Salaries Hold Steady

For the third year in a row, our annual salary survey found that printing industry salaries enjoyed only modest increases, reflecting a printing market still under pressure in a tight economy. Salaries held steady during calendar year 2003, with overall company salaries growing by an average of 2.9%—the exact same increase reported in both 2002 and 2001.

This year, Graphic Arts Monthly polled 309 printing executives from around the country about trends in their salaries in 2003. Those working at small general commercial printing shops reported the highest overall company increases, at an average of 3.1%.

Two out of three respondents reported that their companies' salaries had increased, on average, in 2003. At the same time, just over half (56%) of respondents indicated that their own salaries had increased, up from 46% in 2002. Individual salaries increased by an average of 3.9%, with respondents working at specialty printers indicating the highest personal salary hikes, at an average of 4.7%.

In 2002, job titles with the highest mean salaries on average were president/owner/chief executive, followed by chairman, then vice president of sales and marketing. Last year, however, this order was re-versed, with chairman topping the list, followed by vice president of sales and marketing.

The survey for 2003 reflected a slight improvement in terms of pay cuts. While 11% reported that their pay was cut in 2002, 9% of last year's respondents reported receiving a cut in pay. And while 44% saw their salaries remain the same in 2002, this number fell to 36% in 2003.

As with the year before, more than half of respondents (52%) in 2003 said that they anticipated an increase in their salary in 2004. On average, respondents said they expected raises of 5%—a figure that was also predicted last year. Nearly three-fifths of respondents said their last salary increase took place during a normal annual review, while nearly a quarter cited merit raises.

Lay-offs eased up a bit in 2003. A total of 22% of respondents' companies reportedly laid off employees during the year, compared to 30% in 2002. As has typically been the case for the past few years, hourly workers were most affected by staff cuts; they also were more likely to be hired. In 2003, 23% of respondents' companies had hired new staff, compared to 20% in 2002.

When it comes to hiring, 57% of respondents responsible for making hiring decisions (which comprised 65% of all respondents) reported that ads in newspapers and/or trade magazines were the most effective ways to find new staff.

Job responsibilities changed during 2003 for 55% of respondents. Consistent with last year's survey, respondents cited new technology and downsizing/cost cutting as the reasons for the changes. Job satisfaction remained relatively high, with 36% of respondents reporting being very satisfied with their jobs, and more than half, 51%, reporting being satisfied.

The number of respondents whose companies offer health insurance remained high, at 93%, but this figure was down from 97% in 2002. More than two-thirds (69%) of respondents' companies offer a 401(k) plan (69%), up slightly from 65% the previous year. Disability insurance was offered at 47% of respondents' companies, compared to 51% in 2002. Other benefits cited by respondents were maternity/paternity leave (33%, up from 32%), profit sharing (31%, down from 35%), tuition reimbursement (27%, up from 25%), merit bonuses (27%, up from 25%), and retirement/pension funds (21%, down from 27%).

Consistent with 2002's figures, mailing services were the most frequently cited non-printing revenue sources in 2003 (58%, up from 53%). Other non-printing revenue sources were art and design services (50%, up from 48%), vended-out specialty work such as thermography and printing on plastic (32%, same as 2002), Web site development/hosting (22%, same as 2002), digital image storage and management (20%, down from 29%), digital photography (14%, down from 16%), and facilities management services (11%, down from 14%).

Despite the sluggish economy, companies continue to invest in new technologies, and once again, computer-to-plate (CTP) tops the list, with 66% of respondents reporting that their company is actively investing in CTP, compared to 70% the previous year. E-commerce/Internet-based printing services came in at 37% (up from 31%), followed by telecommunications systems like ISDN and T1 lines (36%, same as 2002), shop floor data collection (35%, up from 32%), four-color digital presses (29%, down from 31%), and sheetfed coating systems (23%, up from 21%).