State investing in long-neglected manufacturing sector

Matthew Fazelpoor//November 7, 2022//

State investing in long-neglected manufacturing sector

Matthew Fazelpoor//November 7, 2022//

Listen to this article

In unveiling the New Jersey Manufacturing Voucher Program, which will award $20 million in grants to help manufacturers with the purchase of equipment needed to improve their operations, Gov. Phil Murphy emphasized the importance of the industry to New Jersey. “I made it clear that one of the key economic sectors we would put special focus on is manufacturing,” Murphy said during a recent event at Raw Generation in Eatontown.

During that speech, Murphy talked about developing his administration’s vision when he took office in 2018, and how building up the state’s manufacturing sector was central to the mission. Toward that end, the state budget passed over the summer allocated $35 million for manufacturing programs and initiatives. “And it’s not surprising. From Paterson’s textile mills to Campbell Soup and RCA in Camden to the former automotive plants in Central Jersey and in countless other places in between, manufacturing has always been part of New Jersey’s economic DNA,” Murphy explained.

Raw Generation, where the announcement was held, was launched by the Rosen family in the wake of a family member’s battle with pancreatic cancer as a way to make healthy, fresh, raw juices, soups and shakes that contain a variety of nutrients that help the body heal itself. Since 2012, the company has grown into a nationwide operation.

“This is a true, unique Jersey success story that sells all over the United States,” said Murphy. “And it’s direct-to-consumer, so you’re going to have to go to that website and get your incredibly healthy juices from Raw Generation. RawGeneration.com.”

Gov. Phil Murphy announces the New Jersey Manufacturing Voucher Program
Gov. Phil Murphy announced the New Jersey Manufacturing Voucher Program – a $20 million investment through the state budget aimed at growing and supporting New Jersey’s manufacturers and creating good-paying jobs along the way – at Raw Generation in Eatontown on Oct. 17. – OFFICE OF THE NJ GOVERNOR

 

The NJMVP grants will range from $7,500 to $250,000, covering between 30% and 50% of the cost of the eligible equipment. The program will offer bonuses for certified woman-, minority-, or veteran-owned businesses; businesses in Opportunity Zones; and those that purchase manufacturing equipment in New Jersey.

Officially launching later this year, the NJMVP comes as a spotlight shines on manufacturing. The pandemic revealed just how crucial the sometimes-underappreciated sector is, laying bare manufacturing’s value as well as supply chain vulnerabilities.

“By facilitating the purchase of equipment manufacturers need, this program will help these businesses become more efficient, productive, and profitable,” Murphy said. “Supporting our manufacturers will promote economic development and ultimately benefit our state’s broader business community as a whole.”

New Jersey Economic Development Authority CEO Tim Sullivan said the grants should help companies keep up with technological developments and provide access to growth capital. Describing manufacturers as the unsung heroes of the pandemic, Sullivan noted the dynamism, energy and innovation of New Jersey’s manufacturers. He said the sector flies under-the-radar sometimes because it is part of so many different industries. “But the backbone of those industries is manufacturing,” he  said

New Jersey Economic Development Authority CEO Tim Sullivan speaks at a press conference in Berkeley Heights to announce the expansion of fintech Fiserv Inc. in New Jersey, adding, 1,927 jobs to an already exisiting 1,063 jobs, on Sept. 30, 2021.
New Jersey Economic Development Authority CEO Tim Sullivan, shown in September 2021, said the New Jersey Manufacturing Voucher Program grants should help companies keep up with technological developments and provide access to growth capital. – EDWIN J. TORRES/NJ GOVERNOR’S OFFICE

Sullivan explained that the program is part of a continued effort to promote economic development with a diverse suite of grants and initiatives to help industries such as manufacturing. He, and several officials who spoke at the NJMVP announcement, called manufacturing a great path for young people and a field where they can grow into careers that can sustain families and support a middle-class lifestyle.

“New Jersey’s manufacturing sector is a high-wage, innovator industry that actively drives long-term sustainable growth for the state,” said state Sen. Linda Greenstein, D-14th District. “The New Jersey Manufacturing Voucher Program will give our state-based manufacturers access to a full, new range of equipment and resources previously unavailable to them.”

“New Jersey’s manufacturing industry has a long history as a premier provider of quality jobs and superior products distributed throughout the tri-state area, the nation, and the globe,” said New Jersey Department of Labor and Workforce Development Commissioner Robert Asaro-Angelo. “This novel program is exactly the kind of investment our manufacturing Industry Partnership members have been looking for.”

“Despite economic uncertainties brought on by the pandemic, the manufacturing sector continues to be on the rise, and home-grown New Jersey companies stand at the forefront of that resurgence,” said state Sen. Vin Gopal, D-11th District. “Helping producers maintain their cutting edge benefits our economy, our state and its people.”

John Kennedy, CEO of the New Jersey Manufacturing Extension Program, applauded the program.  “I’ve never seen an investment of over $35 million in an industry that is crucial and critical,” said Kennedy, who has more than 40 years of experience in the field.

He admitted that the manufacturing sector is not always the best at marketing. “So, it took something like the pandemic, and it took something like these supply chain issues to have us actually come to the forefront,” said Kennedy. “And damnit, we did.”

Kennedy agreed that the NJMVP will help companies expand capabilities, automation, pathways and more. “New Jersey has been a manufacturing leader in our country since colonial times. We lost our way a bit, but have found it over the last few years, and that is a product of Gov. Murphy, legislators, and the industry all working together,” he said. “The new NJ Manufacturing Voucher Program is one such tool that will provide direct support to our manufacturing firms as they strive for growth and automation on their way to attaining the next level of Industry 4.0 – a huge step in the right direction for our state.”

The announcement comes on the heels of the federal CHIPS and Science Act, another boon for the manufacturing industry, and was followed by an NJEDA Request for Information issued last month to establish a pilot program to attract clean energy manufacturers to New Jersey.

The responses will help shape the development of a proposed grant or forgivable loan program that would offset the costs for New Jersey companies or institutions that procure clean energy technologies from clean energy manufacturers looking to expand or establish a presence here in the Garden State. The goal of the program is to build a pipeline of projects for clean energy manufacturers that are competitive for Garden State customers, while helping early adopters minimize the costs of implementing clean technologies.

The NJEDA said the program would aim to create high-quality manufacturing jobs in New Jersey, make the state a hub for clean energy manufacturing and innovation while building a diverse workforce in the clean energy sector.

“Our state budget is both growing our manufacturing sector and building the workforce these businesses need,” said Murphy, who highlighted the efforts of the NJMEP and community colleges for helping his team with a focus on workforce training and development.

“We’re making these investments because, quite simply, there is absolutely nothing that should be holding New Jersey back from once again being a manufacturing powerhouse,” the governor explained. “New Jersey became a manufacturing powerhouse in the first place because we have a second-to-none location, a second-to-none workforce, and a second-to-none transportation infrastructure all tailormade for getting goods to the market.”

“With the New Jersey Manufacturing Voucher Program in place, this sector is perfectly poised to continue expanding and creating jobs for New Jerseyans,” said Greenstein. “Programs like these that specifically support our New Jersey-based manufacturers not only invest in them, but in our workforce and economy.”

“And I’ll leave you with four words: Made in New Jersey,” Kennedy concluded.