Writer: Joshua Andino
2 min read October 2022— New Jersey Gov. Phil Murphy announced a new Manufacturing Voucher Program earlier this week. Administered through the New Jersey Economic Development Authority (NJEDA), the $20 million grant program provides funding for manufacturing equipment purchases and business development.
Targeting manufacturers, the pilot program will provide grants for 30 to 50%, with a maximum of $250,000, for eligible equipment and installation. Stackable bonuses will be offered for certified MWBE’s and veteran-owned businesses, those in opportunity zones and companies purchasing manufacturing equipment. Other bonuses will be provided for those with collective bargaining agreements, stated the release.
Businesses with fewer than 100 full-time employees would receive higher award percentages.
“There is strong demand for small business support. The small business community has had a very, very challenging two years with COVID both in New Jersey and across the country. NJEDA has been a key player in Gov. Murphy’s efforts to support small businesses both during the pandemic and as we come out of it. There’s strong demand for grants, loans and technical assistance from Main Street businesses and small businesses of all types,” said Tim Sullivan, CEO of NJEDA, in his interview with Invest: North & Central Jersey 2022.
Businesses will be awarded on a first come first serve basis, with additional qualifying criteria that includes:
- Applicant must be in a targeted industry
- Equipment (new or used) must be located and installed at a New Jersey location, and must be used in the manufacturing process
- Applicant must provide a purchase quote, order proforma, and/or an equipment listing, and must obtain a tax clearance certificate
- Aggregated project cost, including equipment and installation, must be at least $25,000
New Jersey’s manufacturing sector in particular has a number of downstream impacts. “In New Jersey, there are over 11,000 manufacturers in industries that include life sciences, food and things that many people don’t see as manufacturing but certainly are. That means 380,000 jobs in manufacturing. If you add the other parts of the manufacturing sector, which are engineering, transportation and logistics, it brings about $100 billion a year to the New Jersey economy. One manufacturing job drives four other jobs. In a nutshell, it is extremely important,” explained John Kennedy, CEO of the New Jersey Manufacturing Extension Program.
READ MORE: HAX and the Hub: New Jersey’s economic engines continue to hum
The announcement comes as the New Jersey Department of the Treasury reported another strong month of revenue collections, demonstrating the growth underway across the state, even in a period of economic uncertainty. Sullivan told Invest:, “Some of the fundamentals of New Jersey’s economy endure. Location, infrastructure and tech are key attractions to the region… Our workforce is second to none from a talent and skill perspective, and it’s one of the reasons why companies choose New Jersey. There are huge opportunities to continue to attract and grow new businesses here post pandemic, and we see this in the data.”
Collections for major taxes totaled $5.102 billion, up 11.8% – $539.4 million from last year. Total collections, year-to-date, were $8.397 billion, up $1.034 billion, or 14%, over the same period last fiscal year. The Department anticipated more moderate growth moving forward with FY2023 collections as spring tax filing season approaches and potential headwinds in the economy. “Despite the positive trends early in this fiscal year, Treasury continues to be concerned about numerous economic factors that are being closely monitored,” noted the release.
The money will be reinvested into the state, with the $20 million for the MVP coming from the FY2023 budget. New Jersey has developed a number of tools to help drive the economy forward, allowing the expansions of programs such as the MVP even while the state remains fiscally sound, with Moody’s, S&P, and most recently, Fitch having upgraded the state’s credit rating. With the state on strong financial footing, and programs such as the MVP providing funds for manufacturing to continue its growth even as global supply chains remain frayed, New Jersey’s economy will remain poised to grow for the foreseeable future.
“I think New Jersey is as well positioned today as it’s been in a long time to capitalize on economic opportunities,” Sullivan said.
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