As the world goes electric, finding enough engineers to maintain the supporting infrastructure will be a major challenge. Instead of seeing electrical asset management simply as a numbers game, it also helps to take a more proactive approach.
From powering our factories to getting to work and heating our homes, electricity is an increasingly important part of the way we live. As global efforts to reach net zero intensify, this trend is only going to accelerate – but as it does, it’s clear that we face real challenges in finding enough electrical engineers to sustain it.
Initiatives to decarbonize industry and transport, as well as the rapid increase in new data centres – driven by the expansion of AI and cloud computing – are creating a rising demand for electric power and the infrastructure to support it. The US government, for instance, projects a 9% increase in employment for electrical engineers by 2033 – much faster than the average growth of 4% for all occupations. That would mean a net 26,200 more of these jobs created over the period. But across the world, there is growing concern about finding enough people with the skills to meet this demand. A report by BCG in 2023 found that one in three engineering roles in the US goes unfilled – with electrical engineering among the main contributors to this gap. Similarly, Australia is facing an engineering skills and labour shortage which Engineers Australia says is the highest it has been for more than a decade. Research by the organisation last year found that vacancies for engineers are 16.8% higher than in 2016, with the demand for electrical engineers accounting for about 10% of these. And a recent study forecast an “unprecedented” engineering skills gap of 200,000 by 2040. Japan and Germany are among the many other countries facing shortages. And this global challenge is contributing to particular problems in rapidly growing sectors such as data centers. In a 2023 survey by the Uptime Institute, 58% of data center operators said they were having difficulties finding qualified candidates for jobs, with 41% experiencing shortages among electrical staff.
Unfortunately, this rising demand comes as interest among young people in joining the workforce is dwindling. In the US, research has found electrical engineering degrees have declined as a proportion of those awarded – with enrolments falling dramatically in comparison to computer science. And among those who do complete engineering degrees, fewer than half go on to take up an engineering job. Enthusiasm for electrical engineering among younger generations is also falling in Germany, where a survey has found that it suffers from a negative image. Such problems are creating global difficulties not only in training enough engineers, but also in encouraging them to work in the profession. In Australia, for instance, a third of qualified engineers born in the country do not work in engineering roles, along with more than half of those from overseas.
What’s more, many experienced engineers are retiring, taking their hard-won expertise with them. In the US, about 20% of the current engineering workforce will be eligible to retire within the next decade. Bringing in employees from other countries – or from competitors – is one way that firms are addressing the skills shortages they face. But since the issue is a global one, these strategies are unlikely to provide lasting solutions.
Sufficient staff numbers, and efficient ways of working
Encouragingly, though, there are some promising approaches emerging, where stakeholders are working together to tackle the skills shortage. The Netherlands, for instance, has launched a ‘Technology Attack Plan’, where government and industry will each invest half a billion euros over 10 years on measures aimed to fill an expected 60,000 technical vacancies. This will involve elements such as new training structures, and initiatives to attract talent – as well as introducing more effective ways of working. Clearly, overcoming the current skills shortage will require a combination of different approaches. But what’s particularly interesting about the Netherlands’ plan is the awareness that the challenge is not only just about recruiting and retaining enough skilled staff, but also about making efficient use of their capacities.
We consistently see evidence of this at Schneider Electric when we visit customer sites. Typically, this is prompted by the need to address a specific problem with the power system, such as an interruption in the supply. When we help them resolve this, our investigations may reveal that the difficulty stemmed from a deeper issue. Perhaps a fault wasn’t spotted in time to stop a piece of equipment failing, or the maintenance schedule had allowed the condition of one important part of the system to deteriorate too fast. To help avoid such situations, we’re also having conversations with customers about how they can introduce more strategic and cost-effective ways of working, supported by our technology.
We call our vision Electricity 4.0 – where electricity and data combine to support the sustainable industries of the future. In line with philosophy of Industry 4.0, it’s all about harnessing digital innovation to reduce waste and get the most out of resources. We install internet-connected sensors on electrical components, which provide ongoing measurements for variables such as temperature and current. Our AI-powered analytics then use this data to provide a detailed, continuous and accurate model of the equipment’s status – without it having to be inspected manually. As well as reducing the need for intrusive on-site interventions, this approach can also support much greater efficiency. When you have a clearer picture of your system’s health, you can manage your electrical assets more proactively. Shutdowns are shorter and less frequent, with schedules based on the system’s condition rather than arbitrary timelines. And components last longer because issues can be tackled before they become major problems.
Working together to support proactive electrical asset management
What does this mean for the electrical engineering talent shortage? Naturally, when organizations are able to maintain their power systems more efficiently, they get more out of their resources – including their people. Instead of combating unnecessary crises, their engineers are free to use their skills designing and developing the infrastructure you need. That does a lot to ease the pressure on staff – and we can support more efficiency in many other ways, too. Some customers benefit from the continuous monitoring of analytics data by the experts in our Connected Services Hub – who can advise remotely when an intervention is needed – allowing them to make better use of their in-house skills. For other customers, we provide experts on-site to maintain and manage their electrical assets. This can be particularly effective for complex, mission-critical projects. More than 100 Schneider Electric engineers, for instance, are working with China Unicom to operate two huge data centers, as the company carries out a high-stakes expansion of its capacity with little room for error.
Whether our support is delivered remotely, on location, or through a combination of both, the arrangements represent an ongoing relationship, where each organization can focus on what they do best. And as well as offering practical know-how, we can advise you strategically on creating power systems that are ready for the future. Our global network of more than 250 experienced consultants can provide informed insights on improving your infrastructure – helping you understanding how to get the most from your resources, and how we can support this. We developed our industry-leading technology and analytics drawing on the knowledge of our 6,000 electrical engineers. And with more than 300 in-house data scientists, we’re continuously working to keep our services at the cutting edge through machine learning and generative AI. Building and managing the power infrastructure that the world needs will be a huge ask – but responding successfully is more than a numbers game. It’s about having the right information, and then using this to guide intelligent ways of working. Alongside its challenges, the world of Electricity 4.0 will also bring exciting opportunities. Working with us, you can lay the foundations now to make sure you seize them.
If you’re ready to explore how a proactive asset management strategy can yield quick benefits and a strong ROI, I invite you to connect with me on LinkedIn or complete the form for a complimentary 30-minute consultation. Let’s work together to secure a more reliable and efficient future for your electrical assets!
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