Stakeholder Trust is Key to Moving Manufacturing Forward

By Jim Pytell, Managing Editor On Oct 7, 2024

Last week, NJMEP hosted its 12th Annual “MADE in New Jersey” Manufacturing Day. The event saw more than 800 attendees gather in Freehold to celebrate manufacturing in the Garden State and discuss the challenges it faces.

One such discussion featured a candid conversation between stakeholders on how to best support manufacturing in New Jersey, where Senator Michael Testa (R-1) said he believes that a culture change is needed in Trenton when it comes to trusting businesses.

“We need to create a much better business climate,” the Senator said. “I think we have to stop always acting under the assumption in Trenton that businesses are going to cut corners, that they are going to pollute, and that they are going to try to get more out of their employees than they deserve. There has to be a level of trust between the government and the captains of industry that are filling these rooms here today.”

“We aren’t out for efficiency to cut corners or do bad things,” added Michele Siekerka, president and CEO of the New Jersey Business & Industry Association (NJBIA), who co-moderated the discussion along with Peter Connolly, director and CEO of NJMEP. “We are out to get things that are responsible done quicker.

When asked what manufacturers’ biggest concerns today were, Anthony Russo, president of the Commerce and Industry Association of New Jersey (CIANJ), pointed to both energy and the state’s regulatory environment.

More specifically, New Jersey’s electric vehicle mandate, which requires all new cars and light duty trucks sold in the state to be electric, plug-in hybrid, or fuel cell vehicles by 2035, is of concern, namely due to a lack of infrastructure required for such a feat.

Additionally, a burdensome regulatory environment continues to cast a pricey shadow on everything that manufacturers do.

“I believe in our legislators in Trenton. Whether Republican or Democrat – they really are trying to help businesses,” Russo said. “We just have to put something on their plate that is simple. With each issue, we need to identify and simplify and present it in a way that is [an easier ask].”

“One thing we aren’t going to give up on is bringing back the Red Tape Review Commission,” added Michael Egenton, executive vice president, New Jersey State Chamber of Commerce. “That is essential and needed.”

The commission aimed to facilitate job creation by identifying and removing burdensome regulations so that the interaction between business and government could be more productive. Originally created in 2010 during the Christie administration, it was disbanded in 2021 by the Murphy administration.

“Talking to manufacturers – especially in North Jersey – red tape is the biggest issue they have,” added Connolly.

Of course, the future also presents opportunities, and the continued development of AI appears to be just that for manufacturing in the state.

“As a manufacturer, you know that any place where you can find efficiency is going to save you money, drive profit, and increase customer satisfaction,” said Senator Andrew Zwicker (D-16). “AI is going to be a creative force behind doing some of that in ways we haven’t even thought of. We want to make sure that the workforce is there developing the AI, running the AI, or integrating AI into the manufacturing process.”

The senator noted Gov. Phil Murphy’s recently signed $500 million tax credit program aimed at bringing AI companies to the Garden State. 

“We also want to make sure we have access to the technology and the machines, so we want to create a climate where AI companies are coming to us,” Zwicker said. “This entire ecosystem gives us the opportunity to make New Jersey a hub for AI and AI manufacturing.” 

To access more business news, visit NJB News Now.

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