Logistics executives and senior managers saw a steady increase in their compensation levels over the past two years, according to the results of the Warehousing Education and Resource Council's (WERC) 2004 Warehouse Salaries and Wages report.

WERC found that the median salary plus bonus for a director of logistics last year was $113,350, an increase of 19.3 percent from 2002. That above-average increase appears to signal a trend, says WERC Executive Director Robert Shaunnessey. "The results highlight that warehousing, transportation, supply chain, and logistics executives are being treated as more important to the corporate hierarchy and have been given more responsibility," he says.

Meanwhile, the median hourly wage rate for nonexempt employees remained relatively flat or rose only slightly. Forklift operators, for example, earned a median hourly wage of $12, an increase of only 1.1 percent from 2002. These slight improvements are in line with inflation and improving employment rates, Shaunnessey believes. "This shows wage expenses for nonexempt employees are under control," he says.

The 124-page report provides a detailed look at compensation and wages for 15 warehouse job categories. The results are broken down by geographic region, type of business, union vs. nonunion facilities, type of product, number of employees, and square footage. The survey also looks at how pay for managerial positions is affected by the number of employees supervised, type of education completed, number of years in position, and total years of experience.

In general, salaries rose along with years of experience and level of education. Salaries did, however, seem to cap out after 20 years of experience.

According to Shaunnessey, the survey's results indicate to logistics professionals the increasing value of education as well as the importance of making appropriate moves to broaden their overall skills. "If you look at the results, an operations manager averages around $64,000, while a director of logistics receives around $113,000. That's a 90 percent increase. It's worthwhile, then, to devote some time to knowing what you can do to be eligible for these positions," he advises.

To purchase copies of 2004 Warehouse Salaries and Wages, contact WERC at (630) 990-0001 or visit www.werc.org.