THE boom in mining and construction projects across Western Australia has led to dramatic salary increases for engineers, a survey by recruitment company Ambit Group has found.
THE boom in mining and construction projects across Western Australia has led to dramatic salary increases for engineers, a survey by recruitment company Ambit Group has found.
Some of the biggest increases have been for construction managers in the construction sector and the offshore oil and gas sector.
Over the past six months hourly pay rates for construction managers in both sectors have increased from $70 to $90 per hour to $95 to $140 per hour.
The Ambit survey, based on interviews with 600 clients and candidates in WA, found contracts managers and design managers in the construction sector had also enjoyed large increases.
On the mining front, mine managers have enjoyed the largest increase, with their hourly rates moving from $70 to $95 per hour to $95 to $130 per hour.
Ambit State manager Adrian Duckett attributed the increased pay rates to major resource projects getting under way and the boom in infrastructure and housing spending.
“Increased activity invariably has a positive impact on salary rates,” Mr Duckett said.
The boom in resource projects was underlined by national research by the Australian Bureau of Agricultural and Resource Economics, which found 62 projects are currently under construction or committed.
“This is a record number of advanced projects and, at $21.4 billion, the total value of these advanced projects is the highest in six years,” ABARE executive director Brian Fisher said.
Looking ahead, a report by forecasting group BIS Shrapnel concludes “Australia’s resources industry is in the midst of an unprecedented phase of development, which won’t peak until 2006-07”.
It also warns the boom will be followed by a severe downturn in new minerals investment in the latter part of this decade.
In the meantime, employers have to cope with increasing shortages across a range of blue collar trades and white collar professions.
BSP Industries general manager Chris White said areas under greatest pressure included technical design people with experience in mining and minerals processing. He said there was a chronic shortage of drafters.
TMP/Hudson recruitment specialist Ian Nichol said: “we are beginning to see the start of the shortages”. He singled out design engineers as one area under supply pressure, with junior engineers commanding salaries 20 per cent higher than last year.
Integrated State manager Craig Hudson said the supply pressure applied to nearly all skilled trades.
“There is a major skills shortage at the present time,” Mr Hudson said.
He said the buoyant activity applied across Australia, which meant WA employers found it harder to lure staff.
ENGINEERS’ SALARIES *
- Construction manager (construction) – $25-$50.
- Construction manager (oil and gas) – $20-$50.
- Mining manager – $25-$35.
- Contracts manager (construction) – $20-$35.
- Project controls manager – $10-$30.
- Procurement manager – $10-$30.
* Increase in hourly rates over past six months
Source: Ambit Engineering Salary Index
