It’s Not All About the Money

“We need to get people in government out of the rule-making business as it applies to industry. I can think of no one in the present administration that knows squat about industry and material handling in general (except perhaps juggling books).” — sales/business development manager in the aerospace & defense industry with 26-plus years of experience, living in New England and earning $60,000

“Our labor pool is getting scarier by the day. As our education system pumps out graduates that function at grade school levels, businesses continue to suffer.” — distribution/warehouse manager with a plastics and rubber products manufacturer with 26-plus years of experience, living in the South Central region and earning $95,000

“One hundred percent of industry investments have gone into improving production output with no consideration given to updating warehouse processes. The warehouse workers are just told to work harder.” — distribution/warehouse manager with a consumer goods company with 21-25 years of experience, living in the South Central region and earning $84,600

“So many issues are coming at the U.S. material handling and manufacturing industry, such as the value-added tax, government regulations authored by professional know-nothings fresh out of college, and the failure of the U.S. to work out balance of trade, allowing foreign industry to decimate U.S. manufacturers.” — consultant in the aerospace & defense industry with 26-plus years of experience, living in New England and earning $50,000

“Help!” — operations manager with an automotive manufacturer with 16-20 years of experience, living in the North Central region and earning $85,000

Although the recession is said to have officially ended back in June 2009, its effects still linger on in the guise of the millions who are still unemployed, under-employed or prematurely retired. Although the recession affected virtually every industry in some way, the material handling and logistics field was acutely sensitive to the economic downturn since traditionally the industry is among the first to be affected by a recession and among the last to fully recover. That’s the nature of the supply chain, where the ramping up of production and the movement of those goods through various channels and pipelines takes a good bit of time.

But let’s cut to the chase: Are things better than they were a year ago when it comes to the paychecks of material handling and logistics managers? The short answer is: no, not really. The average salary rose from $80,084 in 2010 to $81,016, which represents an increase of 1.2%. However, the inflation rate in the United States in 2010 was 1.6% (according to the U.S. Bureau of Labor Statistics), so unless you were one of the lucky few whose salaries rose more than 2% over the past year, your standard of living most likely is at status quo compared to 2010. Based on the comments we received in the MH&L 2011 Salary Survey, there’s a lot of pent-up frustration with how long it’s taking for the economy—and more specifically, salaries—to recover.

From the responses we received, we can paint a picture of a typical material handling and logistics manager: He is a white male in his 50s, living in the Midwest, with more than 25 years of experience in the industry, and working for a wholesaler/distributor that reduced staff in 2010. That’s what the average manager looks like in the aggregate, but this article will also examine the specific challenges and accomplishments of individual managers, giving them an opportunity to tell their stories in their own (anonymous) words.

From Sea to Shining Sea

“In our area of the country and at my age, I am thankful to have a job, although having my salary frozen this year after a 1% increase last year is not a desirable thing.” — inventory/materials manager with a utility company with 26-plus years of experience, living in the South Atlantic region and earning $75,500

“Economics and stability are the main concerns, especially in Arizona.” — corporate/executive manager with a wholesaler/distributor with 11-15 years of experience, living in the Mountain region and earning $125,000

“For the area I live in, I am fortunate to have such excellent employment.” — supply chain manager with a textile manager with 26-plus years of experience, living in the South Atlantic region and earning $97,000

“Our area is low paid.” — engineering manager in the retail trade industry with 11-15 years of experience, living in the North Central region and earning $55,000

Despite some obvious differences in average salaries between different regions of the country, the grass isn’t always greener in somebody else’s supply chain. The map on page 23 indicates, for instance, that the top average salaries ($91,430) are earned in the Middle Atlantic region, namely New York, New Jersey and Pennsylvania, but of course, the cost of living in this region is also higher than anywhere else in the country.