MRO purchasers make less money than their colleagues
But they get bonuses for meeting financial goals
Staff -- Purchasing, 12/8/2005
Purchasing professionals with responsibility for buying maintenance, repair and operations (MRO) goods and services earn $70,100, according to results of PURCHASING magazine's 2005 salary survey. That's $8,400 less than the average for all purchasing pros responding to the 25th annual survey, and slightly less (2%) than MRO buyers earned in 2004.
Just office equipment/supplies buyers make less money, $55,500. Purchasers with responsibility for buying packaging earn $79,800, while those who source machinery are compensated $87,700 annually.
Median salary for MRO buyers in 2005 is $58,000.
MRO buyers make up 9% of the survey sample size this year. At 26%, metals buyers are the best represented. Two percent of respondents are office buyers.
Here are some other key findings:
More than half (54%) of MRO buyers responding to the salary survey receive a bonus. For all respondents, this figure is 60%.
Average bonus for MRO buyers is 10% of annual salary. For all respondents, it's 11.9%.
Seventy-six percent of purchasers with responsibility for MRO say their bonus is for meeting company financial goals; 24% got the extra pay for meeting cost targets for purchased parts.
Thirteen percent receive stock options.
The highest-paid male purchasing pro with responsibility for MRO earns $250,000. The highest paid female has an annual salary of $134,000. The average annual salary for men is $79,500. For women, it's $53,600.
Seventeen percent of purchasing professionals with responsibility for the MRO buy belong to PURCHASING's $100,000 Club. For all other commodities, this figure is 22%. More services (43%), IT (37%) and machinery buyers (32%) earn more than $100,000. Two percent of MRO buyers make more than $200,000.
MRO purchasing profilePurchasing professionals with responsibility for sourcing MRO goods and services tend to be a little younger (46 years vs. 46.2 years) and have less buying experience than other respondents (15 years vs. 15.6 years). Sixty-four percent are male.
They are also less likely to have a college degree (47% vs. 51%). Twenty-one percent have a CPM (Certified Purchasing Manager) while 1% have a CPIM (Certificate in Production and Inventory Management). For all respondents, these figures are 24% and 6%, respectively.
Salary survey respondents who describe themselves as MRO purchasers are more likely than respondents who acquire other commodities to have the title of buyer (23% vs. 15%) and less likely to have the title director (9% vs. 15%). An MRO buyer earns $48,200, while an MRO purchasing director makes $95,700.
Forty-four percent of MRO buyers have responsibility for a purchasing tab that's higher than $25 million; for other respondents, this figure is 43%. Respondents who manage $26 million to $50 million budgets annually earn $82,800. Those who manage smaller budgets, $6 million to $25 million, make $60,000.
MRO buyers are more likely to have no supervisory responsibility than other respondents (45% vs. 38%).
According to survey results, 24% of MRO buyers work in miscellaneous manufacturing industries; 20% are employed by the process industries and 18% work for transportation/automotive industries.
Purchasing professionals with responsibility for MRO tend to work for bigger companies. Fifty percent of respondents are employed by companies with more than $500 million in annual sales; for the entire sample, the figure is 38%. Average annual salary for respondents at companies with annual sales of $501 million to $1.5 billion is $86,300. For respondents who work at companies with annual sales of $126 million to $500 million, it's $62,700.
More buyers of MRO than other commodities work at a plant site (31% vs. 23%). These buyers have an average annual salary of $53,100, while MRO purchasing pros assigned to corporate earn $80,600. Division MRO buyers make $70,600. For all survey respondents, these figures are $83,900; $86,800 and $61,100, respectively.
| Reasons: | |
| Meeting company financial goals | 84% |
| Meeting cost targets for purchased parts | 24% |
| Meeting department cost targets | 17% |
| Cycle time improvements | 6% |
| Supplier quality improvements | 7% |
| SOURCE: PURCHASING | |
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