While 2026 has brought some challenges to New Jersey’s business climate, there have been some notable and recent improvements for the state’s manufacturing sector.
And it could pay off some big dividends for the state.
“Obviously, we still have some work to do on taxes and other business affordability issues – and that includes the manufacturing space,” said NJBIA Chief Government Affairs Officer Christopher Emigholz.
“But we’re also seeing the right approach from the Sherrill administration with its commitment to its saving time and money agenda and permit reforms. And it’s exciting that we’re starting to see some important results.”
This week, the New Jersey Economic Development Authority Board approved a Next New Jersey Manufacturing Program award for Hopewell-based BeOne Medicines US Manufacturing Co., Inc.
That’s the manufacturing arm of its parent company, BeOne Medicines AG, a global oncology company which has been recognized for developing innovative therapies for hematologic and solid tumor cancers.
BeOne’s $300 million capital investment is expected to result in 120 new full-time jobs.
“It’s exciting that BeOne Medicines has decided to expand its manufacturing footprint in the United States and even more exciting that it chose New Jersey to build this major facility,” NJEDA Chief Executive Officer Evan Weiss said.
“The pharmaceutical industry has a long legacy in New Jersey, and Governor Sherrill is committed to ensuring we remain the medicine chest of the world.”
Last month, NJEDA also approved the first tax credit under the Next New Jersey Manufacturing Program to Starman New Photonics, a manufacturer of the domestic supply of high-speed optical transceivers essential for the AI industry.
With a $150 million investment, Starman will be renovating a 100,000-square-foot facility in Warren and is expected to create 250 new jobs.
The Next New Jersey Manufacturing Program, enacted by Gov. Phil Murphy last year and supported by NJBIA, utilizes $500 million from the existing Aspire and Emerge credits to incentivize in-state manufacturing programs and job creation.
NJBIA President and CEO Michele Siekerka said the program “incentivizes a wide range of manufacturing activities, including advanced manufacturing, food and beverage production, life sciences, defense, and clean energy component manufacturing.”
The Next New Jersey Manufacturing Program is a great tool for supporting large manufacturers, but it leaves out the smaller firms, so Emigholz continued in the recently concluded FY27 budget season to make the pitch for the return of the New Jersey Manufacturing Voucher Program.
The NJMVP program was a state grant initiative administered by NJEDA to help manufacturers, buy advanced equipment, improve efficiency, and increase profitability.
“It was extremely successful, there was great demand for it, and it really helped small and mid-sized manufacturers,” he said. “If we could restore it in some form, manufacturers will have an opportunity to invest in equipment upgrades, which ultimately results in greater efficiencies and better productivity, no matter what’s being made.”
What was included in the FY27 budget, however, was the restoration of funding for the New Jersey Manufacturing Extension Program.
“NJMEP plays such an important role in helping New Jersey manufacturers drive operational efficiencies, improve workforce development and boost profitability,” Emigholz said.
“And the best part about it is that in working together with NJMEP and talking to legislators, they really understood the value of this type of investment. It’s another positive sign for manufacturing in New Jersey.”
As NJBIA’s State of the State of Manufacturing summit at the State House in the spring, Kellie Doucette, the state’s chief operating officer, said a major focus for the Sherrill administration is increasing coordination across government agencies in order to streamline processes and make life easier for businesses of all sizes.
This is part of the administration’s ‘Save You Time & Money’ agenda, which includes the state’s real-time permitting dashboard – now operational in pilot form – that allows applicants to track progress, increase transparency, and help identify bottlenecks.
“As you all know, too many businesses currently have no clear visibility in to where their applications stand or who’s responsible for the next step. The dashboard makes that process visible to applicants and agencies alike, and will build accountability into the system,” Doucette said.
“We are just taking a microscope and examining the permit processes in depth, identifying where interagency coordination breaks down, and trying to develop concrete opportunities to reduce delays,” she added.
As part of the administration’s 21-county tour, Doucette also visited Falstrom Company, a contract manufacturer of components for the aerospace and defense industries just this week.
“This is all positive momentum for New Jersey’s manufacturing industry,” Emigholz said. “We’re encouraged that the administration has a great grasp of the benefits of boosting manufacturing in the state.”
