Local Manufacturers Discuss Compensation & Benefit Trends
Published on by Nick Pennekamp in Manufacturing
Trends and Financial Information
Recently, Barnes Dennig, USI Insurance, and Custom Design Benefits surveyed regional manufacturing companies regarding salaries, benefits and other various benchmarking data. The data was presented in our biennial roundtable presentations, held in Northern Kentucky and Cincinnati. To give background information on the trends, we integrated national manufacturing economic research.
Manufacturing remains one of the more reliable industries for growth. According to research performed by the Institute for Supply Management, the purchasing manager’s index (PMI) is 54.8%. A PMI over 50% indicates growth of the economy. The economic activity has grown within the manufacturing sector for 8 consecutive months, as of April 2017. The overall economy is also growing steadily, a trend that has been consistent for the past 95 months since rebounding from the 2008 recession.
In Ohio and Kentucky, Annual Gross State Product growth has been positive since 2010. Statistics from the Bureau of Economic Analysis indicates Ohio has experienced the luxury of the growth rate being significantly higher on average than the national equivalent since 2011. Kentucky on the other hand, has experienced slightly lower than national average growth since mid-2011.
Manufacturing is one of the top five largest employers in the United States. According to Bureau of Labor Statistics as of 2016, the manufacturing sector employed 12.3 Million US workers and employment has been increasing year over year since 2010. Globally, US manufacturing employee skills rank among the best, when comparing to other countries. The two other competitive countries being China and Germany, respectively.
Overall, the outlook for manufacturing looks positive. The manufacturing economy is still growing in 2017, but it is not growing at the rate it was in 2015. This steady economic growth is expected to continue in manufacturing and overall economy. Employment and wages are rising. Interest rates remain favorable, and banks are lending.
Visit our website to view the entire Roundtable using our seminar playback feature to learn more about the covered topics.
If you have any additional questions or would like to learn how to obtain a copy of the 2017 Manufacturing Compensation & Benefits Benchmarking Study, please contact a Barnes Dennig Representative here.