While salaries across much of the economy remain stagnant, supply chain and logistics professionals are seeing steady growth in pay. The reason: Skilled professionals are in high demand.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
News reports tell the story of flat wages across most of the economy. Logistics professionals tell a different story.
The results of DC Velocity's annual salary survey, where we ask readers about their jobs, career satisfaction, and pay, show that 62 percent of those responding received raises in 2012 and that those raises averaged just under 6 percent.
Not that 2012 was that good for everyone. About 31 percent said their salaries stayed the same, and 7 percent suffered decreases.
Overall, DC Velocity readers are well compensated. Average compensation, based on 977 usable responses, was $108,296. That's up about $2,000 from the previous year's numbers. The median income for respondents—that is, the midpoint of salaries among all of those reported—was $90,000. That means half of those responding make above that number, half below. (For a breakdown of average salaries by position, see Exhibit 1.)
Opportunities—and compensation—are especially strong for managers and executives with solid experience. "Frankly, just about every search we go through, the top talent generally has multiple opportunities to choose from," says Dave MacEachern, leader of the executive search firm Spencer Stuart's worldwide transportation and third-party logistics practice and a member of its global supply chain practice.
Supply chain professionals are also happy with their jobs and with the profession, according to the survey. Nearly 86 percent say they are satisfied with their careers, while 87 percent would recommend the profession to a young person entering the job market.
Not that the job is easy. About 77 percent of respondents report working more than 45 hours a week, and 39 percent say the amount of time they put in has increased over the past three years.
What makes it hard for many firms seeking top talent is that large companies with well-established supply chain organizations don't let top people get away easily. As Exhibit 2 indicates, it's the large companies that tend to pay best. (To provide as accurate a comparison as possible, Exhibit 2 only looks at the average salary for managers, as nearly half of all respondents are managers.)
It's at those large firms where the best opportunities for advancement lie, and where young and ambitious folks should go to cut their teeth, MacEachern adds.
"There are well-established organizations—P&G, GE, Frito-Lay, Dell—that have really institutionalized supply chain knowledge and where a lot of good people are developed," he says.
Supply chain skills have become so crucial that the chief supply chain officer has, at many companies, assumed the role of chief operating officer, MacEachern says. "That whole role of COO has almost disappeared, supplanted by the chief supply chain officer because now the plants are reporting to supply chain guys, not operating guys," he says.
WHAT EMPLOYERS LOOK FOR
What are firms looking for in supply chain talent? First on the list, says MacEachern, is leadership. "This is a function that as recently as 10 years ago was a fairly technical role, and technical skills were at a higher premium than leadership," he says. "But what we're seeing today is that the supply chain is being elevated to the executive committee and reporting to the CEO. It is very often managing 60 to 70 percent of the cost of goods sold. It is such an integral part of a company's success today. The leadership element—the ability to build a team, the ability to integrate a team, the ability to have that team working together—is so vital."
Those skills now extend to managing third-party logistics service providers (3PLs), a capability MacEachern says will only grow in importance as outsourcing becomes a bigger part of the logistics landscape. "That whole partnership model and the ability to integrate and work closely with third-party providers is huge," he says.
IT skills remain a relevant part of the supply chain executive's resume, according to MacEachern. Given the importance of technology in the modern-day supply chain, no manager can succeed and advance without a strong grounding in that area, he says.
Education pays off, too; not surprisingly, pay escalates with the level of education. Historically, though, even high school graduates who climb to management positions do quite well. That group reports an average salary of just under $88,000. (See Exhibit 3.)
International experience is another must for anyone looking to work at a large corporation, MacEachern says. "Global experience is a given for almost every assignment we undertake. If you don't have exposure and experience working in Asia, China—it's tough to move from a purely domestic role into a global role," he says.
MacEachern says that professionals with an engineering background are in particular demand. "A lot of them go into engineering, then move into the supply chain," he says.
In addition, he urges young professionals with ambitions for a career in supply chain management to spend some time in a manufacturing environment. "If we're building the perfect supply chain executive, you'd almost always like to see somebody that's had manufacturing experience," he says. "Manufacturing has now gotten to the point that everybody's engaged in pretty sophisticated continuous improvement programs—lean, Six Sigma. You get great training from a technical perspective. Moving into leading a production organization, leading an hourly group, is a great way to start a career. You could be 25 years old managing a hundred people who are all older than you. It's a great experience.
"If you decide procurement is your profession of choice, do you need manufacturing experience? No. But manufacturing keeps it wide open for you. A lot of companies want to see manufacturing in the background."
MacEachern suggests that young professionals pursue work with companies noted for their training and development programs. "If you can get in on the ground floor of one of the Fortune 200 or Fortune 300 organizations that have training and development programs, you really are going to give yourself a leg up," he says. "You probably need to make a couple of moves early on to make sure you're getting into the right company. And if you have landed in the right organization, then do your best to move across functional roles. If you're in procurement, move over to ops, move into planning, move into distribution, into transportation. Get some diversity early on. It becomes a little tougher as you get older."
MacEachern admits today's job prospects are bleak for those starting out. But he remains confident in the future of the profession. He says opportunities for logistics and supply chain professionals will only expand as more companies realize they need to improve suboptimal supply chains in order to compete in the future.
In addition, the rapid growth of online commerce demands responsive and efficient supply chains—and the professionals to run them, MacEachern says.
"One of the biggest trends we're seeing is [an uptick in hiring] in the business-to-consumer world," he says. "We're seeing a lot of activity over how to manage the back office. For brick and mortar retailers, most of the growth is coming online. There will be a lot of opportunities for people coming out of master's or undergrad programs in supply chain and logistics."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.