Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
With a roaring stock market, cheap gas, and solid job creation numbers, the U.S. economy has enough forward momentum to coast over the occasional rough spot—such as weak consumer spending during a snowbound February—a Bloomberg survey shows.
Likewise, the supply chain profession has seen vigorous job growth in the past year despite big league challenges like a West Coast port work slowdown and concerns about how to fund repairs to aging roads and bridges, according to the U.S. Bureau of Labor Statistics.
Now, DC Velocity readers are showing similar optimism with their enthusiastic response to the magazine's latest salary survey. Nearly 90 percent of respondents said they were satisfied with their jobs, citing the chance to solve problems and work with experienced colleagues. And 91 percent said they would recommend the logistics field to a young person entering the job market.
As for how these readers are compensated for their labors, respondents to our 2015 salary survey earned $112,850 on average, which represents a 5-percent drop from the $119,538 they reported last year. Likewise, the median, which is the midpoint in the list of all salaries reported, fell 8 percent to $94,000. That's a stumble from the $102,000 mark set in 2014 but still above the $90,000 median in our 2013 survey, and far above the meager $85,000 median pay reported during the fiscal crisis of 2009.
Despite the overall drop, well over two-thirds (68 percent) of the 294 qualified respondents said their annual compensation increased last year. In terms of size, those raises remained flat at just below 6 percent on average, slightly below the previous year's number. Meanwhile, about one-fourth (26 percent) said their salaries had stayed the same. Just 6 percent said they made less money in 2014 than they did the year before, although their sizeable cuts weighed down the overall average.
JOB PROSPECTS LOOK GOOD
Despite the slump in salaries, context shows there is plenty of good news in these numbers. Readers of this magazine earn fatter salaries than the national rate for jobs in the field, government figures show. With a median salary of $94,000, DCV readers earned far more than the $72,780 per year reported by the U.S. Bureau of Labor Statistics in 2012 (the most recent year for which statistics were available) for logisticians and supply chain analysts and coordinators.
Even better, our industry is brimming with new job opportunities for those in search of rewarding and challenging work. Logistics employers are forecast to expand their hiring by 22 percent over the coming decade—much faster than average for U.S. industry, the government says—adding an estimated 27,600 jobs to the 125,900 jobs existing in 2012.
PUTTING IN THE TIME
If you're fortunate enough to get hired for one of those spots, be prepared to sweat for your paycheck. DCV readers report that they are working harder than ever, with 38 percent saying their work hours have increased over the previous three years. Only 7 percent said their work hours had decreased, and 55 percent said their workweek had stayed the same.
As for how that translates to hours per week, only 22 percent said they worked 45 hours or less during the average week. Another 69 percent said they typically worked 46 to 60 hours a week, including time spent working outside the office. And a no-doubt-exhausted 9 percent said they're logging more than 60 hours a week in their jobs.
One possible reason for the long hours is that most of the respondents have more responsibilities than they did in the past. Sixty-four percent of the survey participants reported that the number of functions they manage has increased over the past three years. Another 32 percent said their responsibilities had stayed the same, and just 4 percent reported a decrease.
The more responsibilities on your plate, of course, the more people to manage. No surprise, then, that more than two-thirds (69 percent) of survey respondents said they have five or more direct reports, an increase of five percentage points over last year.
Another reason why logistics professionals may be so devoted to their work is that on average, 15 percent of their compensation is based on performance. Although 42 percent of you reported no performance tie-in to your paychecks, a full 16 percent said performance incentives accounted for between 21 and 50 percent of their compensation.
Which titles pay the most on average? Corporate officers were at the top of the salary ladder. The average salary for C-level respondents was $243,913—slightly higher than the average salary of presidents, who at $222,533 were better paid than vice presidents ($193,913) and directors ($128,144).
From there, it's a big drop to the next levels. Managers made some $41,000 less than directors, and supervisors earned about $16,000 less than managers. Exhibit 1 shows the average salary for each title.
EXPERIENCE, EDUCATION COUNT
Job titles may carry the most weight, but many other factors influence how much an individual logistics or supply chain professional makes. The region where you work, which industry you work in, your level of education, and how long you've been in the business will typically play a big role in determining your salary.
Let's start with education. Did your parents advise you to go to college so you'd make more money? They knew what they were talking about. Exhibit 2 illustrates the strong correlation between earnings and education. The average salary for respondents with only a high school diploma was $81,057. It was a big step up from there to a bachelor's degree—the highest level of education for nearly half the survey respondents. The average salary for survey participants who had earned a bachelor's degree was $125,221.
Experience in the field also influences earnings, as shown in Exhibit 3. The median—or mid-point—salary of newcomers to the profession (those with five or fewer years of experience in logistics) was $76,000, and for those with six to 10 years' experience, $66,500. Those figures jumped by at least $15,000 for the more experienced logistics professionals in our survey—respondents with 11 to 15 years' experience earned a median $91,500 and those with 16 to 20 years, $88,500. The most seasoned workers of all earned quite a premium for their experience, reporting a median salary of $95,000 (for those with 21 to 25 years under their belts) and $111,000 (for those with more than 25 years).
The industry you work in can also have a tremendous impact on your salary, as Exhibit 4 shows. The highest-paying industries included transportation equipment ($243,320), chemicals and allied products ($168,556), and apparel and footwear ($156,125). On the opposite end of the scale were automotive ($87,968), paper and allied products ($80,625), and contract warehousing ($77,129).
There have always been significant differences in pay scales across the various geographic regions, and that continues to be true, as Exhibit 5 makes clear. The highest average pay, $122,636, was in New England. Close behind were the South ($119,958), the Middle Atlantic ($118,788), and the West ($117,902). The laggard on the list was the Southeast, which came in below $100,000 with an average salary of just $96,103.
AGE HAS ITS REWARDS
An array 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 would increase with age, and that's exactly what the survey results showed. Younger folks—those in the 26 to 35 age range—earned a respectable $64,900 on average. Respondents aged 36 to 45 did much better, at $109,095, and the next bracket did better still, with readers aged 46 to 55 making another $5,000-plus a year more. Stick with this profession for the long haul and you will be rewarded; the elder statesmen (and women) aged 56 and over pulled down $124,499 on average.
For as long as logistics industry salary surveys have been around, women have lagged behind men in terms of compensation, and this year was no different. Female respondents earned an average of $86,955, while the average man who filled out our survey earned $117,550—a difference of more than $30,000, or 26 percent. Frustrating as that is for the hardworking women of the logistics profession, at least it marked an improvement over last year's survey results, when women's salaries fell 32 percent short of men's pay.
The difference can be attributed in large part to a lack of seniority and experience on the women's part. The women and men in our survey this year had similar education profiles—for both genders, about one-third had a high school education only, while slightly more men held bachelor's degrees (49 percent to 45 percent) and slightly more women had master's degrees (20 percent to 18 percent).
Some differences emerged from the numbers when we looked at titles, however. Although the percentages of women and men working as supervisors, managers, directors, and presidents were roughly equivalent, there was only one woman with a vice president's title, compared with 29 men.
There was also a difference in experience, as women were disproportionately represented among the cohort with fewer than 15 years' experience—women made up 21 percent of this group although they accounted for just 15 percent of the total respondent base. Likewise, they were underrepresented among the logistics professionals with 16 and more years on the job, making up just 12 percent of this group.
The size of your company may also make a difference in your salary. As you might expect, small businesses—those with fewer than 100 employees—pay the least, with an average salary of $82,799. Working for a larger company will get you a larger salary—with average paychecks coming in at least $23,000 higher for respondents working for companies with between 100 and 1,000 people on the payroll. The best checks came from the biggest corporations, with companies employing more than 5,000 people paying an average salary of $123,319.
UPWARD BOUND
As anyone who's ever undergone a salary review well knows, there are factors beyond those listed above that might influence a person's compensation—considerations like job performance, departmental budget, internal politics, and perks and benefits.
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 continue to grow. And that means the size of their paychecks is likely to trend upward for some time to come.
What makes you happy... or not?
As part of our annual salary survey, we asked respondents how they feel about their profession: Are they satisfied with their choice? Would they recommend it to others? What do they like most about their jobs? What do they like least? Here's a quick look at what they had to say.
Supply chain jobs are among the best available, thanks to new challenges every day, teams of skilled coworkers, and average salaries parked solidly in the six-figure range, readers say.
Asked what they liked most about the logistics profession, respondents cited its variety of responsibilities and projects, and its fast pace. "Challenging yet rewarding, and [I enjoy] getting to lead teams and shape careers," one respondent said. Another person wrote that he or she enjoyed "Putting pieces together to look at the big picture and solve complex problems." And a third person loved the social aspect of work, saying, "Meeting a diverse demographic across the industry makes the job a lot of fun."
Complaints about the work include some themes that would be familiar to any office worker: administrative work and documentation, terminating people, corporate politics, unreasonable customers, and lack of commitment from leadership.
So, what would make survey-takers happier in their work, besides a pay raise? Respondents said they wanted more professional development opportunities, a better balance of work and family life, better IT tools such as computers and phone systems, and more independence. "Provide me with direct control over the areas for which I am accountable," one person pleaded.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.