Survey says Hoosier industry pay stays steady in northeast Indiana

The study reports low-end, average and high-end salaries for about 100 different types of positions at industrial companies, ranging from president down to engineers, supervisors and general laborers. Ninety percent of firms reported hiring new positions in the last six months, and about half plan to continue hiring through the rest of 2015 and into 2016, the study shows.

Although 90 percent of companies also reported giving raises in the last 12 months averaging 4.4 percent, average wages for the most commonly held jobs didn’t reflect increases approaching those numbers in the report.

The general laborer position, which is by far the largest category with about 3,000 employees, had an average wage that declined by 1 cent since last year to $13.89 per hour.

Assembly jobs, both skilled and unskilled, did see increases in pay as did material handlers and quality control inspectors. But jobs such as maintenance mechanics, operators and computer numerical control machinists had average wages that declined since 2014.

Economic development officials in all four counties said they expect wages have increased or will be increasing soon due to a shortage of reliable workers willing to fill positions. Employers have positions, but not enough people to fill them, which will help to drive up wages as companies try to attract and retain employees, Steuben County Economic Development Corp. Executive Director David Koenig said.

Part of the hiccup in the wage numbers could be due to a smaller sample of industries this year, he said.

“So what they taught us in Econ 101 is actually true. Supply and demand does dictate price, and we’re seeing that in a real-life scenario there with wages,” Koenig said.

The entry-level general laborer position is the most common, and at the current rates, a full-time worker would be making just under $30,000 per year. It’s an OK wage, and even compares to some jobs four-year college graduates will get out of school, but that wage needs to go up in order to give workers more disposable income, LaGrange County Economic Development Corp. President and CEO Ryne Krock said.

“(The average wage) is not where it should be. I think we need to continually work at increasing that. Next year, I think that will be higher. It’s more competitive for employers to find the help they need. Trying to get applicants to come through the door in LaGrange County to apply is a challenge,” Krock said.

While economic development leaders haven’t closely combed through all the data yet, the information is valuable to both existing businesses as well as to development staff trying to attract new business, they said.

Since the report gives a range of what other employers in the region are paying for the same types of workers, companies can use that data to decide what they should be paying employees, DeKalb County Economic Development Partnership Executive Director Ken McCrory said.

For example, a company might find it can’t attract workers because its pay is too low compared to competitors, McCrory said. Or, a company could see what the average wage is for a position and choose to go higher in an effort to capture the best talent for that job, he said.

“One company I recently talked to, they were somewhat amazed at what they were paying compared to similar industries and decided they needed to up their hourly rates,” McCrory said.

The study is also a tool that development leaders can give to prospective businesses, to give them an idea of what the industrial market already is in northeast Indiana, Koenig said. That information can help a company estimate the cost of doing business here, since personnel costs in wages and benefits make up a large portion of annual expenses.

The wages and benefits survey is also a highly effective way to hear from industries what they need from workers who are applying and the types of specialized workers they are in need of, Noble County Economic Development Corp. Executive Director Rick Sherck said.

For example, more than half of companies said one of the critical technical skills they need employees to have is experience with Microsoft Office programs. Other job-specific skills such as CNC machining experience, computer-aided design experience or other industrial-type skills were requested less.

Industries can train employees in-house to do a specific job, because even companies in the same field, such as tool-and-die work, may have very different equipment, procedures and processes. That makes it much more desirable for companies to promote from within rather than trying to get an experienced worker from another firm, Sherck said.

That’s why Noble County and other counties are now promoting workforce development programs that will allow that entry-level worker to receive training to move into an advanced position, Sherck said. The $14 per hour for the general laborer position isn’t spectacular, but if that person can be trained to be a certified welder, CNC machinist or press operator, then wages are going to jump up to $16, $18 or $20 per hour.

It’s not uncommon to visit a plant and find that many of the supervisors and management positions are held by people who started on the factory floor and worked their way up, Krock said.

“To help advance those people, to make them more valuable employees because we know those skills are needed — if they show up every day, we can invest in those people, and those spots can be back-filled,” Sherck said.

The counties are also working on a new program to provide indivuals with industry-recognized manufacturing certifications, Sherck said. That training would focus on specific skills companies say they want, and would give an employee a leg up toward a higher-paying position, he said.

That process has to be driven directly by feedback from employers to be useful, Sherck said.

“If I develop it from my seat in my office from what I see, that can miss the mark drastically. We allow the industries to tailor our educational programs,” he said.

Most employers aren’t requiring a college degree or even a technical certification to get started. A high school diploma or equivalency degree is typically a requirement, although some firms still will hire people who don’t have either. So economic development groups also need to make a better connection with high school students to discuss manufacturing as an option, Krock said.

College can be a good investment, but it’s not for everyone, and a four-year degree doesn’t necessarily equate to high-paying jobs, Krock said. Many college graduates are coming out of school after four years with debt and not landing jobs significantly better than the $14-per-hour starting wage they could find in industry.

Manufacturing generally isn’t the stereotypical sweaty, dirty type of work of the earlier 20th century anymore, Krock said. So the four-county area is working on programs to introduce more students to industry with tours or internships to give them a taste of what kinds of careers are out there after high school, he said.

Many firms will pay for training or tuition reimbursement, so even a person who gets started on the factory floor but finds his or her passion a few years in can still have an opportunity to pursue additional education, Sherck said.