Jason Sandefur

Just over 66% of fastener companies participating in the FIN Survey gave pay raises in 2008, down from the 77.9% who granted raises the previous year. The average pay raise edged up to 3.3% from 3.2% in 2007. Wages peaked in 1998 when the average pay raise climbed to 5.6%.
Last year the number of companies holding the line on employee compensation more than doubled to 22.2% compared with 9.7% who reported flat wages in 2007.
More than 30% of fastener companies laid off staff in 2008, while 36.8% left vacant positions unfilled and 13.9% of companies outsourced work instead of hiring new employees. More than 15% cut salaries or benefits, and 25.7% “delayed or decreased” pay raises.
About 78% of manufacturers granted raises in 2008 at an average rate of 3.1%, same as the previous year.
The number of distributors increasing wages slipped to 68% from 82.6% in 2007, while the average pay edged up to 3.5% from 3.4% the previous year.
Just under 48% of respondents plan to boost pay in 2009 at an average rate of 3%, leaving 19.4% undecided on pay hikes in 2009 as the year begins. More than 33% intend to hold wages steady this year.
In 2009, nearly two in 10 manufacturers remain unsure if they”ll grant any pay hikes, while 48% plan to grant pay raises at an average rate of 2.5%, down from the 3.1% hike in pay forecast at the beginning of 2008.
Nearly 31% of distributors plan to hold the line on wages in 2009, while five in 10 plan pay raises at an average rate of 3.1%. More than 19% of distributors remain undecided on wage issues in 2009. �2009 FastenerNews.com