They spoke on June 16 at NJBIA’s first-ever Manufacturing Summit, held in Newark. The Summit was the kickoff event for NJBIA’s Campaign for Manufacturing Renewal, an ongoing effort to educate policymakers about the contributions manufacturers make to the New Jersey economy and the obstacles that stand in the way of their success.

NJBIA also unveiled its Agenda for Manufacturing Renewal, which contains 31 good ideas to keep manufacturing jobs in the State.

New Jersey manufacturers have lost 77,000 jobs over the last three and a half years. Nevertheless, nearly 12,000 manufacturers remain in New Jersey, employing 345,000 people and supporting nearly 200,000 jobs in other industries. These manufacturers pay an above average wage of more than $53,000, and typically provide good benefits.

Manufacturers also account for 90 percent of the State’s foreign exports and 12 percent of the State’s economic output. Manufacturing often provides employment opportunities for the minority and immigrant communities, and manufacturing facilities are likely to be located in urban or older suburban communities.

“If that’s not worth saving, I don’t know what is,” NJBIA President Philip Kirschner told manufacturers in his welcoming remarks. “We have to make people understand what it is that you contribute to this State. It’s time to shine a bright light on the contributions of manufacturers and to remove the obstacles that stand in the way of your success.”

John McCormac, representing Governor James E. McGreevey, pledged to work with business to improve the State economy. He maintained that strengthening the manufacturing sector was a key goal of the administration.

“The true measure of the Governor’s resolve to strengthen the State’s economy is a commitment of attitude. Our attitude is simple and direct. We will fight for every job in every company at every turn and in every way possible.”

Many attendees, however, expressed frustration at the views of some of those in government who seem more interested in scoring political points with the public than pursuing meaningful job-producing, pro-manufacturing policies.

“The thing about attitude that sums it up the easiest is I am tired of being the bad guy,” said Fred Barre, chairman and CEO of The Barre Company, Inc. “Because that’s what we are (treated like) in New Jersey.”

Barre participated in a panel discussion with Lisa Hirsh, president and CEO of Accurate Box Company, and Clifford F. Lindholm III, president of Falstrom Company. McCormac spoke for 20 minutes and took questions for another half hour. Kirschner also presented the Association’s Agenda for Manufacturing Renewal, which contains 31 recommendations for legislative and regulatory action to improve the State’s manufacturing climate. The Summit culminated with a panel of legislators featuring State Senators Nia H. Gill and Joseph M. Kyrillos and Assembly representatives Guy Gregg, Linda Stender, and John S. Wisniewski.

Lindholm echoed the feelings of many of the manufacturers when he said it’s not just taxes that are too high, but the rising costs of individual fees and surcharges as well. Last year at Falstrom, he explained, the life hazard use fee increased 20 percent, the pollution discharge (NJPDES) fee went up 25 percent, partnership fees tripled, and the ability to deduct net operating losses on State tax returns was suspended.

“When you start adding (the fees) up one on top of the other, the burden becomes unbearable,” Lindholm said. “And it’s very difficult for anyone to operate when you have all these fees coming down on you.”

Hirsh pointed out that manufacturers are not always able to pass these costs to consumers. Customers are constantly putting pressure on suppliers to reduce the costs of their goods, forcing the companies that make those goods to absorb rising costs.

“It goes all the way down the line to the manufacturers like us,” said Hirsh, whose company specializes in making the boxes and packages in which many products are sold. “We have to continually cut costs. And yet every time, it seems to me, that government gets involved or puts something forth, it’s about increasing costs. So that’s where I think we need to have our voices heard.”

Healthcare costs remain one of the biggest obstacles to manufacturers success in New Jersey. During the question and answer session with Treasurer McCormac, Kathi Johnson, of Hexacon Electric Co. of Roselle Park, questioned the mandated coverages that drive up the cost of health insurance she provides for her employees. Her workforce is older, yet she must still pay for fertility coverage for her employees.

“Can you tell me why I have to provide fertility coverage for a work force with an average age of 57?” she asked.

Johnson did praise a number of the State programs she has participated in, including the State’s Manufacturing Extension Program and Economic Development Authority financing, two pro-manufacturing initiatives McCormac addressed in his speech. “I just wanted to say thank you,” Johnson said.

The legislators invited business leaders to educate them about the issues that are essential to their survival. “You need to bring a legislator in (to your place of business) and show them what you do,” Wisniewski advised. “…having them actually see the people who work there and how the problems effect the business is a valuable way to lobby us, to make us aware first hand of the problems that exist because of some of the policies we enact in Trenton.”

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