Growing engineering firms have a big problem…
Larger contracts = more complex projects. Complex projects require specialists. Specialists cost more, are difficult to find, and are even more difficult to retain.
There is a better way.
Contracting specialists to perform tasks such as slug flow calculations and finite element modelling allows expanding companies to obtain skilled resources.
Here is why it works…
In this guide:
- The Engineering Talent Crunch Facing Growing Firms
- The Real Cost Of Hiring Specialists In-House
- Why Outsourcing Wins For Growing Firms
- When Specialized Services Make The Most Sense
The Engineering Talent Crunch Facing Growing Firms
Finding good engineers is really tough right now.
It’s even harder when you require someone with very specific skills e.g. slug flow analysis or transient hydraulic modelling. These are highly specialised skills that can take years (if not decades) to develop.
But wait… there’s more: According to a recent survey, 77% of companies have struggled to find qualified candidates to fill open engineering roles.
Here’s something even more troubling: Approximately 2.1 million manufacturing jobs will go vacant in the U.S. by 2030.
For growing firms, that is a huge problem because:
- Your project pipeline is expanding fast
- Clients expect specialist expertise on every project
- Bigger contracts require rigorous, defensible calculations
- Missing deadlines can cost you the whole contract
But what do you do when you have a project that requires very specific skills? Do you hire someone that you can’t afford or don’t have access to? Many expanding companies are turning to outsourcing partners that provide reliable pipe stress analysis services and other niche capabilities. They only call on these specialists when they need those niche services. Outsourcing like this is a way to have the best of both worlds.
It just makes sense.
The Real Cost Of Hiring Specialists In-House
Most firm owners look at salary and stop there.
That’s a mistake.
Engineering professionals cost significantly more than their paycheck would indicate. The U.S. Bureau of Labor Statistics puts the median wage for engineers at $97,310 as of May 2024. Specialty engineers like those with expertise in slug flow analysis or advanced pipe stress command salaries far higher than the median.
But the salary is just the start.
Here is what most firms forget to factor in:
- Benefits (health, retirement, insurance)
- Payroll taxes
- Recruitment costs (agencies, ads, time)
- Onboarding and training
- Software licenses (CAESAR II, OLGA, PIPESIM etc.)
- Office space and equipment
- Continuing professional development
- Certifications and technical training
When you factor in all of those additional costs, one specialist engineer can cost $200,000+ per year.
And there is one more issue that firm owners overlook…
What happens when the project the specialist was hired for concludes? You are still paying their salary even if you don’t have enough specialist task to occupy them. That’s a large portion of overhead going idle. Each month.
Why Outsourcing Wins For Growing Firms
The engineering services outsourcing market was worth USD 4.54 billion in 2024. It will reach USD 49 billion by 2034.
Big companies are starting to see the light. Here’s how the pros win big.
Pay Only For What You Need
Outsourcing…You only pay when you need the expertise. No specialists idle between contracts. No paying payroll taxes and benefits for 12 months when you only need 3 months of services.
You just pay for:
- The specific project
- The exact hours worked
- The precise deliverable you need
The expense structure is much leaner and scales up/down based on your pipeline. Great for expanding companies who don’t want to risk paying overhead.
Instant Access To World-Class Expertise
Custom Engineering companies thrive on specialized disciplines. Hundreds of slug flow analyses, pipe stress calculations, etc. per year are not uncommon.
That kind of experience is impossible to replicate with one in-house hire.
When you outsource, you get:
- Deep expertise built over years of focused work
- Access to the latest tools and software
- Rigorous QA processes
- Fresh perspectives from other industries
Insight like that can mean the difference between getting and losing a contract.
Scale Without The Growing Pains
Every growing firm hits the same wall…
You land a large project. You suddenly need three specialists yesterday. It takes months to hire these guys, but your project starts next week. Outsource your way out.
You have the skills you need – when you need them – without the delays of recruitment. This means expanding businesses can competitively bid on much larger projects with confidence that they can deliver.
Reduce Risk On Complex Calculations
Specialized engineering work carries huge risk.
When slug flow analysis fails, pipelines fail. Safety gets compromised. Lawsuits happen. But when you outsource, those risks go down. Vendor experts have done this many times. Hundreds of times. Their processes have been tested and improved. Their QA procedures are top notch.
Attempting to perform slug flow analysis for the first time as an all round generalist? Huge liability you are presenting for critical projects. Avoid.
When Specialized Services Make The Most Sense
Not every project needs an outsourced specialist. But some absolutely do.
Here are the situations where outsourcing wins every time:
- Slug flow analysis for multiphase pipeline design
- Transient analysis for water hammer and surge studies
- Pipe stress analysis on high-temperature or high-pressure systems
- Vibration analysis for rotating equipment and piping
- FEA for pressure vessels and complex geometries
If your project touches on any of the above and your team isn’t already doing this daily…Contract it out.
Simple math: outsourcing a project to a professional costs a fraction of what mistakes will. Or missed deadlines. Or lost business.
Final Thoughts
Growing an engineering firm is hard work. Hiring specialized talent makes it even harder.
Contracting work to outside specialty engineers is a great option if you’d like your firm to grow without extreme overhead. This allows you to have:
- Access to world-class expertise
- Flexible pay-per-project pricing
- Lower risk on complex calculations
- Faster project delivery
Engineering talent scarcity is not going anywhere. Compensation is going up. Hard-to-find-specialists will continue to be hard to find. Companies that establish robust outsourcing partnerships today will have a distinct advantage over those trying to “reinvent the wheel” internally.
Focus on what makes your firm great. Outsource the rest.