consiliumGROUP

consiliumrecruit.com

2014

The

Salary Review

Manufacturing

Russell Tuck - Director, Consilium Group

“

”

The job market for experienced manufacturing industry professionals has tightened

dramatically. It is therefore vital that companies offer competitive compensation

to attract top talent as well as encourage your best people to stay.

Welcome to The Review

Manufacturing By Region

Demand for Talent 2014

Market Insight

Salary Tables

Salary Conversion Guide

Page 1

Page 2

Page 3

Page 5

Page 6

Page 11

Contents

1

E

UK Manufacturing - Highlights

stablished in 2001, Consilium has been Since the end of the recession, the increase in

a trusted recruitment partner to the UK exports to BRIC economies has been 10 times

manufacturing & engineering industry for over the increase in exports to Germany, France,

thirteen years. Italy and Spain combined

This is our annual report that presents salary The source data is derived from a combination

levels of 125 separate roles across 9 career of job seekers disclosure of current salaries,

disciplines, coupled with recruitment trends advertised vacancy salaries and actual job

anticipated for the manufacturing sector in offers managed by Consilium over the past 12

2014 and beyond. months across the Midlands region.

The salaries included in this review exclude any

bonuses and benefits packages which can be

found to vary widely, so this publication is a There are approximately 133,000

guide to base salaries only.manufacturing companies in the UK

employing around 2.5m people and Consilium operates across a diverse range of

contributing upwards of £160bn to the manufacturing and engineering biased

economyautomotive organisations throughout the UK:

we are therefore experienced and qualified to Manufacturing makes up 10% of GVA and

reasonably forecast how remuneration over half of all UK exports

packages are likely to look in the coming year.

36,900 people started Engineering and The salary guidance is based on the Midlands

Manufacturing Apprenticeships in the last yearregion - the heartland of manufacturing

industry in the UK, and benchmark for The average earnings within manufacturing

remuneration guidance across the UK.are higher than the rest of the economy

However, the salary ranges can be customised One in seven manufacturers who have shipped

for each of the UK regions by using the local production offshore are bringing activity back

variance calculator - please see simple guide

on page 11Manufacturing is responsible for 72% of

business R&D invested by UK business

During 2013, productivity in UK

manufacturing grew 5.7% (compared with

1.4% for whole economy)

Welcome toThe Review

2

OEM SITES (Original Equipment Manufacturer) by region

Percentage split by industry type

Manufacture of metal goods

Mechanical engineering

Manufacture of office/data processing equipment

Electrical & electronic engineering

Manufacture of motor vehicles & parts

Manufacture of transport equipment

Instrument engineering

Processing of rubber & plastics

Other manufacturing industries

NORTH EAST

16%

16%

8%

11%

14%

7%

9%

14%

13%

15%

16%

25%

26%

11%

19%

26%

17%

19%

SOUTH EAST

NORTH WEST

12%

12%

7%

9%

11%

11%

10%

13%

12%

13%

17%

28%

20%

15%

28%

20%

18%

15%

SOUTH WEST 36%

30%

24%

23%

38%

24%

22%

26%

31%

MIDLANDS

4%

4%

2%

4%

7%

5%

4%

6%

4%

WALES

Data provided by:

Infographic produced by: Totally Engineering Jobshttp:/www.totallyengineeringjobs.co.uk

The UK Engineeringand Manufacturing CencusFindlay Media Ltdhttp:/www.findlay.co.uk

By RegionManufacturing

3

T he UK possesses one of the most diverse Advanced Manufacturing Growth Review

manufacturing sectors in the world, includes the introduction of a the £200m high

currently ranked as the 11th largest and makes value Manufacturing Technology Centres,

a substantial contribution to the economy. University Technical Colleges, and initiatives

Where it was once written off as part of our such as ‘Make it in GB!’ All of which are

past, now it is considered an essential element collectively attempting to place greater

of the future as the UK rebalances its economy emphasis on supporting manufacturing and

away from financial services. step closer to the government target of getting

100,000 more companies exporting and a As the manufacturing sector recorded a 5.7% doubling of exports to £1trillion by 2020.growth in productivity last year, outperforming

the rest of the UK economy three-fold, many But behind all the headlines lies a challenge

individual companies are enjoying record for the sector, and it concerns real fears of a

growth. growing skills gap. The need to attract,

educate and train the vast numbers of This renaissance builds upon the UK’s apprentices, technicians, and engineering reputation for manufacturing excellence, with graduates that are going to be required in the senior management teams in manufacturing future is becoming pressing - especially when companies across the UK now used to reacting set against a backdrop of an aging engineering swiftly and decisively to changing economic workforce that year on-year is seeing highly fortunes. In recent years especially, these qualified and experienced engineers leaving the companies have learnt how to compete sector through retirement.successfully on an increasingly global stage,

overcoming challenges such as international

labour cost differentials, foreign currency

exchange rate volatility and commodity price

inflation. The manufacturing businesses that

have survived these challenges are lean, well

organized and very clear about where their

competitive advantages lie.

Sitting high on the national political agenda,

The upshot is a profound 'war for talent' as the government has pledged to invest heavily

organisations compete for a limited pool of in this sector, with an emphasis towards high-

manufacturing based skill-sets and industry end manufacturing, design and engineering

specific experience; often resulting in excellence. Support advocated by the

Demandfor Talent 2014

...The UK economy will require more than

100,000 STEM graduates annually for the

period 2012 - 2020.

4

candidates receiving multiple job offers. meet fluctuations in demand. The downside

Indeed, another prevalent trend is for customer however being that Contractors are all too

companies to poach staff directly from their often exponents of supply and demand, and

suppliers as a means of plugging skills gaps; can prove costly, particularly for the higher

again the knock-on effect culminating in wage demand skill sets.

inflation. This combined with the trend Looking to the future and on a positive note, counter-offers means that organisations are the trend particularly among larger increasingly forced to break budgets & salary organisations is to either increase or initiate parameters in order to secure their new apprenticeship and graduate intake schemes recruits. aided by significant government support,

This is a trend that is expected to continue into including a £150m pot for employers to create

2014 as the effect of skills scarcity really starts the training schemes required.

to bite. So far this has been felt particularly

within Engineering (Design, Production,

Process and Project based roles), Quality, and

Logistics / Supply Chain disciplines with

manufacturing and Operations also feeling the

strain more recently as production volumes and

new product introduction activity continues to

soar.

It may be that companies who have previously

been highly selective with their selection criteria

may have to widen their parameters - even

consider individuals from other manufacturing

as well as increasingly non-manufacturing Clearly this is a positive indication that firms

sectors in order to satisfy requirements. This is are now tackling the skills shortage within the

despite the requirement to provide training as industry, but may be considered too little, too

well as a period of adjustment for any converts.late to offer any real benefit in the short-term

In line with these resourcing pressures, we

have also witnessed a stronger demand for

Contracting and Interim staff which fortunately

can provide a flexible solution for companies to

Apprenticeship starts have topped half

a million, an increase of 14% on the

proceeding year with starts in the

engineering sector up an impressive

21.5% to 59,500

5

O f

Manufacturing and Engineering industry, we were able to gain the following insight:

the 31 companies whom participated in this survey, representing a cross-section of the

How do you expect headcount numbers to change during 2015?

Do you expect your company to announce salary increases or bonus payments during 2015?

How does your company normallygo about resourcing?

What is your main tool to ensureemployee retention?

MarketInsight

Increase53%

Remainconstant33%

Decrease14%

Yes51%

No20%

Unsure29%

RecruitmentAgency54%Direct

Advertising21%

Social Media/Networking 17%

Other 8% Flexible Working / Conditions 10%

ImprovedSalary31%

CareerDevelopment25%

EnhancedBenefits22%

Training12%

6

SalaryTables

consiliumGROUP

2014

7

2013Sample Size

2013Average (£)

RangeLow (£) High

Engineering & Design

Head of Engineering

Chief Engineer

Lead Engineer

Principle Engineer

Engineering Manager

Engineering Project Manager

Design Manager

CAD Manager

Senior Mechanical Design Engineer

Mechanical Design Engineer

Senior Electrical Design Engineer

Electrical Design Engineer

CAE Engineer (FEA, NVH, CAE)

CAD Technician

BOM Coordinator

Product Manager

Product Engineer

Programme Manager

Project Manager

Project Engineer

Development Manager

Development Engineer

Test Engineer

Validation Engineer

Senior Electronics Engineer

Electronics Engineer

Senior Software Engineer

Software Engineer

VA/VE Engineer

Metallurgist

12

10

15

17

9

18

15

18

22

23

14

17

15

31

16

23

19

19

16

25

11

15

27

22

18

22

18

22

14

12

56,000

49,000

41,000

39,500

44,000

42,500

39,000

34,000

34,200

26,200

33,000

27,000

26,600

28,200

23,000

34,000

28,500

39,500

36,000

30,000

34,800

28,800

23,000

30,700

37,000

30,000

37,700

33,000

28,000

26,800

108,000

90,000

72,000

64,800

71,000

62,000

53,000

52,000

51,000

46,000

52,500

42,500

53,500

42,000

51,000

52,500

43,000

54,500

56,000

46,000

52,000

44,000

37,500

42,500

58,000

42,000

60,000

51,000

38,000

44,200

75,400

70,100

56,000

51,700

58,400

52,000

47,200

41,900

43,500

35,700

42,300

39,800

39,800

33,700

31,500

41,300

35,000

45,900

44,000

37,800

41,000

35,900

31,500

35,800

45,600

37,500

48,600

41,300

33,000

36,700

SalaryTables

8

2013Sample Size

2013Average (£)

RangeLow (£) High

Manufacturing

Maintenance

Maintenance Manager

Maintenance Team Leader

TPM coordinator

Multi-Skilled Maintenance Engineer

Electrical Maintenance Engineer

Mechanical Maintenance Engineer

Robotics Engineer

Contols and Autmotation Engineer

Maintenance Technician / Fitter

Service Manager

Service Engineer

19

18

15

29

26

21

17

18

22

24

17

30,400

27,900

27,000

25,600

25,000

24,000

28,500

32,000

23,000

30,000

24,000

51,000

48,000

44,000

43,900

44,500

40,000

50,000

55,500

33,000

41,000

40,000

40,800

39,500

38,700

34,500

37,300

34,000

42,900

45,800

29,000

35,000

31,500

Production Engineering Manager

Production Manager

Manufacturing Manager

Production Team Leader

Business Unit Manager

Production Shift Supervisor

Production Engineer

Manufacturing Engineer

Manufacturing Systems Engineer

Process Engineer

Tooling Engineer

Automation Engineer

Production Planner

Production Controller

Production Technician

Toolmaker

CNC Programmer

Setter

15

24

19

26

16

24

26

22

17

26

15

16

21

19

25

28

22

26

42,000

35,000

33,500

25,800

37,000

25,500

26,000

29,000

32,600

27,500

27,800

27,200

24,500

24,000

20,000

20,800

19,800

16,800

62,000

58,500

54,500

35,000

53,500

42,000

40,000

45,000

47,000

41,000

40,500

46,000

36,000

34,500

31,000

39,200

37,000

29,500

53,000

44,800

43,500

29,200

44,000

34,400

35,900

37,700

37,700

35,800

35,000

38,500

29,600

30,700

24,600

33,100

31,500

26,300

SalaryTables

9

2013Sample Size

2013Average (£)

RangeLow (£) High

Operations

Quality

Human Resources

Operations Manager

Facilities Manager

Enviornmental, H&S Manager

Lean Manager

Lean Coordinator

Six Sigma Master Black Belt

Six Sigma Black Belt

Facilities Engineer

12

16

19

14

25

5

9

15

41,800

36,000

33,500

40,000

33,000

47,000

39,000

28,000

69,000

54,000

53,000

62,000

47,500

86,000

58,000

37,000

53,500

45,000

41,000

46,000

38,100

68,000

49,000

32,000

Quality Manager

Senior Quality Engineer

Project Quality Engineer

Quality Engineer

APQP Engineer

SQA Engineer

CMM Engineer

Calibration Engineer

Quality Auditor

Quality Technician

Quality Inspector

29

24

21

56

32

28

22

28

25

19

22

38,500

38,000

32,000

27,000

24,900

31,000

25,000

25,200

23,500

19,500

19,000

62,000

47,000

43,500

46,000

42,000

44,000

36,500

43,000

38,500

32,000

28,000

46,200

42,000

38,100

34,800

36,400

37,500

29,500

35,300

31,100

23,800

24,400

HR Manager

HR Business Partner

HR Officer

HR Administrator

Technical Trainer

17

9

13

15

8

37,000

34,000

24,000

20,000

25,000

58,000

49,500

34,000

33,000

40,500

47,500

40,100

33,000

23,800

33,000

SalaryTables

10

2013Sample Size

2013Average (£)

RangeLow (£) High

Logistics / Supply Chain

Sales / Commercial

Purchasing Manager

Supply Chain Manager

Logistics Manager

Materials Manager

Technical Buyer

Commodity Buyer

Project Buyer

Buyer

Cost Engineer

Cost Estimator

Logistics Coordinator

Materials Planner

Material Controller

Global Sales / BD Manager

European Sales / BD Manager

Export Sales Manager

National Sales / BD Manager

Regional Sales / BD manager

Account Manager

Commercial Manager

Pricing Manager

Technical Sales Engineer

Sales Engineer

Applications Engineer

Commercial Estimator

Customer Account Coordinator

18

24

26

19

15

18

8

25

19

11

23

18

24

6

4

9

19

21

24

16

12

34

12

17

13

14

38,000

38,600

35,000

37,000

30,000

29,200

31,000

27,200

25,000

23,500

23,800

25,000

24,000

64,000

51,000

38,000

37,200

33,800

29,000

35,000

34,000

24,500

22,000

25,000

24,500

23,000

68,000

63,000

76,000

51,800

44,000

42,000

44,000

44,500

41,000

38,000

44,000

36,500

35,000

106,000

76,000

57,000

60,000

53,000

50,000

57,000

52,000

42,000

44,000

41,000

39,100

38,000

52,500

52,300

51,000

47,100

38,000

37,900

37,000

37,600

33,900

34,400

32,300

31,000

29,500

87,000

66,000

48,000

49,500

44,200

43,100

49,000

45,000

33,700

31,900

34,000

31,300

29,000

SalaryTables

11

2013Sample Size

2013Average (£)

RangeLow (£) High

Executive

N.B. Salaries are rounded up/down to the nearest £100.

Customising Salaries for Local Markets

Midlands . . . . . . . . . . . . . . .

North East . . . . . . . . . . . . . .

North West . . . . . . . . . . . . .

Yorkshire . . . . . . . . . . . . . . .

East England . . . . . . . . . . . .

South England . . . . . . . . . .

South West . . . . . . . . . . . . .

Wales . . . . . . . . . . . . . . . . .

Regional Variances

100%

96.2%

98.6%

94.3%

92.6%

103.0%

97.8%

91.5%

CEO

CFO

COO

CTO

General Manager

Managing Director

Finance Director

Plant Director

Technical Director

HR Director

Purchasing Director

Engineering Director

Sales Director

Operations Director

Logistics Director

3

2

3

5

7

8

4

9

8

4

4

6

4

7

6

134,000

125,000

90,000

88,000

65,000

85,000

58,700

67,000

55,000

57,000

60,000

62,000

72,000

55,800

53,000

240,000

220,000

169,000

162,000

109,500

168,000

123,000

98,000

89,000

92,000

96,700

92,500

105,000

86,000

81,000

186,000

184,300

116,300

112,000

86,100

118,000

92,400

81,000

70,700

72,000

77,600

79,200

84,000

66,200

64,000

SalaryTables

The salary information provided is specific for the Midlands

region and includes the following counties/locations;

Birmingham, Black Country, Gloucestershire, Leicestershire,

Northamptonshire, Nottinghamshire, Oxon, Shropshire,

Staffordshire, Warwickshire and Worcestershire.

However, to customise salary ranges for any regions outside

of the Midlands then please follow the simple guide

opposite. (Note - factors such as company size, employee

benefits, candidate skill set and current and/or local market

trends may affect actual starting salaries.)

To calculate the approximate salary range of a specific

position for other regions, multiply the salary shown in the

Midlands region by the percentage indicated for the

relevant region.

Notes

consiliumGROUP

Member

Anglo HouseWorcester RoadStourport-on-SevernWorcestershire DY13 9AW

Russell Tuck01299 828347rtuck@consiliumrecruit.comconsiliumrecruit.com

To discuss any aspect of the automotive recruitment or a more specific and Benefit award levels within your particular marketplace - please contact:

analysis of Compensation

© Consilium Group Ltd - All profile requests are subject to our normal Termsand Conditions of Business for the Introduction of Staff - available on request.

11%

UK

GD

P

£55,000,000,000

TURNOVEROF UK

AUTOMOTIVEMANUFACTURING

2.3 MILLIONJOBS

£35,000,000,000

DEFENCECONTRIBUTION TO THE

ECONOMY

80%OFCARS

EXPORTED

WORLD’S8TH LARGESTMANUFACTURER

1/2 OFALL UK

EXPORTS

GLOBALO

FS

HA

RE

17% AEROSPACE

MARKET

OV

ER

400,0

00

EM

PLO

YE

DIN

TH

E

FOOD

DRINKMANUFACTURING

SECTOR

AND

£5,500,000,000

TRADESURPLUS

FROM PHARMACEUTICALSMANUFACTURING

122,000

BUSINESSESMANUFACTURING

3000CHEMICAL

COMPANIESIN THE UK