Manufacturers’ Association Unveils 2023 Annual Wage and Salary Survey Report, Highlighting Continued Hiring and Skilled Worker Shortages

(York, PA) – The 2023 edition of the Manufacturers’ Association’s Annual Manufacturing Wage & Salary report shows the continued demand for both the region’s skilled and hourly positions needed to meet customer demand and to replace the retiring workforce.  Reflecting the national labor market tightness, the report’s results show 50% of manufacturers responded they intend to increase their overall employment in the next 12 months, compared to 64% in 2022 and 73% in 2021. Manufacturers expect to continue to increase employment as it had in 2021 & 2022 with over 585 new hires over the next 12 months.  Manufacturing workers earn 33% more compared to the average for other nonfarm businesses in the state and an average yearly compensation of $86,129, including benefits*.

Wage and Salary Report Notable Results:

• 84% of participating manufacturing companies in the survey reported difficulty in hiring, with hourly and skilled hourly workers remaining the most commonly difficult positions to hire.
• 48% of companies gave firm estimates for the number of new positions they plan to create in the next year, forecasting a total of 585 positions. In 2022, companies reported plans to add 881 positions in the next year, while the same number in 2021 was 1,146.
• Turnover rates for hourly workers decreased 2% from 2022 levels. The average turnover rates for salaried non-exempt personnel decreased 41%, while the average turnover for salaried exempt decreased by 31%, compared to 2022.
• The manufacturing workforce is aging – one-third or more of their workforce will reach retirement age in the next 5 years, compared with 22% of companies in 2022’s survey.
• To address hiring challenges, 52% of manufacturers said they have changed recruiting practices since last year, down from 71%, of companies reporting an increase in 2022.
• The proportion of jobs taking 3 months or more to fill increased from 22% in 2022 to 30% in 2023. Among the trades, companies report the most difficulty hiring machinists, toolmakers, and maintenance workers.
• Average starting production wages for hourly roles saw an average increase of 5% over 2022 numbers, compared to an 8% increase 2021-22.

This survey is meant to serve as a benchmarking tool for manufacturer’s human resource strategies and company management and includes data for direct labor and salary positions. This data collected from manufacturers across the region allows companies to determine where they stand relative to the marketplace in terms of wage and salary compensation as well as gauging the competitiveness of their compensation.  The survey was conducted during the Summer and early fall with nearly 100 employers in the southcentral Pennsylvania region. The wage and salary information compiled by the Manufacturers’ Association includes data on wages, salaries, labor market conditions, compensation practices and more. Manufacturers interested in obtaining a copy of the 2023 Wage & Salary Report or to participate in next year’s survey can contact the Association at office@mascpa.org.

For more information on the Wage & Salary Report and Purchase fees visit: mascpa.org/hr-surveys

*Annual average salary data from PA Department of Community and Economic Development: https://dced.pa.gov/pennsylvanias-top-industries/advanced-manufacturing/