In addition, individuals can take on most tech jobs - such as coding, database, networking - without having university degrees. I think this trend also contributes to reduced engineering enrolment in schools.
There are those saying that college is a waste of money--you come out in debt and can't get a job. There are also those who say just learn to code and you can make a decent living without college.
"The 25-35 year old engineer is not doing test or semi or embedded. They do Java, Python, database, web front ends and mobile, Android and iOS. That is what the cool kids were doing when they graduated, so that is their expeince."
Actually, I've read that some manufacturing is returning to the USA particularly if your product requires high quality and careful control of what parts actually get manufactured into your product. You can get quality manufacturing in China, but from what I've heard it requires a great deal of effort -- and thus cost. If your volumes aren't big enough to warrant that effort, you may be better off in the USA or Europe.
A recent example of this is the Raspberry Pi, which originally was to be manufactured in the UK but costs required that the first large-scale manufacturing be done in China. However, once volumes reached a certain point they moved production to Wales and had better quality. If your product is mostly assembled by SMT robots, the labor cost difference no longer applies.
Engineering jobs are quite portable ... hence, companies will continue to ship jobs outside the US if such outsourcing saves money. This trend could gradually change the face of the American economy - making it more like the UK - a country profoundly dependent on services.