Helping New Jersey Manufacture Success
STATE OF NEW JERSEY MANUFACTURING INDUSTRY REPORT 2020
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NJMEP State of New Jersey Manufacturing Industry Report 2020
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STATE OF NEW JERSEY MANUFACTURING INDUSTRY REPORT
2020
History of New Jersey Manufacturing ______________ 4
About New Jersey Manufacturing Extension Program ____ 5
Manufacturing Impact ________________________ 6
Observations ______________________________ 7
Moving Forward With NJMEP ____________________11
NJ Manufacturers By State District _______________ 15
NJ Manufacturers - County Totals ________________ 16
NJ Manufacturers By Federal District ______________ 18
New Jersey Key Industry Clusters ________________ 18
Biopharmaceutical - Life Sciences _______________ 19
Transportation, Logistics & Distribution ____________ 24
Advanced Manufacturing _____________________ 28
2019 'Made in New Jersey' Manufacturing Day ________ 36
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HISTORY OF NEW JERSEY MANUFACTURINGThe nineteenth century brought the history of New Jersey to a period of
invention, ingenuity, and industry. “The Wizard of Menlo Park”, a New Jersey
resident by the name of Thomas Edison, was hard at work in this New
Jersey city inventing everything from the phonograph to the tattoo gun.
Thomas Edison said, “Genius is one percent inspiration and ninety-nine
percent perspiration.” Hard work and perspiration is also an important
theme of New Jersey state history, as cities like Camden, Trenton, and
Paterson became the blue collar backbone of the Industrial Revolution.
Paterson, harnessing the hydro-energy of the Passaic River, is known as the
“cradle of the Industrial Revolution.” Textile, firearm, and railroad locomotive
manufacturing became just a few of the items produced by New Jersey
workers. Later, New Jersey shipyards were essential for production of
vessels during World War II.
New Jersey manufacturing history is full of hard workers that pushed
America to the forefront of industry and continues into the 21st century.
MANUFACTURING IN NEW JERSEY……accounts for 8.33% of total output, equalling $47 billion*
…employs 5.95% of the workforce, averaging 245,600† employees,
with an average annual compansation of $92,097.28** 2017; † 2018(Manufacturing cluster only)
NJMEP State of New Jersey Manufacturing Industry Report 2020
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ABOUT NEW JERSEY MANUFACTURING EXTENSION PROGRAMNew Jersey Manufacturing Extension Program (NJMEP) operates through
a cooperative agreement with the Hollings Manufacturing Extension
Partnership (MEP) Program of the National Institute of Standards and
Technology (NIST) under the Department of Commerce. NJMEP is part of the
MEP National Network of 51 Centers throughout the country and Puerto Rico.
Utilizing staff expertise and collaborative partnerships, NJMEP enhances
operational performance and productivity, drives new product
development, market expansion, and technology adoption for New
Jersey’s manufacturers. NJMEP serves the unique needs and challenges of
small and medium-sized manufacturers (SMMs) through a broad array of
services that improve the top and bottom line. To facilitate access to these
services, NJMEP is leading New Jersey’s Manufacturing Network to expand
the outreach to SMMs statewide.
NJMEP is rated as one of the top MEP centers in the country. Over the last three years,
the National NIST-MEP Network alone has provided a 14.4:1 Return on Investment
nationally and 15.3:1 in New Jersey. NJMEP and the MEP National Network are
dedicated to enhancing the productivity and technological performance of U.S.
manufacturing. The impact these organizations are contributing, and the benefits
to our economy are not just impressive - they are imperative to the sustainability
of manufacturing.
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MANUFACTURING IMPACTNJMEP services produce measurable results for manufacturers in New
Jersey. Quarterly independent third-party surveys of the clients we serve
certify the economic impact. The impacts shown below are based on
clients surveyed since 2000.
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NJMEP State of New Jersey Manufacturing Industry Report 2020
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OBSERVATIONS Heading into the first year of the new decade, the manufacturing industry
finds itself in a unique position. On one hand, manufacturing is firing
on all cylinders: output is bustling, capacity utilization is up, and many
manufacturers are delivering solid performance results. On the other
hand, trade tensions lurk in the background and supply chains are
straining to keep up with demand, while skilled talent is in short
supply and threatening to derail the current industry momentum.
Manufacturers expect raw materials, labor costs, lack of available
talent, and competition to be hurdles in 2020. The tariffs implemented
by President Trump provide productivity issues; however, an increase
in spending on big data and business intelligence deliver innovative
technology for minimizing productivity concerns. The resilience and success
manufacturers have created for themselves will help alleviate the major
concerns for 2020.
Across the board, we should be carefully optimistic about
the New Jersey economy and sector growth in 2020,
as we’ve seen a period of renewed growth in
the New Jersey manufacturing sector. In all
aspects of business — technology and talent
will lead the charge. Cybersecurity will be top
priority for manufactures and apprenticeships
will be a solution to hiring and retention ensuring
the workforce of the future.
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Based on conversations and survey polls of
manufacturers, there are eight observations we
foresee New Jersey manufacturing in 2020:
Industry 4.0 represents the fourth revolution that has occurred in manufacturing. From the first industrial revolution (mechanization through water and steam power) to the mass production and assembly lines using electricity in the second, the fourth industrial revolution takes what was started in the third with the adoption of computers and automation and enhance with smart and autonomous systems fueled by data and machine learning.
Industry 4.0 is the emergence of the “smart factory,” or the convergence of digital technology and physical machinery on the production floor. Several manufacturers have already deployed modern technological solutions to streamline their production runs, including robotics and IoT (Internet of Things) capable devices. The key to Industry 4.0 is being able to utilize connectivity (primarily web) and machine learning to ensure speed and visibility.
When computers were introduced in Industry 3.0, it was disruptive thanks to the addition of an entirely new technology. Now, and into the future as Industry 4.0 unfolds, computers are connected and communicate with one another to ultimately make decisions without human involvement. A combination of cyber-physical systems, the Internet of Things and the Internet of Systems make Industry 4.0 possible and the smart factory a reality. As a result of the support of smart machines that keep getting smarter as they
get access to more data, our factories will become more efficient and productive and less wasteful.
Smaller manufacturers don’t have to implement Industry 4.0 all at once. They need to start thinking about how they can deploy automation more quickly, gain adaptability and optimize their production lines. They need a road map for improving their operations, determining where it makes sense to be digitally connected with the shop floor, suppliers and customers. This is the ideal starting point.
A very decisive factor affecting the speed of digital transformation is the extension of network attack surfaces from incorporating IoT and other connected devices. Manufacturers of all types, including those in the Department of Defense (DoD) supply chain must also meet the Defense Federal Acquisition Regulation Supplement (DFARS) Cybersecurity requirements, and are a favored target of hackers and phishers for a variety of reasons, but mainly for the value of the data in their systems and the security gaps between hardware and software. A Verizon investigation into data breaches in 2019 found that manufacturers are most likely to be exploited through unsecured web applications through mostly brute force hacking and socially engineered attacks, with onsite servers being the biggest targeted followed by individual system users. Unfortunately, this is all too common and is not a best practice, resulting in compromised productions.
1. INDUSTRY 4.0
2. CYBERSECURITY
NJMEP State of New Jersey Manufacturing Industry Report 2020
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According to a 2018 survey published by the Manufacturing Institute, there is a growing shortage of skilled workers to fill 3.5 million jobs over the next decade—up to as many as 2 million of those jobs will go unfilled.
Not filling job openings and not having the right skill set in the workforce can negatively impact manufacturers in various ways, including not being able to meet growing customer demand, the inability to respond to new market opportunities, and failing to innovate. Manufacturers should consider innovative approaches to attract, recruit, and retain talent, to maintain output levels in the coming years.
Winning the talent war typically includes projecting a positive “brand” for manufacturing, one that reflects the advanced technologies that define manufacturing in the fourth industrial revolution. Additionally, sourcing talent through pre-apprenticeship and upskilling current employees in apprenticeship programs can bridge the skills gap.
Automation enables a level of accuracy and productivity beyond human ability—even in environments that would be considered unsafe for humans. The new generation of robotics include capabilities like voice and image recognition to re-create complex
human tasks and do precisely what you ask them to do - nothing more, nothing less. And while automation eliminates some of the most tedious manufacturing jobs, it is also creating new jobs for a re-trained workforce.
We will still need people who can manage new operations, manage the robotics, program them and maintain them. Just as there was a shift from farm work to factory work in the early 20th century, almost every sector will need new kinds of workers: those who can build hardware, software and firmware; those who can design automation and robotics; and those who can adapt and work with new equipment. Close to 15 million new jobs will be created in the U.S. over the next decade as a direct result of automation and artificial intelligence, equivalent to 10% of the workforce, according to estimates in a new report from Forrester Research.
Increased efficiency could spell a bright future for New Jersey manufacturing. A shift to smart manufacturing will save our manufacturers money and translate into greater profits, more jobs and healthier economies. As our machines move into a more complex age, so do our workers and products, symbiotically ushering in a new era of production.
3D printing, or additive manufacturing, has made an impact in recent years, as manufacturers realized just how fast the
4. ADVANCED MANUFACTURING - ON
AUTOPILOT
5. ROBOTS ON THE RISE - MANAGED
BY HUMANS
3. ATTRACTING, RECRUITING & RETAINING TALENT
6. CONTINUED EVOLUTION OF 3D PRINTING
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technology accelerates prototyping and product development. In the past, a single product could require several different parts to reach the final stages. Now, with 3D printing, manufacturers can create the entire product in one process, expediting production, saving time on labor, and reducing waste.
Now and in coming years, 3D printing can potentially transform the manufacturing industry. With 3D printing becoming more widely available, we can anticipate it being a top technology trend in manufacturing this year. Rapid advances in material science and printing technology are lowering costs and broadening use.
New Jersey’s infamous high taxes and lack of tax credits have been a thorn for many manufacturers. Manufacturers struggle with meeting regulatory guidelines that, while in place for the safety and security of the state’s residents, can cost thousands of dollars. New Jersey has taxes that other states don’t impose on businesses, such as litter tax. These pressures are forcing many New Jersey manufacturers to consider relocating to a different state—which robs the state of valuable profits and leaves residents unemployed.
A potential raise in New Jersey’s minimum wage would impact every manufacturer from large to small. The concern is not simply paying more for entry-level positions, because many
manufacturers are already paying their entry-level workers the proposed minimum wage. The issue is that a pay increase for entry-level workers will mean a pay increase across the board. The required increase could cripple a company.
Companies are also concerned that if the minimum wage is universally raised, workers might not aspire to expand their skill set. Manufacturing must present itself as an industry with an attractive starting wage and opportunity for a career with longevity.
In closing, we will remain carefully optimistic that we will see steady industry growth in 2020. According to a recent Forbes report, U.S. manufacturing has rebounded since the Great Recession, with a gain of 1.1 million jobs over the last eight years. Those numbers are expected to climb.
New technologies and innovations continue to create manufacturing jobs. For instance, computer numerical control (CNC) machine advances are boosting output and efficiency metrics, leveling the productivity playing field for SMMs.
Manufacturers still need to take full advantage of these technological advances. According to a report by the McKinsey Global Institute, U.S. manufacturers could boost their overall value by 20 percent — up to $530 billion — by 2025. However, McKinsey cautions that the industry (including SMMs) must take advantage of newly available technologies and processes to achieve those numbers.
The topics above represent facets of the larger dynamics that will shape manufacturing in the decades to come. The fact is, we’re in the midst of an industrial revolution that is changing how products are designed, fabricated, used, and serviced. The implications are especially exciting for smaller manufacturers, as the ingredients for increased productivity and profitability have never been more accessible.
7. TAXES
8. THE COST OF RAISING MINIMUM WAGE
NJMEP State of New Jersey Manufacturing Industry Report 2020
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MOVING FORWARD WITH NJMEPThe year 2020 will be filled with transformative technologies, revolutionary
new applications, and uncertain developments surrounding trade,
taxes and regulation. New Jersey manufacturers need a partner that is
looking out for their needs and provides the services and opportunities
to help their business thrive. We will continue with our mission of helping
manufacturers succeed well into 2020 and beyond.
NJMEP provides the foundation for economic growth and opportunity by
focusing on five key priorities. Our strategy is critical to small and medium-
sized manufacturing firms, industrial communities, and the manufacturing
sector as a whole. These priorities will help provide a pathway for
manufacturers.
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1. Workforce Development Training and Certification Programs
Developing a stable, reliable, and more accessible workforce is vital to the success of the state’s manufacturers. This has been one of NJMEP’s main focuses in 2019 and will continue to be a primary initiative moving forward. Through the Pro-Action Education Network™, New Jersey manufacturers have access to an expansive selection of workforce development options. Businesses can upskill new hires, provide professional development opportunities, find new workers, and take part in individual training programs.
The Pro-Action Education Network™ represents a statewide, scalable platform to:
• Prepare students and workers to fill open positions that affect the profitability and growth of companies
• Refresh the skills of incumbent workers to remain globally competitive
• Assess and pool the demand for education and train-ing across geographic and institutional boundaries
• Facilitate collaboration between education and work-force development stakeholders that advances the 65 by ’25 Many Paths, One Future campaign.
The Pro-Action Education Network™ involves reconfiguring a collaborative partnership between and among diverse resource partners all attempting to help employers address workforce needs. NJMEP holds a unique position to facilitate this effort. NJMEP, an intermediary organization, provides direct service to companies - including training, and connects these companies to resource partners and initiatives that accelerate technology transfer, innovation, growth and profitability.
The Pro-Action Education Network™ is categorized into five unique sub-sections.
1. PRE-APPRENTICESHIP & FOUNDATIONAL CREDENTIALS Providing manufacturers access to a pool of job seekers
that have been pre-screened for aptitude and trained on essential manufacturing processes.
2. OPEN ENROLLMENT ‘CAREER ADVANCEMENT’ TRAINING Individual workforce upskilling opportunities and
Manufacturing Skill Standards Council (MSSC) credentials including but not limited to; Manufacturing Process and Production, Maintenance Awareness, Quality Practices and Measurement, and Safety Awareness.
3. ASSESSMENT & ON-THE-JOB TRAINING Assistance in assessing new hires and providing a
standardized on the job training curriculum.
4. APPRENTICESHIPS Accelerated United States Department of Labor Registered
Apprenticeship programs to upskill incumbent workers and cultivate a more capable manufacturing workforce.
i. Industrial Manufacturing Production Technician
ii. Industrial Manufacturing Production Technician – Food
iii. Industrial Manufacturing Production Technician – CNC
iv. Technical Sales Representative
v. Logistics Technician
vi. Cybersecurity – Waiting on USDOL approval
5. TRAIN-THE-MENTOR Providing experienced manufacturing and logistics
professionals the skills they need to adequately mentor apprentices.
NJMEP State of New Jersey Manufacturing Industry Report 2020
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2. Partnering with the Bi-Partisan and Bicameral Legislative Manufacturing Caucus
The Bi-Partisan Manufacturing Caucus will continue forward in 2020 with an aggressive, yet attainable set of goals. NJMEP is working closely with the Caucus and Legislators to advocate on behalf of manufacturers throughout New Jersey by providing a platform for business owners and industry influencers to speak directly with local legislators and voice their concerns about doing business in the state. Educating New Jersey lawmakers is the key in developing actionable legislation that assists in the ability of manufacturers to compete nation-wide and around the world.
CAUCUS GOALS:
Short-Term – 6 to 9 Months
• Caucus Meetings & Roundtable Discussions
• Introduce Prospective Legislative Bill Packages
• Suggested Tax Incentives
• Increase Caucus Member Facility Tours
Long-Term – 9 months +
• Develop & Implement ‘Efficiency & Innovation’ Program
• Redefine Consistent Pipeline for Annual NJMEP State Appropriation
• Increase Reach & Effectiveness of the MFG Caucus
• Legislative Bill Package as a Result of MFG Caucus Hearings
3. Industry Relationship Growth Throughout Government in New Jersey
Manufacturing is an important part of the government agenda in New Jersey because it creates high-paying jobs, drives technological innovation, and generates more economic activity than any other sector.
The New Jersey strategy to stimulate, maintain and attract manufacturers has many dimensions, including promoting research and development, training the manufacturing workforce, and establishing legislation that helps manufacturers remain globally competitive. New Jersey and the rest of the country maintain the tradition of a strong manufacturing industry — built upon a foundation of hard work, determination and innovation.
For all those involved in making this strategy successful, NJMEP continues to lead all organizations and individuals such as key state officials, government agencies, manufacturers, New Jersey Business Association (NJBIA), Commerce and Industry Association of New Jersey (CIANJ), Legislators, and Chambers of Commerce to cultivate and expand their relationships with one another.
Much of the success of creating and passing legislative bills that help manufacturers and those involved in the supply chain depends upon these relationships and working closely together for the betterment of the industry.
From short to long term growth, there is absolutely no room for complacency - we must keep our pedal firmly to the floor. Because we want to make sure that the next generation of products made in New Jersey are all continued to be made right here.
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4. Cybersecurity NJMEP assists SMMs on managing their Cybersecurity risks using a variety of tools, including adoption of the NIST Cybersecurity Framework.
The Cybersecurity Framework is designed to reduce risk by improving the management of cybersecurity risk. Manufacturers using the Framework can measure and assign values to their risk along with the cost and benefits of steps taken to reduce risk. The better a manufacturer can measure its cybersecurity risk and costs, the more effective its cybersecurity solutions will be. Over time, self-assessment should improve decision-making on a manufacturer’s cybersecurity investment priorities. The Framework can be used to self-assess cybersecurity risk.
We are providing awareness and assistance to all New Jersey manufacturers to help protect their information assets from the risks of cyberattacks and work with clients to help identify, assess and manage their cybersecurity risks.
NJMEP assists manufacturers specifically in the Department of Defense (DoD) supply chain who must meet the DFARS Cybersecurity requirements. Our experienced team has designed a comprehensive NIST Special Publication 800-171 cybersecurity program and will help manufacturers gauge their current situation and tailor a plan specifically for their internal capabilities, budget and time sensitivity.
5. Food & Beverage
NJMEP received a $992,050 grant in 2019 to expand upon an earlier regional grant, which was provided by the U.S. Department of Commerce National Institute of Standards and Technology Hollings Manufacturing Extension Partnership. The money will be used to develop an invaluable national program for U.S. Food and Beverage manufacturers.
The grant gives NJMEP the ability to work with the MEP National Network to create a platform to deliver FSMA (Food Safety Modernization Act) and other core MEP services (cybersecurity, supply chain, etc.) to food manufacturing companies in the USA as well as Puerto Rico.
Training includes an online curriculum (five different course offerings) created by NJMEP and offered through the County College of Morris (CCM). On top of this effort to create and offer online food training programs to manufacturers at a national level, NJMEP is able to scale the USDOL approved Food Production Safety Technician through the Pro-Action Education Network™. There are more than 1,200 food manufacturers throughout New Jersey that will be able to take advantage of this comprehensive program. The Food Production Safety Technician apprenticeship program is focused on food manufacturing, process standards, quality control, and food production compliance.
NJMEP State of New Jersey Manufacturing Industry Report 2020
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NEW JERSEY MANUFACTURERS BY STATE DISTRICTDistrict Senate Assembly Assembly # of
Manufacturers Main Counties Employees-EST Per Entity
1 Michael L. Testa, Jr. Antwan McClellan Erik Simonsen 288 Atlantic, Cape May, Cumberland 9,792
2 Christopher A. Brown John Armato Vince Mazzeo 197 Atlantic 6,698
3 Stephen M. Sweeney John J. Burzichelli Adam Taliaferro 266 Cumberland, Gloucester, Salem 9,044
4 Fred H. Madden, Jr. Paul D. Moriarty Gabriela Mosquera 140 Camden, Gloucester 4,760
5 Nilsa Cruz-Perez William F. Moen, Jr. William Spearman 115 Camden, Gloucester 3,910
6 James Beach Louis Greenwald Pamela R. Lampitt 378 Burlington, Camden 12,852
7 Troy Singleton Herb Conway, Jr. Carol A. Murphy 325 Burlington 11,050
8 Dawn Marie Addiego Ryan Peters Jean Stanfield 158 Atlantic, Burlington, Camden 5,372
9 Christopher J. Connors DiAnne Gove Brain E. Rumpf 167 Atlantic, Burlington, Ocean 5,678
10 James W. Holzapfel John Catalano Gregory P. McGuckin 82 Ocean 2,788
11 Vin Gopal Joann Downey Eric Houghtaling 316 Monmouth 10,744
12 Samuel D. Thompson Robert D. Clifton Ronald S. Dancer 196 Burlington, Middlesex, Monmouth, Ocean 6,664
13 Declan O'Scanlon Serena DiMaso Gerard Scharfenberger 135 Monmouth 4,590
14 Linda R. Greenstein Daniel R. Benson Wayne DeAngelo 127 Mercer, Middlesex 4,318
15 Shirley K. Turner Verlina Reynolds-Jackson Anthony Verrelli 258 Hunterdon, Mercer 8,772
16 Christopher Bateman Roy Freiman Andrew Zwicker 380 Hunterdon, Mercer, Middlesex, Somerset 12,920
17 Bob Smith Joseph Danielsen Joseph V. Egan 239 Middlesex, Somerset 8,126
18 Patrick J. Diegnan, Jr. Robert Karabinchak Nancy Pinkin 400 Middlesex 13,600
19 Joseph F. Vitale Craig Coughlin Yvonne Lopez 170 Middlesex 5,780
20 Joseph P. Cryan Jamel Holley Annette Quijano 276 Union 9,384
21 Thomas H. Kean Jr. Jon Bramnick Nancy F. Munoz 342 Morris, Somerset, Union 11,628
22 Nicholas P. Scutari Linda S. Carter James J. Kennedy 287 Middlesex, Union, Somerset 9,758
23 Michael J. Dougherty John DiMaio Erik Peterson 446 Hunterdon, Somerset, Warren 15,164
24 Steven Oroho Parker Space Hal Wirths 229 Morris, Sussex, Union 7,786
25 Anthony M. Bucco Brian Bergen Arua Dunn 370 Morris, Somerset 12,580
26 Joseph Pennacchio BettyLou DeCroce Jay Webber 496 Essex, Morris, Passaic 16,864
27 Richard Codey Mila Jasey John F. McKeon 204 Essex, Morris 6,936
28 Ronald Rice Ralph R. Caputo Cleopatra Tucker 252 Essex 8,568
29 M. Teresa Ruiz Eliana P. Marin Shanique Speight 153 Essex 5,202
30 Robert W. Singer Sean T. Kean Edward Thomson 266 Monmouth, Ocean 9,044
31 Sandra B. Cunningham Nicholas Chiaravalloti Angela V. McKnight 32 Hudson 1,088
32 Nicholas J. Sacco Angelica M. Jimenez Pedro Mejia 241 Bergen, Hudson 8,194
33 Brain P. Stack Annette Chaparro Raj Mukherji 184 Hudson 6,256
34 Nia H. Gill, Esq. Thomas P. Giblin Britnee Timberlake 232 Essex, Passaic 7,888
35 Nellie Pou Shavonda E. Sumter Benjie E. Wimberly 317 Bergen, Passaic 10,778
36 Paul A. Sarlo Clinton Calabrese Gary Schaer 553 Bergen, Passaic 18,802
37 Loretta Weinberg Valerie Huttle Gordon M. Johnson 359 Bergen 12,206
38 Joseph A. Lagana Lisa Swain P. Christopher Tully 276 Bergen, Passaic 9,384
39 Gearld Cardinale Robert Auth Holly T. Schepisi 311 Bergen, Passaic 10,574
40 Kristin Corrado Christoper P. DeFillips Kevin Rooney 389 Bergen, Essex, Morris, Passaic 13,226
10,552 Direct Employment * 358,768
* An estimate supported by data from NIST & NAM - 34 employees per firm in NJ
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NEW JERSEY MANUFACTURERING FIRMS BY COUNTY
NEW JERSEY STEM ONLY FIRMS BY COUNTY
SUSSEX157
BERGEN1,565
HUDSON419
ESSEX879
UNION836
MIDDLESEX1,056
MONMOUTH689
OCEAN369
CAMDEN547
GLOUCESTER286SALEM
41
CUMBERLAND215
ATLANTIC168
CAPE MAY87
BURLINGTON497
MERCER408
PASSAIC757
MORRIS836
SOMERSET424
WARREN145
HUNTERDON168
40 - 250
251 - 500
501 - 750
751 - 1,000
1,000 +
Manufacturing Firms
SUSSEX86
BERGEN700
HUDSON164
ESSEX346
UNION272
MIDDLESEX523
MONMOUTH373
OCEAN155
CAMDEN215
GLOUCESTER81
SALEM18
CUMBERLAND101
ATLANTIC90
CAPE MAY32
BURLINGTON249
MERCER149
PASSAIC225
MORRIS266
SOMERSET213
WARREN58
HUNTERDON143
18 - 100
101 - 200
201 - 300
301 - 400
401 +
STEM Only Firms
NJMEP State of New Jersey Manufacturing Industry Report 2020
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NEW JERSEY MANUFACTURERS - COUNTY TOTALS - RANKED BY NUMBER OF FIRMS
NJ County MFG's Firms STEM Firms Total Firms
Bergen 1565 700 2265
Middlesex 1056 523 1579
Essex 879 346 1225
Union 836 272 1108
Morris 839 266 1105
Monmouth 689 373 1062
Passaic 757 225 982
Camden 547 215 762
Burlington 497 249 746
Somerset 424 213 637
Hudson 419 164 583
Mercer 408 149 557
Ocean 369 155 524
Gloucester 286 81 367
Cumberland 215 101 316
Hunterdon 168 143 311
Atlantic 168 90 258
Sussex 157 86 243
Warren 145 58 203
Cape May 87 32 119
Salem 41 18 59
10,552 4,459 15,011
NEW JERSEY TOTAL FIRMS BY COUNTY
SUSSEX243
BERGEN2,265
HUDSON583
ESSEX1,225
UNION1,108
MIDDLESEX1,579
MONMOUTH1,062
OCEAN524
CAMDEN762
GLOUCESTER367
SALEM59
CUMBERLAND316
ATLANTIC258
CAPE MAY119
BURLINGTON746
MERCER557
PASSAIC982
MORRIS1,105
SOMERSET637
WARREN203
HUNTERDON311
59 - 280
281 - 560
561 - 840
841 - 1,120
1,121 +
Total Firms
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NEW JERSEY MANUFACTURERS BY FEDERAL DISTRICTDistrict Senate House # of
Manufacturers Main Counties Employees-EST Per Entity
State Robert Menendez 10,552
State Cory Booker 10,552
1 Donald Norcross 768 Gloucester, Camden, Burlington 26,112
2 Jeff Van Drew 630 Atlantic, Cape May, Cumerland, Salem, Ocean 21,420
3 Andy Kim 626 Burlington, Ocean 21,284
4 Christopher Smith 774 Ocean, Monmouth, Mercer 26,316
5 Josh Gottheimer 1008 Sussex, Passaic, Bergen, Warren 34,272
6 Frank Pallone 830 Monmouth, Middlesex 28,220
7 Tom Malinowski 1061 Warren, Hunterdon, Somerset, Union, Morris 36,074
8 Albio Sires 632 Union, Essex, Hudson, Bergen 21,488
9 Bill Pascrell Jr. 1336 Bergen, Hudson, Passaic 45,424
10 Donald Payne Jr. 623 Union, Essex, Hudson 21,182
11 Mikie Sherrill 1356 Morris, Sussex, Essex, Passaic 46,104
12 Bonnie Watson Coleman 908 Middlesex, Mercer, Somerset, Union 30,872
10,552 Direct Employment * 358,768
* An estimate supported by data from NIST & NAM - 34 employees per firm in NJ
NEW JERSEY KEY INDUSTRY CLUSTERSNEW JERSEY MANUFACTURING – IMPACTS BY CLUSTER
EMPLOYEESGDP
CONTRIBUTION AVERAGE
WAGE
MANUFACTURING 245,600 $47B $92,097
LIFE SCIENCES 72,900 $47.5 $157,080
STEM/TECHNOLOGY 182,420 N/A $129,260
TRANSPORTATION LOGISTICS & DISTRIBUTION (TLD)
406,531 $66.9B $72,481
The economic impact of the Key Industry Clusters in New Jersey is estimaged to be over $161 Billion.
NJMEP State of New Jersey Manufacturing Industry Report 2020
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BIOPHARMACEUTICAL - LIFE SCIENCESNew Jersey is respected globally for its strength in the biopharmaceutical
and medical device industry thus the name “The Medicine Chest of the
World”. The State is home to 14 of the world’s 20 largest pharmaceutical
companies, including Novartis, Merck & Co., Johnson & Johnson,
Bristol-Myers Squibb, Novo Nordisk and Bayer Healthcare.
New Jersey boasts a well-educated workforce with a high concentration
of scientific professionals.
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SUSSEX90
BERGEN7,560
HUDSON690
ESSEX2,110
UNION10,560
MIDDLESEX11,530
MONMOUTH4,170
OCEAN1,160CAMDEN
2,170GLOUCESTER
390SALEM
170
CUMBERLAND1,10
ATLANTIC330
CAPE MAY50
BURLINGTON1,010
MERCER7,670
PASSAIC2,210
MORRIS9,870
SOMERSET8,810
WARREN210
HUNTERDON1,010
SUSSEX90
BERGEN7,560
HUDSON690
ESSEX2,110
UNION10,560
MIDDLESEX11,530
MONMOUTH4,170
OCEAN1,160CAMDEN
2,170GLOUCESTER
390SALEM
170
CUMBERLAND1,10
ATLANTIC330
CAPE MAY50
BURLINGTON1,010
MERCER7,670
PASSAIC2,210
MORRIS9,870
SOMERSET8,810
WARREN210
HUNTERDON1,010
Life Sciences Employment10 - 500
501 - 2,000
2,001 - 4,000
4,001 - 8,000
8,001 - 11,530
Life Sciences LocationMajor Highways
The Life Sciences Cluster has an enormous impact on providing high quality jobs and adding significant value to the State’s economic activities.
Recent New Jersey highlights included:
• EMPLOYMENT TOTAL: Averaged 72,900 or 2.1 percent of all private sector workers in the state for 2018. Nationally, the proportion was just 1.1 percent.
• WELL-PAYING JOBS: Paid over $11.4 billion in 2018 annual payrolls; 5 percent of the state’s total wages.
• ESTABLISHMENTS TOTAL: Nearly 1,600 in 2018. Over a five year period (2013-2018) – even with numerous industry related reorganizations – New Jersey’s pharmaceutical component still grew (by +14.7%).
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2013-2018 Annual Averages
Prepared by: NJ Department of Labor & Workforce Development
NJMEP State of New Jersey Manufacturing Industry Report 2020
21
$0
$50,000
$100,000
$150,000
$200,000
ANNU
AL AV
ERAG
E WAG
E
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YEAR
Life SciencesAll Industries
NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER ALL PRIVATE SECTOR VS. LIFE SCIENCES ANNUAL AVERAGE WAGE
$0
$50,000
$100,000
$150,000
$200,000
$159,260
$142,740
$86,930 $92,040
$166,180
$194,970
$99,920
$139,280
$59,030 $65,360
ANNU
AL AV
ERAG
E WAG
E
INDUSTRY SECTORS
20132018
NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER 5-YEAR AVERAGE ANNUAL WAGE TREND
Pharmaceutical & Medicine Mfg.
Soap, CleaningCompound & Toiletry Mfg.
Scientific R&DServices
Medical Equipment& Supplies Mfg.
Total StatewideSectors
• This cluster’s average annual wage was $157,080 in 2018, which was 140.3 percent higher than the state’s total private sector’s average annual wage of $65,360.
• All three of this cluster’s components had 2018 wages that were significantly higher than the state’s total average annual wage.
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2013-2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2013-2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
• Wages in the life sciences cluster have averaged 237% of the statewide annual average wage since 2008.
• Annual average wages for the cluster have risen +35.7% over the ten year period from 2008 to 2018.
22
NORTHERN REGION -
• Bergen, Essex, Hudson, Hunterdon, Morris, Passaic, Somerset, Sussex, Union, and Warren Counties
• Presented the smallest annual average wage increase (+7.3%) from 2013 - 2018.
CENTRAL REGION
• Mercer, Middlesex, Monmouth, and Ocean Counties
• Annual average wage for this region increased 13.2 percent during the same period.
SOUTHERN REGION
• Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties
• This region experienced the highest growth in annual average wage over the five-year period. A total of 18.1 percent.
$0 $50,000 $100,000 $150,000 $200,000
2013
2014
2015
2016
2017
2018
NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER ANNUAL AVERAGE WAGE BY REGION 5-YEAR TREND
$160,820
$124,290
$70,590
$172,830
$129,120
$75,090
$181,070
$136,900
$79,190
$172,330
$139,030
$80,900
$180,510
$132,550
$84,770
$172,560
$140,710
$83,360
ANNUAL AVERAGE WAGE
YEAR
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2013-2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
NJMEP State of New Jersey Manufacturing Industry Report 2020
23
An occupational analysis of 33,500 jobs revealed that five major occupational groups in this component accounted for nearly three-fourths (78,4%) of the employment.
Production and Life, Physical, and Social Science occupations employed the most in this component with approximately 17,760 jobs.
NOTE: Due to the disclosure issues, of the total 33,600 jobs identified, only 33,500 could be used for this occupatoinal analysis.
MANAGEMENT: 11.5%Employment: 8,460 • Avg. Salary: $190,420
BUSINESS & FINANCIAL OPERATIONS: 9.5%Employment: 7,000 • Avg. Salary: $106,580
OTHER: 6.4%SALES & RELATED: Employment: 1,550 • Avg. Salary: $106,150
HEALTHCARE PRACTITIONERS & TECHNICAL: Employment: 930 • Avg. Salary: $79,400
HEATHCARE SUPPORT: Employment: 580 • Avg. Salary: $33,600
OFFICE & ADMINISTRATIVE SUPPORT: 8.5%Employment: 6,260 • Avg. Salary: $50,860
COMPUTER & MATHEMATICAL: 5.6%Employment: 4,100 • Avg. Salary: $121,910
ACHITECTURE & ENGINEERING: 4.8%Employment: 3,520 • Avg. Salary: $110,820
TRANSPORTATION & MATERIAL MOVING: 4.7%Employment: 3,440 • Avg. Salary: $35,100
INSTALLATION, MAINTENANCE, & REPAIR: 2.8%Employment: 2,070 • Avg. Salary: $63,050
LIFE, PHYSICAL, & SOCIAL SCIENCE: 20.8%Employment: 15,270 • Avg. Salary: $115,100
PRODUCTION: 25.3%Employment: 18,610 • Avg. Salary: $42,040
LIFESCIENCESINDUSTRYCLUSTER
All Life Science OccupationsEmployment: 73,790Avg. Salary: 92,310
NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER TOP OCCUPATOINAL GROUPS, 2018
Management: 8.5%Business & Financial Operations: 7.8%
Other: 7.3%
Oice & Administrative Support: 9.1%
Computer & Mathematical: 3.5%
Transportation & Material Moving: 6.4%Installation, Maintenance, & Repair: 4.3%
Life, Physical, & Social Science: 17.5%Production: 35.5%
MAJOR OCCUPATIONALGROUP BREAKDOWN
NEW JERSEY LIFE SCIENCES INDUSTRY CLUSTER PHARMACEUTICAL COMPONENT, 2018
Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2018Prepared by: NJ Department of Labor & Workforce Development
Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics, May 2018Prepared by: NJ Department of Labor & Workforce Development
24
TRANSPORTATION, LOGISTICS AND DISTRIBUTIONOne of the main reasons this area is so lucrative for New Jersey is that it
lies within a day's drive of 40 percent of the U.S. population. It is truly a
transportation hub due to the fact that three major seaports and Newark
Liberty International Airport are located in New Jersey.
While the Port of New York/New Jersey often garners much attention for
its massive TEU (twenty-foot equivalent unit) tonnage, the ports in South
Jersey are especially noteworthy for bulk and breakbulk cargo such as
imported foods that often travel further than the immediate region.
Whether it is moving fruit, cocoa beans or TEUs, again, technology is
permeating nearly every corner of the TLD sector, ranging from port
operations and trucks, to distribution center operations and tracking the
movement of goods. In this way, trained workers will be increasingly
critical to the sector ’s success.
NJMEP State of New Jersey Manufacturing Industry Report 2020
25
TLD CLUSTER DIVIDED INTO TWO MAJOR COMPONENTS The industry sector’s employment is composed of approximately two-thirds in the Distribution/Logistics sector and one-third in Transportation. This employment ratio has remained consistent for many years.
Private sector jobholding in TLD as a whole peaked at 389,521 in 2007 before the Great Recession took hold, driving employment down for the next three years (2008-2010); followed by stability between 2011 - 2014.
Over the past 5-years (2014-2018) employment in this cluster has seen strong annual job growth rates ranging between 2.0% to 4.3%. The past 5-years job growth rate of 13.6 percent contributed to TLD’s employment in 2018 to reach a new peak of 406,531.
DISTRIBUTION/LOGISTICS VERSES TRANSPORTATIONThe vast majority (66.7%) of employment in the TLD cluster is in the distribution segment. The six top-ranking industries in the distribution segment together accounted for 61.7 percent of TLD private sector employment.
General freight trucking accounts for 20.9 percent of the jobs in the transportation segment.
DISTRIBUTION / LOGISTICS SEGMENTNAICS Industry Employment
4931 Warehousing and storage 56,5814244 Grocery and related product wholesalers 32,5474234 Commercial equiptment merchant wholesalers 30,0384236 Electric goods merchant wholesalers 16,6694242 Druggists' goods merchand wholesalers 16,3494238 Machinery and supply merchant wholesalers 15,099
TRANSPORTATION SEGMENTNAICS Industry Employment
4841 General freight trucking 28,2644921 Couriers 25,1834854 School and employee bus transportation 11,5654885 Freight transportation arrangement 10,5954842 Specialized freight trucking 9,4074881 Support activities for air transportation 5,933
20072008
20092010 2011
2012 2013 2014 2015 2016 2017 2018
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Transportation Distribution / Logistics
NEW JERSEY’S TLD (PRIVATE)SECTOR EMPLOYMENT
2007-2018
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages Annual AveragesPrepared by: NJ Department of Labor & Workforce Development, September 2019
26
In 2018, TLD’s three top-ranking industry subsectors accounted for 63.8 percent of total jobsWholesalers of Durable Goods and Wholesalers of Nondurable Goods were TLD’s largest industry employers. Combined, they accounted for 49.9 percent of TLD employment.
Due to significant growth in ecommerce, New Jersey’s Warehousing and Storage subsector has placed it as the State’s third largest TLD industry employer, accounting for 13.9 percent of New Jersey’s TLD jobs.
Average annual wages for workers in the distribution/logistics component ranged anywhere from 37.4 percent to 55.4 percent higher than those for transportation segment workers over the
10-year (2008 – 2018) period. Overall, total TLD wages increased at an average of 1.7 percent year to year during the same period.
NEW JERSEY’STLD’S SUBSECTORS
BY EMPOYMENTPRIVATE SECTOR,
2008-2018
MERCHANT WHOLESALES,NONDURABLE GOODS
22.7%
WAREHOUSING & STORAGE13.9%
TRUCK TRANSPORTATION9.3%
COURIERS & MESSENGERS6.8%
SUPPORT ACTIVITIES FOR TRANSPORTATION
6.4%
MERCHANT WHOLESALES,DURABLE GOODS 27.2%
ALL OTHER5.0%
ELECTRONIC MARKETS,AGENTS & BROKERS2.9%
TRANSIT & GROUND PASSENGERTRANSPORTATION5.8%
$40,000
$45,000
$50,000
$55,000
$60,000
$65,000
$70,000
$75,000
$80,000
$85,000
20182017201620152014201320122011201020092008
DISTRIBUTION/LOGISTICS VS TRANSPORTATIONWAGES, 2008-2018
ANNU
AL AV
ERAG
E WAG
E
Transportation
Total TLD
Distribution & Logistics
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages Annual AveragesPrepared by: NJ Department of Labor & Workforce Development, September 2019
NJMEP State of New Jersey Manufacturing Industry Report 2020
27
Educational requirements of TLD occupationsWhile more than 40 percent of the occupations within the TLD industry cluster require no further education beyond high school, many occupations such as truck drivers and forklift operators have licensing requirements.
Some jobs, especially those in secure areas such as shipping terminals or at airports, may also require additional screening or background checks.
Analyzing TLD’s employment revealed that more than 50 percent of its workforce had further education beyond high school. (Note: These figures exclude data that has been suppressed due to non-disclosure issues.)
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BREAKDOWN OF OCCUPATION BY EDUCATION
Source: NJ Department of Labor & Workforce Development, Occupational Employment Staticstics Wage Survey, 2017 dataPrepared by: NJ Department of Labor & Workforce Development, September 2019
28
ADVANCED MANUFACTURING New Jersey has long been known as a prime location for manufacturing
activity, particularly due to the fact that it is at the center of the Northeast
corridor.
The manufacturing industry is vital to the diversity and strength of the
New Jersey economy. New Jersey is home to a range of highly innovative,
competitive and world-leading manufacturers that are leading the way,
such as Lockheed Martin, BASF, Honeywell and Unilever to Campbell Soup,
Mars, Pinnacle Foods and Goya Foods. The Garden State has strengths in
advanced manufacturing in the chemical, pharmaceutical manufacturing,
computers and electronics, machinery and transportation equipment,
aerospace, and food and beverage sectors.
The New Jersey Government recognizes that manufacturing is undergoing
a transformation across the industrialized world and is committed to
harnessing and ensuring the industry’s strength in the future.
As the sector changes, New Jersey manufacturing businesses are
increasingly using new technology or employing advanced business
models that allow them to compete based on value. This includes adopting
Industry 4.0 business models, which offer opportunities to lower production
costs while delivering high-value manufacturing solutions.
NJMEP State of New Jersey Manufacturing Industry Report 2020
29
Nearly 2 of every 10 dollars of output generated by manufacturing in the United States occurs in these eight Northeastern statesNew Jersey ranks fourth among these states in the region. New Jersey GDP from manufacturing exceeded $47 billion in 2018.
Chemical manufacturing is the primary contributor in the tri-state area (NJ, NY & PA) and combined, it accounts for nearly 15 percent (nearly $43 billion) of all chemical manufacturing GDP in the US.
Data shows that Massachusetts and New Jersey are leaders in the region in medical device manufacturing.
NEW YORK: $67B
MASSACHUSETTS: $50BCONNECTICUT: $28B
DELEWARE: $4BMARYLAND: $22B
VIRGINIA: $42B
PENNSYLVANIA: $84B
NEW JERSEY: $47B
MANUFACTURING GROSS DOMESTIC PRODUCT (IN BILLIONS $)GENERATED FROM SELECTED NORTHEAST STATES
Source: NJ Department of Labor & Workforce Development, GDP in Chained 2012 DollarsPrepared by: NJ Department of Labor & Workforce Development December, 2019
30
New Jersey annual average wages in the manufacturing sector have increased by nearly $2,500 over the past five years Although relatively small in terms of employment, the petroleum and coal products industry earned more than any other manufacturing industry.
The higher annual average wages paid in both chemical and medical device manufacturing are reflective of the greater composition of jobs requiring higher educational levels $96,200.
Medical device manufacturing saw the largest jump in average annual wage over the last five years, increasing by nearly $30,000.
Employment in manufacturing is highly concentrated in New Jersey’s most populous counties and along the Interstate 95 corridorNew Jersey offers unique business advantages including:
• Geographic proximity to roughly 40 percent of the US population, or around 100 million potential consumers.
• Highly educated and diverse workforce.
• Extensive transportation network in place to carry goods by land, air, and sea.
Chemical (42,480) 35.5%Food (35,580) 15%
Computer & Electronic Product (24,100) 10%Fabricated Metal Product (21,770) 9%Medical Devices & Misc. (18,370) 7%
Plastics & Rubber (15,00) 6%Machinery (13,870) 6%
Printing & Related Support Activities (13,330) 5%Nonmetallic mineral product (10,740) 4%
Paper (9,780) 4%Electrical Equipment & Appliance (6,590) 3%
Furniture & Related Product (6,530) 3%Transportation Equipment (5,610) 2%
All Other Manufacturers 9%
ALL MANUFACTURING INDUSTRIESAS A PERCENTAGE OF TOTAL MANUFACTURING
IN NEW JERSEY, 2018
PETROLEUM AND COAL PRODUCTS
CHEMICAL
MEDICAL DEVICE
ELECTRONIC PRODUCT
MACHINERY
$129,700
$120,700
$114,800
$96,200
$77,100
2013 NJ AVERAGE WAGE CHANGE 2013-2018
ANNUAL AVERAGE WAGE OF MAJOR COMPONENTSOF MANUFACTURING NEW JERSEY, 2018
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
NJMEP State of New Jersey Manufacturing Industry Report 2020
31
MANUFACTURING EMPLOYMENTNEW JERSEY, 2018
SUSSEX2,390
BERGEN32,670
HUDSON9,180
ESSEX16,290
UNION18,690
MIDDLESEX30,230
MONMOUTH9,550
OCEAN5,280
CAMDEN14,940
GLOUCESTER8,050SALEM
1,990
CUMBERLAND9,010
ATLANTIC2,240
CAPE MAY990
BURLINGTON15,630
MERCER8,540
PASSAIC18,120
MORRIS18,570
SOMERSET15,200
WARREN3,500
HUNTERDON2,620
990 - 2,620
2,621 - 5,280
5,281 - 9,550
9,551 - 18,690
18,691 - 32,670
Major Highways
Manufacturing Employment
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
32
Nearly 80 percent of all manufacturing jobs are classified into those five groups• Nearly half of all manufacturing workers
are directly involved with production. • The “other” 22 percent of manufacturing
occupations primarily consists of business, sales and other profession and service occupations.
The food manufacturing industry has added 5,000 jobs over the past five years, and has large concentrations in Bergen and Camden Counties
Key Occupations include:
• Food Batchmakers
• Bakers
• Packaging and Filling Machine Operators
• Industrial Machinery Mechanics
• Forklift Operators
• Inspectors, Testers, Sorters and Samplers
• Food Scientists and Technologists
• Whole Sales Representatives
BREAKDOWN OF MAJOR OCCUPATOINAL GROUPS WITHIN THE MANUFACTURING INDUSTRY, NEW JERSEY 2018
PRODUCTION46%
OFFICE &ADMINISTRATIVE
SUPPORT11%
TRANSPORTATION& MOVING MATERIAL
10%
MANAGEMENT6%
ARCHITECTURE& ENGINEERING
5%
ALL OTHER22%
ESTABLISHMENTS EMPLOYMENTEMPLOYMENT PER ESTABLISHMENT
2013 1,040 30,490 29
2018 1,218 35,579 29
CHANGE 178 +5,089 -
Source: NJ Department of Labor & Workforce Development, Occupational Employment Statistics Survey, May 2019Prepared by: NJ Department of Labor & Workforce Development December, 2019
NJMEP State of New Jersey Manufacturing Industry Report 2020
33
Less than 500
501 - 1,000
1,001 - 2,500
2,501 - 4,500
Greater than 4,500
Establishment Location
Manufacturing Employment
SUSSEXBERGEN
5,183
HUDSON2,240
ESSEX3,061
UNION2,404
MIDDLESEX2,938
MONMOUTH1,565
OCEAN762
CAMDEN3,922
GLOUCESTER1,910SALEM
CUMBERLAND3,133
ATLANTIC268
CAPE MAY
BURLINGTON1,518
MERCER474
PASSAIC2,645
MORRIS1,005
SOMERSET655
WARREN
HUNTERDON
FOOD MANUFACTURING EMPLOYMENTAND ESTABLISHMENT LOCATIONS
NEW JERSEY, 2018
Source: NJ Department of Labor & Workforce Development, Quarterly Census of Employment and Wages, 2018 Annual AveragesPrepared by: NJ Department of Labor & Workforce Development
34
Data shows a steady and gradual change toward an older workforce
The workforce aged 65 and older has nearly tripled its share of total employment from 3 percent to almost 9 percent from 1998 to 2018.
Over the past 20 years, the fastest growing age cohort has been 55-64 years old, while the group aged 35-44 has declined the most.
The share of the manufacturing workforce under the age of 35 has decreased over the last 20 years from 28 percent to 23 percent.
19982003
20082013 2018
100%
50%
0%
> 65 y
55-64 y
45-54 y
35-44 y
25-34 y
<25 y
BREAKDOWN OF WORKFORCE BY AGENEW JERSEY 1998-2018
Source: United States Census Bureau. Quarterly Workforce IndicatorsPrepared by: NJ Department of Labor & Workforce Development December, 2019
NJMEP State of New Jersey Manufacturing Industry Report 2020
35
Self-reported educational attainment and average wage of NJ residents in the manufacturing workforce
37.1%High School
or Less
2.6%Doctoral Degree
EDUCATIONLEVEL
21.5%Some College /
Associate Degree
14.0%Master’s /Professional Degree
24.7%Bachelor’s Degree
More than 40% of the workforce reported that they have earned at least a bachelor’s degree.
Nearly 55% of the workforce claimed to haveearned wages above $50,000.
AVERAGEWAGE
19.1%$50,001 - $75,000
24.8%$75,001 - $150,000
11.1%$150,001 & more
23.9%$25,001 - $50,000
21.1%Less than $25,000
Source: United States Census Bureau, 2017 American Community SurveyPrepared by: NJ Department of Labor & Workforce Development
36
2019 ‘MADE IN NEW JERSEY’ MANUFACTURING DAYManufacturing Day has come and gone. Yet the impact of the celebration
can still be seen. Every year the New Jersey Manufacturing Extension
Program (NJMEP) hosts Made in New Jersey Manufacturing Day on the
first Friday in October, and 2019 marked the most successful event to
date. Celebrated nation-wide, NJMEP created a way to focus on and honor
manufacturers and progress right here in the state of New Jersey. On
October 4th, over 500 business leaders from the manufacturing, logistics,
and related industries came together at The Marigold in Somerset New
Jersey to showcase the new, true face of Manufacturing.
Doors opened up at 7:30am and attendees began to arrive in droves. It quickly went from a quiet early Friday morning to the hustle and bustle of the largest Manufacturing networking event New Jersey has to offer. The breakfast and first networking session started the day. Rows of sponsor tables lined two rooms where the bar and food were located. Attendees had the opportunity to speak and share ideas with like-minded individuals and learn more about each sponsor that helped make the Made in New Jersey Manufacturing Day celebration possible.
NJMEP State of New Jersey Manufacturing Industry Report 2020
37
Manufacturing Day 2019 in the MorningAfter breakfast and the first networking event settled down, it was time to gather in the ballroom where CEO of NJMEP John W. Kennedy, PhD, sponsors, Senator Linda Greenstein, and other state legislators welcomed attendees. They spoke about the current state of the industry, challenges, and future plans. John W. Kennedy began by addressing the audience with a sense of optimism about the industry’s future. Once he reached the NJMEP Impact section of the presentation that showed over $3 billion in increased sales and revenue, his sense of pride was impossible to ignore. Over $4.16 billion in realized value goes a long way and the 36,951 jobs created and retained since 2000 was a figure that touched everyone in the room that day.
Representatives from Crowe and Withum, two platinum sponsors of Made in New Jersey Manufacturing Day 2019 followed John W. Kennedy in expressing how important the celebration was to the industry. President & CEO of New Jersey Business & Industry Association (NJBIA), Michele Siekerka took the stage next, reiterating that same message while also providing a little insight into the history of NJBIA and the role their organization plays in strengthening business here in New Jersey.
New Jersey Legislators had a chance to speak in the morning presentation. Senator Linda Greenstein spoke about the current state of Manufacturing in New Jersey and future plans on how to make New Jersey more attractive to these kinds of businesses. She shared how the Manufacturing Caucus made impressive progress over the past year. Showcasing successes and even making mention of an exciting Legislative Bill Package that could result in permanent state funding for NJMEP.
Amy Eskilson, President of Inrad Optics and a member of Vistage had a chance to address MFG Day attendees. Amy shared her experience working with Vistage, a private advisor board for CEO’s, executives, and business owners. One of the platinum sponsors for the day’s event, Amy was able to speak about her experiences with the group and how collaboration is essential in today’s business landscape, a critical component of Manufacturing Day as well.
James Hoffman, a STEM teacher from Newton High School and the coach of the Newton High School first varsity robotics team had a special Keynote speech to share. He brought students from the robotics team to share their experiences and their hopes for future employment. The students were passionate about their love for technology, and how they see engineering and robotics being a segway to an exciting future career. Hoffman’s students then went on to show off a robot that the team engineered. This was far from a science fair robot, this was a massive, heavily engineered robot that served a very specific purpose.
Manufacturers in attendance immediately saw an opportunity to reach out to these students after their presentation. During the breaks, manufacturers were seen walking up to the students, speaking to them about their skills and knowledge, and explaining to the students what their company does in New Jersey. These kinds of networking opportunities are far and few between. Manufacturing Day created a platform for local businesses to connect to young people with exceptional skills. Skills that these businesses are actively seeking.
Part of the MFG Day celebration is recognizing the Made in New Jersey Honor Roll. This section of awards is presented to stand out New Jersey legislators and community members that play
38
critical roles in helping NJ manufacturing progress forward over the past year. Senator Vin Gopal, Former Manufacturing Caucus Chair and Senate Majority Conference Leader, and Chairman of the Military and Veterans’ Affairs Committee; Senator Linda Greenstein, Manufacturing Caucus Chair and Representative of the 14th legislative district in the New Jersey Senate Affairs Committee; John Harmon, President, African American Chamber of Commerce of New Jersey; and Phillip Singerman, Associate Director for Innovation and Industry Services at the National Institute of Standards and Technology (NIST) were all presented as Made in New Jersey Honor Roll recipients. Along with these individuals, specific organizations and institutions were recognized as well. These included Essex County College; Rowan College at Burlington County; and NJ Department of Labor Apprenticeship Team.
Breakout Sessions and Industry Panels
The NJMEP team received an overwhelmingly positive response from each and every one of the breakout sessions that took place throughout the day.
The list of the morning and afternoon sessions were:
• Understanding the Impact of Industry 4.0 – A Discussion on Avoiding the Risks of Adoption
• Real Solutions to Serious Workforce Problems
• The Value of Blockchain for Manufacturers Involved with Food & Beverage Manufacturing
• Women in Manufacturing: a Roundtable Discussion on Why Manufacturing Matters to You and Why You Matter to the Industry
• An Overview on the NJ Resources Available to Help Your Business
• Real Solutions to Serious Workforce Problems
The breakout sessions were led by manufacturers that have experienced and overcome these challenges or are currently living through these disruptions. Industry experts sat in to offer an informed outside perspective.
Manufacturing Award Winner Announcements
Each finalist was called to the stage where they received a gift from Vistage. These business leaders were given one month of Vistage service for free in recognition of their exceptional work over the past year. RSM’s Nate Beachum, the platinum award sponsor for Manufacturing Day 2019 took pictures with each of the finalists as they walked across the stage waiting to find out who would be presented with the title of Manufacturer of the Year in their given category.
NJMEP’s Made in New Jersey Manufacturer of the Year Award Winners!
MANUFACTURER OF THE YEAR - START-UPSucchi, Inc
MANUFACTURER OF THE YEAR - SMALL (50 employees or less)
eMachineShop
MANUFACTURER OF THE YEAR - MEDIUM (51 - 250 employees)
Puratos Corp.
MANUFACTURER OF THE YEAR - LARGE (251 or more employees)
Thorlabs, Inc.
MANUFACTURER OF THE YEAR - INNOVATOR OF THE YEARWestlock Controls
MANUFACTURER OF THE YEAR - MANUFACTURING CARESBroadway Industries
These manufacturers have proven themselves to be stand-out entities in New Jersey. Providing for their employees, pushing the boundaries of progress, and contributing to the local economy. NJMEP is honored to have the opportunity to present these businesses with Manufacturer of the Year awards and recognize their efforts over the past year. Every one of these manufacturers represents forward steps in this vital industry.
PARTNERS
NJMEP State of New Jersey Manufacturing Industry Report 2020
39
PARTNERS
SUPPORTERS
Connect with NJMEP
2 RIDGEDALE AVE., SUITE 305 | CEDAR KNOLLS, NJ 07927 | P: 973.998.9801 | NJMEP.ORG | [email protected]