Engineers’ Broker Finds China a Strong Market
Like most visitors to China, Reva Hofmann, president of Hofmann Technical Services Inc., climbed the Great Wall and brought back a collection of souvenirs.
But Hofmann, whose Laguna Niguel company finds temporary jobs for power plant engineers, also returned home in May with the possibility of sending about 200 engineers to aid China’s fledgling nuclear power program.
Hofmann’s prospects brightened considerably after President Reagan signed a long-stalled nuclear cooperation pact with China late last month, which could result in about $20 billion worth of business for U.S. companies.
Hofmann, who represents about 200 engineers working in U.S. nuclear and fossil fuel plants, believes she can export an equal number to China in the next few years. Hofmann Technical Services acts as a sort of broker between utility companies needing temporary help and engineers who prefer to work on a free-lance basis.
She said that several engineers she works with are signing up for Chinese language courses to prepare for the work. “We have had so many calls from people wanting to work in China that we will probably have more engineers than jobs.”
The signing of the pact, which was initiated 15 months ago during Reagan’s trip to China, was delayed because members of Congress were concerned that China might help Pakistan develop a nuclear bomb.
However, after receiving certain assurances from Chinese officials, Reagan endorsed the agreement during a recent visit to this country by Chinese President Li Xiannian. White House officials said the agreement will allow U.S. companies to compete for a portion of China’s $6-billion nuclear power program.
Doing business in China has become extremely attractive in recent years because the U.S. nuclear power industry has been plagued with problems. Utility companies have suffered substantial losses due to government delays in licensing plants. Other plants are stalled or coming in over budget.
Still others, including Pacific Gas & Electric Co.’s Diablo Canyon plant near San Luis Obispo, is faced with powerful, longstanding legal opposition from anti-nuclear groups such as the Mothers For Peace.
Hofmann was invited to visit China by the Citizen Ambassador Program, based in Spokane, Wash. In May, a group of about 60 people involved in the nuclear power industry embarked on a frenetic, 3 1/2-week-long tour. During their visit, the group met with many top-ranking Chinese energy officials and toured nuclear plant construction sites on the condition that they not reveal the locations.
“We were busy from 7 a.m. to 11 p.m.,” Hofmann said. “I feel it was a very productive trip that will pay off.”
She said the Chinese officials told the group that nuclear power is a cost-efficient way to generate much-needed electricity for the giant nation. And Hofmann said the Chinese government is especially interested in attracting American technology and expertise.
Hofmann, whose red hair attracted attention wherever she traveled in China, said the Chinese energy executives she met with were “very warm, friendly and eager to discuss how Americans do things.”
Hofmann estimates it will take six months to a year before the first American nuclear engineers would travel to China. Meanwhile, she is busy placing engineers in U.S. power plants with the help of a staff of about 10 people. The only man on Hofmann’s staff is the accountant.
Hofmann’s staff screens thousands of applicants to match qualified engineers with the jobs available. The company, which negotiates salaries, handles payroll and other services for its engineers, receives a fee for the services it provides.
The soft-spoken Hofmann purchased the company three years ago from her former husband. Revenues have grown from about $10,000 a month in 1982, to more than a $1 million a month this year. The privately held company does not release earnings.
Before buying the engineering business, she owned an industrial packaging company in Orange County.
Hofmann’s company is one of 35 “body shops,” as they are called in the power industry, that Southern California Edison Co. uses to staff its San Onofre nuclear plant.
“The nuclear industry uses a lot of temporary personnel,” said Ronald Gray, head of procurement for San Onofre. He said that Edison uses temporary workers so “when the job is over, we don’t have to retain the individual as our employee for the next 30 or 40 years.” Contract engineers report to Edison employees and work for several months or years at a time. Gray said contract engineers usually earn between $20 and $35 an hour but do not receive paid vacations or benefits.
