by Jan Saxhaug
July 2014
It might surprise you to learn that in Northeast Minnesota, a region traditionally strong in blue-collar industries such as mining, manufacturing, construction, and transportation, one of fastest growing industry sub-sectors is Architecture, Engineering, and Related Services. In fact, engineering services firms in the Arrowhead Region are in the midst of a period of unprecedented expansion - with more growth projected in the foreseeable future. Across the Northland demand for workers with training in engineering has been building rapidly. Additional projected growth in the Mining and Manufacturing sectors means that Northeast Minnesota will be a great place for engineers and engineering technicians for years to come.
As these traditional industries become more reliant on advanced technologies, they require an increasingly skilled workforce. While many of these firms are directly hiring the engineering talent they need, many others are outsourcing this technical expertise to the region's growing engineering firms. According to DEED's Quarterly Census of Employment and Wages (QCEW), there were 89 Architecture, Engineering, and Related Services establishments providing 659 jobs across Northeast Minnesota at the turn of the century. By 2013 the number of establishments had increased modestly to 110, but total employment had soared to 1,173 covered jobs, nearly double the amount one decade earlier.
Most of the long-term growth has come in the Engineering Services sub-sector. Since 2000, Engineering Services employment has grown by 21 percent across Minnesota, but in the seven counties of Northeast Minnesota, employment in the sub-sector has increased by an astounding 204 percent (Chart 1).
While the majority of Architectural, Engineering, and Related Services employment is found in the growing Engineering Services sub-sector, related jobs are also found in Architectural Services, Surveying and Mapping, and Testing Laboratories, although those industries saw small job declines (Table 1).
| Architectural, Engineering, and Related Services Subsectors | ||||
|---|---|---|---|---|
| Industry | 2013 Establishments | 2013 Employment | % Change 2012 - 2013 | Average Weekly Wage |
| Architectural, Engineering, and Related Services | 110 | 1,173 | +13.6% | $1,285 |
| Architectural Services | 19 | 105 | -4.5% | $965 |
| Engineering Services | 55 | 889 | +20.0% | $1,342 |
| Surveying and Mapping Services | 15 | 35 | +2.9% | $786 |
| Testing Laboratories | 9 | 93 | -10.6% | $831 |
| Source: DEED, Quarterly Census of Employment and Wages | ||||
While much of the recent growth in engineering-related employment is occurring at Engineering Services firms, there are also engineers spread across other industry sectors. According to DEED's Occupational Employment and Wage Statistics (OES) program, there were 1,900 people working in Architecture and Engineering occupations across Northeast Minnesota.
The largest percentage of those jobs were found in Professional and Business Services, the industry in which the Engineering Services sub-sector is classified, followed by 390 jobs in Manufacturing, 320 jobs in Public Administration, 270 jobs in Natural Resources and Mining, and 120 jobs in Trade.
| Leading Industries for Architecture and Engineering Occupations | ||
|---|---|---|
| Industry | Estimated Regional Employment | Median Hourly Wage, Q2 2013 |
| Professional and Business Services | 720 | $30.11 |
| Manufacturing | 390 | $34.00 |
| Public Administration | 320 | $27.58 |
| Natural Resources and Mining | 270 | $34.86 |
| Trade, Transportation, and Utilities | 120 | $34.16 |
| Financial Activities | 40 | $33.41 |
| Construction | 20 | $28.23 |
| Educational and Health Services | 10 | $22.95 |
| Source: Occupational Employment Statistics | ||
Looking to the future, employment in engineering-related industries and occupations is expected to continue expanding. According to DEED's Employment Outlook data, Northeast Minnesota's Architectural and Engineering Services sector was projected to grow an additional 17.8 percent from 2010 to 2020.
However, according to QCEW data, there were already 1,222 Architectural, Engineering, and Related Services jobs in Northeast Minnesota through the fourth quarter of 2013, meaning the region has already surpassed projected job totals for the decade. Instead, if employers keep growing jobs at the projected pace, the region could see an additional 200 engineering services jobs by 2020.
As noted above, other sectors employing workers with engineering skills are also projected to see significant growth over the next decade, including Mining and Manufacturing. Based on that, Northeast Minnesota should continue to be a great place for engineers and engineering technicians to find employment opportunities (Table 3).
| Employment Outlook, Industries, 2010-2020 | |||||
|---|---|---|---|---|---|
| NAICS Code | NAICS Industry | Estimated 2010 Employment | Projected 2020 Employment | Percent Change | Total Change |
| 5413 | Architectural and Engineering Services | 900 | 1,060 | 17.8% | 160 |
| 21 | Mining | 3,839 | 4,316 | 12.4% | 477 |
| 31 | Manufacturing | 8,303 | 9,010 | 8.5% | 707 |
The engineering-related occupations that are projected to have the most total openings by 2020 include Mechanical, Electrical, Civil, and Industrial Engineers, as well as Civil Engineering Technicians and Survey and Mapping Technicians. In contrast, Architects, Other Engineers, Surveyors, and Industrial Engineering Technicians are expected to see very small job changes (Table 4).
| Employment Outlook, Occupations, 2010 - 2020 | ||||||
|---|---|---|---|---|---|---|
| Occupation | Estimated 2010 Employment | Projected 2020 Employment | Percent Change | Total Change | Replacement Hires | Total Hires |
| Mechanical Engineers | 156 | 182 | 16.7% | 26 | 50 | 80 |
| Electrical Engineers | 162 | 177 | 9.3% | 15 | 40 | 60 |
| Industrial Engineers | 156 | 177 | 13.5% | 21 | 30 | 50 |
| Civil Engineers | 169 | 188 | 11.2% | 19 | 30 | 50 |
| Surveying and Mapping Technicians | 134 | 145 | 8.2% | 11 | 30 | 40 |
| Civil Engineering Technicians | 237 | 240 | 1.3% | 3 | 40 | 40 |
| Electrical and Electronics Engineering Technicians | 139 | 136 | -2.2% | -3 | 30 | 30 |
| Architects, Except Landscape and Naval | 61 | 75 | 23.0% | 14 | 10 | 20 |
| Engineers, All Other | 42 | 50 | 19.0% | 8 | 10 | 20 |
| Mechanical Drafters | 58 | 69 | 19.0% | 11 | 10 | 20 |
| Environmental Engineers | 35 | 41 | 17.1% | 6 | 10 | 20 |
| Surveyors | 31 | 34 | 9.7% | 3 | 10 | 10 |
| Industrial Engineering Technicians | 36 | 39 | 8.3% | 3 | 10 | 10 |
| Mining and Geological Engineers, Including Mining | 28 | 30 | 7.1% | 2 | 10 | 10 |
| Engineering Technicians, Except Drafters, All Other | 42 | 43 | 2.4% | 1 | 10 | 10 |
| Architectural and Civil Drafters | 73 | 73 | 0.0% | 0 | 10 | 10 |
| Source: DEED, Employment Outlook | ||||||
Because of the recent growth in Northeast Minnesota, 13 engineering occupations are exhibiting conditions of high current demand according to DEED's Occupations in Demand tool. Engineering-related occupations are also some of the best-paying jobs in the region. Engineering technician jobs that generally require an associate degree pay a median annual salary ranging from the high $30,000's to the high $50,000's, while engineering jobs that require a bachelor's degree pay median wages beginning in the low $70,000's to the high $90,000's (Table 5).
| Engineering-related Occupations in Demand, Northeast Minnesota | |||||||
|---|---|---|---|---|---|---|---|
| Job Title | Rank | Current Demand Indicator | 25th Percentile Wage | Median Wage | Regional Growth Rate, 2010-2020 | Total Openings, 2010-2020 | Education Requirements |
| Architectural, Engineering Managers | 38 | ***** | $82,813 | $99,268 | Above Average | 60 | Bachelor's |
| Civil Engineering Technicians | 42 | ***** | $47,013 | $56,013 | Below Average | 40 | Associate's |
| Mining and Geological Engineers | 44 | ***** | $68,615 | $81,307 | Average | 10 | Bachelor's |
| Electrical Engineers | 61 | ***** | $70,290 | $78,602 | Average | 60 | Bachelor's |
| Environmental Engineers | 65 | ***** | $72,051 | $82,804 | Above Average | 20 | Bachelor's |
| Industrial Engineers | 82 | **** | $66,595 | $79,049 | Above Average | 50 | Bachelor's |
| Chemical Engineers | 85 | **** | $65,323 | $76,034 | Below Average | 0 | Bachelor's |
| Aerospace Engineers | 95 | **** | $80,224 | $96,620 | Well Above Average | 0 | Bachelor's |
| Mechanical Engineers | 117 | **** | $61,164 | $73,434 | Above Average | 80 | Bachelor's |
| Health and Safety Engineers | 174 | *** | $78,015 | $89,283 | Well Above Average | 0 | Bachelor's |
| Electronics Engineers | 176 | *** | $60,598 | $72,885 | Well Above Average | 0 | Bachelor's |
| Mechanical Engineering Technicians | 196 | *** | $38,359 | $43,801 | Below Average | 10 | Associate's |
| Engineering Technicians, All Other | 199 | *** | $48,382 | $53,216 | Below Average | 10 | Associate's |
| Source: DEED. Occupations in Demand tool | |||||||
After enjoying unprecedented job growth in the last 10 years, industries that rely on skilled engineers and technicians are expected to continue expanding rapidly in the next decade as well. Many of these occupations require college degrees but pay high wages and are currently in high demand. By connecting the dots, students and jobseekers looking to build a strong career should consider the Architecture and Engineering Services industry in Northeast Minnesota.
