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According to data obtained from the Office for National Statistics, engineering professionals in the West Midlands earn a median annual salary of £43,046, up from £37,359 in 2012.
That 15% rise dwarfs the increase seen in London, where pay for engineers increased by 3.2% over the same period, from £41,483 to £42,837.
In 2012, the West Midlands was sixth out of 11 UK regions, but has jumped up the rankings owing to an engineering skills shortage. The region is home to many automotive companies, and record sales have boosted investment and production, and driven up salaries.
“The success of the automotive sector over the last five years has made the West Midlands the most expensive region for engineering talent in the entire country,” said Derek Kelly, chief executive of SJD Accountancy. “Finding the right engineering skills in Birmingham has become increasingly difficult, forcing businesses to offer more money and other benefits. Carmakers have become more reliant on recruiting engineers from the supply chain, triggering bidding wars as suppliers seek to retain skills.”
But car production has fallen for the last eight months, which could see an end to rising pay. “While the recent fall in car sales could temper pay inflation in the West Midlands, major infrastructure projects getting under way, including HS2 and works to the M6 motorway, could offset any decline in demand in the automotive sector,” said Kelly.
The figures also revealed a steep increase in the use of engineering contractors, which rose from 32,911 in 2011 to 55,393 – a rise of 68.3%.
“We have long argued that there should be some sort of tax incentive for engineering contractors to invest in training and personal development,” said Kelly. “A contractor can work for several businesses in a year, so they play a vital role in transferring skills between organisations, yet they are not eligible for staff training, and the cost of training they incur is not a tax-allowable expense.”
Median pay for engineers in 2017:
- West Midlands: £43,046
- London: £42,837
- South East: £42,531
- Scotland: £42,497
- East Anglia: £40,743
- East Midlands: £40,540
- South West: £40,332
- North West: £39,740
- North East: £38,823
- Wales: £38,691
- Yorks & Humber: £38,337
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.