Occupation Profile for Purchasing Agents and Buyers, Farm Products
Purchase farm products either for further processing or resale.
Signficant Points
- About 43 percent are employed in wholesale trade or manufacturing establishments.
- Some firms prefer to promote existing employees to these positions, while others recruit and train college graduates.
- Employment is projected to have little or no job growth.
- Opportunities should be best for those with a college degree.
Earnings
Median annual earnings of purchasing managers were $81,570 in May 2006. The middle 50 percent earned between $60,890 and $105,780 a year. The lowest 10 percent earned less than $46,540, and the highest 10 percent earned more than $132,040 a year.
Median annual earnings for purchasing agents and buyers of farm products were $46,770 in May 2006. The middle 50 percent earned between $34,770 and $64,100 a year. The lowest 10 percent earned less than $26,520, and the highest 10 percent earned more than $88,650 a year.
Median annual earnings for wholesale and retail buyers, except farm products, were $44,640 in May 2006. The middle 50 percent earned between $33,640 and $60,590 a year. The lowest 10 percent earned less than $26,270, and the highest 10 percent earned more than $83,080 a year. Median annual earnings in the industries employing the largest numbers of wholesale and retail buyers, except farm products, were:
| Management of companies and enterprises | $54,390 |
| Grocery and related product wholesalers | 46,080 |
| Wholesale electronic markets and agents and brokers | 45,020 |
| Building material and supplies dealers | 40,380 |
| Grocery stores | 34,210 |
Median annual earnings for purchasing agents, except wholesale, retail, and farm products, were $50,730 in May 2006. The middle 50 percent earned between $39,000 and $66,730 a year. The lowest 10 percent earned less than $31,350, and the highest 10 percent earned more than $83,900 a year. Median annual earnings in the industries employing the largest numbers of purchasing agents, except wholesale, retail, and farm products, were:
| Federal executive branch | $68,500 |
| Aerospace product and parts manufacturing | 59,390 |
| Navigational, measuring, electromedical, and control instruments manufacturing | 55,620 |
| Management of companies and enterprises | 54,820 |
| Local government | 48,170 |
Purchasing managers, buyers, and purchasing agents receive the same benefits package as other workers, including vacations, sick leave, life and health insurance, and pension plans. In addition to receiving standard benefits, retail buyers often earn cash bonuses based on their performance and may receive discounts on merchandise bought from their employer.
Job Outlook
Employment of purchasing managers, buyers, and purchasing agents is expected to have little or no job growth through the year 2016. Generally, opportunities will be best for individuals with a bachelor’s degree. In government and in large companies, opportunities will be best for those with a master’s degree.
Employment change. No change in overall employment of purchasing managers, buyers, and purchasing agents is expected during the 2006-16 decade.
Demand for purchasing workers will be limited by improving software, which has eliminated much of the paperwork involved in ordering and procuring supplies, and also by the growing number of purchases being made electronically through the Internet and electronic data interchange (EDI). Demand will also be limited by offshoring of routine purchasing actions to other countries and by consolidation of purchasing departments, which makes purchasing agents more efficient.
Demand for purchasing workers in the manufacturing sector will be less than demand in the services sector, as the overall service sector grows more rapidly than the manufacturing sector. Also, many purchasing agents are now charged with procuring services that traditionally had been done in-house, such as computer and IT (information technology) support in addition to traditionally contracted services such as advertising.
Employment of purchasing managers is expected to grow more slowly than average. The use of the Internet to conduct electronic commerce has made information easier to obtain, thus increasing the productivity of purchasing managers. The Internet also allows both large and small companies to bid on contracts. Exclusive supply contracts and long-term contracting have allowed companies to negotiate with fewer suppliers less frequently.
Employment of wholesale and retail buyers, except farm products, is expected to have little or no change in employment. In the retail industry, mergers and acquisitions have caused buying departments to consolidate. In addition, larger retail stores are eliminating local buying departments and centralizing them at their headquarters.
Employment of purchasing agents, except wholesale, retail, and farm products, is expected to have little or no change in employment, primarily because of the increased globalization of the U.S. economy. As more materials and supplies come from abroad, firms have begun to outsource more of their purchasing duties to foreign purchasing agents who are located closer to the foreign suppliers of goods and materials they will need. This trend is expected to continue, but it will likely be limited to routine transactions with complex and critical purchases still being handled in-house.
Finally, employment of purchasing agents and buyers, farm products, is projected to decline 9 percent, as overall growth in agricultural industries and retailers in the grocery-related industries consolidate.
Job prospects. Persons who have a bachelor’s degree in business should have the best chance of obtaining a buyer position in wholesale or retail trade or within government. A bachelor’s degree, combined with industry experience and knowledge of a technical field, will be an advantage for those interested in working for a manufacturing or industrial company. Government agencies and larger companies usually require a master’s degree in business or public administration for top-level purchasing positions.
Employment
Purchasing managers, buyers, and purchasing agents held about 529,000 jobs in 2006. About 43 percent worked in the wholesale trade and manufacturing industries and another 11 percent worked in retail trade. The remainder worked mostly in service establishments, such as management of companies and enterprises, or different levels of government. A small number were self-employed.
The following tabulation shows the distribution of employment by occupational specialty:
| Purchasing agents, except wholesale, retail, and farm products | 287,000 |
| Wholesale and retail buyers, except farm products | 157,000 |
| Purchasing managers | 70,000 |
| Purchasing agents and buyers, farm products | 16,000 |