduates come into the workplace better prepared than I was for
the realities of the working world, said a product manager
who responded to our survey.
A senior engineering manager at Rockwell Collins had this
to say: Todays graduating engineers have a greater opportunity to make an immediate impact to society because of the amount
of information available at their fingertips, namely, the Internet.
We asked survey respondents this year to tell us some of the things
they didnt learn in school that they wish they had. While many got
specific about particular technologies like embedded programming,
CAD, and analog circuitry, most talked about things outside of engineering like project management, team building, mentoring, time
management, interpersonal skills, business law, marketing, regulatory
requirements, accounting skills, technical writingand dealing with
corporate politics.
I could have used a stronger business background, complained a
lead engineer now at Honeywell. The ability to make a business case
for spending money on engineering development is essential to any
engineer working in commercial engineering.
But in reality, there are no shortcuts to on-the-job experience. I
learned in college that there is more to know than you can learn in college, said one senior engineer. As one of my professors explained,
college gives you the skeleton of knowledge to be an engineer. Experience puts the flesh on the bones.
And what advice does todays working engineers have for students
getting ready to enter the field? Continue to learn the basics, dont
discount graduate school, do as many internships as possible, dont
expect to get your dream job overnight, bring passion to your first
joband start saving early for retirement.
Do not stop learning, advised a principal engineer at Oracle. Stop
and you will fall behind and likely never catch up. Be open to new
ideas and creative solutions. Be willing to share new ideas with peers.
Working together in a team is the only way projects can move forward
with the speed needed to keep up with your competition.
Believe in yourself, suggested one senior electrical engineer. You
are the one who has the tools and ability to solve the difficult problems
that the world faces. Find energy alternatives, and develop ways to
provide safe water and healthy environments. Politicians and lawyers
cant do these thingsbut you can.
You have the knowledge, but experience takes time, pointed out a
research lab technologist at the University of Toronto. Make a thousand
rules of thumb for yourself to cover every aspect of design, and use them.
An engineer/developer at Ericsson summed it up this way: Dont
just rely on your college degree to make you successful. Find some-
The Top 10 Professional Issues

That Keep You Up At Night
1. Staying current with new and emerging technologies
2. Concerns about the general health of the economy
3. Looming project deadlines
4. Product reliability issues
5. Price/performance issues
6. Concerns about job security
7. Outsourcing issues
8. Component availability issues
9. Dealing with reductions in staff
10. Concerns about financial health of your company
The Factors That Influence

Your Job Satisfaction Most
1. The challenges that accompany the design of new products
2. Researching potential design solutions
3. Opportunity to design products that can benefit society
4. The compensation you receive for the work you do
5. The recognition you get from others for the work you do
6. Working in team situations with peers
7. The pressures associated with solving design problems
8. Working independently of others
ber one issue causing engineers to lose sleep this yeareven more
than concerns about the general health of the economy. But 44% of
those surveyed feel their company doesnt do enough to support continuing education among its engineers.
They dont offer to pay for seminars or conferences for engineers
anymore, said a senior product development engineer at a military
contractor. To attend a conference, I must use vacation time rather
than paid work days. This indicates to me that the company isnt interested in furthering my knowledge/skill sets, even though it would be a
benefit to the company.
Tuition reimbursement was reinstated very recently after being
suspended for several years, said an electronics products manager in
Detroit. Travel authorizations for trade shows are almost impossible
to get, and theres no money in the budget to cover tuition charges for
online seminars or training classes. In-house course offerings have
also been scaled back drastically over the last decade.
It isnt a lack of financial support, so much as a lackof emphasis on
staying current and sharing information, said a senior project engineer in
Indiana. I think this is common in many companies. Some people will do
it on their own, but I think the results are more synergistic when there is a
corporate emphasis.
Whats more, only 47% believe that todays graduating engineers
are as well prepared for the job as they wereand 40% feel theyre
less prepared.
Students coming into the field have far too little hands-on experience with technology, said a senior project engineer, although
wonderful tools, computers, and the Internet have replaced many of
the technical hobbies of previous generations. Since many public high
schools cannot afford to maintain industrial arts programs, many students have no idea how anything is actually made.
11
thing in your field or specialty to become intensely passionate about

and focus as much time and energy as you can to becoming an expert
in that thing. Then, find another, somewhat related aspect to become an
expert in and also become an expert in how this new information ties
into the previous information. Continue doing this and never stop. You
may not be able to directly apply a lot of the experience and information
that youve attained, but youll have a better understanding of how the
world works, and that type of information can be applied everywhere.
Its been a bumpy ride for engineers over the past few years, and
thats not likely to smooth out in the near future. Many companies
have cut engineering budgets to the bone, and then some. Amenities
are almost nonexistent. Money for travel and training are difficult to
come by, which has many engineers frustrated and in some instances
worried about their futures.
At the same time engineers tend to be very self-reliant. They
typically believe that talent and hard work will carry them through,
despite what may be temporary tough times. If their outlook can
be summed up in one sentence, it might be that people who are
good at what they do will continue to advance through good times
and bad.
Maxim Cofounder Takes His Skills And Goodwill To Africa

There they fell in love with the small village and its people and got
to witness firsthand the poverty, illness, and overcrowded classrooms that dont get talked about in the tourist brochures (Fig. 1).
The Fullagars began traveling back to Africa every couple of months
after that to work with the village elders on developing a plan to help
address some of the educational needs in tribal African villages.
In South Africa, there are many local languages. But in fourth
grade and after, the lessons are taught in English only. Young students struggle with English and often drop out before completing
high school, so they cant compete for the college scholarships that
are only available to good English speakers.
It wasnt long before the Fullagars formed InAfricanShoes.org.
This non-profit organization focuses on the younger children and
raises their English awareness and proficiency by making reading
fun, creating a village library and learning center with donated childrens English picture books and computers (Fig. 2).
After helping raise funds, purchase land, construct a facility, and
getting thousands of donated books shipped, the Fullagars opened
the Boxahuku library in 2009. Since then, theyve opened another
library in the town of Gwanda in Zimbabwe.
For more information about volunteering opportunities, see the
organizations Web site at www.InAfricanShoes.org/InAfricanShoes/Get_Involved.html.
When Dave Fullagar retired in 1999, he left behind some tough

shoes to fill. Fullagar is well known in technical circles for designing the first internally compensated op amp, the ubiquitous A741,
while at Fairchild in 1968. He also designed the first monolithic
FET-input op amp while at Intersil in 1972 and helped cofound
Maxim Integrated Products in 1983.
But as is the case with many successful engineers, theres more to
Fullagar than his technical accomplishments. In retirement, he and
his wife, Betsy, have worked unassumingly on getting childrens
books to support African schools and libraries.
In May 2007, on a photo safari to South Africa, the Fullagars
came to know their guide, Alweet Hlungwani, who invited them to
visit his village of Boxahuku in the northeast corner of South Africa.
1. Maxim cofounder Dave Fullagar and his wife Betsy travelled to South Africa
in 2007 and fell in love with the village of Boxahuku, leading them to found
InAfricanShoes.org, which builds and equips libraries for children.
2. InAfricanShoes.org opened the Boxahuku library in 2009, followed by another

library recently opened in the town of Gwanda in Zimbabwe.
12
already in their sixties said they wont be able to retire until theyre 70
or olderwith 42% saying this was later than theyd planned. In fact,
only 10% of those already nearing retirement age said that theres no
chance they would accept another engineering job following retirement if it were offered to them.
While 18% said the prospect of coming out of retirement would be
very unlikely for them, nearly half (42%) of engineers in their sixties
said it wouldnt be out of the question if the right opportunity were to
come along. And nearly one in five would definitely take something
else rather than retire at this point.
Although engineering continues to be a well-paying profession, engineers surprisingly seem to be flying on their own when it comes to their
retirement planning. More than two-thirds (68%) say they dont have a
professional financial advisor helping them plan their retirement.
I find that depending on myself is the best way, said one respondent. I have to try and save as much as I can now to make sure my
future is secure. All of the different financial products are nice, but who
really can take those kinds of risks?
In addition to Social Security, the sources of income engineers will
depend on most to help fund their retirement include 401(k) plans
(66%), their personal savings accounts, money market accounts and
CDs (55%), IRAs (47%), stocks, bonds, and mutual funds (41%), and
pension plans (39%).
Yes, There Is Life After

Engineering
Engineers are taking control of their futures and
designing their retirementand planning to
give back to society.
Engineers have never been known for being passive people, and
they will be the architects of their retirement. As they approach their

golden years, though, these professionals are no different than their
neighbors or most other Americans.
Theyre worried about how a wildly fluctuating stock market will
affect their retirement accounts. Theyre concerned about a recession
that shows no sign of ending, despite assurances from Washington.
And theyre anxious, once again, about conditions overseasnot as a
source of competition but as a potential source of economic collapse,
particularly among countries among the EU Zone.
What makes this all doubly difficult is that most engineers see
themselves as problem solvers. And perhaps for the first time in their
careers, theyre confronting problems for which they cant design an
easy solution.
A series of Gallup Polls taken between April-July 2011 paints a
bleak picture:
Gathering No Moss
According to our survey, many engineers as they reach the culmination of their careers are more interested in giving back than getting out (see Maxim Cofounder Takes His Skills And Goodwill To
Africa, p. 41). This is not particularly surprising. Engineers tend to
be individuals who want to build a better world. Theres no reason to
expect that feeling to fade when engineering professionals begin to
think seriously about retirement. Indeed, it seems to grow stronger.
Retirement Savings Goals Of Engineers
For the first time this decade, a majority of non-retired Americans

(52%) doubt they will have enough money to live comfortably once
they retire, up sharply from about a third who felt this way in 2002.
Non-retired Americans now project that they will retire at age 66, up
from age 60 in 1995. And eight in 10 American workers now think
they will continue working full or part time after they reach retirement age.
Six in 10 non-retired Americans believe they will get no Social
Security benefits when they retiremore pessimistic than at any
time since Gallup began asking this question in 1989. Non-retirees
are now projecting Social Security as a major income source in their
retirement, paralleling a drop in projected reliance on pensions,
401(k) plans, and other investments. So American workers appear
to be in a bind, perceiving an increased need for Social Security
while at the same being less sure it will be there when they need it.
Like other Americans, engineers as a group now say that, on average,
they plan to retire at age 66. But better than one in four (27%) of those
Current age
Retirement goal
Under 30
$1,602,198
30 to 34
$1,615,044
35 to 39
$1,654,545
40 to 44
$1,573,280
45 to 49
$1,456,818
50 to 54
$1,483,597
55 to 59
$1,336,919
60 and older
$1,256,152
Sources Of Income (Other Than Social Security) Engineers Are Using To Fund Their Retirement
13
401(k)
66%
Savings account/money market account/

CDs
55%
IRA
47%
Stocks/bonds/mutual funds
41%
Pension plan
39%
Whole life insurance
13%
Stock options
11%
One way many engineers express

these desires is with an active interest
in mentoring. It gives them the double
benefit of staying connected to a profession they have deep feelings for
without the stress theyre all too happy
to leave behindwhile enabling them to
help shape the up and coming generation of
newly minted engineering graduates.
Many engineers spoke about an interest
in teaching engineering-related courses
to young students interested in engineering once they retired. My dream is to
work with the local community college to
create an alternate energy-related business with
high-tech jobs in our city, said a quality assurance team leader
in California.
Teaching would be great, said a field applications engineer at
Atmel. Id love to teach. I just havent had the opportunity. As my
office is located close to our local university, I have helped several
students with engineering projects, and it has been a satisfying experience that I would like to repeat.
The most rewarding experience Ive had is working with middle
school students on space related projects, said an electronic design
engineering manager in Connecticut. Showing how math and science interacts with everything we do is so enlightening to them. That
is where the seeds of engineering need to be sown and Id like to do
more of it.
Many engineers told us they plan to stay connected to the profession
by continuing to attend industry seminars and conferences and get
more active in local professional groups and associations.
I plan to continue my work with professional societies, said one
design engineer from Minnesota. I do want to take a break from engineering for at least one to two years, then see if I want to reconnect
more actively with the engineering profession.
Still others nearing retirement look to continue to find ways to
benefit society in non-engineering ways. My life is becoming less
engineering-centric as I get older, remarked an electrical engineer
from North Carolina. I have plans to continue to be involved in community and philanthropy over time, but in ways that will have nothing
to do with engineering.
Some engineers who have taken a first step toward retiring
are finding semiretirement even more rewarding. Ive
been working part time in engineering for a small
firm and am enjoying engineering more now
than when I worked for a Fortune 100 firm, one
Average Salaries
By Level Of Education
13%
70 or older
21%
65 to 69
29%
60 to 64
13%
59 or younger
5%
Not sure yet
16%
Total compensation
Doctoral degree
$111,656
$122,307
Master's degree
$103,781
$113,306
Bachelor's plus graduate studies
$100,303
$109,988
Bachelor's degree
$90,681
$98,860
Attended college
$78,054
$85,001
$70,606
$77,615
Associate's degree
High school or less
Average Salaries By Gender
Male
Female
$70,481
$76,618
Base salary
Total compensation
$95,790
$104,744
$79,615
$87,669
Base salary
Total compensation
60 or older
$96,819
$106,173
55 to 59
$106,595
$116,482
50 to 54
$101,808
$110,957
45 to 49
$100,664
$109,378
40 to 44
$88,655
$97,732
35 to 39
$86,686
$94,609
30 to 34
$72,238
$79,339
25 to 29
$62,963
$68,902
Under 25
$47,750
$53,208
Average Salaries By Age
survey respondent told us. Now I am involved in all phases of

the business.
Many engineers talked to us about hobbies they planned to continue or get more involved with. I have more technical hobbies
than my wife is comfortable with, said another engineer. Ill
always be working on some kind of engineering project, be it RF,
electronics, or astronomical.
But not all engineers are looking to keep a foothold in the profession. One quipped, Like a good soldier I plan to just fade away,
while another stated, I couldnt care less about the profession.
Ill just hang out in the shop and invent stuff. Still another said,
Theres no telling how I will stay connected. Regardless, I am sure
I will be tearing things apart and putting them back together until
I die.
The U.S. finds itself at an interesting point in history. With its
financial foundations shaken and the growing economic threat from
China and India, many are questioning our ability to maintain
our place as a global technology leader. That doesnt seem
to be much of a concern for the incoming class of engineers, who see themselves as ready and able to take on
and overcome the challenges we face.
Meanwhile, todays working engineers are pragmatic
about the situation, taking it in stride as yet another problem to solvesomething theyve given their professional
lives to doing. Perhaps one of the side effects of the situation is that older engineers who may find it difficult to retire in
the current economic environment will instead make a second career
out of sharing their valuable knowledge and skills with their younger
counterparts.
When Will You Retire?

Never
Base salary
14
The top 50
employers in
electronic
design
Companies that buckled down during 2009s collapse saw the positive results of their shrewd
strategies as the economy rebounded and profits rolled in in during 2010.
f 2009 was a year for weathering the storm symbolized by the fall
of Lehman Brothers back in the fall of 2008, then 2010 was a year
for taking advantage of sunnier skies, though typical engineers
may not have felt much improvement in their daily condition. However, many companies stayed faithful to the seven strategies we presented back in our 2010 list of the Top 50 Employers in Electronic
Design (see The Top 50 Employers In Electronic
Design at www.electronicdesign.com):
2009, we lost 5.7 million jobs, but at least 751,000 jobs were gained
in 2010. U.S. GDP decreased 1.7% annually in 2009, but it showed an
annual increase of 3.8% in 2010. These improvements may not look
substantial, but at a minimum, the negative trends have been reversed.
In 2010, the pool of 96 companies that we analyze collectively
showed employee growth of 1.5%, sales growth of almost 10%, and
pretax profit growth of 83%! While we are dealing
with a low base, this was a significant improvement vis a vis 2009s employee declines of 5.5%,
sales declines of 8.3%, and pretax profit declines
of 8.9%.
In 2009, companies did well to hold profit margins flat year over year and prevent debt to equity
ratios from worsening more than one point. In 2010,
companies knocked it out of the park, improving
profit margins by five points and debt to equity
ratios by nine points! Last but not least, R&D went
from almost a 4% decline in 2009 to almost a 3%
increase in 2010 (Table 2).
Another sign of optimism comes from our percentage of companies
reporting growth in key categories. In 2009, 19% of our company pool
reported increases in sales while only 9% reported increases in profits.
Building strength in good economic times

Transparent over-communication
Focused business portfolios
Cutting the right costs
Cutting costs during good times
Increasing R&D
Investing in information systems
These companies were able to begin reaping the

rewards of their intelligent planning (Tables 1A and 1B).
Crunching the numbers
While the unemployment rate peaked at 10.1% in October 2009,

by the end of 2010 it came down to 9.4% and is currently at 9.1%. In
15
1. The Chevrolet Cruze is one of GMs biggest hits, topping the charts as the best selling small car in the U.S. in May. Its also Chevrolets best selling car around the world,
with global sales of more than 250,000 in the first four months of 2011. The 2012 model will improve on 2011s fuel efficiency, as the Cruze Eco with automatic transmission will see 39 mpg on the highway.
and selling them under the Baojun, Buick, Cadillac, Chevrolet, GMC,
Daewoo, Holden, Opel, Isuzu, Vauxhall, Jiefang, FAW, and Wuling
brand names.
The company sells its cars and trucks to dealers for consumer retail
sales, as well as to fleet customers, including daily rental car companies,
commercial fleet customers, leasing companies, and governments. Its
major markets include China, the United States, Brazil, the United Kingdom, Germany, Canada, and Italy.
GMs OnStar subsidiary provides vehicle safety, security, and
information services. Meanwhile, GM provides automotive financing
services through its subsidiary, General Motors Financial Company
Inc., which purchases automobile finance contracts for new and used
vehicles purchased by consumers primarily from franchised and select
independent dealerships. Founded in 1908, GM is headquartered in
Detroit, Mich.
In 2010, these percentages have soared to 89% and 90% respectively.

In 2009, 22% reported increases in their employee count and 30%
reported increased R&D investment. In 2010, again they have soared
to 62% and 67% respectively (Table 3).
A closer comparison of this years results versus last years reveals
five companies that showed tremendous growth. General Motors
climbed 78 spots, TRW Automotive Holdings rose 64 slots, Teradyne
and Caterpillar jumped up 62 and 61 places respectively, and Cadence
Design Systems moved up 56 spots (Table 4).
Meanwhile, components and subassemblies represented the strongest category for OEMs, as six of the top 10 OEM companies specialize in this space (Table 5). Our methodology from 2009 to 2010 did
not change, though. For a complete description of how we developed
our list, see The Method Behind Our Mathematics at www.electronicdesign.com.
So, whats on tap for 2012? As employment and capital investment
continue to slowly climb back up in 2011 and 2012, those companies
that continue to shrewdly expand capacity and invest in their people,
design and bring to market quality products that truly address customer needs, and keep a tight rein on costs and stay efficient enough
to offset rising commodity costs and improve margins will be the ones
that continue to generate solid gains in sales and profits.
GMs Competitive Landscape
Demand is driven by employment and interest rates. The profitability

of individual companies depends on manufacturing efficiency, product
quality, and effective marketing. Large companies have economies of
scale in purchasing and marketing. Smaller companies can compete by
focusing on specialized markets. The industry is capital-intensive, as
GMs average annual revenue per employee is about $2 million.
Ford, Chrysler, Toyota, Honda, Nissan, Hyundai-Kia, Daimler,
Volkswagen, PSA Peugeot Citroen, Fiat, and Renault all compete
with GM. Chinese auto manufacturers Geely, Chery, and Build Your
Dreams (BYD) are up-and-coming threats.
GM Motors Up 78 Slots
General Motors Company (GM), which was company number 91 in

2008, moved up in the ranks by 78 places to land in the thirteenth slot
this year. It operates as a global automaker, producing cars and trucks
16
Taking 2009 Off
of the major lease platforms in Canada. The early signs of this expansion are encouraging with GM Canada lease penetrations increasing
to 7% in April.
As GM and GMF become more closely integrated, GM new vehicles
as a percentage of GMFs originations and GMFs percentage of GM
subprime financing and leasing volume have increased significantly.
GMF posted strong credit performance for the first quarter with annualized net credit losses of 4%, down materially from the prior year.
In Europe, restructuring has focused on reducing costs, but equally
important is the retooling of the product line. The Opel Insignia, Meriva, and Corsa are just a few examples of the product renaissance, and
there are many more to come. In fact, by 2012, most of the European
product line will be less than three years old.
In China, the largest automotive market in the world, GM maintained
its number one position with a market share of 13.6%, and the future
looks bright with the introduction of the new Baojun brand, the continued strength of Buick, and the launch of 60 new and upgraded models
over the next five years. In addition, the expansion of Korea-built
Chevrolet products being sold in countries throughout the Asia-Pacific
region and in Europe is a significant contributor to revenue growth.
We welcome GM back to our Top 50, having emerged from government oversight in the second half of 2009. The last time GM was in our
survey was 2008, where it ranked 91st before the government began its
oversight, so it has moved up 78 ranks. While it has shown tremendous
improvement and is positioned to take advantage of anticipated global
industry growth, there is still work to be done.
GMs 2011 first quarter sales were up 15%, and operating profits
without any extraordinary items were up 13%. Products including the
Buick LaCrosse and Regal, the Chevrolet Equinox, the GMC Terrain,
and the new Chevrolet Cruze all contributed to this revenue growth. In
fact, the Chevrolet Cruze commanded a price that was $3000 higher
than the vehicle it replaced.
For the first quarter of 2011, global deliveries were 2.2 million units,
an increase of more than 220,000 units from the first quarter of 2010.
This increase is attributable to a 1.3 million-unit increase in industry
volume and a 0.4 percentage point increase in global market share to
11.5%. In April, North American market share returned to a strong
19.8%, despite managing customer sales incentives down to the lowest
levels yet for the new General Motors.
To help offset increases in commodity costs, GM implemented
price increases effective May 2. These increases included hot selling
products, including the Chevy Cruze and Equinox, Cadillac SRX,
GMC Terrain, and Buick LaCrosse. When combined with increases
implemented during the fourth quarter and earlier this year, average
prices increased 0.8%.
During the first quarter of 2011, GM continued to make progress in
strengthening the balance sheet by selling non-core assets and further
funding its U.S. pension liability. The crisis in Japan is not expected to
have a material impact on full-year results.
First-quarter growth was achieved largely on the strength of stronger
sales of fuel-efficient vehicles across the portfolio. GM is much better
positioned today to meet the demands of customers looking for fuelefficient vehicles, with no better example than selling 50,000 Cruzes in
the first quarter alone (Fig. 1).
There are more fuel-efficient vehicles to come, as GM introduces
the Chevrolet Sonic, the Chevrolet Malibu ECO, the Buick Verano,
and the Buick LaCrosse and Regal with eAssist over the coming
months and year.
GM Financial has also had a positive impact on the first quarter by
improving credit availability and terms to GM customers. The primary
objective of GMs automotive financing strategy is to provide certainty
of availability to customers all through the credit cycle and the business cycle as well as increased competition and transparency.
GM Financial has steadily increased its U.S. subprime financing
penetrations from 4% in the first quarter of 2010. Leasing programs
are now offered through GM Financial in 21 states through the end of
the quarter. U.S. leasing penetrations increased from 7.6% in the first
quarter of 2010 to 16.8% in the first quarter of 2011, but still below the
industry average excluding GM of 23%.
Table 1A: Top 50 Employers

Company name
Total
company
line score
2010
rank
CATERPILLAR INC.
84
JUNIPER NETWORKS INC.
81
EMC CORP.
76
BROADCOM CORP.
75
TEXAS INSTRUMENTS INC.
74
APPLE INC.
74
ANALOG DEVICES INC.
70
QUALCOMM INC.
70
NATIONAL INSTRUMENTS CORP.
68
9
10
ALTERA CORP.
67
3M CO.
67
10
INTEL CORP.
66
12
GENERAL MOTORS CO.
65
13
AGILENT TECHNOLOGIES INC.
64
14
INTERSIL CORP.
64
14
HONEYWELL INTERNATIONAL INC.
64
14
NETAPP INC.
63
17
TRW AUTOMOTIVE HOLDINGS CORP.
61
18
XEROX CORP.
61
18
ROCKWELL AUTOMATION INC.
61
18
MEDTRONIC INC.
60
21
WESTERN DIGITAL CORP.
58
22
CYPRESS SEMICONDUCTOR CORP.
57
23
International Moves
HARRIS CORP.
67
21
Further improvement will come with the companys target of national coverage for the GM Financial lease program by this summer. To
expand availability of leasing into Canada, GMF in April acquired one
SAIC INC.
66
29
17
EATON CORP.
57
23
SANDISK CORP.
57
23
over time. Yet GM is off to a strong start in making 2011 a solid improvement over 2010, and it needs to continue to build the momentum.
Table 1B: Top 50 Employers

Total
company
line score
2010
rank
INTERNATIONAL BUSINESS MACHINES CORP.
57
23
FAIRCHILD SEMICONDUCTOR INTERNATIONAL INC.
56
27
Company name
TERADYNE INC.
55
28
LINEAR TECHNOLOGY CORP
55
28
ADTRAN INC.
54
30
CADENCE DESIGN SYSTEMS INC.
53
31
FORD MOTOR CO.
53
31
MICRON TECHNOLOGY INC.
53
31
SEAGATE TECHNOLOGY PLC
53
31
LEXMARK INTERNATIONAL INC.
53
31
LSI CORP.
53
31
GENERAL ELECTRIC CO.
53
31
NOVELLUS SYSTEMS INC.
52
38
APPLIED MATERIALS INC.
52
38
DANAHER CORP.
52
38
THE BOEING COMPANY
51
41
VISTEON CORP.
50
42
TYCO INTERNATIONAL LTD.
50
42
INGERSOLL-RAND PLC
50
42
SYNOPSYS INC.
50
42
LATTICE SEMICONDUCTOR CORP.
48
46
MOTOROLA SOLUTIONS INC.
48
46
MOOG INC.
48
46
UNITED TECHNOLOGIES CORP.
48
46
SPX CORP.
47
50
NATIONAL SEMICONDUCTOR CORP.
47
50
ST. JUDE MEDICAL INC.
47
50
TRW Flexes Its Muscles
In 2009, TRW Automotive Holdings Corp. came in as 82 on our

list of the top employers. This year, it placed eighteenth, moving up
64 slots. Together with its subsidiaries, the company designs, manufactures, and sells automotive systems, modules, and components
for automotive OEMs and related aftermarkets. It operates in four
segments: chassis systems, occupant safety systems, electronics, and
automotive components.
The chassis systems segment offers product lines relating to steering gears and systems, foundation brakes, modules, brake controls,
and linkage and suspension. The occupant safety systems segment
provides airbags, seat belts, steering wheels, and occupant restraint
systems.
The electronics segment offers various products comprising safety
electronics, radio frequency electronics, chassis electronics, powertrain electronics, and driver assist systems. And, the automotive
components provides body controls, engine valves, and engineered
fasteners and components.
The company offers its products for passenger cars, light trucks, and
commercial vehicles worldwide. Founded in 1904, TRW Automotive
Holdings Corp. is based in Livonia, Mich.
TRWs Competitive Landscape
Demand for auto parts is driven by new car sales, which are strongly
affected by interest rates, and by the replacement market. Company profitability depends partly on the difficulty of manufacturing products and
partly on demand volume, since many costs are fixed. Small companies
can compete successfully by focusing on a small number of products or
some highly technical ones.
The industry is capital-intensive, with an average annual revenue
per employee of more than $450,000. The structure of the industry
is complex, with most smaller companies (referred to as tier 2
and tier 3 suppliers) selling parts to larger suppliers (referred to
as tier 1 suppliers), which in turn sell component assemblies or
modules to car and truck assemblers such as GM and Ford, collectively called OEMs.
Principal competitors include Advics, Bosch, Continental-Teves,
JTEKT, and ZF in the chassis systems segment; Autoliv and Takata
in the occupant safety systems segment; Autoliv, Bosch, ContinentalTeves, and Nippondenso in the electronics segment; and Delphi,
Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the
automotive components segment.
GM South America continues to be in the midst of overhauling

nearly its entire product portfolio, with 2000 people hired in Brazil
in the first quarter as GM ramps up for a very aggressive product launch over the next 18 months. In Brazil alone, GM plans to
have nine new products by the end of 2012. In the entire region, 40
new products are planned for this year and next. In essence, South
America is the new version of what China was or Asia was a year or
two ago for GM.
Revenue growth is an important objective for GM, and it is investing
the necessary resources to refresh its product line over the next couple
of years. The companys mindset and new operating model center
around designing, building, and selling the worlds best vehiclenot
better than the model it replaces or as good as the competition, but actually defining the standards of being the best.
As revenue grows, there will be intense focus on cost containment at
GM. The company currently faces increasing commodity costs, which
need to be offset through cost reduction in other areas, supplier performance, and increased prices.
Efficiency in the product development cycle will have to be emphasized as its engineering and capital spending are increased and stabilized
Observations
TRW is our most improved company comparing 2010 to 2009, moving up 64 places in the rankings to number 18. The first quarter of 2011
continued to produce strong results with sales up 15% and operating
profits up about 24%. Operating profit before special items was $382
million, with a margin of 9.3%. This marked the highest level of operating profit and margin for any quarter in TRWs history.
Considering seasonality and the capital investments TRW is making
to support growth, the company still was able to generate record cash
18
2. Caterpillar, known for its construction and mining equipment, took the top spot in our list of the Top 50 Employers in Electronic Design. The rebounding economy, with
an emphasis on infrastructure and new construction, drove this success as the company introduces new equipment like the CT660 Vocational Truck, suitable for mixing
concrete and hauling loads of all sizes.
Outpacing industry growth is not limited to China and Brazil, as

TRW overall has outpaced the industry growth in each and every year
in recent years. TRW expects this to continue in the medium term, with
incremental growth in excess of $1 billion per year based on the companys current views of vehicle build.
The recent production disruptions for TRWs customers due to the
earthquakes in Japan had a minimal impact in the quarter, though
Japan-related supply disruptions and commodity costs will have to be
managed the rest of the year to maintain margins (see Distributors
Respond To The Earthquake In Japan at www.electronicdesign.com).
Product launches during the quarter continue to strengthen
TRWs diversification and leadership in intelligent safety solutions.
A few examples include electric power steering, the drivers airbag
module, seatbelt systems, and steering wheels on the Ford Focus in
North America.
In Europe, Audi launched the Q3 with TRWs stability control,
driver and passenger and side impact airbags, electronic park brake,
and steering wheel. The Honda Civic was launched in North America
with TRWs airbag control units, crash sensors, and RF technologies.
As a result of TRWs ongoing quality and six-sigma programs,
it continues to launch world-class quality products. For the quarter,
TRWs quality average was just over 5 parts per million across all
products and customers worldwide.
flow levels and continued to reduce its debt and strengthen its balance
sheet. Vehicle production trends continue to be positive, too.
In North America, overall vehicle production was up 14% compared
with the prior quarter. On a sequential basis compared to the fourth
quarter of last year, production was up around 12%. This level of
production has been supported by the gradual increase in consumer
demand. For the quarter, the seasonally adjusted annual selling rate
averaged 13 million units, up from the mid-12 million range experienced in the fourth quarter of 2010.
In Europe, vehicle production was up about 8% compared with last
years quarter. On a sequential basis compared to the fourth quarter,
production was up around 4%. Improving customer demand inside
Europe, combined with strong consumer demand outside of Europe,
continues to support this level of production. In fact, in Germany and
France, TRW recorded 14% and 9% year-on-year increases in registration, respectively, during this first quarter, and these are definitely
positive signs as we move further into the year.
For Western Europe, first quarter production was up around 4% or
190,000 units compared to the fourth quarter of 2010. China and Brazil continue to be growth champions for TRW. For the quarter, TRW
sales outpaced industry production in both markets. Combined sales in
these two markets accounted for more than 12% of TRWs total first
quarter sales.
19
TRW also unveiled several new products and announced future

product launches during the quarter that will continue to strengthen
market position. One highlight is TRWs electronic park brake for
front axles, a development that makes the technology more affordable
to a wider range of vehicle segments and brings advanced safety to
smaller vehicles.
Similar to rear electronic parking brake (EPB) applications, the
front axle system enables emergency braking performance and provides a wide range of competent safety features that can include heel
and drive oasis, electronically controlled deceleration, rollaway detection, and premium stencil management to support stop and go and also
hold functionality.
Within the steering business, TRW secured a major contract to supply a range of vehicles with electrically powered hydraulic systems for
light commercial van platforms. This EPHS system offers comparable
reductions in fuel economy to electronic power systems (EPS) and
reductions in CO2, and it also accommodates higher rack load applications for the light van segments.
Another area of growth for the company is the growing demand for
cameras and radar driver assist systems in vehicles. TRW has gained
a number of production contracts, including Ford collision warning enabled by camera and automatic emergency braking activities
using its 24-GHz radars. If the worldwide auto industry continues to
rebound and grow, TRWs product line is well positioned to continue
to take advantage.
Table 2: Industry Losses In Key Areas

Category
2010 versus 2009
Employee Growth
1.5%
Sales Growth
9.9%
Pretax Income Growth
83.2%
Pretax Margin Improvement
5.1 pts.
Debt to Equity Ratio Improvement
9.1 pts.
Research & Development Expense
2.7%
ED Reader Profile Survey Respondents
2.9%
Table 3: Percentage Of Companies That Saw Growth In Key Areas

Sales Growth
89%
Pretax Income
90%
Employee Growth
62%
R&D
67%
mining equipment, tunnel boring equipment, and related parts (Fig. 2).
It also manufactures diesel-electric locomotives and manufactures and
services rail-related products and logistics services for other companies.
The Power Systems business provides diesel, heavy fuel, and natural
gas reciprocating engines for Caterpillar machinery, electric power
generation systems, marine, petroleum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbinerelated services for oil and gas, as well as power generation applications. It also remanufactures Caterpillar engines, machines, and engine
components and offers remanufacturing services for other companies.
The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels. It also offers loans and
various forms of insurance to customers and dealers. And, it provides
financing for vehicles, power generation facilities, and marine vessels.
The company markets its products directly, as well as through its
distribution centers, dealers, and distributors. It was originally organized as Caterpillar Tractor Co. in 1925 in California. In 1986, the
company reorganized as Caterpillar Inc. in Delaware. Caterpillar Inc.
is headquartered in Peoria, Ill.
Caterpillar Crawls Into First
Last year, Caterpillar was number 62 on our list. This year, it inched
up 61 ranks to take the top slot. The company manufactures and sells
construction and mining equipment, diesel and natural gas engines,
industrial gas turbines, and diesel-electric locomotives worldwide. It
operates through two lines of businesses: Machinery and Power Systems, and Financial Products.
The Machinery business offers construction, mining, and forestry
machinery, including track and wheel tractors, track and wheel loaders,
pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks,
articulated trucks, paving products, skid steer loaders, underground
Cats Competitive Landscape
Demand for machinery depends on overall industrial activity and

on the health of sectors such as agriculture, construction, and power
generation. The profitability of individual companies depends on
engineering expertise and efficient production. Large companies have
economies of scale in purchasing. Small companies can compete
effectively by specializing.
The industry is capital-intensive, as average annual revenue per
worker is about $300,000. It encompasses a number of segments:
construction, mining & other heavy equipment manufacturing; electronics; electrical products; power generation & storage transportation
services; and logistics services.
When it comes to machinery, Caterpillars chief competitors include
Cummins Inc., Tognum AG, GE Energy Infrastructure, Siemens Energy, and Wartsila Corp. Other competitors, such as John Deere Power
Systems, MAN Diesel SE, Mitsubishi Heavy Industries Ltd., Volvo
Penta (part of Volvo Group AB), Kawasaki Heavy Industries, multiple
20
Sales improved in all four major geographic regions; North

America, up 72%; Latin America, up 90%; Europe Africa/Middle
East, up 67%; and Asia/Pacific, up 35%. While commercial construction in the U.S. is still very depressed and machinery sales are
at about half the 2006 peak, it appears aging machines are starting
to be replaced.
During the recession, Caterpillars customers cut machine purchases much more rapidly and deeply than the overall construction
spending decline. As a result, their fleets both shrunk in size and got
older. However, customers are beginning to buy enough machines
now to slow or stop their fleets from continuing to degrade.
Mining activity and higher commodity prices, including coal, have
encouraged investment in large mining equipment. Higher sales to oil
and gas and electric power customers, along with the acquisition of
EMD, drove the increase in power systems sales.
While the reasons for European growth mirror North America, basically replacement, growth in developing countries has been good and
is driving investment in infrastructure and increased demand for commodities. Incremental margins were good in the construction industries, resource industries, and power systems segments. The company
executed well in the quarter and controlled its costs.
Besides EMD in 2010, the company has announced the fairly large
acquisitions of MWM Holding GmbH, a Mannheim, Germany-based
manufacturer of combustion engines, and Bucyrus International, a
company that designs, manufactures, and markets surface and underground mining equipment.
Caterpillars facilities in Japan were not damaged by the earthquake and tsunami, but many of its suppliers in Japan were. Caterpillar expects to experience sporadic production disruptions at many
facilities around the world, which will have a negative impact on
sales, factory efficiency, and costs like premium freight. While the
situation is improving, the biggest impact will be felt in the second
quarter of 2011.
Since the end of the first quarter of 2010, Caterpillar has added
almost 21,000 people to its global workforce. About half are full-time
employees, and about half are flexible workforce. In total, that represents an increase of over 19% in the total global workforce.
Cash flow has shown excellent improvement, while the machinery
and power systems debt-to-equity ratio dropped from over 47% at
year-end 2009 to 34.8% at year-end 2010, down to 30.4% at the end of
the first quarter of 2011. Thats a drop of almost 4.5 points from yearend, which is an excellent improvement.
While there are some capacity constraints currently forecast for
some products such as excavators and many of the companys large
mining products, Caterpillar continues to invest in capacity increases
around the world to be prepared for 2012 and beyond, including
substantial investment in the U.S. In fact, more than half of the $3 billion that it expects to spend on capital expenditures in 2011 is being
invested in the U.S.
After a couple of very tough years, the continued high investment
in infrastructure throughout developing countries and the continued
replacement of aging machinery in Europe and the United States has
Caterpillar well positioned to continue its rebound in growth. If commercial construction rebounds in North America and Europe as well, it
will only make the companys prospects even stronger.
Table 4: Most Improved Companies

Company
Rise in the ranks
GENERAL MOTORS CO.
78
TRW AUTOMOTIVE HOLDINGS CORP.
64
TERADYNE INC.
62
CATERPILLAR INC.
61
CADENCE DESIGN SYSTEMS INC.
56
General Motors was compared 2010 to 2008, as it was not in our rankings in 2009 due to
government oversight.
Table 5: Top 10 OEM Employers

Company
Category
BROADCOM CORP.
Components & subassemblies
TEXAS INSTRUMENTS INC.
ANALOG DEVICES INC.
QUALCOMM INC.
NATIONAL INSTRUMENTS CORP.
3M CO.
Communications
Test equipment
Industrial controls
ALTERA CORP.
INTEL CORP.
INTERSIL CORP.
AGILENT TECHNOLOGIES INC.
Industrial controls
emerging Chinese competitors, and Rolls Royce Group plc compete

in other markets where Caterpillar is active.
An additional set of competitors, including Generac Power Systems
Inc. and Kohler Co., includes packagers that source engines and/
or other components from domestic and international suppliers and
market products regionally and internationally through a variety of
distribution channels.
In the engines space, Komatsu Ltd., Volvo Construction Equipment
(part of the Volvo Group AB), CNH Global N.V., Deere & Co., Hitachi
Construction Machinery Co., J.C. Bamford Ltd., Doosan Infracore
Co. Ltd., and LiuGong Construction Machinery N.A. LLC all have
varying numbers of product lines that compete with Caterpillar products, and each has varying degrees of regional focus.
The Secret Of Its Success
Infrastructure investment is back, which is a key force behind

Caterpillars ascension to the top ranking in this years Top 50. The
company continued its strong performance in the first quarter of 2011
with sales up 57% and profits up more than 400%, the most profitable
quarter in the companys history. Most of the sales increase came from
machinery and power systems, which were up 61%. Financial products were basically flat.
Within machinery and power systems, construction industries were
up 71%; resource industries, up 84%; and power systems sales were
up 51%. Most of the increase came from higher customer demand, but
dealers did increase their inventories to meet future demand as well.
There was also some improved pricing, as well as the acquisition of
Electro-Motive Diesel (EMD), a maker of diesel-electric locomotives,
contributing to the sales increase.
21

2011 Salary Survey

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

2011 Salary Survey

Încărcat de

Drepturi de autor:

Formate disponibile

The Authority

Copyright 2011 by Penton Media Inc.

wo of Electronic Designs most

Jay McSherry | Contributing EDITOR

tion, their current perceptions of the profession, and their

The Incoming Class Speaks Out

Factors Recent Graduates Rate Most Important In

2. Opportunity to benefit society

Nearly four in five engineering students have a Facebook page, and

A Tough Road For Recent Graduates

Some of the students we spoke to complained about being subjected

Working Toward The Future

About 20% of undergraduate students say they take online courses.

Average Starting Income Of Recent Grads

Medium-size company (100 to 999 employees)

Large organization (More than 1000 employees)

Factors Recent Graduates Rate Most Important

The Rise Of Social Media

10. Relocation opportunity

Not surprisingly, todays engineering students are decked out with

11. Tuition reimbursement

Recent GraduatesWhere Are They Now?

Employed full-time 44%

Landing the offer

Within one month of graduating

Within 6 months of graduating

Within a year of graduating

It took more than a year

Its been over a year; still no luck

Whats your Dream job?

breeds hesitation, which breeds stagnation. Congress could end this

Pay Increases Remain Flat

Increases in pay have been tough to come by in recent years for

Hunkering down and holding onin this, engineers are really

no different from professionals in other market sectors. With the

Non-Cash And Indirect Cash Rewards

Stock purchase plan

Professional organization dues

Company-paid phone line

Factors That Affect Your Bonuses

Performance of company or division

Company profit sharing

Project milestone completion

earning $119,366 in base salary and $131,556 in total compensation.

Software engineering manager

Vice president/VP of engineering

Chief engineer/senior engineer/

Department head/section head

Group leader/project team leader/project

Applications/systems engineering manager

Other (please specify)

Design engineer/project engineer/R&D

Member of technical staff

Design & development engineering

ICs and semiconductors

Test and measurement equipment

Average Salaries By Industry

Other (please specify)

West South Central

Research & development

Components and subassemblies

West North Central

East North Central

Industrial controls systems/

For the first time this decade, a majority of non-retired Americans

Building strength in good economic times