Engineers' pay growing fastest up North

London - The North-South pay gap in the engineering sector is narrowing as wages in the North have risen 26% faster than in the South over the last three years says the Association of Technology Staffing Companies (ATSCo). 

Average gross weekly pay in the North of the UK rose by 10.7% from £559 in 2004 to £631 in 2007, while the median gross weekly pay in the South increased 8.5% from £605 in 2004 to £674 in 2007 (see full table below). The UK average growth rate for engineers’ salaries was 9.8% over the same period, ATSCo also found.

The biggest jump in wages for engineering professionals was recorded in the East Midlands -  19.8% over the last three years. Derby is one of the main centres of the UK’s fast-growing aerospace industry, and the headquarters of Rolls Royce, which has benefited from the recent boom in air travel.

According to ATSCo, engineers in the North of England and Scotland have profited from the recent boom in the North Sea oil and gas industry, and strong demand in the aviation and automotive sectors. A strong reputation for R&D, it noted, has helped the UK’s engineering sector compete with cheaper overseas manufacturing bases.

“The North has caught up with the traditionally more prosperous South. Although engineers in the South still earn £2,270 more than their peers in the North, these figures are the evidence that the gap is narrowing,” said Ann Swain, chief executive of ATSCo. “The Midlands engineering sector has recovered strongly from the body blow of the closure of the Rover plant. The region has battled back to re-affirm its position at the heart of UK engineering. Companies in the aerospace industry like Rolls-Royce in Derby have developed tremendously over the last three years thanks to a thriving aviation sector.”

In Yorkshire and Wales, meanwhile, higher global demand for specialist metal components used in aerospace, automotive and the oil & gas industries has helped generate larger orders of high-value materials and boosted production, most of which is intended export. A number of small businesses have also leveraged innovative technologies to manufacture state-of-the-art products in diverse areas ranging from car parts made of sustainable resources to orthopaedic implants fabricated from shape memory polymers.

“Scottish engineers are doing well too with a pay rise of 10.9% over the last three years," added Swain. "It is worth noting that this average hides far higher percentage increases for engineers in the real hotspots like Aberdeen. The increase in the price of oil rose means that there has been a rush to exploit those oil reserves which were previously seen as unprofitable.” 

On the downside, ATSCo cautioned that the resurgence of the engineering sector in the North and Scotland is causing some concerns over skill shortages as engineers have drifted South over the previous 10 years.

In the South wages grew by an average of 8.5% in total over the last three years led by the South East with 9.8%. The weekly median gross pay in both London and the East grew 8.4% between 2004 and 2007 and 7.1% in the South West.

“The engineering sector in the East of England is more specialised in electrical and electronic engineering while the Thames Valley and other areas along the M4 corridor are more focused on telecommunication technologies," explained Swain. "Many companies there have merged or shifted production offshore, both of which have stifled job creation.”

Growth over three years in weekly gross wage of engineers

Region 2004 2007 Growth over 3 years

E Midlands £521 £624 19.8%
Wales £526 £607 15.4%
Yorks/Humber £536 £610 13.7%
Scotland £606 £671 10.9%
West Midlands £577 £633 9.6%
North West £583 £620 6.4%
North East £640 £650 1.7%
South East £624 £685 9.8%
London £652 £707 8.4%
East £617 £668 8.4%
South West £596 £638 7.1%

North £570 £631 10.7%

South £622 £674 8.5%

UK Average £597 £652 9.1%