New tariffs enacted by the Trump administration on August 7 have renewed discussion about whether such measures, along with state-level incentives, can help revive New Jersey’s manufacturing sector. The tariffs are part of a broader effort to bring more manufacturing jobs back to the United States.
Historically, New Jersey played a significant role in American industry. Its manufacturing legacy began in 1791 when Alexander Hamilton established the Society for Useful Manufacturers in Paterson. During World War II, the state was recognized as an “arsenal for democracy,” with shipyards in Camden and Kearny producing vessels for the U.S. Navy and other branches, and warplanes being assembled at the General Motors plant in Linden.
James Hughes, an economist at Rutgers University in New Brunswick, noted that by 1943 over half of all jobs in New Jersey were in manufacturing. He said, “It’s really been a long-term slide.” By 1970, manufacturers such as Singer Sewing Machine, Western Electric Co., Johnson & Johnson, RCA, Nestle, General Motors and Ford contributed to a workforce where one out of every three jobs was tied to manufacturing—totaling 860,000 positions.
The state also became known as the “Medicine Chest of the World” due to its pharmaceutical output. However, companies gradually moved operations elsewhere—including Cambridge, Massachusetts and California’s Bay Area—while overseas production increased because it was less expensive.
Today’s landscape is different. Robert Scott, an economist at Monmouth University in West Long Branch, cited challenges including limited available land and high population density. “I can’t imagine too many people want a steel mill operating in (or near) their neighborhood,” he said via email.
Despite these hurdles, some see potential for growth through technological innovation rather than traditional heavy industry. The Murphy administration and various industry groups argue that New Jersey’s manufacturers are increasingly focused on advanced technologies requiring workers skilled in programming computers and operating lasers instead of performing repetitive tasks.
