More competition means manufacturing jobs in southern Kentucky pay higher salaries than those in other parts of the state, according to the latest survey from the Kentucky Association of Manufacturers.

The average factory salary in southern Kentucky pays around $48,500 annually – about 7 percent more than the about statewide average of $45,000.

Martin Kish, vice president of marketing and revenue for KAM, said manufacturing jobs in southcentral Kentucky far exceed the average per capita income for Kentuckians of $29,719.

“This region, compared to the rest of the state, really pays its people a little better. That’s due to … a lot of competition here for good workers and therefore the benefits tend to be slightly better and the wages tend to be slightly better,” Kish said.

Dan Preston, vice president of economic development for the Bowling Green Area Chamber of Commerce, said he doesn’t view Bowling Green’s higher wages as a detriment to recruiting new industry – the city is able to offer the infrastructure and amenities that put it in a different position than other parts of Kentucky and the world, he said.

“We’re competing on a global basis, not just among other communities in Kentucky,” Preston said. “Companies that may be looking at things other than what they find in Bowling Green can find them in southcentral Kentucky, and that helps boost the economic health of our entire region.”

Kentucky’s manufacturing salaries saw an almost 4 percent increase over 2006, according to the survey. Kish said Bowling Green is at the forefront of attracting new industry, remaining attractive despite growing pressures on wages from overseas competitors.

“Anything that happens that causes costs to go up really hurts us, because wages in China are $2 or $3 a day – it makes it really difficult to compete here in Kentucky where we pay really good wages,” Kish said. “The Bowling Green region is blessed by being on a main transportation pipelines – I-65, being close to major cities, Nashville and Louisville, having a good climate, small-time atmosphere with big city benefits like Western Kentucky University …

“This wage survey helps companies pay at market so they don’t underpay or overpay their workers. If you overpay, than you cost your company more than you should, and if you underpay, you lose good workers.”

George Leamon, director of the Barren River Workforce Investment Board, said the survey will help companies in southern Kentucky stay competitive.

“Manufacturers in the 10 counties will be able to use this information for expansion, for retention and basically to do some comparison to see how they’re doing across the board,” Leamon said.

Nearly 200 Kentucky manufacturers representing all regions of the state participated in the survey, which was conducted online by IQS Research of Louisville.

The Barren River Area Development District, the Bowling Green Area Chamber of Commerce, South Central Kentucky, Logan Economic Alliance for Development and the Barren Industrial Development Economic Authority co-sponsored the Wage and Benefits Survey along with KAM.

Other area highlights of the survey include:

• Of the 56 companies responding for the southern Kentucky region, 58.9 percent indicated they had less than 100 employees, and 50 percent indicated they employ less than 20 part-time workers.

• The 40-hour workweek is still the most frequently indicated standard among the respondents, with 71.4 percent indicating this as the norm.

• The respondents reported fairly low turnover rates in 2007, with 35.7 percent of the companies reporting turnover rates between 1 percent and 10 percent annually. Another 17.9 percent reported turnover rates between 11 percent and 20 percent, and 12.5 percent of companies reported turnover rates between 21 percent and 30 percent.

• Nearly two-thirds (66.1 percent) of companies surveyed offer health insurance through a preferred provider organization, while 30.4 percent administer their insurance plan through a self-funded third party and 1.8 percent have self-funded/self-administered insurance plans.

• More than half of companies surveyed (58.9 percent) offer a 401(k) plan or defined contribution plan; 17.9 percent offer a defined benefit plan and 10.7 percent offer an employee stock option plan.