New Jersey’s economy is a dynamic powerhouse driven by several key industries, including pharmaceuticals and life sciences, financial services, manufacturing, technology, and transportation and logistics. As of 2023, the state was home to 13 Fortune 500 companies, offering a fertile ground for businesses to thrive.
Despite technological challenges, New Jersey continues to see robust growth in healthcare and life sciences, propelled by a high concentration of institutions.
“IT is not just a support function; it’s the driving force behind operational efficiency and innovation across all industries. Businesses in New Jersey can leverage advanced IT solutions to stay ahead in a competitive landscape, ensuring sustained growth and resilience.”
– Michael Fried, CEO of Tech-Keys
The state’s strategic location and ongoing infrastructure development further bolster its transportation and logistics sector, ensuring New Jersey remains a critical hub for commerce and industry.
In this article, we’ll explore the top industries in New Jersey and discover the role IT plays in their success.
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Learn About the Top 7 New Jersey Industries
1. Life Sciences and Pharmaceuticals
The life sciences sector thrives in New Jersey, evidenced by its strong employment trends. The state boasts the highest concentration of scientists and engineers in the world. Key components of this sector include pharmaceuticals, biotechnology, and medical device manufacturing.
In 2020, the sector employed an average of 76,510 people, accounting for 2.4% of all private sector workers in New Jersey, which is about 1.3% on a national scale. Leading pharmaceutical companies based in New Jersey include Johnson & Johnson and Merck & Co. Inc. From 2015 to 2020, the pharmaceutical industry in New Jersey grew by 19.9%.
The presence of teaching hospitals, research institutions, and clinical trial assets attracts biopharmaceutical developers like Bioclinica and Genesis Biotech. New Jersey’s robust public education system and top-tier post-secondary institutions provide a steady stream of highly qualified research talent.
The Bureau of Labor Statistics predicts that home healthcare services will grow rapidly. The New Jersey Department of Labor projects that the healthcare sector will add 64,860 jobs from 2018 to 2028, growing at an annual rate of 1.2%.
2. Financial Services
New Jersey’s strategic location and population density make it an attractive base for financial services firms. The state supports various finance-related industries, including banking, investment (securities and commodities), insurance, and accounting.
Prudential is headquartered in New Jersey, and numerous major banks maintain operations near New York City or Philadelphia. Additionally, the state hosts several large data centers that support financial clients in New York, highlighting New Jersey’s critical role in the finance industry.
In 2020, the financial services sector employed over 218,000 people, representing 6.8% of the state’s private sector jobs. This industry contributed $32 billion to New Jersey’s economy, accounting for 6.6% of the state’s GDP. This significant contribution underscores the importance of the financial services industry to New Jersey’s economic landscape.
3. Manufacturing
The manufacturing sector employed nearly 230,000 people in 2020, making it one of the biggest industries in New Jersey. It contributed approximately $54 billion to the state’s gross domestic product (GDP) in 2019, which accounts for about 10.1% of the total output.
This sector is a significant economic driver, showcasing the state’s industrial strength.
Though there has been a reduction in workforce participation in manufacturing, the continued employment levels indicate this industry’s resilience and potential for growth.
4. Technology
New Jersey is a hub of innovation and home to advanced industries, including the technology sector. As of 2020, it employed 184,395 workers, representing 5.8% of state private sector jobs and contributing $26.9 billion in wages.
This is reflected in the high average annual wage of $146,123 for those working in the technology industry. New Jersey’s technology sector primarily consists of computer systems design and related services, which account for 40% of employment.
Despite 75% of employers reporting difficulties in finding and retaining tech talent, when they are able to fill these roles, the employees have several highly sought-after qualities. These include creativity, curiosity, good communication skills, teamwork, and an eagerness to learn and improve.
5. Transportation and Logistics
Spending on infrastructure improvements has significantly boosted employment in New Jersey, especially among civil engineers. In 2020, the transportation, logistics, and distribution sectors accounted for 7% of private sector wages statewide and contributed over $62.5 billion to New Jersey’s GDP.
This contribution ranked as the sixth-highest dollar amount per state in the nation. This robust investment underscores the critical role infrastructure plays in supporting New Jersey’s economy and enhancing its competitiveness.
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6. Clean Energy
New Jersey is tackling climate change with an aggressive Renewable Portfolio Standard (RPS) that mandates 50% clean energy by 2030 and 100% clean energy by 2050. The state’s clean energy efforts primarily focus on solar and wind power.
In June 2019, New Jersey announced the development of a 1,100 MW wind farm off the coast of Atlantic City, marking the largest offshore wind procurement ever by a U.S. state. This project aims to harness the power of coastal winds to generate renewable energy and reduce reliance on fossil fuels.
New Jersey is a leader in solar energy, with enough installed capacity to power over a quarter of a million homes. The state ranks among the top 10 in the nation for installed solar capacity and solar jobs. This widespread adoption of solar panels is driven by supportive policies and incentives, making solar energy a significant part of the state’s clean energy portfolio.
7. Media and Film
Before Hollywood’s rise in the 1890s, Fort Lee, NJ, was the film capital of the world. Today, it boasts the largest concentration of film professionals outside of California.
New Jersey’s diverse landscapes provide a rich backdrop for productions, lending historical context, style, and mood to films and TV series such as “The Sopranos” and the Academy Award-winning “Joker” starring Joaquin Phoenix.
New Jersey supports filmmakers with a robust film tax credit, offering 30% of qualified film production expenses in Northern NJ. This incentive allows filmmakers to produce high-quality work while staying within budget, making the state an attractive location for the film industry.
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The Role of IT in New Jersey’s Thriving Industries
Information technology plays a critical role in the success of New Jersey’s top industries, ensuring they remain competitive and innovative.
IT streamlines processes in industries like life sciences and financial services by enhancing data management and operational efficiency.
Advanced data capture systems and laboratory management tools, for instance, enable life sciences companies to manage large datasets efficiently, accelerating research and development.
Cybersecurity is another vital area where IT makes a significant impact. Businesses of all sizes are vulnerable, says CloudSecureTech. For financial services, robust cybersecurity frameworks and regulatory technologies help protect sensitive data and ensure compliance with stringent regulations, safeguarding financial operations against cyber threats.
Manufacturing benefits from IT through systems that optimize production and supply chain logistics. Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) software help reduce downtime and improve efficiency by integrating predictive maintenance and IoT technologies.
IT is the Backbone of Your Business
IT is indispensable across New Jersey’s industries, driving innovation, ensuring security, and optimizing operations. Partnering with a dedicated IT provider like Tech-Keys, helps businesses like yours navigate the complexities of modern technology and achieve sustained growth.
We bring over 15 years of experience supporting organizations in all industry verticals. It’s why hundreds of businesses rely on us for everything from day-to-day IT support to HIPAA compliance.
Speak to us to discover how our IT services deliver the value and impact you expect.