Spring Update 2005

1. Spring Update 2005

2. TETC Spring Update • Message from the New TETC Director • Texas Engineering Outlook • 1st Quarter Accomplishments • Member Contributions in 1st Quarter • Q2 Areas of Action & Focus • Support Calls & Letters Needed to Secure State Matching Funding

3. Message from the Director Dear Industry Partners, Educators and State Supporters, I want to express my excitement about being part of such a unique organization, with such an important mission. Having come from industry and with a background in both engineering and business management, I appreciate the value of each financial and time contribution. Supporting TETC is more than “just the right thing to do” for Texas and our nation. I want TETC to make a difference to your business, the engineering educational system and our state and national competitiveness. Supporting the advancement of our states educational capacity is fundamental to the TETC mission. I want to work closely with our state institutions to help make the TETC challenge an opportunity for their success. The following slides define the growing challenge to our educational system. I hope that you will find them as compelling as I do. In the upcoming Executive and Advisory Committee meetings, I will have an opportunity to provide a more comprehensive briefing of my plan for TETC in FY05 and FY06. I look forward to you inputs and to meeting you in the very near future. Your Advocate, Mark McClure

4. Demand Between 2005 and 2008 Texas engineering workforce needs 4,600 replacements each year due to growth and demographics Texas Engineering Outlook – Supply & Demand Thousands Data Sources: Bureau of Labor Statistics, www.bls.gov/emp/optd/home.htm

5. Supply Texas will average 1,870 EE & CS bachelors each year from 2005 - 2008 Demand Between 2005 and 2008 Texas engineering workforce needs 4,600 replacements each year due to growth and demographics Demand for Engineers Exceed Supply 2:1 Thousands Data Sources: Bureau of Labor Statistics, www.bls.gov/emp/optd/home.htm American Association of Engineering Societies

6. Bachelor Degrees in Texas Each year, Texas produces about 60,500 bachelor degrees Texas Engineering Outlook - Degrees Data Sources: Texas Higher Education Coordinating Board National Science Board

7. Engineering Degrees In Texas 4,700 are in engineering Only 1,780 EE & CS bachelor degrees are awarded 3% of all bachelor degrees Bachelor Degrees in Texas Each year, Texas produces about 60,500 bachelor degrees EE & CS Are Only 3% Of All Degrees Data Sources: Texas Higher Education Coordinating Board Bureau of Labor Statistics National Science Board American Association of Engineering Societies

8. Texas Engineering Outlook - Projections • In the peak year 2004, Texas graduated a total of 2,003 CS & EE engineers of which 374 were females 19% Females Data Source: Engineering Workforce Commission

9. EE & CS Degrees Are Projected to Decline • In the peak year 2004, Texas graduated a total of 2,003 CS & EE engineers of which 374 were females • Current 2005 - 2008 projections are for declining graduations for females & no real growth for males 19% Females Data Source: Engineering Workforce Commission

10. The Engineer Shortage is a National Problem “The number of US engineering graduates peaked in 1985 and is presently down 20 percent from that level; the percentage of US undergraduates taking engineering is the second lowest of all developed countries.  China graduates approximately three times as many engineering students as the United States. National Intelligence Council Mapping the Global Future – December 2004

11. Conclusions A net demand of 8,760 engineers will be needed in Texas over the next 3 years All states are facing a similar shortage driven by growth and demographics U.S. demographics suggest that after 2008 the needs for replacement engineers will dramatically accelerate EE and CS Supply & Demand in the Next 3 Years Thousands of EE & CS Engineers

12. Spring QuarterAccomplishments Overview • TETC Day on Capitol Hill was Successful • New School Welcomed to TETC • Texas A & M University, Texarkana • Hispanic Engineer & Information Technology Magazine Identified TETC as a Non-Profit Supporter of Hispanic-serving Institutions See ( www.tetc.us ) • TETC Can Now Accept Limited Contributions to Support Lobbying Activities • TETC Web Site Updated • The Faces & Stories of TETC

13. TETC Day on Capitol Hill • A very successful event • 17 members of the Texas delegation sign a support letter for a final FY06 appropriation of $2 million for TETC • Deans, professors and students spoke directly to the Texas state delegation about how TETC made a difference • Our thanks to UT Austin, UT Pam Am, UTEP, Texas A&M, Prairie View A&M & UT Dallas for their support in D.C.

14. Contributions Received in Q1 We want to express our thanks to the following organizations for their continued financial support of TETC. AMD $100,000 National Instruments $100,000 Intel $ 75,000 TI $ 35,000 National Semiconductor $ 10,000 And to Freescale, HP, Intel, Lockheed Martin, SIA & TI for their leadership and support in Washington DC on TETC Day Thank You

15. Q2 Areas of Action & Focus • Get Support for Continuation of TETC Matching Funds by State of Texas • Contact Key State Representatives & Senators • Representative Jim Pitts Requesting Support for TETC – Appropriations, Chair • http://www.house.state.tx.us/members/dist10/pitts.htm • State Senator Steve Ogden, Finance Committee Chair • http://www.senate.state.tx.us/75r/Senate/members/dist5/dist5.htm • Acquire Re-Commitments from Existing Member Companies • Recruit New Industrial Members • THECB Grants Will Be Announced on April 21st • TETC Executive Meeting on May 3rd at SMU Actions Needed Now by Members & Supporters