Purchasing Managers: Salary Overview
Purchasing managers oversee the work of employees who buy products and services for the organization’s use and handle other complex procurement tasks.
Their job description typically includes evaluating suppliers by taking into account factors such as price, the quality and speed of delivery, interviewing vendors, attending meetings, analyzing price proposals, negotiating contracts, and meeting with staff and vendors to discuss unacceptable goods and services.
They may also be responsible for evaluating and monitoring contracts to make sure that the vendors comply with the terms and conditions of the contract, maintaining and reviewing records of the items bought, deliveries, costs, and inventories.
Purchasing managers are also responsible for hiring new buyers and purchasing agents.
According to the Bureau of Labor Statistics, the median annual wage for purchasing managers was $121,110 in May 2019 which means that half of all workers in this profession earned less than this amount and half earned more.
Salaries vary widely depending on the industry of employment, experience level, region, local economy, and a variety of other factors.
The lowest 10 percent reportedly earned less than $71,450 per year while the top 10 percent earned more than $193,400.
Purchasing Manager Salary by Industry
According to the Bureau of Labor Statistics, purchasing managers held about 71,700 jobs in the U.S. in 2018, most of them working in the manufacturing field, in the management of companies and enterprises sector, or in the field of wholesale trade.
The average annual wage reported by purchasing managers in the management of companies and enterprises field was $146,960 while those who worked for the federal executive branch reportedly earned $134,880 per year, on average.
Purchasing managers hired by aerospace product and parts manufacturing reportedly made, on average, $135,730 per year according to the same report.
The average annual wage was $105,990 per year for purchasing managers who worked for local governments and $125,360 for those who worked for merchant wholesalers of durable goods.
The report shows that the highest paying field for purchasing managers was the field of other information services where they were remunerated, on average, with $160,990 per year.
Purchasing managers who worked for computer systems design and related services field reportedly earned $154,970 per year.
Another higher-paying field for purchasing managers were wholesalers of apparel, piece goods, and notions- an industry where they reported an average annual wage of $159,210.
Salaries for purchasing managers vary on a variety of other factors, including the experience level.
Purchasing managers need at least 5 years of experience as a buyer or a purchasing agent before being promoted to a management position.
After earning a few years of experience in a purchasing manager position they may advance to a Chief Procurement Officer position, which usually also comes with a pay-raise.
Salaries for purchasing managers also vary depending on the region and the state of employment.
The top-paying states for this profession in May of 2019 were New Jersey, New York, and Colorado- states where the average annual wage reported by purchasing managers was above the $150,000 mark.
Purchasing managers in Louisiana and Idaho, on the other hand, reportedly earned less than $100,000 per year on average.
The metropolitan area with the highest employment level in this profession was New York-Newark-Jersey City, a region where purchasing managers were remunerated with $171,560 per year on average.
Job Prospects
According to the Bureau of Labor Statistics, employment for purchasing managers is projected to grow 4 percent from 2018 to 2028.
Purchasing managers will continue to be needed to help companies procure goods and services for business operations or for resale.
However, job opportunities vary depending on the region and the local economy.
Having a bachelor’s degree in the field and a few years of experience in a related position will likely improve your employment prospects.
* Based on information from the May 2021 salary report from the BLS. The figures represent accumulated data for all states of employment for Purchasing Managers. BLS data represents averages and medians for workers at all levels of education and experience. This data doesn't represent starting salaries.
* Employment conditions in your area may vary.