How does production engineering salary vary by industry and location?

1 Education and experience

One of the main factors that affect production engineering salary is your level of education and experience. Typically, you will need a bachelor's degree in engineering or a related field to qualify for most production engineering jobs, but some employers may prefer or require a master's degree or a professional certification. The more advanced your education and skills are, the more likely you are to earn a higher salary and advance in your career. According to PayScale, the average salary for a production engineer with a bachelor's degree is $69,437, while the average salary for a production engineer with a master's degree is $77,575.

2 Industry and sector

Another factor that influences production engineering salary is the industry and sector you work in. Production engineering is applicable to a wide range of industries, such as manufacturing, energy, aerospace, automotive, biotechnology, and more. Each industry has its own demand, competition, and regulations that affect the salaries of production engineers. For example, according to Indeed, the average salary for a production engineer in the oil and gas industry is $94,656, while the average salary for a production engineer in the pharmaceutical industry is $79,590.

3 Location and cost of living

The location and cost of living of the area you work in also affect your production engineering salary. Depending on the supply and demand of production engineers in your region, you may earn more or less than the national average. Additionally, the cost of living in your area may influence your purchasing power and quality of life. For example, according to ZipRecruiter, the average salary for a production engineer in New York is $88,190, while the average salary for a production engineer in Texas is $74,378. However, the cost of living in New York is 29% higher than the national average, while the cost of living in Texas is 8% lower than the national average.

4 Company size and culture

The size and culture of the company you work for can also have an impact on your production engineering salary. Larger companies may have more resources and opportunities to pay higher salaries and offer more benefits and incentives to their employees. Smaller companies may have more flexibility and creativity to reward their employees in other ways, such as equity, bonuses, or recognition. The culture of the company may also affect how they value and compensate their production engineers. For example, some companies may emphasize innovation and collaboration, while others may focus on efficiency and productivity.

5 Performance and negotiation

The last factor that can affect your production engineering salary is your own performance and negotiation skills. Your salary may depend on how well you perform your tasks, meet your goals, and contribute to your team and organization. You may also have the opportunity to negotiate your salary based on your qualifications, achievements, and expectations. To negotiate effectively, you should research the market rates for your position, industry, and location, and prepare a clear and confident case for why you deserve a higher salary.