Unex Manufacturing Inc., a New Jersey-based company, regularly receives inquiries from economic development groups in states like Florida, Texas, South Carolina, Michigan, Indiana, and Ohio. These groups often ask if Unex is considering relocating to a more cost-effective location. Such a move could potentially reduce the company's taxes and labor costs while helping it compete with rivals. However, after 60 years in New Jersey, Unex's executives have decided to remain.
Howard McIlvaine, vice president of operations and one of the company's owners, stated: "We have a good group of people here. If we picked up and moved, we might lose a majority of them, and I don’t think we’d want to do that."
The manufacturing sector in New Jersey is experiencing a modest resurgence. This revival is partly due to new companies leveraging technological advancements and operating from home bases. Additionally, policymakers are increasing support for manufacturers through resources and training programs. As a result, there are more job openings than can be filled within the state.
Historically, New Jersey has been home to major manufacturing companies such as Singer Sewing Machine, Western Electric Co., Johnson & Johnson, RCA, Nestle, General Motors, and Ford. Around 1970, the state was considered a manufacturing hub employing approximately 860,000 people and accounting for a third of all jobs according to James W. Hughes, an economist at Rutgers University.
However, technological advancements rendered some products obsolete while industrial companies relocated to cheaper areas both domestically and internationally. By 2013, the state's manufacturing sector employed about 240,000 individuals representing roughly 6% of all jobs based on state data.
Hughes commented: "It’s really been a long-term slide. We are one of the most expensive places to live; one of the most expensive places of doing business; and we have a highly unionized labor force; so we have to overcome all those costs to be successful."
