New Jersey manufacturing executives recently participated in the Next Generation Manufacturing Study. The study results indicate New Jersey manufacturers have opportunities to improve their operations. New Jersey manufacturing was benchmarked to Next Generation Manufacturing standards and national manufacturers. Survey participants responded to a 61-question web-based survey that asked them to rank their progress in six areas: customer-focused innovation, workforce development, process improvement, supply chain management, sustainable strategies, and global engagement.  

A small sampling of the results shows:
The NGM study indicated 15% of NJ manufacturers rate their organization’s progress toward customer-focused innovation as world-class with 34.3% indicating they are close. 34.0% of NJ manufacturers dedicate 1-5% of its workforce  to new-product development/R&D and 21% invest less than 1% of sales into product development.

Reporting on workforce development, i.e., human-capital acquisition, development and retention, 30% of New Jersey manufacturers are at or near world-class status.  12% of companies surveyed offer more than 40 hours of training annually to employees and 36% of New Jersey manufacturers offer less than 8 hours.  For companies that reported they are at or near world-class status, approximately 19% train more than 40 hours annually.

Few New Jersey manufacturers are making a substantial effort to adopt Greener practices and produce Greener products. 18% report reducing their energy usage per unit of product by more than 10%, and 25% have reduced their use of non-recycled material per unit of product by more than 10%. The study indicated a surprising lack of interest among many in sustainable strategies—16% believe it is “not important.”

Approximately 24% of New Jersey manufacturers have a leadership succession planned in the next five years; another 30% may have a transition in leadership. In the state, 41% of chief executives are 51-60 yrs of age with 31% over 61.

The presence of sophisticated measurement systems or review processes is a reliable indicator of an organization’s willingness and ability to continuously improve. 29.3% of New Jersey manufacturers have “No measurement systems per se or reviews” in place.

As of April 2009, the manufacturing sector employs 271,200 people in New Jersey and drives job growth in supporting industries such as logistics, marketing, transportation and business services.
 
“Creating wealth in an economy occurs when you make things, mine things and grow things.  In New Jersey we clearly make and grow a lot of things,” said RobertLoderstedt, President & CEO of NJMEP.  “The information compiled in this study will provide a roadmap for the State of New Jersey, NJMEP, it’s partners and anyone else who understands the value of making things, to determine how we maintain and create additional wealth within New Jersey's economy,” he added.

The study was coordinated by American Small Manufacturers Coalition (ASMC) and member Manufacturing Extension Partnership (MEP) centers.  The New Jersey Manufacturing Extension Program (NJMEP) and its partners, which represent the largest coalition in New Jersey to ever come together to support the State's manufacturing sector, a critical cornerstone to the States economy, spearheaded the project in New Jersey.

Next Generation Manufacturing refers to a framework of six strategies essential for global competitiveness today and in the future.  The strategies are customer-focused innovation, systemic continuous improvement, advanced talent management, global engagement, extended enterprise management and sustainable products and processes

NJMEP’s strategic partner organizations that supported the NGM Study: Bergen County Workforce Investment Board, Commerce& Industry Association of New Jersey, Department of Commerce New Jersey Export Assistance Centers, Employers Association of New Jersey, Hudson County One Stop Career Center, Hudson County Workforce Investment Board, Meadowlands Regional Chamber of Commerce, Morris Sussex Warren Workforce Investment Board, New Jersey Business & Industry Association, New Jersey Chamber of Commerce, New Jersey Society of CPAs, New Jersey Technology Council, South Jersey Chamber of Commerce, New Jersey Tooling & Manufacturing Association, Union County College, Middlesex County College, Mercer County Workforce Investment Board and Raritan Valley Community College.