TFI Quarterly Forum’s economic forecast was released recently and our Chief Economist Matt Chanoff has written much about how the current financial and economic crisis is affecting our industry. Today I write about the human side of the current economic downturn in the high-tech sector, and what the downturn means for the executive job market.

When you’ve been in the electronics industry as long as I have, you develop strong connections with clients and colleagues in the industry. Recently, several long-term TFI clients—operations executives from OEMs and marketing and operations execs from contract manufacturers and ODMs—have found themselves between jobs and have asked if I’ve heard about job openings. The companies who released these talented people are based in Europe, North America, and Asia. Each person has excellent credentials and references, is willing to move to a new region if needed, and is open to working in a different area of the tech industry or even outside of the tech industry if necessary.

So, the question is, which electronics-industry executive positions are likely to remain in demand? With the Information Technology industry often being countercyclical to the macro economy (as corporations seek cost savings through automation), will some executive positions open up especially owing to the economic crunch? And where in the world will jobs be most and least available? One TFI colleague, forecasting that manufacturing will migrate to customers’ regions, predicts that “jobs will be where the customers are.”

Whenever I’m curious about executive positions in the tech industry, I call my brother. Scott Gordon is a partner and key member of the technology and communications practice area at Spencer Stuart, a leading global, retained executive search firm. “In the tech area right now, we are seeing far more paper come in over the transom.” He defines this search-firm jargon as receiving a lot more resumes than usual. “Many fine executives we’ve placed in the past are becoming available again, and virtually everyone is returning our calls about available roles. I’m definitely seeing a difference–everyone is.” Scott heard from the head recruiter at a large tech company that he also is seeing a huge influx of resumes.

Matt Chanoff’s economic analysis (check out Matt’s Dec. 3rd Quarterly Forum Webinar on the topic) shows the tech industry being in the middle of the pack during this financial crisis–not doing better or worse than any other economic sector. And, Matt expects the contraction to extend into 3Q 2009.

What Scott sees in the tech job market is parallel to Matt’s view: “The financial services industry is having a huge net destruction of jobs. I see technology companies retrenching, pulling back on expansion plans, and hunkering down for what’s expected to be at least a full-year storm.”

As for me, I do know some companies looking for environmental champions – driving cost reductions by finding and routing out waste – in product design, manufacturing, facilities, and logistics.

I’d like to hear what you are seeing in the tech executive market as well.

Posted by Pamela Gordon, November 21st, 2008

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