2002 Salary Survey Reflects Economic Reality

On the whole, salaries within the domestic printing industry increased an average of 2.9% in 2001, down from gains of 4.7% in 2000 and 5.4% in 1999, according to the 358 U.S. companies participating in the Graphic Arts Monthly 2002 annual salary and labor trends survey.

Further, 41% of survey respondents made staff cutbacks in 2001, an increase over the last two years (36% in 2000 and 26% in 1999). Only 18% of all printing businesses participating in the study hired new staff, compared to 55% in 2000.

Of the 27 positions that were tracked, 17 showed increases in their average salaries over 2000, nine posted declines, and one stayed virtually the same. While more than 40% of the respondents expect their salaries to increase this year, 10% experienced a decline in their earnings in 2001.

While staff reductions occurred in all departments, hourly workers suffered the most severe layoffs, with 87% of companies reporting cutbacks. Interestingly, these people also were hired more than any other type of employee: 78% of respondents reported hiring new hourly workers, and perhaps this phenomenon reflects seasonal hiring and firing practices.

Cutbacks also plagued support staff/office administration (58%), management staff/finance personnel (36%), production management (32%), sales and marketing employees (27%), and department foremen (24%).

More than half of those responding noted that their job responsibilities had changed during 2001. The two main reasons involved cost-cutting measures or company downsizing, or the implementation of new computer-to-plate (CTP) or Internet technologies.

In terms of investment, CTP devices remain the technology of choice, with two out of three survey participants actively investing in this equipment, the same as last year. Nearly half also are investing in telecommunication systems such as ISDN or T1 lines.

Other new technologies being pursued include those revolving around shop floor data collection, four-color digital presses, sheetfed coating systems, and e-commerce/Internet-based printing.

In 2001, art and design, mailing services, and vended-out specialty work held the lead in non-printing revenue sources, a distinction held since 1997. However, other sources are showing new signs of strength. Increases were posted in the pursuit of digital image storage and management, from 21% in 2000 to 30% in 2001; Web site development/hosting, from 16% to a very respectable 27%; facilities management services, from 8% to 14%; and digital photography, from 5% to 14%.

The average number of employees among survey respondents this year was 188; in 2000 it was 95. Sales also reflect this difference: average 2001 revenues totaled $12.8 million, while in 2000 it was $8.4 million.

In our latest survey, the majority of respondents were medium-size printers (34%, down from 37% in 2000) or small general commercial businesses (24%, down from 43% in 2000), followed by large commercial printers (17%), specialty shops (9%), and book/publication printers (7%).

The largest groups responding came from the Midwest (34%) and the South (25%), followed by the Mid-Atlantic (20%), West/Pacific Northwest (14%), and the Northeast (8%).

Looking at benefits packages, the number of survey respondents offering health insurance and 401(k) plans has dramatically increased. This could be a result of the increase in the number of larger-size companies participating in the study this year, or it could reflect the industry's need to compete for experienced workers.

In last year's survey, just 13% of firms participating offered health insurance. In 2001, nearly all respondents—96%—are doing so. Other benefits being offered are 401(k) plans (77%, up from 61%), life insurance (72%, up from 70%), disability insurance (67%, up from 53%), merit bonuses (27%, down from 30%), profit sharing (32%, up from 29%), tuition reimbursement (39%, up from 28%), and retirement/pension funds (26%, down from 27%).

A new benefit joins the list this year, maternity/paternity leave, which is offered by 40% of participating companies.

The survey also asked respondents to cite what they felt were the primary problems or challenges facing the printing industry. Some of the more frequently stated concerns included commodity pricing, equipment overcapacity, finding skilled new hires, the general state of the economy, staying on the digital forefront and not going bankrupt with expenditures, and the ability to meet a request for immediate turnaround.

A full copy of the salary survey, which contains detailed information not included in this article, is available for $25. Please contact Marissa Glowac of the Reed Research Group at (617) 558-4511 or mglowac@reedbusiness.com for details on how to obtain a copy.