IndustryWeek Survey: Salaries Stable, Skilled Workers in Short Supply

Results of the IndustryWeek Salary Survey have been released, and responses reflect the current state of manufacturing: reliably profitable but not growing by leaps and bounds.

Pay is holding steady and job satisfaction remains high, but economic challenges, including a strong dollar, cheap imports, and low oil prices, are tempering optimism.

The more than 900 U.S. manufacturing managers who responded to the survey made, on average, $114,528 in 2015.

This was down slightly from 2014, when the average was $114,615. C-Suite-level respondents took a decent hit in their paychecks, reporting an average salary of $164,209 in 2015, compared to $193,644 in 2014.

But some levels of management—for instance VPs of operations and lean/continuous improvement managers—fared better, showing slight increases over 2014.

Salary increases were down slightly, with 9% reporting their pay up by more than 5% in the past year, compared to 12% in the previous year.

Twenty percent saw a 3 to 5% increase, compared to 22% last year.

A cross-section of manufacturing professionals responded to the survey. The highest percentages of respondents hailed from the industrial machinery (16%) and automotive/transportation (14%) sectors.

As was the case in last year’s survey, respondents in the chemical sector earned the highest salaries: $135,411.

Healthcare manufacturing picked up steam, with pharmaceutical and medical devices/lab equipment moving up to the No. 2 and 3 slots in average salaries.

Industrial machinery, however, fell from its No. 2 slot to fifth place, as low oil prices and a reduction in mining cut into the need for heavy equipment.

In a question about what matters most to respondents, base salary ranked third. Job stability was No. 1 with 21% of respondents, followed by challenging work.

When participants were asked what they consider the biggest challenge facing manufacturing today, the skilled workforce shortage came up repeatedly.

Seventy-eight percent consider the aging workforce a real worry in the next five years. And 67% say that they have struggled to fill a position in the past year because of a lack of skilled candidates.

Yet young professionals who choose manufacturing are well-paid compared to their counterparts in other professions. The few 21-29 year olds responding to the survey made an average salary of $74,409. By comparison, the average starting salary for a college graduate in 2014 was $48,707.

Survey respondents 30-39 made an average salary of $91,918.

Source: Industry Week S