Engineering is above all about adding value through realization of technological progress.

Engineers and engineering make a major impact in the day-to-day lives of most of us. Engineering qualifications and experience are a foundation for many different careers.

In recent times it has become fashionable to talk about post-industrialized economies in which services take over from manufacturing under the law of comparative advantage. This theory is substantially flawed. Services are more difficult to export than manufactured goods, and in any event a significant part of demand for services comes from the manufacturing sector itself. Therefore engineering - the realization of technological progress - is crucial to creating a modern balanced economy.

This does not overlook the inevitability of migration of some activities as part of the phenomenon known as globalization. But the notion that is still held by some governments is that manufactures and export constituting a good model and globalization (export of jobs and value creation) is bad is dangerously misleading. As markets become more integrated and the borders between nation states become less rigid and regions emerge as the rational units of economic activity, the question arises as to what activities logically belong within a region and what should be outsourced to more appropriate locations. Engineers applying the tools and techniques of modern engineering have accelerated this process of greater organizational fluidity and a more international approach to satisfying demand wherever it arises. Value creation is becoming less constrained geographically - information engineering is accelerating this process of change.

This evolution is either exciting or scary, depending how you look at it. Let us consider just three significant issues. Firstly, in many engineering activities we see a new kind of challenge emerging increasingly international business structures. Research and development can take place in one location, materials and subassemblies can be sourced from several locations worldwide, manufacture can take

place in areas located far from R&D and raw material supply and final markets can be anywhere. The skill of the engineer in designing information systems and configuring operational technology determines how all this fits together competitively and profitably. It means that an engineer can face the challenge of coping with multi-location, multicultural relationships at a very early stage of a career.

Secondly, engineers have been at the forefront of turning time into a distinguishing feature of the product creation process. With a faster and more even distribution of know-what and know-how the difference between success and failure can depend on speed-to-market. This requires a high level of engineering knowledge and skill in operational system design and supply chain management to achieve what is commonly termed time compression.

Thirdly, it is sometimes said that certain developed countries are postindustrial. This is, I believe, short-sighted. What is happening is that the structure of industrial activity is shifting in a way that locates individual functions where they logically belong. Therefore we find in the more advanced economies of the world those parts of the supply chain and operational functions that are best placed there. Conversely the activities in which other countries enjoy a comparative advantage will attract other activities. Modern systems engineering addresses this issue head-on.

Engineers have often found themselves in key positions in industry and commerce. The reasons for this are easy to discern, given the importance of systems technologies in any modern economy and the trends to globalization outlined above. However this trend goes further and broader than businesses that can be classified as engineering. To take just one example, the Chairman of one of the UKs leading banks (Sir George Mathewson of the Royal Bank of Scotland Group) is a highly qualified engineer whose global experience has propelled the bank into major initiatives

on behalf of leading international clients. This will be less of an exceptional case as we move ahead in an increasingly global industrial economy.

As a closing remark I find myself referring to an article by one of the UKs most distinguished engineers, Lord Bhattacharyya, Professor of Systems Engineering at the University of Warwick. Writing in the February 2006 issue of the journal of the Royal Society of Arts, Manufactures and Commerce, Lord Bhattacharyya advances a very powerful argument for developing in the UK the same level of skills that are found in financial engineering in what he terms real engineering. This will involve a more collaborative approach to relationships, recognizing that globalization provides as many opportunities as threats and understanding how new generations of engineers stand to gain most by this process of change. It is truly a revolution in the making that emphasizes the value and potential of studying engineering in the early 21st century.

Dr Daniel Park Partner MASS Consulting Group, Manchester, UK