A little more than a year after kicking off its Manufacturing Counts! Campaign for Manufacturing Renewal in New Jersey, NJBIA can point to meaningful accomplishments and new laws that will help lower manufacturers’ cost of doing business. More importantly, the Governor and State legislators have recognized the important role manufacturing plays in our economy and are focusing on what the State can do to keep good manufacturing jobs in New Jersey.

“First we had to change the perception that manufacturing was a lost cause in New Jersey,” NJBIA President Philip Kirschner said. “Then we had to explain why manufacturing is worth saving. We also had to convince our manufacturers that it is worth their while to participate in the legislative process. We have largely accomplished these goals and as a result, lawmakers have responded by making manufacturing retention and growth an important public policy priority.”

“This is only the start,” Kirschner said. “Now that we have people committed to the cause of promoting manufacturing, we have the much harder job of creating a more pro-manufacturing environment.”

NJBIA kicked off the campaign in June 2004 with a Manufacturing Summit in Newark attended by more than 200 manufacturers. That’s where Kirschner first made the case that manufacturing needed more attention from the State. He pointed out that more than 12,000 manufacturers remained in New Jersey, directly employing 345,000 people and indirectly supporting another 180,000 jobs through their suppliers and service providers.

NJBIA also unveiled Why Manufacturing Counts, an issue paper by NJBIA’s research affiliate, the New Jersey Policy Research Organization (NJPRO), which detailed the many benefits manufacturing provides to New Jersey.
Finally, NJBIA unveiled its Agenda for Manufacturing Renewal in New Jersey, which outlined a detailed legislative agenda designed to help make New Jersey a competitive state for manufacturing again.

Since then, business and political leaders from all over the State have responded.

Seventy-three State legislators from both parties formed a Manufacturing Caucus to share information about manufacturing issues and review the impact of proposed legislation on manufacturers.

Almost 300 manufacturers have joined NJBIA’s Manufacturing Council, which sets policy goals and develops the legislative proposals that form the Manufacturing Counts! agenda. Led by Clifford Lindholm III, president and CEO of the Falstrom Company in Passaic, the Council meets quarterly to discuss legislative activity and other issues.

“The Council is filled with energetic, dynamic people who have great ideas for making New Jersey a more manufacturing-friendly State,” Lindholm said.

Also, for the first time in 20 years, two legislative committees—the Senate Legislative Oversight Committee and the Assembly Commerce and Economic Development Committee—held separate hearings devoted solely to the issue of strengthening manufacturing. Both hearings featured direct testimony from manufacturers, including Lindholm; Alexander “Sandy” McWilliams II, president of McWilliams Forge Company, Inc. in Rockaway and an NJBIA Trustee; Scott Ernst, director of human resources with Air Cruisers Company of Belmar; and Robert Staudinger, president and CEO of National Manufacturing Company, Inc. in Chatham.

These were not empty political gestures. Manufacturing’s supporters in the Legislature delivered real accomplishments, including new laws repealing the air toxics tax that had cost manufacturers $12 million, creating an energy ombudsman to help manufacturers reduce their energy costs, and allowing manufacturers to take advantage of a federal tax credit worth $30 million on their State tax returns. Furthermore, New Jersey’s latest State budget did not contain tax increases on manufacturers.

“These measures are a first step,” said NJBIA Senior Vice President Melanie Willoughby. “These new laws will certainly help manufacturers in New Jersey. But we have a lot more work to do.”

NJBIA will continue to push for health insurance reform to control the cost of providing health benefits to employees, a reduction in energy costs, and common sense environmental laws.

These legislative accomplishments, however, are only part of the story. The New Jersey Economic Development Authority (EDA) recently established several new loan programs to assist manufacturers. NJBIA is also partnering with the New Jersey Manufacturing Extension Program (NJMEP) to offer a free seminar on “lean manufacturing” to NJBIA manufacturing members. (See page MC 3.)

Pro-Manufacturing Laws Enacted in 2005
The NJBIA Manufacturing Counts! Campaign for Manufacturing Renewal in New Jersey has accomplished a great deal since its inception just over a year ago. Working with the Legislature and the Governor, the campaign participants have raised awareness of the issues impacting New Jersey manufacturers. Before taking its summer recess, the Legislature and Governor enacted several bills advocated in NJBIA’s Agenda for Manufacturing Renewal. While more work needs to be done, the campaign is off to a great start. Below is a brief summary of accomplishments to date.

Laws Enacted:
• P.L. 2005, c. 127 permits New Jersey manufacturers to take advantage of a federal tax credit on their State tax returns, saving them an estimated $30 million dollars.
• P.L. 2005, c. 141 repeals the 2004 air toxics tax, which will save manufacturers an estimated $12 million annually.
• P.L. 2005, c. 215 creates a Business Ombudsman at the NJ Board of Public Utilities to help manufacturers secure the energy benefits available to them.

Bills Pending:
• A-3484 (Greenwald, Fisher)/S-2358 (Asselta, Sweeney)—Expands the sales tax reduction on energy for large manufacturers in Urban Enterprise Zones to more manufacturers.
• A-3440 (Cohen, Russo)/
S-2435 (T. Kean)/S-2574 (Rice)—Changes New Jersey law to allow for the sale of federally approved insurance plans so New Jersey employers and employees can take advantage of the tax savings in federal Health Savings Accounts.
• A-3834 (Fisher, Van Drew)—Lowers the required minimum number of retained jobs to 50 from 250 to qualify for tax credits through the Business Retention and Relocation Assistance Act. Qualified businesses can get up to $1,500 per job retained.

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