Global Engineering Professional Seminar

Sean ValentineApril 9, 2009

209Apr2009

Agenda

• Globalization– Trends

– Opportunity or threat?

– Preparation prior to graduation

• Shanghai overview

• Open discussion

309Apr2009

High-level globalization trends

• Manufacturing– 1980s – Mexico, Hong Kong

– 1990s – China, eastern Europe

– 2000s – Brazil, Russia, India, continued eastern Europe migration

– 2010s? – Vietnam, Indonesia, Thailand, Turkey, northern Africa, South Africa

• Engineering– 1980s – Hong Kong

– 1990s – Mexico, Singapore

– 2000s – China, India, eastern Europe, Brazil

– 2010s? – Asia capacity growth

409Apr2009

High-level globalization trends (cont.)

• Driving Force– Competitive cost structure

– Proximity to customers

» Customer support

» Engineering

» Manufacturing

– Proximity to supply base

5

How does Delphi support its international customers?

09Apr2009

Delphi Electronics & Safety Regional Headquarters

09Apr2009 6

Delphi Electronics & Safety North American Principal Locations

09Apr2009 7

Delphi Electronics & Safety South American Principal Locations

09Apr2009 8

Delphi Electronics & Safety European Principal Locations

09Apr2009 9

Delphi Electronics & Safety Asia-Pacific Principal Locations

09Apr2009 10

1109Apr2009

Is globalization an opportunity or threat?

• Global engineering graduates:– Corporate peers / team members in your future company

– Competition for open jobs

• Regional education, engineering applications and best-practices– Allow for diversity and continued evolution

– Allow for total extinction of your local process

» Example: High cost manufacturing labor can be optimized by moving to emerging market or implementing high-technology processes.

……depends on your mindset!

1209Apr2009

How does globalization affect Purdue graduates?

• Your company is using it• Your company’s competition is using it

• How will your skills/education/experience influence your company’s decision-making?

• Future engineering graduates need to stand-out– Specialize (PhD)

– Multi-functional (synthesize, problem-solve, multi-task)

– Ability to create and lead a team toward a vision (long-term focus)

1309Apr2009

What can you do to prepare?

• Acknowledge the world’s changing environment

• Follow international business trends– Helps prepare for interviews and which industries/companies to target

– Stay competitive

• Network with students outside your culture– Understand cultures of the emerging markets

– Learn and appreciate differences (problem-solving methodologies)

1409Apr2009

What can you do to prepare? (cont.)

• Travel /Internship overseas– Purdue’s program with Shanghai Jiao Tong University

• Recommendations– The Post American World, Fareed Zakaria

– Global Public Square, CNN 1pm EST Sundays

– Spend 5 minutes a day analyzing major trends (periodicals/websites). High percentage of online articles have free access.

» Business week

» MIT Sloan Management Review

» Harvard Business Review

» McKinsey Quarterly

1509Apr2009

Globalization take-aways

• Awareness of latest trends

• Planning proactive steps to stay current

1609Apr2009

Shanghai – How to describe the growth?

• Pudong New Area (1988)

1709Apr2009

Shanghai – How to describe the growth?

• Pudong New Area (2005) (Same view)

1809Apr2009

Shanghai – How to describe the growth?

• Pudong New Area (2005)

1909Apr2009

Shanghai – How to describe the growth?

• Shanghai Footprint (2020)

2009Apr2009

Shanghai – 30 years of momentum

• 1978 Open Door Policy by Deng Xiaoping– “It does not matter whether the cat is black or white; as long as it catches the

mouse, it is a good cat.”– Comments on whether China should turn to capitalism– Initiated the promotion of foreign trade and economic investment

• Shanghai designated as economic hub of China

• Fast Facts– 19M population (320k yearly increase)– 4,000 buildings over 18 stories– 20% of the world’s high rise construction cranes– Designated growth areas for specific industries– Political structure supports growth

2109Apr2009

Present Shanghai

• Strong universities• High government support for technology• Higher national regulations on labor laws• Melting pot of cultures

– $$$– Fashion– Arts / Theatre– Traditional culture– Youth movements (Green energy)– Energy, Excitement

• Wide gap between rich & poor• Young engineers are renting apartments and buying cars

for the first time.

2209Apr2009

Future Shanghai

• Manufacturing has already left

• Low-end engineering is moving west

• High-end engineering staying in Shanghai to utilize high-caliber students swarming to cities

• Regional HQ/hub for corporations (similar to NYC)

• Foreign investment is moving west

2309Apr2009

Open discussion

• Questions

• Concerns

• Experiences