Posted May 1, 2024

Logistics Salaries: A 2024 Update

Logistics Salaries: A 2024 Update
By Gigi Tino

The ever-changing and dynamic landscape of supply chain and logistics requires a talented group of professionals to keep everything running smoothly. As standards and practices of the industry rapidly evolve alongside technological advancements, a skilled workforce that can keep pace is more crucial than ever. The Peerless Research Group (PRG) and Logistics Management’s 2024 Salary Survey sheds light on some of the changes that are happening in the industry. The survey, which included 240 respondents this year, provides insightful information that can help professionals make informed decisions about their careers.

In a general overview, average salaries stayed consistent from 2023 to 2024. 58% of respondents reported their salary level increased, compared to 67% last year. 33% of professionals say their salary has remained the same, and only 9% saw a decrease. Supply chain and logistics professionals employed in the manufacturing sector command the highest average annual salary, reaching $123,450. Meanwhile, those employed by 3PLs earn an average of $107,900, distributors $107,500, and consulting firms $102,200. On average, professionals in this field anticipate earning $121,150 annually in 2024, with a median salary of $100,000. Professionals in the New England region persist in earning the highest wages, averaging $120,100 annually, trailed by Canadian professionals at $108,300 and those in the Midwest at $106,950 per year.

This year’s survey demographic is 86% males and 14% females; this is a similar make-up to 2023’s response group of 82% males and 18% females. Although men still report higher salaries than their female counterparts, both groups saw a salary increase from 2023’s survey results. Men saw an increase in average salary from $121,310 in 2023 to $145,200, and women saw an increase from an average of $88,275 in 2023 to $101,700. Age and salary once again saw a positive relationship. The highest annual salaries (an average of $147,200) were reported by respondents aged 55 to 64. Respondents aged 45 to 54 reported an average salary of $132,200, and those aged 35 to 44 reported an average of $110,600. All age groups saw an increase in average salary from 2023. The job titles of respondents included 20% logistics managers/directors, 12% operations managers/directors, and 7% VPs or general managers. Other positions of respondents included supply chain managers/directors, transportation managers/directors, distribution managers/directors, and purchasing managers/directors.

Results from the survey also foreshadow the complications for logistics companies in finding skilled talent, largely due to the rapid digital transformation of the industry. A majority (67%) of respondents say that their job functions have been increasing over the last two to three years. In regards to the duration of their current roles, 26% of respondents reported holding their positions for over a decade, with another 26% indicating they've been in their roles for three to five years. The contrast between the number of respondents with less than three years of experience and those with over 20 years strongly signals an impending shortage of talent in logistics. Respondents were also asked to rate their understanding of e-commerce and e-fulfillment processes within their organizations. 39% of professionals perceive themselves as "highly knowledgeable," while 51% indicate they are "somewhat knowledgeable," and 10% stated they are "not very/not at all knowledgeable." These responses point towards an overall skills gap companies must address in the coming years.

In January this year, Descartes Systems released its study, How Bad Is the Supply Chain and Logistics Workforce Challenge?, which took a closer look at the breakdown of the talent crunch the industry has been facing by surveying supply chain leaders. A startling 76% of respondents indicated their workforce was facing a notable shortage, and 37% characterized the shortage as extreme. The two areas of the industry facing the greatest talent shortage were transportation operations (61%) and warehouse operations (56%). In addition, 55% of respondents indicated that knowledge workers were the hardest to recruit. Challenges and opportunities abound with the industry rapidly changing due to technological advancements such as AI. Among the top hiring strategies noted by respondents were adopting the latest technologies (34%) and on-the-job training and education (35%). Supply chain professionals must seek out as much training and education as possible to stay competitive!

The supply chain and logistics industry remains a promising field for professionals who are looking to build a rewarding career. Supply chain professionals remain in high demand amidst a growing talent shortage. Logistics companies continue to offer higher salaries and better training and education opportunities to recruit and develop a workforce with a modern skillset. With the right expertise, professionals in the industry can expect to earn a competitive salary and enjoy a fulfilling career.