Athens News

Area Wage Study Released

By Andrea Gibson
Athens NEWS Writer

Athens County economic development officials said this week that a recently completed study on manufacturing wages and benefits in Southern Ohio will be helpful to manufacturing firms considering locating or expanding in this area. Local officials are actively searching for companies to inhabit a recently constructed spec building at the Poston industrial park, and are identifying other sites in the county suitable for manufacturing.

Last month, Ohio University's Institute for Local Government Administration and Rural Development (ILGARD), in cooperation with the Ohio River Valley Regional Development commission, the Governor's Economic Development Regions 7 and 11, and local economic development officials, published the "Southern Ohio Manufacturing Wage, Benefit and Labor Survey." Eighty-three manufacturing firms with at least 10 employees responded to the survey, which was distributed to 14 Southern Ohio counties: Adams, Athens, Clermont, Fayette, Gallia, Highland, Hocking, Jackson, Lawrence, Meigs, Pike, Ross, Scioto and Vinton.

While some counties had manufacturing wage data from the early 1990s, until now none had recent information, said Marsha Lewis, assistant director for management advisory services at ILGARD. The updated information is not only helpful for counties recruiting new industry, but for existing firms that want to remain competitive, she explained.

ILGARD surveyed the 83 firms about employee starting and general wage figures, benefits, and union information. Results were divided into five categories: all 14 Southern Ohio counties, the northern portion, the southern portion, the eastern portion, and the western portion. Each county appeared in two portions — Athens County, for example, fell into the northern and eastern categories.

Lewis said ILGARD did not break down the information by county for confidentiality reasons, as some counties are home to only a few firms. However, she said the average wage information probably won’t vary that much between contiguous counties, as the workforce for manufacturing firms is multi-county and very mobile. "You’re looking at a regional workforce," she said.

The firms were asked to provide starting and general wage information for 21 job positions. General hourly wage results from all surveyed counties include: accountant —$7.48 minimum wage, $31.25 maximum wage, $16.12 median wage, and $16.71 mean wage; machinist— $5.25 minimum wage, $20 maximum wage, $11.60 median wage, and $11.23 mean wage; clerk typist —$5.50 minimum wage, $14.39 maximum wage, $9.49 median wage, and $8.81 mean wage; computer operator —$6 minimum wage, $20.67 maximum wage, $11.13 median wage, and $10.07 mean wage; general maintenance —$5.50 minimum wage, $31.25 maximum wage, $11 median wage and $13.66 mean wage; truck driver — $5.25 minimum wage, $16.29 maximum wage, $9.38 median wage, and $10.52 mean wage.

In the northern portion of the Southern Ohio counties (Athens, Fayette, Highland, Hocking, Ross and Vinton counties), wages were roughly comparable to the overall total averages, though in some instances in the above examples the minimum wage was a bit higher and the maximum wage a bit lower than the Southern Ohio average. That was sometimes the case for the eastern portion (Athens, Gallia, Hocking, Jackson, Lawrence, Meigs and Vinton counties) as well.

Overall, 100 percent of the small firms, 96 percent of the medium-sized firms and 84 percent of the large firms offered major medical insurance. Fifty-seven percent of the small firms, 60 percent of the medium-sized firms and 77 percent of the large ones offered comprehensive coverage.

The firms have been established in their respective counties for an average of 34 years and boast an average of $20.5 million in sales. Forty-six percent are a branch of a larger organization. seventy percent said they were willing to participate in incentive programs that reward companies for employing or helping to train welfare recipients.

Of 63 union elections held in these counties between 1990 and 1998, 33 unions were accepted and 30 were rejected. In Athens County, employees at three manufacturing firms — General Clay Products Corporation, steelworkers, 1997; HVC Machine, Inc., machinists, 1998; and Yorde Machine, Inc., United Auto Workers, 1998 — accepted unionization, while employees at a fourth, the Arcadia Nursing Home in 1995, rejected unionization.

Lewis said the wage figures in the Southern Ohio study are similar to wage statistics from Eastern Ohio counties. In general, manufacturing jobs tend to pay higher than service jobs, though usually not as much as professional sector jobs.

David Polakowski, the new president and. CEO of the Athens Area Chamber of Commerce’s economic development council, said businesses considering a move to Athens County typically look for this wage and benefit information to determine what type of pay they need to offer employees. The survey statistics will be useful in helping recruit new companies, including firms for the spec building at the Poston industrial park, he said. He’s also in the process of identifying other sites in the county for industrial development.

Larry Payne, president and CEO of the chamber’s general division, said the survey data also will benefit existing firms in Athens County. One company that participated in the study is considering an expansion of its manufacturing business, he said, and will forward results to its corporate headquarters.

Polakowski added that conducting a comprehensive study of wages in all industries — from retail to manufacturing — in Athens county is on his list of things to do, as it has been several years since such a survey was completed.