Although manufacturing wages on a nationwide basis are still
rising slowly—and they lag behind the average increases for all private-sector
workers—they are growing faster than overall wages in certain states. In Texas,
wages for all types of production workers in factories grew an average of 6.3%
from a year earlier, compared with nationwide overall private-sector wage
growth of 2.3%, according to U.S. government data for the three months ended
Aug. 31. Factory-wage growth was 4.4% in Washington State, 4% in Oregon and
3.1% in Indiana in that period.
The bigger pay increases in certain industrial states are
likely to spread to other parts of the country, especially as baby boomers
start to retire, some economists say. The wage growth applies to a wide range
of manufacturing jobs—from machine operators and repair people to electricians
and engineers—and not just to specialties such as welding, where shortages are
acute. It also comes in spite of two-tiered wage scales in some industries in
which new hires start at much lower pay, a practice that has long restrained
wage growth.
Around the country, some manufacturing companies are looking
at apprentice programs and offering cash incentives to workers who refer good
job candidates. In markets where labor is particularly tight, workers are job hopping
for higher pay.
While the energy boom has spurred demand for labor in Texas,
worker shortages are also pushing up costs elsewhere for a wide variety of
other firms. Washington and Oregon have a broad array of manufacturing,
including aerospace, semiconductors, food and wood products. Greenbrier Cos.
so far this year has increased the work force at a Portland, Ore., plant that
makes railcars and ocean-going barges to about 1,075 from 630.
Job hoppers tend to have much higher wage growth than
workers who stay in the same post. Data from the payroll-services firm ADP LLC,
released Wednesday, show that hourly wages for manufacturing workers who
recently switched to a new employer rose an average of 4.2% in the third
quarter. The year-earlier average was 3.6% for such job switchers.
Five years ago, hourly manufacturing wages in Texas were
about 27% below the national average. Since then, those wages have surged 46%
and are now about 8% above the national figure.
Houston-based National Oilwell Varco Inc. offers
workers cash incentives for referring good candidates for manufacturing jobs.
In Tyler, Texas, the average age of workers at the McWane Inc. plant is 57.
McWane is considering apprenticeship programs to rejuvenate its work force and
address an emerging shortage of electricians and people who build, install and
maintain machines.
Robert Dye, chief economist at Comerica Bank in Dallas,
expects wage gains in Texas to remain above the national average.
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