In order to determine the potential of the transportation and traffic engineering industry to employ dislocated aerospace and defense professional personnel with technical skills, a national survey was conducted by the Los Angeles and Boston skills conversion teams of the National Society of Professional Engineers, under contract to the Department of Labor. All state agencies and some private industry involved in these areas were surveyed by telephone nationally and by personal interviews in Southern California and New England. The greatest employment potential exists at state and local levels of government, with only moderate prospects in private industry. The requirements for transfer of training would probably include an engineering background plus several months of intensive course work. For government positions, the usual employment qualifications should be rescinded, and for private industry, on-the-job training plus direct transfer of appropriate engineering skills is needed. A public relations program to alert these transportation industries to the advantages of employing these professionals would accelerate their employment rate. Related chapters are announced as VT 018 435-018 451 in this issue. (AG)