CTE Salary Survey results analyzed

Supply and demand and automation are driving increases in salaries and benefits across the metalcutting industry. That’s the view of industry experts who analyzed the results of CTE’s 2018 Biennial Salary Survey.

“The increases are pretty remarkable,” said Phil Kurtz, president of the United States Cutting Tool Institute and vice chairman of Wetmore Tool and Engineering Co., Chino, California. “When you see double-digit (percentage) increases in salaries over 2 years, that’s impressive.”

Although remarkable, the results are not necessarily surprising. Current market conditions are pushing the numbers higher.

“They look right in line with what I expected,” said Patrick McGibbon, vice president of strategic analytics for AMT – The Association For Manufacturing Technology. “They reflect not inflation but lack of supply.”

Health care benefits and compensation packages have been continually rising, according to Kurtz. The entire compensation package has become increasingly important to younger workers.

“The benefits are just following along with what’s going on with the salary,” McGibbon said. “People look at the jobs as much more than money to take home. It’s a health plan, a dental plan, a 401(k).”

Additionally, the workforce is in transition. As older employees retire, employers are competing for younger workers with automation skills to fill redefined jobs.

“In most factories, when you walk through, you expect the average age of the employees to be in the 30s, but it’s not,” McGibbon said. “The average age is clearly up in the 50s and in some places 55 or older.”

There continues to be a lack of younger people coming into the workforce, according to Kurtz. The lack of available employees has caused pay to increase.

“Employers just have to realize that it’s the cost to fill these positions,” he said. “Being able to reduce production costs or raising prices to pay the wages—it pushes the employer toward automation.”