If I am the last one hired will I be the first fired? A slowing economy often produces fear and uncertainty that drives emotions to overshadow patience and logic. A slowing economy can be a good time to change jobs. It is not necessarily a dangerous career move to take a new position heading into a down period in the market. In some ways it may be safer to move during a down point than at the freewheeling high point of the market. If you are approached by a recruiter regarding a job in a slow economy keep in mind that this particular job opening must be of high importance to the company. If they are willing to a pay a recruiting fee and hire in a slow market you can be assured that this position is of importance to the business. Critical jobs get filled during a slow down, non-essential jobs get left open. Also, companies that hire in an economic slow down are often the more proactive companies that are in a better position to grow after the downturn. Conventional wisdom says to ride out economic slowdowns but hunkering down at the job you have due to the uncertainty of the market. However, a down market can actually highlight the good opportunities in the market that are important to a company’s success.

3Q Job Market Update

The job market began to slow over the summer but it still remains active. We experienced more demand for CHE’s in 3Q but are already seeing a switch back to Reliability job openings as is reflected by our 9 current interviews underway for a variety of reliability opportunities. The big news in 3Q was the Hurricane that hit Houston and the Economic Meltdown that hit the US economy in October. Both of these events have impacted hiring. The Hurricane effectively shut down hiring in certain geographic areas for the month of September. We had 8 interviews put on hold during the month of September due to the storm impact. The economic scene has created uncertainty in the market and a couple of companies have decided to delay any hiring until next year. How is the market outlook going into 4Q? We remain very optimistic going into the 4Q. We expect to fill several reliability roles this quarter and have received a large number of new openings for Reliability Engineers. We have high priority jobs to fill in Los Angeles for a Reliability Manager and in San Francisco for a Reliability Engineer and in Houston for a VP of Business Development and a Reliability Asset Manager. We are also in need of several Fixed Equipment Engineers, Maintenance Supt and TA Mgr’s for Houston. Keep an eye on our website and you’ll stay informed! Also, see our new article on the website – Is it dangerous to change jobs in a slowing economy?

Jobs Filled in 3Q

• Global Reliability Director for a Major Chemical Company
• Reliability Engineer for a chemical plant in Houston

2Q 2008 Job Market Update

The Mechanical and Reliability Engineering job market in chemicals and refining continues to be a strong market. There are a wide variety of openings across chemicals and refining from East Coast to West Coast in the United States. In 2 Q we noticed a dramatic increase in the number of managerial positions that came open. We have several clients seeking ME’s with leadership experience that can direct and manage a maintenance or reliability program in a plant. We are also seeing a continued need for high level machinery engineers for major oil companies in Houston. The uncertainty in the economy does not seem to be adversely affecting the job market.

Jobs filled in 2 Q (8 jobs filled)

• Senior Machinery Engineer with Refinery in Houston
• Senior Machinery Engineer in Corporate Office in Houston
• Reliability Engineer for a Chemical Plant in Mississippi
• Junior Reliability Engineer with Refinery in Houston
• Electrical Reliability Engineer with Houston Chemical
• Machinery Engineer with Houston Chemical Plant
• Electrical Reliability Engineer with a Los Angeles Refinery
• Maintenance Superintendent at a Houston Refinery

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1Q 2008 Overview

Now that we are nearing the end of the first quarter, how do the results look? As I review the trends news update I wrote in February, the same market conditions are prevailing.

1. Demand for reliability talent remains strong and we are seeking no sign of a slow down.
2. Just this week we have received 5 new Fixed Equipment jobs in a major refinery in Texas and 2 new Reliability jobs in another expanding refinery in Texas.
3. We continue to stay busy with plant and corporate level positions in chemicals and refining.

Jobs filled so far in 1Q 2008:

• 2 Senior Machinery Engineers in San Francisco in Refining
• 1 Reliability Engineer in Los Angeles in Refining
• 1 Senior Machinery Engineer in Houston in Chemicals
• 1 Machinery Engineer in Houston in Chemicals
• 1 Reliability Manager in Houston in Chemicals
• 1 Corrosion Engineer in New Orleans in Refining

What’s Hot?

Refining companies continue to offer top wages and benefits and continue to hire all types of reliability and maintenance engineers. Rotating Equipment engineers are in demand at plant locations and in corporate engineering groups especially in the Gulf Coast. The job market in refining is especially active on the Gulf Coast and West Coast. Fixed Equipment engineers are also in demand although there are not as many as these type of opportunities available. Turnaround Engineers and Turnaround Managers have been in increasingly high demand as companies begin to view TA’s as a means of competitive advantage and also due to concerns of plant safety during the TA Events. One of our biggest clients does not want to become another BP. Salaries remain highest on the Gulf Coast where there is the most competition for talent. The highest salaries we have seen are in the corporate machinery groups of the large oil companies.

We have been successful recently in moving engineers out of pulp and paper processing and into chemical plants and refineries. The skill set is the same and a good engineer seems to be able to adapt to the new process fairly quickly. Our Gulf Coast clients are especially interested in tapping into the pulp and paper market for reliability and maintenance talent.

What’s driving the market?

There are several factors creating the perfect storm of the best sustained job market I can remember. The investment IS moving overseas so there is very little new domestic investment to tip our markets into over supply. The operating rates remain solid (but not as high as I would have guessed) and the refineries can’t keep up. Several refinery expansions are underway but some seem to be in doubt of moving forward. Currently, US producers are enjoying strong exports and a good domestic market with no new flood of domestic capacity expected. Secondly, the overseas projects have become very costly and are taking much longer to complete due to high raw materials costs and labor shortages. Projects that had great payout expectations even two years ago now look like they will cost 2 ““ 4 times more and take much longer to complete than expected. Finally, there are fewer engineers in school and more engineers retiring. This looks like a solid trend and we expect it to continue especially with a strong stock market that is boosting retirement accounts and making retirement seem even more attractive.

What does this mean?

There are many great job opportunities available in this current market. However, some things always stay the same – you still need to find the right match in culture and job fit. We can help you with this as we see new jobs almost every day and are therefore able to bring the best matches to your attention. Our interview processes helps us understand you and also our understanding of our clients needs helps us make the right match. As always — keep in touch!