consilium automotive salary survey 2014
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ÂTRANSCRIPT
Russell Tuck - Director, Consilium Group
“
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The job market for experienced automotive industry professionals has tightened
dramatically. It is therefore vital that companies offer competitive compensation
to attract top talent as well as encourage your best people to stay.
1
Welcome to The Review
Summary of 2013
Demand for Talent 2014
Automotive Technology Trends
The Next 5 Years
Market Insight
Salary Tables
Salary Conversion Guide
Page 2
Page 3
Page 5
Page 6
Page 7
Page 9
Page 10
Page 15
Contents
2
E
UK Automotive - Highlights
stablished in 2001, Consilium has been The automotive industry is the UK’s largest
a trusted recruitment partner to the UK sector in terms of exports, generating around
Automotive industry for over thirteen years. £30bn of annual revenue
This is our annual salary report that presents The sector exports to over 100 countries
the remuneration levels of 125 separate roles worldwide and currently accounts for around
across nine career disciplines, coupled with 11% of total UK exports
recruitment trends anticipated for our sector It also produces trucks, vans, buses, during 2014 and beyond.motorbikes, construction equipment and
The source data is derived from a combination racing cars with eight of the eleven Formula 1
of job seekers disclosure of current salaries, teams based here
advertised vacancy salaries and actual job
offers managed by Consilium over the past 12 The salaries included in this review exclude any
months purely within the Automotive sector. bonuses and benefits packages which can be
found to vary widely, so this publication acts as
a guide to base salaries only.
Consilium operates across a diverse range of
The UK auto industry delivers a £60bn annual automotive organisations throughout the UK;
turnover with a £12bn in net value - added to we are therefore suitably experienced and
the UK economy, contributing 2.3% to GDP qualified to reasonably forecast how
remuneration packages are likely to look in the The sector produced over 1.5 million cars last
coming year.year, the highest level for five years of which
80% were exported The salary guidance is based on the Midlands
region - the heartland of the UK auto industry The UK produces even more engines than
and benchmark for remuneration guidance vehicles - 2.5 million. In fact, a third of all Ford
across the UK.engines worldwide are produced in the UK
However, the salary ranges can be customised 720,000 people employed in the automotive
for each of the UK regions by using the local sector across manufacturing, retail and after
variance calculator - please see simple sales - 140,000 of whom are directly employed
conversion guide on page 15in manufacturing
UK automotive companies currently invest over
£1.5bn a year in R&D combined
Welcome toThe Review
3
T he UK possesses one of the most diverse According to the SMMT, Britain produced 1.51m
and productive automotive sectors in cars in 2013, a 3% rise on 2012 that represents
the world, and on the back of building half a million more than just four years ago. In
more than 1.5m cars last year (the highest line with this resurgence, it is expected that the
production output since 2007), the resurgent UK will overtake France and Spain to become
industry tapped into strong global demand the Europe’s second-largest producer after
and correspondingly increased output, Germany.
investment and ultimately employment levels.The news comes as Nissan, the UK’s biggest
car maker by production announced the
introduction of an additional shift resulting in
round the clock production across the facility
and a resulting increase in headcount to 7,300 -
the largest in the plant’s 28 year history.
Equally, Jaguar Land Rover has also witnessed
a major resurgence, with 2013 proving to be a
record year for production volumes coupled
with year on year headcount growth that has
resulted in over 8,000 new workers appointed
over the past 3 years and set to continue across
all UK facilities in addition to considerable
Only last year the industry attracted £2.5 bn overseas expansion.
of investment and created thousands of
jobs. This is in addition to the considerable However, the recovery across the industry is not
investment made by global vehicle manu- uniform. Nissan and JLR are jointly responsible
facturers over the previous five years. In for 80% of the 200,000 increase in car
2011 alone there was over £4bn of new production between 2001 and 2013, but for
investment announcements in the UK which Toyota, Vauxhall and Honda, the country’s 4th,
supported the creation of 9,900 new jobs 5th and 6th biggest manufacturers are all
and safe- guarded another 12,000 across producing around 30% fewer cars in Britain
vehicle manufacturers and the supply chain. than they were before the financial crisis.
Summaryof 2013
Positioned as the largest sector in terms
of exports by value, the UK automotive
industry is well placed to support efforts
to re-balance the economy towards trade
and investment in line with a government
target to double exports to £1tn by 2020.
4
And while luxury manufacturers Bentley, Just a third of all parts that go into the
JLR have announced more than £2bn worth average British built car come from UK
of investments between them in 2013, fellow based suppliers. That compares with
premium brand Aston Martin declared its around 60% in Germany, and a massive
intensions more recently in 2014 with plans 80% in the Czech Republic, a relative
to invest £500m as part of a longer term newcomer to the big volume car
plan to develop a new range of cars, plus manufacturing game.
extend its manufacturing facility at Gaydon.
To address these major challenges as well as
opportunities faced by the UK auto sector, Unfortunately, the future for Lotus is less
the Automotive Investment Organisation certain after the Hethel based company
(AIO) was formed last year.made a net loss in excess of £167m in
2013 and ultimately breached its banking
Headed by former Ford Chairman Joe covenants. Despite this the company still
Greenwell, it has been well received by invested over £92m in R&D during 2013, a
industry leaders, not only because it is fully figure in excess of its entire revenue stream,
integrated within UK Trade & Investment but hopefully serves as a bold statement
but also a joint creation of the Automotive of intent for the future.
Council resulting in senior buy-in from
industry.
As well as ensuring that the UK automotive
industry maintains its status as a global
leader, the main aims of the AIO are to
increase R&D investment, strengthen
relationships overseas with global
manufacturers and importantly promote
the UK as a great supply chain investment
opportunity
and
Summaryof 2013
By far, the biggest concern for the
automotive industry at present is the
erosion of the supply chain over the
past 30 years.
5
T he UK automotive industry supports a Supply-Chain disciplines, with Manufacturing
complex infrastructure; ranging from and Operations also feeling the strain more
OEM’s & VM’s through to Tier 1 and Tier 2 recently as volumes near capacity levels.
suppliers that produce a multitude of vehicles, It may be that companies who have previously modules and components. Equally there exists been highly selective with their selection criteria a healthy support industry that provides may have to widen their parameters - even primarily consulting, and after market services consider individuals from other manufacturing to this ever burgeoning industry sector.sectors (with FMCG and Aerospace being
The dramatic increase in vehicle production increasingly considered), in order to satisfy
volumes over the past 3-4 years coupled with requirements. This is despite the requirement
relentless new vehicle development has created to provide training as well as period of
a major increase in demand across all discipline adjustment for any new converts.
areas. This is further exacerbated by the gradual In line with these resourcing pressures, we have shortening of launch cycles as OEM’s attempt also witnessed a stronger demand for Contracting to keep their product ranges ‘fresh’.and Interim staff which fortunately can provide
Consequently, this has resulted in a contest for a flexible solution for companies to meet
talent as organisations compete for a limited fluctuations in demand. The downside however
pool of automotive based skill-sets and being that Contractors are all too often exponents
industry specific experience; often resulting in of supply and demand, and can prove costly,
candidates receiving multiple job offers. Indeed, particularly for the higher demand skills-sets.
another prevalent trend is for customer
companies (often OEM’s) to poach staff directly
from their suppliers as a means of plugging
skills gaps; again the knock-on effect
culminating in progressive wage increases. This
combined with the trend for counter offers
means that organisations are increasingly
forced to break budgets & salary parameters in
order to secure their new recruits.
This is a trend that is expected to continue into Clearly this is a positive indication that firms 2014 as the effect of skills scarcity continues to are now tackling the skills shortage within the bite. So far this has been felt particularly within industry, but may be considered too little, too late Engineering (Design, Production, Process and to offer any real benefit in the short-termProject based roles), Quality, and Logistics /
Demandfor Talent 2014
Looking to the future and on a positive note,
the trend particularly among larger organisations
is to either increase or initiate Apprenticeship
and Graduate intake schemes.
7
A
Research & Development
Export Markets
Supply Chain
s well as being home to some of the business from overseas and become
most productive car plants in Europe, the indispensable partners to global vehicle
UK auto industry also possesses a world-class manufacturers.
reputation for design and innovation. This is Research from the Automotive Council has particularly apparent in the field of low-carbon already shown that 80% of all component vehicle technologies where the UK is positioned types for vehicle assembly could be produced as an industry leader.in the UK if capability gaps are addressed -
With this in mind there are numerous worth approx. £3bn to UK suppliers.
challenges facing the UK automotive sector
which cannot be ignored.
The industry, supported by the UK government
focus on innovation has already identified five
priority technologies to develop in the UK to
ensure the sector strengthens its capabilities
in R&D. This is crucial for encouraging
investment and sustaining long-term
competitiveness in automotive manufacturing.
In particular, there are opportunities presented Global vehicle demand is set to proliferate with
by the global shift to low-carbon technologies the rise of emerging economies. By 2050 there
in automotive vehicle production. is expected to be more than one billion more
passenger vehicles on the road than today. Car Estimates suggest the shift towards a low-
ownership in China alone is estimated to over-carbon economy could see in excess of £150bn
take the US by 2030, and together China and invested in low-carbon vehicle technologies
India are expected to account for a third of all over the next 20 years alone.
global car ownership by 2050.
If the UK were to maintain its share of the
Chinese premium brand sector, then based on The UK automotive sector has already benefited
these growth predictions alone, the value of from considerable investment by global vehicle
exports to China could grow from £2bn in manufacturers over the last five years. These
2011 to £9.3bn by 2020.new investments and expansion plans present
UK suppliers with the opportunity to win back
The Next
5 Years
Developing the UK supply chain is
extremely important and will enhance
the ability of UK automotive companies
to produce more and at a reduced cost.
8
However, the UK spent only 0.02% of GDP on graduates annually from the period 2012-2020
trade support last year - widely criticised as with far too few students graduating from
being insufficient to re-balance the economy university each year to satisfy demand.
towards net exports.
At the moment there is a huge shortage
of engineering capacity, both in terms of
apprenticeships for skilled trades in The present overcapacity in the European manufacturing and at the graduate level, automotive market has been magnified by the particularly in growth areas such as electronics slow down of the major Eurozone economies - and advanced powertrain.Germany, France, Italy and Spain. Low growth
and high unemployment across Europe has
until recently curtailed consumer demand and
increased price competition, forcing automotive Access to finance remains a critical issue for UK firms to control costs in order to sustain automotive companies seeking to invest for competitiveness. growth. Despite government efforts to
influence lenders, their reluctance lies in the
perceived risk involved in an industry where The uncertainty surrounding Europe’s political lead times for new products can often extend future also presents a short-term challenge for to 5-7 years.the sector. The industry currently exports more
than 82% of vehicles manufactured in the UK,
with 49% of total automotive exports going to Manufacturers have invested heavily in energy the 27 EU member states.efficiency measures but the profitability of the
heaviest users is still threatened by high prices
and supply issues.The industry faces significant skill shortages
Since 2002 alone, the industrial price of gas as well as difficulties in attracting young people
has increased by 122%, while individual into careers in engineering and advanced
electricity prices have increased by 94%.manufacturing. It has made some good
progress in increasing the number of The increase in energy prices has wiped
apprenticeship starts, but there are long-term out company efficiency savings for many
supply issues at graduate level. companies, with green tariffs expected to
add another 70% by 2030 if they go ahead For example, recent analysis from the Royal as proposedAcademy of Engineering estimates that the UK
economy will require more than10,000 STEM
Competition
Finance
Europe
Energy Prices
Skills
The Next
5 Years
9
O f the 28 companies whom participated in this survey, representing a cross-section of the
industry (including OEMs, Motorsport, Off-highway, T1&T2 suppliers, plus support companies
involved in the auto industry supply-chain),we were able to gain the following insight:
How do you expect headcount numbers to change during 2015?
Do you expect your company to announce salary increases or bonus payments during 2015?
How does your company normallygo about resourcing?
What is your main tool to ensureemployee retention?
MarketInsight
Increase57%
Remainconstant29%
Decrease14%
Yes52%
No23%
Unsure25%
Flexible Working / Conditions 10%
ImprovedSalary36%
CareerDevelopment23%
EnhancedBenefits19%
Training12%Recruitment
Agency54%
DirectAdvertising23%
Social Media/Networking 18%
Other 5%
11
Head of Engineering 9 64,300 102,000 84,200
Chief Engineer 4 54,000 89,000 72,700
Lead Engineer 12 43,600 71,000 56,600
Principle Engineer 13 42,000 64,500 52,200
Engineering Manager 16 44,800 69,300 57,500
Engineering Project Manager 22 41,500 61,200 54,300
Design Manager 16 41,000 52,000 46,600
CAD Manager 11 34,500 51,000 41,600
Senior Design Engineer 26 36,000 53,000 44,800
Mechanical Design Engineer 27 27,000 48,000 36,500
Design Engineer 44 24,800 46,000 36,200
Senior Electrical Design Engineer 16 40,500 54,000 47,600
Electrical Design Engineer 18 29,800 43,500 39,800
CAE Engineer (FEA, NVH, CAE) 15 31,000 56,000 42,100
CAD Engineer 38 27,000 40,500 33,600
Packaging Engineer 22 28,000 42,000 34,700
CAD/ PLM/ TCE Administrator 23 31,000 54,000 39,900
BOM Coordinator 17 25,500 36,000 31,000
Product Engineer 22 29,000 43,000 33,400
Product Manager 22 33,000 52,700 41,900
Programme Manager 19 40,000 57,000 49,200
Project Manager 21 41,000 56,000 47,900
Project Engineer 26 31,500 45,100 38,200
Development Manager 17 35,500 53,000 43,100
Development Engineer 19 27,800 44,000 34,400
Test Engineer 31 23,400 37,100 29,900
Validation Engineer 24 30,000 41,200 34,800
Senior Electronics Engineer 25 42,000 60,000 46,700
Electronics Engineer 28 29,500 45,000 39,100
Senior Software Engineer 21 34,500 62,000 51,000
Software Engineer 24 29,500 48,000 41,400
VA/VE Engineer 17 28,200 39,500 33,200
Metallurgist 25 25,900 45,500 36,100
2013Sample Size
2013Average (£)
RangeLow (£) High
Engineering & Design
SalaryTables
12
Production Engineering Manager 21 43,400 59,000 51,400
Production Manager 23 34,000 61,000 44,000
Manufacturing Manager 16 35,800 55,500 46,500
Business Unit Manager 15 42,000 62,000 54,100
Production 28 25,600 33,500 27,500Team Leader
Production Shift Supervisor 29 26,600 41,000 33,100
Production Engineer 23 27,800 42,000 37,100
Manufacturing Engineer 21 30,000 45,000 38,400
Manufacturing Systems Engineer 14 31,800 46,500 39,200
Process Engineer 22 28,200 42,000 35,400
Tooling Engineer 9 28,000 40,000 34,500
Automation Engineer 11 29,000 46,000 37,400
Production Planner 24 24,900 35,000 29,200
Production Controller 21 26,800 35,500 31,900
Production 20 21,000 30,000 27,200Technician
Toolmaker 26 24,400 39,800 33,500
CNC Programmer 22 21,800 37,500 31,300
Setter 28 19,500 29,500 25,400
Production Operator 27 16,900 24,100 20,400
Maintenance Manager 18 34,000 53,000 41,400
Maintenance Leader 23 31,000 47,500 39,900Team
TPM Coordinator 17 26,800 44,000 38,500
Multi-Skilled Maintenance Engineer 28 27,200 42,300 34,800
Electrical Maintenance Engineer 23 28,700 43,800 37,800
Mechanical Maintenance Engineer 19 25,300 39,600 33,900
Robotics Engineer 15 28,400 49,000 42,100
Controls and Automation Engineer 11 29,200 54,000 44,500
Maintenance / Fitter 18 22,100 34,000 29,100Technician
2013Sample Size
2013Average (£)
RangeLow (£) High
Manufacturing
Maintenance
SalaryTables
13
Operations Manager 11 45,500 60,000 53,000
Facilities Manager 16 37,400 53,000 45,200
Environmental, H&S Manager 18 33,200 51,500 45,700
Six Sigma Master Black Belt 7 47,500 79,000 64,000
Six Sigma Black Belt 6 38,900 57,000 46,800
Lean Manager 12 44,200 60,000 47,200
Facilities Engineer 11 27,800 41,000 32,100
2013Sample Size
2013Average (£)
RangeLow (£) High
Operations
Quality Manager 26 37,300 56,000 46,100
Senior Quality Engineer 29 33,500 45,800 40,800
Project Quality Engineer 18 32,500 41,200 37,500
Quality Engineer 52 31,000 44,900 34,900
APQP Engineer 28 28,600 42,000 36,700
Resident Quality Engineer 29 31,000 39,500 34,100
SQA Engineer 21 30,500 44,000 37,700
CMM Engineer 23 25,200 37,500 34,400
Calibration Engineer 32 26,400 41,500 35,200
Quality Auditor 25 27,000 37,500 32,600
Quality 18 19,100 32,000 23,800Technician
Quality Inspector 21 18,900 28,200 24,300
Quality
Human Resources
HR Manager 22 41,000 56,000 47,800
HR Business Partner 10 34,500 48,000 39,800
HR Officer 14 22,400 35,500 32,600
Technical Trainer 9 25,600 39,500 31,600
HR Administrator 11 18,200 24,000 23,700
SalaryTables
14
Purchasing Manager 22 43,800 69,000 51,700
Supply Chain Manager 23 41,500 60,000 52,100
Logistics Manager 18 37,000 76,000 51,700
Materials Manager 20 36,000 51,000 47,100
Technical Buyer 16 31,500 46,000 38,200
Commodity Buyer 21 30,000 44,500 37,700
Project Buyer 15 31,000 45,000 38,200
Buyer 28 26,900 44,000 36,000
Cost Engineer 19 27,100 39,800 31,400
Cost Estimator 13 25,500 40,000 33,900
Logistics Coordinator 23 26,700 42,000 31,400
Materials Planner 19 23,800 34,000 29,800
Materials Controller 27 24,000 34,500 31,100
Global Sales / BD Manager 3 62,000 109,000 87,000
European Sales / BD Manager 5 47,000 76,000 68,700
Commercial Manager 14 37,500 61,000 52,400
Export Sales Manager 11 38,000 58,000 48,100
National Sales / BD Manager 17 37,000 62,000 49,700
Regional Sales / BD Manager 21 35,000 53,000 43,700
Account Manager 18 28,600 50,000 43,500
Pricing Manager 11 34,000 51,000 48,400
Technical Sales Engineer 26 26,000 40,000 34,900
Sales Engineer 14 25,800 44,000 33,500
Applications Engineer 16 26,000 42,400 37,300
Commercial Estimator 13 24,000 38,500 32,900
Customer Account Coordinator 10 22,500 38,000 31,700
2013Sample Size
2013Average (£)
RangeLow (£) High
Logistics / Supply Chain
Sales / Commercial
SalaryTables
15
Customising Salaries for Local Markets
The salary information provided is specific for the Midlands
region and includes the following counties/locations;
Birmingham, Black Country, Gloucestershire, Leicestershire,
Northamptonshire, Nottinghamshire, Oxon, Shropshire,
Staffordshire, Warwickshire and Worcestershire.
However, to customise salary ranges for any regions outside
of the Midlands then please follow the simple guide
opposite. (Note - factors such as company size, employee
benefits, candidate skill set and current and/or local market
trends may affect actual starting salaries.)
To calculate the approximate salary range of a specific
position for other regions, multiply the salary shown in
the Midlands region by the percentage indicated for the
relevant region.
Midlands . . . . . . . . . . . . . . .
North East . . . . . . . . . . . . . .
North West . . . . . . . . . . . . .
Yorkshire . . . . . . . . . . . . . . .
East England . . . . . . . . . . . .
South England . . . . . . . . . .
South West . . . . . . . . . . . . .
Wales . . . . . . . . . . . . . . . . .
Regional Variances
100%
96.2%
98.9%
94.3%
92.6%
103.0%
97.8%
91.5%
CEO 5 124,000 245,000 177,000
COO 3 88,000 182,000 132,000
CFO 4 118,000 255,000 184,200
CTO 4 87,000 157,500 108,000
Managing Director 12 86,000 164,000 123,000
General Manager 15 64,000 108,000 94,000
Finance Director 7 56,000 128,000 87,000
Plant Director 11 67,000 108,000 83,000
Technical Director 8 59,000 92,000 74,000
HR Director 4 56,000 90,000 76,000
Purchasing Director 4 59,000 97,000 74,000
Engineering Director 6 61,000 98,000 83,000
Sales Director 5 68,000 97,000 74,000
2013Sample Size
2013Average (£)
RangeLow (£) High
Executive
N.B. Salaries are rounded up/down to the nearest £100.
SalaryTables
consiliumGROUP
Member
Anglo HouseWorcester RoadStourport-on-SevernWorcestershire DY13 9AW
Russell Tuck01299 [email protected]
To discuss any aspect of the automotive recruitment or a more specific and Benefit award levels within your particular marketplace - please contact:
analysis of Compensation
© Consilium Group Ltd - All profile requests are subject to our normal Termsand Conditions of Business for the Introduction of Staff - available on request.
100 COUNTRIES
TO OVER
EXPORT 11%OF TOTAL UK EXPORTS
£55BN ANNUAL
TURNOVER
£12BN
ECONOMY
IN NETVALUETO THE UK
CONTRIBUTION
TO GDP2.3%
£1.5
BN
A YEARIN R&D OF ANNUAL
REVENUE
£30BN
CARS AND COMMERCIALVEHICLES PER YEAR
1.6 MILLION
2.5 MILLION ANNUALLYENGINES
EUROPE’S
MARKETNEW CAR2ND LARGEST
720,000PEOPLE EMPLOYED
IN AUTO UK’S LARGESTEXPORTER