Packaging Pros Bullish on Security & Salary Despite Uncertainty
Packaging seems insulated from much of the economic fallout of COVID-19, though not everyone is fairing equally. Women, for instance, seem to be entering the industry, and soon should be matriculating into higher salaried positions left by retiring men.
As is the case for the year 2020 in general, the results of the Annual Institute of Packaging Professionals (IoPP) Salary Survey represent a departure from the norm. Data collection was accomplished on the cusp of when the global pandemic began roll out, from January 23 through April 8 of 2020, coloring respondent’s attitudes and opinions on the future. The oft heard descriptors of uncertain, unprecedented, or challenging times may have drifted into the realm of the cliché by now, but uncertainty unavoidably crept into the survey response set. Remarkably, responses remain optimistic without many big shifts from previous years. (more beneath rule).
FREE DOWNLOAD: Download the entire IoPP Salary Survey, or obtain a FREE executive summary, by visiting the Institute ofPackaging Professionals website. Packaging World coverage here is on domestic responses, but the full report is an international effort. More than 1,000 packaging professionals participated in IoPP's 2020 Salary Survey, anonymously answering questions on their salaries, job security, age, education and more. Find out where you stand in the only salary survey dedicated exclusively to the packaging professional.
Coronavirus and job security were frequently mentioned in qualitative responses from all participants (12% and 9% of responses, respectively). However, 71% of domestic respondents still expect to earn a higher salary in 2020, with 91% of those respondents expecting to earn anywhere from 1% to 10% more.
Of course, we know this isn’t true of all businesses in the U.S. Shortly after data collection for this report, April unemployment had ballooned to nearly 15% across all industries. Even so, at the time of this writing in June, an unexpectedly positive jobs report indicated that 2.5 million jobs were actually added in May, pushing unemployment down to 13.3% from a (hopefully) high water mark of 14.7%. This is thought to be largely on the backs of healthcare, with elective or non-urgent medical procedures being phased back in, and professions like dentistry opening doors.
Regardless, packaging professionals appear quite insulated from other industries’ troubles, and those reporting that they are somewhat or very secure in their jobs actually added a percentage point over last year’s report, from 75% to 76% reflected this year.
The conclusion? Packaging professionals appear to occupy rarified air in a bear market. Part of this is due to the verticals we serve. Fully a third of responses came from food and beverage manufacturers, with an additional 17% in healthcare/pharma packaging. These are the very definition of essential industries. Still, not everyone fared equally. The following information will tease out trends and sentiments that we hope all packaging professional find valuable, both as a prognosticator and as a benchmark for your own career.Beyond the most obvious ‘job duty’ variable, which IDs respondents as CEOs or sales or designers, top predictors of salary are education, experience, age and gender.
“It’s encouraging that year to year we see progress with companies closing existing wage gaps between men and women. It also shows we still have some ground to travel, but we are hopefully headed the right direction. With this information we also need to have quality conversations next to quantity. Are there enough women in the job pool? Are women in higher level jobs including management and c-suite? Where are opportunities for us to all improve diversity because we know there is strength in diversity.”
Total compensation by job function.“The average age in the packaging industry is increasing. I believe we are seeing the recognition of the packaging industry and its growth at all companies through the years. Thirty years ago, when I told people I was in packaging industry, they would tilt their heads and say, “what?” As people starting understanding packaging, more schools began offering packaging degrees and people began entered the packaging industry 20-30 years ago. We are now seeing the old timers (in my eyes) retiring and the previous newcomers in the packaging industry getting older.” – Brian Stepowany, Packaging R&D, Senior Manager, B&G Foods, Inc.Respondents are more likely to anticipate salary change in 2020 than they were in 2019, with 6% fewer expecting static salary this year than last, perhaps reflecting an uptick in volatility. Notably, expectations for greater salary grew from 61% in 2018, to 67% in 2019, to 71% in 2020.“Overall, the health of the packaging industry is strong. Packaging is the last stage of manufacturing before it reaches the consumer. I expect to see higher demands for packaging professionals, due to major regulatory changes coming up at end of 2020, and 2023. Salaries, raises, and bounces will be impacted by the COID19 pandemic. Companies had to spend a lot of money-making accommodations to their employees to protect them, which consumed many of the companies’ budget as it was not planned for. These funds will unfortunately come from budgeted salary increases. Employees will be happy just to have a job at this point.” – Aladin Alkhawam, Director Global Serialization, PAR SystemsDespite data collection during the onset of the pandemic, responses reflect optimism, some perhaps based on recent raises. Of all respondents, 72% reported that they received a pay raise in 2019. 77% of all respondents who received a salary increase in 2019 reported they received a pay raise of 5% or less, with 14% receiving a raise of 6-10%.
"I think it really highlights the opportunities for recent grads thinking about joining Packaging world. Looks like demand for Packaging Professionals is high enough that it is pulling people out of retirement. There should be lots of demand for new Packaging Professionals with opportunities for advancements. It would be great to improve the pay gap between men & women in this profession." – Patrick Keenan, Packaging Engineer, Annie’s Not all packaging jobs fare equally.
“The rise in CPPs also shows how networking within the packaging industry and packaging organizations promoting recognition through CPP accreditation of someone’s packaging knowledge.” – Brian Stepowany, Packaging R&D, Senior Manager, B&G Foods, Inc. IoPP members & CCPs report higher salaries.
Methodology and Year-Over-Year Comparisons Information illustrated in this report is derived from a survey conducted by the Institute of Packaging Professionals (IoPP), PMMI, and Packaging World from January 23 to April 7, 2020. Of the 1197 total responses, 201 responses reporting primary business outside of the U.S. were removed from the data set to avoid currency exchange and cultural variables, leaving a base of 996 highly qualified packaging professional respondents.
Year-over-year comparisons are made many times throughout this report. However, only a portion of respondents reflected here are the same respondents as last year. As such, though similar, demographics are not identical. Commentary on year-over-year comparisons is intended to be in view of an evolving workforce, rather than a direct 1::1 comparison.
PMMI’s Free Career Toolkit: Promoting Awareness of Packaging and Processing Careers
Prior to the pandemic, studies expected there to be a shortage of two million workers over the next decade. Meanwhile, COVID-19 has pushed the unemployment rate, as of April 2020, to nearly 15%, meaning the pool of available talent might be deepening. PMMI’s Career Toolkit provides resources to help companies address the critical shortage of skilled employees and promote awareness of careers in the packaging and processing industry. The toolkit includes:
• PMMI Internship Guide
• Employer Guide to Hire Veterans
• U.S. Department of Labor Support
• Skills Gap Infographic
• Education & Workforce Development Best Practices Report
Do You Have What It Takes to Take Home and AmeriStar Award?
IoPP is selecting the best packages of the year in one of the industry’s oldest and most prestigious design competitions, the AmeriStar Awards. Think your packaging design deserves national recognition? Time is running out to submit for a 2020 AmeriStar Award – the deadline for submissions is July 31, 2020!
Visit www.iopp.org/ameristar for more information and to submit. PW
Pmmi’s Free Career Toolkit: Promoting Awareness of Packaging and Processing Careers
Prior to the pandemic, studies expected there to be a shortage of two million workers over the next decade. Meanwhile, COVID-19 has pushed the unemployment rate, as of April 2020, to nearly 15%, meaning the pool of available talent might be deepening. PMMI’s Career Toolkit provides resources to help companies address the critical shortage of skilled employees and promote awareness of careers in the packaging and processing industry. The toolkit includes:
• PMMI Internship Guide • U.S. Department of Labor Support • Education & Workforce Development • Employer Guide to Hire Veterans • Skills Gap Infographic Best Practices Report
The Packaging World coverage covers domestic responses, but the full report is an international effort. More than 1,000 packaging professionals participated in IoPP's 2020 Salary Survey, anonymously answering questions on their salaries, job security, age, education and more. Find out where you stand in the only salary survey dedicated exclusively to the packaging professional.