New Jersey manufacturing could be poised for another bump in sales as a flood of new products comes online.
With a growing number of new vehicles arriving online, consumers are beginning to realize how much they value a good quality product and how much better it is to buy from a trusted company.
Manufacturers like Honda are finding that they need to keep their margins on their products to compete, and that’s where the company is targeting in its effort to grow in the state.
The company is adding hundreds of new jobs to its workforce in the next few years and is expanding into other areas of manufacturing.
As the state’s manufacturing economy continues to recover, it is seeing a surge in demand for more durable products, including products made by Pratt and Whitney, a maker of aerospace components and systems.
Pratt and Whitneys will add a new manufacturing facility in Trenton in 2019 and will expand manufacturing to New Jersey next year, said Bill Tisch, Pratt and White’s vice president of state and local affairs.
With more products coming online, Pratt & Whitney is looking to build up its manufacturing workforce to meet the demand.
Tisch said Pratt andWhitneys manufacturing is already “the most diversified” in the United States.
“We have more than 70,000 employees and we are very focused on bringing that diversification to New York,” he said.
While the manufacturing sector in New Jersey is booming, the state is not the only place where Pratt and Whiston is looking at expanding production.
In 2019, the company plans to open a new factory in Jersey City, which is home to a major auto parts manufacturer, to produce vehicle parts for other manufacturers.
That will create an estimated 3,000 new jobs in the city, according to an executive with the company.
“The industry is starting to look very different, and we think that is a good thing,” said Tim Anderson, a professor of business and economics at Rutgers University.
The number of vehicles produced in the U.S. has been increasing for decades.
But that trend has accelerated as the cost of fuel has increased, said Paul McBride, a senior analyst at Autotrader, a website that tracks automotive production.
The average cost of gasoline for a typical gas-powered vehicle has grown about 50 percent over the last three decades, while the average cost for diesel has gone up nearly 10 percent, McBride said.
In the next decade, the price of diesel will increase by 50 percent to 75 percent.
While gas prices have been rising faster than diesel prices, it’s the increase in the cost for components and the increase for the vehicles themselves that has spurred more investment in manufacturing, Anderson said.
The demand for new vehicles has driven the overall price of auto parts to an all-time high.
In 2018, General Motors announced that it would spend $6 billion to buy Pratt and Wernstrom and expand its manufacturing facilities.
The company has also invested in new facilities, including the $250 million facility in Hoboken that it plans to build to expand its plant and build new manufacturing capacity.
The plan is to increase the number of jobs at its factory from 10,000 to 40,000.
In 2019, General’s plans to invest $300 million in the facility in order to make it more competitive with other auto parts manufacturers.
General has also hired more than 1,000 people to work at the facility, which will be a new headquarters for the company in Hobart.
Anderson said the manufacturing demand is “the reason why we are seeing a rise in vehicle prices.
It’s why we see an increase in vehicle sales.
It is the reason why new vehicles are on the market.”
The manufacturing boom in New York is not unique.
The state’s economy has been adding manufacturing jobs at a rapid pace for years.
In the last few years, the number one reason for the increase has been the advent of new technologies, including digital manufacturing.
The use of robotics and 3-D printing to make products is making the job of manufacturing a lot easier, said Anderson.
“New technologies and digital manufacturing, the combination, is making manufacturing more attractive to employers,” he added.
While Pratt & Wernstedt is still looking to expand into the manufacturing market, Anderson says he expects that to become more important in the future.
“I think the demand for the technology and the cost is going to be increasing,” he predicted.
“Automation is going away,” Anderson said of the jobs being lost to automation.
“Automation means we can put people on the assembly line, and the ability to design a new car is going into people’s hands.”
The impact on workers has been dramatic.
As the number and cost of manufacturing have fallen, wages for factory workers have increased and the average wages have risen.
As a result, the unemployment rate for manufacturing workers is at a low 5.3 percent, according the Bureau of Labor Statistics.
The new job market for New Jersey has created many new jobs, but that growth is limited.