Spotlight On: Peter Connolly, CEO, New Jersey Manufacturing Extension Program
February 2025 — Peter Connolly, CEO of the New Jersey Manufacturing Extension Program, spoke with Invest: about the organization’s banner year in 2024, the ways it develops workforce with younger generations, and regulatory issues businesses face. He also detailed how it connects and assists businesses in need, and its goals and priorities in the coming years.
Reflecting on the past year, what have been some of the main highlights and key milestones for the New Jersey Manufacturing Extension Program (NJMEP)?
2024 was the best year we’ve had at NJMEP. The economy started coming back, and we did $4 million in direct projects with over 350 New Jersey manufacturers. We did about $11.5 million in revenue, including federal funding, state funding, and grants. We did work with offshore wind and educational programs with the NJEDA. It was a great year that has set us up for next year. We have a program with the New Jersey EDA called the Future Makers & Creators Tour, and that program goes into high schools in every county and underserved communities. We teach students that there’s a career in manufacturing, not just a job. We bring in virtual 3D welding machines, 3D printers, and other equipment. We bring a mobilized training RV filled with equipment. We’re taking it to parent-teacher nights to teach parents that there’s a career in manufacturing. The average salary in the industry is pushing almost $60,000 out of high school. We supply schools with 3D printers in collaboration with Junior Achievement. The state helped us develop a workforce development training facility, which features all of the same equipment. We can bring students into our facility for training. We have another program working with Universal Robotics. We are the authorized training facility in New Jersey for Universal Robotics. We are setting up another nonprofit called A Greener New Jersey, which will receive funding of $9 million to support greener New Jersey initiatives with equipment training and supply chain.
What is your overview of the manufacturing sector in New Jersey, and what are the trends that are emerging?
We have an aging workforce across the board. There are 10,000 baby boomers reaching retirement age every day. Replacing that workforce is a challenge. We work with county colleges, consortiums, and unions to get the younger generations into the workforce. Supply chain issues have been mitigated compared to what we saw three or four years ago. Red tape in New Jersey is the cost of doing business and the excessive amount of regulatory processes you have to go through is a persistent challenge. The new administration has caused some to worry, especially when it comes to tariffs. Tariffs are taxes and those costs flow down to the consumer. It’s a no-win situation when we impose tariffs on our neighbors in Canada and Mexico, both of whom supply important products and technologies to the United States.
What types of manufacturing are driving economic growth in New Jersey, and where can the strongest opportunities be found?
There is a big photonics industry in New Jersey, from Morris County down through Gloucester County. Photonics is an area in which we are starting to work with Rowan and Princeton universities in developing curriculum for training and workforce development in that field. Photonics is used in green energy, such as solar panels. We also do a lot of work with machine shops and mechatronics that work on small parts for military equipment.
How does the NJMEP help to improve the profitability and competitiveness of New Jersey manufacturers?
Every company is different. Our business starts by assessing the organization, taking a fresh look at what they do, what their goals are, and from there identifying where they want to be in the short term, such as a new certification, a medium-term solution like overall growth, or long-term solutions, such as acquiring businesses, growing exponentially, and becoming a conglomerate manufacturing organization. We want to be a reliable partner businesses can turn to for help to improve and build out their operations. We help with lean manufacturing, R&D credits, marketing campaigns, and cybersecurity. We don’t do small-business association loans, but we can connect with small-business development centers throughout the state to help small businesses acquire loans.
How is NJMEP helping manufacturing companies adapt to the latest technological innovations?
We’re helping companies learn how to incorporate AI into their business to help with the predictability of machine maintenance, for example. Many companies are starting to use cobots that allow their employees to do other things. It’s not replacing workers, it’s allowing the workers to become more efficient and effective.
What challenges do companies face in New Jersey?
There are myriad challenges. Moving a company into New Jersey involves city approvals, county approvals, and state approvals, all of which can take several months to clear through the red tape and regulatory requirements. A big example is the craft beer industry and the number of regulations it has to deal with. For example, they can only have so many televisions, so many events per month, and they can serve hard pretzels but not soft pretzels. These are archaic rules placed on a growing industry. Transportation is an issue, especially in South Jersey. It takes far too long for things to get done.
What will be the main goals and priorities for NJMEP in the next two to three years?
We want to see continued growth into South Jersey. It’s an underserved community that needs more transportation, such as additional rail lines and bus lines. We need to help companies continue to be competitive, and we need to continue to work with the state to make New Jersey a place where people want to work. We have an educated workforce thanks to our great education system, and some of the best engineering universities. We also need to keep educating the younger generation about potential careers in manufacturing. In two or three years, we want to be the first thought when people think about who is the voice of manufacturers in New Jersey.
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