MSCA Examines Salaries, Costs

January 24, 2003
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ROCKVILLE, Md. — The Mechanical Service Contractors of America (MSCA) has released the results of a 2001 survey of members on the costs associated with one hour of service work.

The results from 106 contractor members were broken down by seven different U.S. regions:

1. New England

2. Mid-Atlantic

3. Southeast

4. North Central

5. Midwest

6. Northwest

7. Southwest

Cost Comparisons

Each billable hour included a labor base cost (base wage including vacation, holiday, and sick pay calculations); benefits (pension, medical, training, etc.); and payroll taxes and insurance (Social Security, unemployment, workers’ compensation, etc.).

Each billable hour also included nonlabor costs, including truck expense (lease, gas/oil, maintenance, etc.); nonbillable expenses (lost time, callbacks, etc.); and miscellaneous (uniforms, tools, communication devices, etc.).

The highest total direct cost of labor was reported in the New England region, at an average of $65.72; the lowest was reported in the Southeast region, at $47.22. The highest hourly billing rate was reported in the Southwest region at $84.18, and the lowest was the Northwest region at $69.48.

The base wages (direct payroll expenses) were highest in the Southwest region, at an average of $32.26 per hour; the lowest figure came from the Southeast region at $25 per hour. Benefit costs were highest in the New England region, at an average of $12.83 per hour, while the lowest figure came from the Southeast region at $7.02 per hour.

Payroll taxes and insurance were highest in the New England region, at an average of $7.38 per hour. The lowest figure came from the Southeast region at $4.72 per hour.

Nonlabor expenses were highest in the Mid-Atlantic region, at an average of $3.58 an hour, while the lowest figure was for the Southeast region, at $1.25 an hour.

Publication date: 01/27/2003

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