Download as pdf or txt
Download as pdf or txt
You are on page 1of 3

Newsfront

ChE SALARIES SHOW


SIGNS OF IMPROVEMENT ����������������������������������������������������������
Employers are stepping �������
���������������
�������
up efforts to attract and
������������������ ���������������
������������������� ������
�������
���������������

retain workers after a


��������������

������� ���������������
���������������
������� ���������������
five-year-long slump ������ ������
���������������
������ ���������������

������

D
������ * Dashed lines
uring the first half of this de-
indicate 2004
cade, painting a rosy salary pic- � data that have
� � � � �� �� �� �� �� �� �� �� �� been adjusted
ture for chemical engineers has for inflation to
��������������������������������
been impossible at times, and at Source: EWC 2005 equivalency
best required a creative flair. Forget
FIGURE 1. According to the latest figures from the Engineering Workforce Commis-
gaining ground — amid salary freezes sion of the American Association of Engineering Societies, Inc. (EWC; Washington,
or raises that lagged inflation, Ch.E.s C.C.; aaes.org/ewc), U.S. ChEs were generally worse off in 2005 than they were in
were doing well in 2005 if they didn’t 2004 if inflation is considered (Table 1). If the EWC’s 2006 survey, to be published in
take steps backward (Figure 1). For- September, follows suit with the industry surveys that have been published so far,
more-favorable results will be in the cards
tunately, the first salary data and em-
ployment analysis for 2006 suggests employees, he says. Counter-offers wit- nearly five years. “There have been 33
that we’ve come to a turning point. The nessed by his firm are currently at an consecutive months of job growth, and
pot of gold may still be out of sight, but all-time high. “Whereas two years ago,” earnings over the past twelve months
the silver lining is shining bright. he compares, “a company would wish have increased by 3.7%.” A relevant
The job market for chemical engi- you well and send you on your way.” fact that Chao’s assessment doesn’t
neers is as active as we’ve seen it in In the U.S., this positive outlook consider, however, is that another fa-
the past five years, says Rich Brandeis, reflects the generally improved stand- miliar measure of economic activity —
a senior partner for CPS, Inc. (West- ing of the American worker these inflation — saw a 3.7% leap between
chester, Ill.; cps4jobs.com), a recruiting days. Referring to the U.S. Bureau of 2005 and 2006.
firm that specializes in placement of Labor Statistics’ May 2006 employ- Such devaluation is what takes the
Ch.E.s. While initial salary offers are ment numbers that were released last kick out of the increases that many
certainly improving, the most notable month, U.S. Labor Secretary Elaine National Society of Professional En-
difference is in the aggressive efforts L. Chao said that unemployment in gineers’ (NSPE; Alexandria, Va.; nspe.
that employers are taking to retain this country is at its lowest point in org) Engineering Income and Salary

���������������������������������������������������� ������������������
������� �������
�����������������������������

���� �����
�������
���������������������

���� �������
�������
�������
������
������
������
������
������ ������

������ ������

� �
���
��

��
��

�� ��

��� ��� ��� ��� ����� ����� ����� ���


��
��

��

��
�� ��
��

��

��
��

���
��

��
��

�� ��

���

��
��
��


��

���
��
��
�� �

��
��

�� ��

Source: NSPE �� Source: NSPE �������������������


��
��

FIGURE 2. In terms of compensation, chemical and petro- FIGURE 3. According to 2006 NSPE respondent data (Table 3),
leum engineers are usually at or near the top (Table 2) the Ch.E. gender gap may be headed for extinction

CHEMICAL ENGINEERING WWW.CHE.COM JULY 2006 21


Newsfront

TABLE 1. CHEMICAL ENGINEERS — ALL DEGREE LEVELS


SMOOTHED SALARY CURVES VERSUS YEARS OF EXPERIENCE
Years experience 9–10 11–12 13–16 17–20 21–25 26–30 31–35 35+
Plot year 9.5 11.5 14.5 18.5 23 28 33 38
2004 (adjusted to 2005 dollars)
90th percentile 94,856 99,443 106,560 113,247 127,149 151,368 161,554 160,144
75th percentile 84,024 89,556 97,293 105,771 117,025 134,909 138,300 126,212
Median 78,298 80,208 84,050 86,102 97,919 105,505 109,881 106,175 Goodyear
25th percentile
10th percentile
63,948
58,463
69,150
62,306
72,759
62,029
75,831
66,333
81,375
65,079
88,824
73,194
91,334
71,623
88,422
70,246
Star Distributors
2005
Able Hose & Rubber
90th percentile 84,232 89,732 97,088 110,304 116,334 133,684 147,508 167,736
Alaska Rubber & Supply Inc.
75th percentile 79,856 83,912 89,420 99,476 108,042 118,176 125,024 132,780 Allwest Sales & Service
Median 74,007 77,519 83,632 87,900 97,680 102,220 108,564 111,984 Applied Industrial Technologies
25th percentile 60,292 65,688 74,421 76,335 80,689 84,730 87,204 85,164 Branham Corporation
10th percentile
CFM Industrial Rubber
55,863 57,045 57,045 53,298 56,350 54,415 55,791 54,673
C.V. Harold Rubber Co., Inc.
Source: Engineering Workforce Commission
Carolina Rubber & Specialties, Inc.
TABLE 2. AVERAGE INCOME BY TABLE 3. MEDIAN INCOME BY Catawba Industrial Rubber Co., Inc.
ENGINEERING DISCIPLINE GENDER AND EXPERIENCE LEVEL Coastal Hose & Rubber, Inc.
Discipline 2005 Average 2006 Average Length of Male Median Female Me- Dennis Bahcall Rubber Company, Inc.
Income Income Experience Income dian Income FLEX-ING, Inc.
Materials $86,638 $81,336 Under 1 year $45,400 $45,125 Fluid Hose & Couplings
Civil $77,384 $82,288 GRW Equipment
1-2 years $48,500 $49,400
Hampton Rubber Co.
Environmental $80,076 $85,645 3-4 years $54,500 $54,000 Hart Industries
Mechanical $80,323 $89,834
5-9 years $65,000 $62,400 Hitech Piping
Biomechanical/ $101,711 $90,877
10-14 years $78,000 $74,573
International Belt and Rubber Supply
Biomedical
Lake Charles Rubber and Gasket Co.
15-19 years $89,000 $83,050
Electrical $90,025 $92,712 Lewis-Goetz & Company, Inc.
Chemical $98,269 $100,238 20-24 years $96,000 $91,700 McGill Hose & Coupling, Inc.
Petroleum $117,004 $131,447 25+ years $105,000 $96,804 New Line Hose & Fittings
Source: NSPE Source: NSPE
Peerless Mill Supply Co., Inc.
Survey respondents reported for 2006 While not as dramatic, other indus- Pennington Rubber Company
(Figure 2). The average annual sal- tries have continued to grow as well. Power Product Technologies, Inc.
ary for its chemical engineering par- CRB’s biotech and pharmaceutical Red-L Distributors Ltd.
ticipants grew by less than 2%, from clients are increasing capital expen- Reliance Industrial Products
$98,269 in 2005 to $100,238 in 2006. ditures, Rozelle says, which will ulti- River Bend Hose Specialty, Inc.
(Table 2). mately lead to increased labor demand R / W Connection Inc.
Still, over the past few years, con- within that specialized area. Rubber & Specialties, Inc.
fidence in the economy has increased Service Industrial Supply
within many individual segments of Striving for gender equality Sunset Industrial Parts
the chemical process industries (CPI), While the salary gap between chemi- Tiger Technologies LLC
says Jeff Rozelle, of CRB Consulting cal engineering disciplines is wide, the Tipco Technologies
Engineers, Inc. (Kansas City, Mo.; difference in salaries between male Triplex, Inc.
crbusa.com), a consulting engineering and female engineers might, in fact,
and architectural firm with a strong be narrowing (Figure 3). The dispari-
focus on the life science industry. “Most ties in salaries are still substantial
notably, the petroleum industry has in the higher ranks, but are barely
been going through a significant boom noticeable — if not flip-flopped — for To locate your nearest
resulting in a labor shift towards that engineers that entered the workforce Star Distributor, go to
field,” he says. Consider, for instance, during the past five years. Other in-
that the NSPE’s 2006 petroleum engi- fluences aside, equal pay at the entry http://starlink.goodyear.com
neering respondents, which are tabu- level could be an indication that the
lated separately from ChEs, increased gender gap is disappearing from the
their average annual earnings by bottom up. The caveat, of course, is
nearly 11% over the previous year. that these data are also influenced by

Circle 17 on p. 43 or go to adlinks.che.com/6514-17
Newsfront

the fact that female engineers, at least last word on the global situation for power sector has seen the most dra-
historically, have not necessarily been chemical engineers, so it's encourag- matic rise, of 17%, over the past two
promoted as quickly as their male ing to hear that the picture in the U.K. years, and the survey now reports a
counterparts. is fairly bright. Salary data collected median salary of £50,000 for chartered
Data from a report released in May by the Institute of Chemical Engi- chemical engineers.
2005 by the U.S. Department of Labor neers (IChemE; Rugby, U.K.; icheme.
appears to support the conclusion that org) shows that the average earnings ChE graduates still in the lead
glass ceilings are giving way to equal for chartered chemical engineers in In a job market that is seeing higher
mobility. According to Women in the the U.K. and in the Republic of Ireland starting-salary offers to college gradu-
Labor Force, women in the U.S. held now exceed £53,000. Published in May, ates, chemical-engineering majors
half of all management, professional, the biennial salary survey reveals can expect to see the highest offers,
and related occupations in 2004. And, that salary increases have kept ahead on average, according to a report by
from 1979 to 2004, women’s earnings of inflation across all CPI sectors, and the National Association of Colleges
as a percent of men’s increased by 18%, that chemical engineering maintains and Employers (NACE; Bethlehem,
from 62 to 80%. Meanwhile, nearly its position as the best paid of all the Pa.; naceweb.org). The 2005-2006 en-
33% of women age 25 to 64 held a col- mainstream engineering disciplines. gineering majors garnered the four
lege degree in 2004, compared with Like those of U.S. surveys, results highest starting-salary offers and
about 11% in 1970; and, among 2004 from over 3,500 IChemE respondents five of the top-10 spots, says Marilyn
high school graduates, young women show that the oil sector continues to Mackes, NACE’s executive director.
were more likely than young men to be the most lucrative sector, with sala- Nearly all engineering disciplines
enroll in college (72% versus 61%). ries averaging £70,000 for chartered posted solid increases, the survey says.
engineers. Contracting and consul- The average starting offer to chemical
Earnings outside the U.S. tancy rank in second and third place, engineering graduates rose 4.2%, to
Economic activity in the U.S. is some- with salaries averaging £59,000 and $56,549. ■
what representative, but hardly the £53,000 respectively. Income in the Rebekkah Marshall

Circle 19 on p. 43 or go to adlinks.che.com/6514-19
24 CHEMICAL ENGINEERING WWW.CHE.COM JULY 2006

You might also like