New Jersey Manufacturers Forge Forward
In the face of workforce and tariff-related challenges, manufacturers in the state continue to play a key role in the resurgence of American manufacturing.
Manufacturing remains the backbone of America’s economy. The industry drove 9.7% of the entire US gross domestic product in Q1 2025, and in 2024 alone, manufacturers in the US sent $1.6 trillion worth of products to customers around the world.
Including indirect and induced impacts, for every $1.00 spent in manufacturing, there is a total impact of $2.64 to the overall US economy, a figure that represents one of the largest sectoral multipliers in the economy, according to the National Association of Manufacturers (NAM).
And as has been true throughout its history, New Jersey also continues to play a critical role in American manufacturing. With more than 9,000 manufacturers currently operating in the state, the industry contributed $69.6 billion to the US economy last year – ranking 14th nationwide.
More than 236,000 New Jerseyans make their living in manufacturing, earning an average salary of $120,000 a year, the fourth highest in the country. New Jersey also ranks 15th in the nation for manufactured goods exports, selling nearly $38 billion worth of products globally.
Additionally, in August, Gov. Phil Murphy signed a bipartisan bill into law creating the Next New Jersey Manufacturing Program, which includes $500 million in tax credits, marking the largest manufacturing investment in New Jersey’s history.
However, while this momentum is encouraging, the industry continues to grapple with challenges new and old as we head into 2026 and beyond. Roadblocks such as workforce challenges continue to loom large, while new tariffs have caused turmoil to supply chains and impacted manufacturers’ ability to plan ahead.
Workforce Development
“Manufacturing in New Jersey isn’t much different than across the US – our greatest challenge isn’t making what the world needs, it’s making sure we have the people to do it,” Jay Timmons, president of NAM, tells New Jersey Business Magazine.
Indeed, attracting and retaining talent remains a primary business challenge for manufacturers, as indicated by more than 48% of respondents in NAM’s Manufacturers’ Outlook Survey for the second quarter of 2025. Over the next decade, 3.8 million manufacturing jobs will likely be needed in the US, with 1.9 million of those expected to go unfilled.
Peter Connolly, CEO of the New Jersey Manufacturing Extension Program (NJMEP) adds that while encouraging progress is being made in the area of workforce development, gaps remain in critical skills like welding and CNC machining, for example.
“We need targeted support: more direct engagement with manufacturing leaders, and we can help bring that input forward, so policy reflects real industry needs,” he says. He also adds that schools play a key role in motivating students toward careers in the industry.
NJ Pathways Initiative
One way the state is combating workforce challenges head-on is via the New Jersey Pathways to Career Opportunities initiative, which was launched in December 2021 by the New Jersey Council of County Colleges (NJCCC) and NJBIA.
“The goal was to transform how we prepare learners for meaningful careers and how we connect employers to skilled talent,” explains Catherine Frugé Starghill, vice president of NJCCC.
The initiative, which now has more than 1,800 partners engaged, is connecting students and workers with employers – ensuring access to jobs by aligning the state’s education and training programs with the evolving needs of businesses, including manufacturers. The program offers a comprehensive approach to workforce development, focusing on providing industry-recognized credentials and career opportunities.