It was easy to feel the enthusiasm for the sector on Friday at the annual Made in New Jersey Manufacturing Day.
A record crowd (more than 1,200), two gubernatorial candidates (who certainly recognized the record crowd), support from the Legislature (state Sen. Michael Testa), support from key organizations in the state (New Jersey Business & Industry Association, New Jersey Economic Development Authority and Junior Achievement) and support from the greater business community (the jam-packed vendor room turned away at least two dozen others who wanted to be there).
But, even though manufacturing is the fourth-largest sector segment in the state, one that is as great at workforce development as any other, there are plenty of dark clouds on the horizon.
It starts with the who-knows-how-big-they’ll-be-or-how-long-they’ll-last tariffs that are impacting everyone in the supply chain. Then, there’s the push for onshoring that comes with as many challenges as opportunities. And, most of all, there are the massive cuts in funding at both the state and federal level — even though programs and initiatives routinely achieve 10x to 20x returns.
New Jersey Manufacturing Extension Program CEO Peter Connolly sums up the situation in two words: “intense uncertainty.”
“As much as our governor (Phil Murphy) and president (Donald Trump) talk up manufacturing, onshoring and making stuff here, they also are greatly reducing all the programs that help manufacturers,” Connolly said.
The state, in fact, cut the NJMEP’s funding by $1 million in the last budget — down to $500,000.
“I could be out of business in six months,” Connolly said.
This is not necessarily hyperbole — and not necessarily the NJMEP’s biggest issue.
Connolly and the NJMEP’s most pressing issue is recertification from NIST (the National Institute of Standards and Technology), which runs the national Manufacturing Extension Partnership program.
New Jersey, which always ranks in the Top 5 of MEP programs nationally, is one of a few states that has not been recertified. Its contract is up at the end of the year and, considering there currently is a federal government shutdown, the idea of getting it done by Jan. 1 is unlikely.
Connolly is hopeful the NJMEP will get an extension — but that only delays the issue. And it doesn’t change Connolly’s opinion that the U.S. Department of Commerce wants to cancel the entire program.
Here’s the crazy part: While the federal government is gutting MEP, it is adding elsewhere.
Michele Siekerka, the CEO of NJBIA — a longtime, huge supporter of NJMEP, said the “Big, Beautiful Bill” offers some hope.
“The One Big, Beautiful Bill is like rocket fuel for manufacturing,” she said. “It is a very pro-manufacturing bill. There’s a lot in that bill that people don’t like, and I get that, right, but for manufacturing, the tax incentives and credits in that create amazing opportunity to reinvest in manufacturing, and we can do that right here in New Jersey.”
There are plenty of people here who want to help.
Mary Maples, the deputy CEO of the NJEDA, told the crowd that the EDA’s MVP program has provided nearly $65 million in grant funds to over 400 manufacturing businesses — enabling them to make capital investments that improve efficiency, productivity and profitability, she said.
Maples then spoke of the latest EDA program, a $500 million tax credit initiative, called the Next New Jersey Manufacturing Program.
“It’s a simple equation,” she told the crowd. “You take 0.1% of your capital investment, multiply it by the number of new jobs you create, and you get a tax credit.”
Connolly talked about efforts with higher education at two-year schools (most notably County College of Morris) and four-year institutions (most notably Rowan University).
And Jim Horne of Junior Achievement talked about efforts to start even sooner — with manufacturing companies now having a spot in JA’s unique BizTown program, where elementary and middle school students take on adult roles, work in simulated businesses, earn a salary and manage a budget.
“One of the things we really are trying to focus on is exposing our young people to those career paths,” he told the crowd. “We realize that a lot of young people don’t really understand the opportunities in advanced manufacturing.”
The program has been so intriguing that JA and MEP are working to find ways to take it on the road, exposing more young people to these high-paying careers.
Testa said the Legislature is keenly aware of the approximately 9,500 manufacturers in the state of New Jersey — making products that truly make the world go ’round, he said.
“We’ve been trying to allow manufacturers not merely to survive in the state of New Jersey, but to thrive in the state of New Jersey — and give great meaning to that wonderful sign on the Trenton bridge that says, ‘Trenton Makes — The World Takes,’” he said.
To be fair, the Legislature joined with the governor to make that $1 million cut in funding. And, to be fair, as a Republican in the minority party, Testa had little to say about those cuts.
The big question is whether the current gubernatorial candidates would look to cut more — or restore — when one of them assumes office.
Connolly is hopeful. He said both candidates, Democrat Mikie Sherrill and Republican Jack Ciattarelli, have spoken favorably about the NJMEP and the work it does both in public and private.
This is the key for the sector going forward.
Connolly can talk about how manufacturers want to be here — for the culture and the educated workforce — but the sector needs more support from the highest levels of government.
Ultimately, he said, that will have greater impact than any tariff.
“We are a leading economic driver for the state,” he said. “We are a leader in workforce development. You see the passion that is here. We need to tap into the potential.”
