There have always been significant differences in pay
scales among the various geographic regions, and that
continues to be true, as Exhibit 5 makes clear. The highest average pay, $141,981, was in the Southeast, home to
some of the fastest-growing manufacturing and distribution areas in the country. The Midwest—still America’s
industrial heartland, with 38 percent of survey respondents—was next, at $123,846. New England reported the
lowest average salary, the only region that came in at less
than $100,000.
AGE HAS ITS REWARDS
A potpourri of other factors can have an influence on salaries. Our survey found that a respondent’s age and gender,
and the size of the company he or she works for can also
make a difference.
Take age, for example. It’s logical that salaries should
increase with age, and that’s exactly what the survey
results showed. Younger folks—those in the 26–35 age
range—averaged a respectable $88,730. Middle age has
its rewards, though. Respondents aged 36 to 45 reported average salaries of $103,022, and the next bracket
( 46–55) made about $16,000 more. Those who stick with
this profession for the long haul will be rewarded: Elder
statesmen (and women) age 56 and older, the majority of
whom have higher-level positions, earned average salaries
of $133,650.
For as long as logistics industry salary surveys have
been around, women have lagged behind men in terms of
their compensation, and this year was no different. Female
respondents earned an average of $84,601, while male
respondents reported an average salary of $123,489—a dif-
ference of nearly $40,000, or 32 percent. That difference can
be attributed in large part to less education, lower positions,
and fewer years of experience than their male counterparts.
One-third of female respondents had a high school edu-
cation only, and just five of the women survey takers held
vice president titles. Sixty-one percent of the women who
responded to this year’s survey had 15 years’ experience or
less, compared with 28 percent of the men.
The size of the company you work for makes a difference
in your salary. As you might expect, small businesses—
those with fewer than 100 employees—pay the least, an
average salary of $92,277. Working for a larger company
will get you a larger salary—at least $20,000 more for this
year’s respondents. Working for the largest corporations
(those with more than 5,000 employees) does not guarantee
the highest salaries, though. Respondents who worked for
companies with between 500 and 1,000 employees did best,
with an average salary of $157,350.
UPWARD BOUND?
As anyone who’s ever undergone a salary review well
knows, there are countless variables that might influence
a person’s compensation—not just the many factors mentioned above, but also such considerations as job performance, departmental budget, internal politics, and perks
and benefits, to name a few.
But it’s also clear that salaries reflect overall economic
conditions. As orders and shipping volumes continue to
climb, e-commerce expands, and more manufacturing
returns to North America, demand for capable, knowledgeable logistics and supply chain talent will also continue to
grow. And that means the size of their paychecks is likely
to stay on an upward trajectory for some time to come.
EXHIBIT 5
Salary by region
Region Average
salary 2014
Southeast $141,981
Midwest $123,846
West $115,829
Middle Atlantic $114,917
South $102,820
New England $97,227
reasonable work hours. “Either give me additional head-count or put me and my team on fewer projects,” said one
respondent. But many focused on broader concerns, such
as having clear and achievable key performance indicators
(KPIs); having access to more training—not just on functional responsibilities but also to enable upward mobility; improving internal teamwork and collaboration; and
having upper management understand and value logistics
and its contributions. One respondent would like to see
his employer “focus more on long-term improvements and
less on hitting quarterly numbers,” while another wants
“transparency as to strategy, vision, and communications.”
