Kentucky Association of Manufacturers -press release 021308.htm       
   

February 19, 2008

FOR IMMEDIATE RELEASE
 
 

CONTACT:

Martin A. Kish
(502) 352-2485 - Office
(859) 351-8420 - Mobile

Average Kentucky Manufacturing Salary Now $45,094
According to New KAM Wage and Benefits Survey

Frankfort - Kentucky manufacturing workers make a lot more money than the average Kentucky wage-earner and get a full array of lucrative benefits, according to the newly released 2007 Kentucky Association of Manufacturers (KAM) Wage and Benefits Survey.

The annual base salary for the average Kentucky manufacturing employee is now $45,094 – up 3.7 percent compared to the year before – and $15,375* more than the per capita income of $29,719* for all Kentuckians.

Nearly 200 Kentucky manufacturers representing all regions of the state took part in the survey, which was conducted on-line by IQS Research of Louisville www.iqsresearch.com. KAM has administered the Wage and Benefits Survey since 1911.

Other findings of the 145-page report included:

  • The 40-hour workweek is still the most frequently indicated standard among the respondents, with 63.3% indicating this as the norm.
  • Nearly one-third of the responding manufacturers reported they work three shifts.
  • Almost 40 percent award bonuses or incentive compensation. Among these companies, nearly 72% linked the bonus award to the company’s performance.
  • Most of the respondents said they provide some form of health insurance, dental coverage and a prescription drug plan for their employees.
  • Of the companies who indicated they experienced increased health insurance costs over the previous year, nearly 55% indicated increases ranging between 6 and 20 percent.
  • More than half said they offer a 401(k) savings plan for their employees.
  • Nearly 26% of the respondents say the per-employee cost of benefits is at least 25-34 percent of base salary.

“The Annual Wage and Benefits Survey is valuable because it helps Kentucky manufacturers compensate their employees fairly and competitively with peer companies,” says Jim LeMaster, president and CEO of KAM. “If they pay more than market, it can unnecessarily cost them thousands of dollars. If they pay less than market, good, well-trained employees will leave their company and go elsewhere.”

The Kentucky manufacturing industry is, by more than a two-to-one margin, the number one contributor to the state gross product, producing $27 billion in goods and accounting for 97 percent of Kentucky’s exports. The industry employs about 260,000 workers.

For the first time in the survey’s history, KAM partnered with a number of chambers of commerce and economic development offices on the survey: Barren River Area Development District, Bowling Green Area Chamber of Commerce, South Central Kentucky, IDEA, LEAD, Greater Louisville, Inc., Greater Louisville Manufacturing Network, Greater Louisville Logistics Network and One Southern Indiana.

For information about how to obtain a copy of the newly released 2007 KAM Wage and Benefits Survey, visit www.kamanufacturers.com and click on the link on the home page.

About the Kentucky Association of Manufacturers

Established in 1911, KAM is the commonwealth’s only manufacturing trade association. Our mission is to raise the prosperity of all Kentuckians by protecting and growing our state’s economic engine: manufacturing. KAM proactively works with elected officials, policymakers, chambers of commerce, other associations, economic development experts, the news media, the general public and its own members to drive results through eight branded initiatives: ProsperousKentuckySM, ProductiveKentuckySM, FreedomKentuckySM, SmartKentuckySM, HealthyKentuckySM, HonestKentuckySM, CleanKentuckySM and MarketKentuckySM. Visit us on the web at www.KAManufacturers.com.