New Jersey Remains Prominent on the National Manufacturing Scene

NJPRO white paper reveals state’s manufacturing industry continues to play a vital role in NJ’s economy. 

On Oct 12, 2015

Considered the birthplace of the American Industrial Revolution, New Jersey’s manufacturing roots are steeped in tradition. Since the creation of the original Society of Establishing Useful Manufacturers, co-founded by Alexander Hamilton in Paterson back in 1792, the state has harnessed resources to grow the industry. Hamilton believed a strong industrial system was the best method for the United States to sustain itself and become a global leader. That philosophy translated into productive manufacturing mills.

Today, New Jersey remains prominent in the manufacturing industry. While systems have changed over the years, the state remains a leading player in the worldwide supply chain. Traditional production systems have shifted to technologically advanced (“lean”) manufacturing processes, maximizing efficiency and achieving optimal performance. This level of modernization strongly supports the manufacturing industry and makes for a more robust business climate in New Jersey.

Though the implementation of such optimally lean manufacturing decreases the industry’s demand for workers, New Jersey manufacturers directly employed 247,200 individuals as of July 2015, according to the New Jersey Department of Labor and Workforce Development. In 2014, the majority of paid manufacturing employees were found in Bergen, Middlesex, Passaic, Essex and Union counties – totaling 112,025 individuals. According to a US Census Bureau County Business Patterns report on 2013 data, the same regions also were home to the greatest concentration of manufacturing establishments in the state, with Bergen County taking the lead at 1,077. Fewer manufacturers can be found in the state’s southern and northwestern regions, due to their respective geographic locations and natural features that make them nationwide stand-outs in tourism and agriculture.

The importance of manufacturing to the state’s economy cannot be overstated. The state ranked 12th nationally with 7,587 manufacturing establishments and has steadily maintained over 7,000 such operations over the last decade. These establishments cover many manufacturing sectors and subsectors, producing a wide variety of products including foods, chemicals, fuels, pharmaceuticals and technological equipment, to name just a few.

The success of manufacturing in New Jersey also results from the number of prestigious colleges and universities and research facilities located in the state, which collaborate and share intellectual resources with the for-profit sector. Collectively, they produce a well-educated, highly specialized and talented labor force. Consequently, New Jersey’s median income for an employee with a bachelor’s degree in industrial and manufacturing development is $91,000, compared to the national median of $81,000. A graduate degree in the same field is worth $137,000 in New Jersey, compared to an average of $101,000 nationally, according to a Georgetown University: Center on Education and the Workforce report titled the “Economic Value of Majors.”

Add to that New Jersey’s strategic geographic location, its proximity to major financial markets, its transportation network, major airports and ports creating an extensive distribution channels and the productivity of New Jersey manufacturers, and it becomes obvious why New Jersey is a key player in the worldwide manufacturing industry, as well as a significant contributor to the state’s economy.

New Jersey’s civic, business and education leaders have long collaborated to create and foster a statewide business climate and public policy that support the manufacturing sector and its competitive position both nationally and internationally. However, there is always more that can and should be done. Ongoing public-private initiatives must continue to further strengthen the environment for the state’s manufacturing sector, to help ensure the industry’s robust future and continued growth – all for the benefit of the state’s economy and of its residents at large.

About NJPRO: The New Jersey Policy Research Organization (NJPRO) Foundation, an independent affiliate of the New Jersey Business & Industry Association (NJBIA), is New Jersey’s leading policy organization conducting innovative, timely and practical research on issues of importance to New Jersey employers.

 

Related Articles: