There are several reasons why particular branches of the economy bloom in specific locations. It could be because of environmental conditions, natural resources, legislative efforts, substantial investments, or popular demand.
Let’s take a look at industries that are currently doing well in the state of New Jersey.
Logistics and advanced manufacturing
Many local business owners believe that transportation and logistics are essential to a growing state economy. The authorities want to focus on smart and targeted investments and innovative solutions to challenges.
Investing in infrastructure improvements has been driving employment for the last few years in New Jersey. Civil engineering is believed to be one of the fastest-growing branches of the local industry. According to the New Jersey Department of Labor’s estimations, the sector should make employment growth from 16,600 workers in 2010 to 20,900 in 2020.
Perhaps not everybody realizes that manufacturing is fundamental to the NJ economy. Considered the birthplace of the American Industrial Revolution, this is a place where over 11,000 manufacturing companies operate. The whole sector contributed nearly $47.4 billion to the GPD in 2018. In the same year, chemical manufacturing – the state’s largest manufacturing segment – held 5th place nationwide behind Texas, California, Illinois, and Ohio.
Technology and gaming
Would you think of New Jersey as a hub for innovation and advanced industries? It might not be the very first thought, but tech startups are doing well in the state. It isn’t the same as Silicon Valley, and it has slowed down a little due to competition from other technology hubs, but still. The sector employs over 182,000 workers, representing around 5% of private-sector jobs and $23.6 billion in wages.
Because of the favorable legislation, the state of New Jersey is a good place for casino games and sports betting businesses. NJ online poker scene is also significant, probably one of the most promising in the country. There have been considerations in neighboring New York to challenge the NJ’s position in that department in the future. Meanwhile, NJ reported a nice 6.5% boost in overall gaming revenue in September 2020, compared to the same month in 2019.
Life Sciences and Pharmaceuticals
Another growing industry in The Garden State is Life Sciences. According to the population estimates from 2019, New Jersey has 16.1% of residents older than 65, which is above the country average. It has a substantial impact on the demand for healthcare services.
The expectations predict 78,300 more jobs in the sector by 2026. The state’s Life Science’s employment consisted of three essential components in 2018. That was pharmaceuticals (42.6%) – establishments primarily engaged in manufacturing or distribution of drug-related products, biotechnology R&D (40.7%) – scientific research, development, and analytics, and manufacturing medical devices and supply (16.7%).
Thanks to the proximity to New York City and population density, New Jersey appears as an attractive location for financial services companies. It includes branches such as insurance, banking, and accounting.
For example, many major companies, such as Chubb and Prudential, have their headquarters in New Jersey or keep their operations close to NYC or Philadelphia. The industry accounted for 6.4% of total private-sector jobs in 2018, contributing $33 billion to the local economy.