by Paul Markgraff

While American manufacturing employees take pride in their work and strive to make their workplace the best it can be, there’s no feeling quite like payday.

Employees and managers know the importance of money as a motivator.

It’s a sizable reason why an employee works at Company A instead of Company B.

Employees want to make sure they’re getting their fair share. Managers must balance that with fiscal frugality.

The 21st annual "Compensation in Manufacturing" report from Abbott, Langer & Associates Inc. assists both sides by examining pay rates for different jobs in the manufacturing industry, from company president to the newest production laborer. 

The 747-page survey report analyzes current salaries, pay ranges and total cash compensation for more than 47,000 employees from 342 companies. Data is broken down into 188 defined benchmark jobs in the manufacturing field and segmented by geographic location, product manufactured, size of organization and supervisory responsibility. All figures reflect the prevailing rates as of Jan. 1, 2001.

The report is made for those who recruit, hire and promote personnel, and for those who simply want to know vital salary information.

"If employers do not have this very extensive database on job salary, by industry, location, etc., they have to guess in setting their employee salaries," says study research director Steven Langer. "If they guess wrong, it may get very expensive, or they may have difficulty recruiting or experience high turnover."

Compensation for skills
Keeping skilled workers is among the top priorities of manufacturing managers, according to the raw data in the Abbott, Langer & Associates report. Employees in skilled worker positions generally saw an increase in pay between the 2000 and 2001 studies.

Skilled workers with titles such as machinist, inspector and lathe operator saw a minimum gain of 6 percent from last year’s report. Workers in non-skilled jobs generally saw a negligible increase in pay or, more often, a decline.

"It is reasonable for companies to do everything possible to hold onto skilled employees," said Langer. "Unskilled employees are much easier to find."

As the manufacturing industry continues to struggle with a shortfall of skilled workers as the result of an aging skilled workforce and a dearth of development programs over the past decade, compensation for this type of employee will most likely continue its uptick well into the next decade.

The haves and have-nots
As in past reports, 2001 pay rates within job titles varied fairly sharply depending on industry sector and geographic location. What follows are a few highlighted job titles that displayed sector pay sways.

Maintenance employees: The best pay for managers and non-managers was found at companies in the apparel, chemical and allied products, and drugs and medicine sectors. The lowest pay was found in the publishing, measuring and controlling devices, and furniture and wood products sectors.

Production supervisors: The best pay was in the aerospace and aircraft products; and primary metals sectors. The worst pay was in the building materials, fabricated metal products, and apparel and textile mills sectors.

Purchasing employees: The best pay was in the aerospace and aircraft products, circuit board, and fabricated metal products sectors. The worst pay was in the apparel and textile products, ferrous primary metals, and publishing sectors.

To order the 21st edition of "Compensation in Manufacturing," visit www.abbott-langer.com or call 708-672-4200. The report costs $995.

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