Inaugural New Jersey Manufacturing Assessment and Gap Analysis Highlights Opportunities for Small and Medium Businesses in State’s Growing Offshore Wind Sector

Cedar Knolls, May 20, 2024 – As New Jersey emerges as a key player in the US offshore wind industry, a comprehensive assessment conducted by the New Jersey Manufacturing Extension Partnership (NJMEP) sheds light on the state’s manufacturing sector and its potential to support these large scale renewable energy projects and foster local economic growth.  

With the state targeting 11 GW of offshore wind capacity by 2040, accompanied by significant infrastructure investments, the NJMEP’s study identifies a ripe opportunity for job creation, retooling, new certifications and building competitiveness across various sectors, including manufacturing. It also unveils opportunities for New Jersey based businesses. In anticipation of the industry’s growth, NJMEP initiated the Offshore Wind Supplier Identification Project (OSW-SIP) in 2021, analyzing over 8,000 components essential for offshore wind turbines. 

Partnering with recent NJBPU awardee Attentive Energy Two, NJMEP delved deeper into the manufacturing capabilities of local companies, uncovering both the current strengths in terms capabilities and the gaps hindering small, diverse businesses from seizing contracting opportunities in the offshore wind market. The study, encompassing supply chain mapping, surveys, and data analysis, pinpointed key areas for development, including workforce training, equipment upgrades, and additional certifications.  

Key highlights of the assessment include:
• 66% of companies required targeted funding for process or technology upgrades, especially crucial for SMWVBEs lacking resources.
• Equipment upgrades costs needed for companies to reposition – ranged from $40,000 to $150,000, while training costs varied from $6,000 to $31,000 per worker.
• Strengths and opportunities include existing capabilities, connections with the maritime sector, willingness to upskill, grant funding, and employment opportunities for underserved communities.
• Gaps and hurdles include equipment upgrades, lack of OSHA safety training, additional certifications, delayed qualifications, maintaining dialogue with buyers, and attracting future workforce.

The analysis provides context for actionable recommendations on the part of industry, government and the economic development community.  

“The findings underscore the immense potential for local manufacturers to become integral players in the offshore wind supply chain,” said Peter Connolly, CEO of NJMEP. “However, to capitalize on these opportunities, targeted support and collaboration with industry stakeholders are imperative.” 

 “The analysis confirms what we’ve long known – that the offshore wind industry presents an enormous opportunity for New Jersey manufacturers and business owners,” said New Jersey Economic Development Authority Chief Executive Officer Tim Sullivan. “Under Governor Phil Murphy’s leadership, New Jersey’s manufacturing industry has grown substantially and has led to the creation of 6,000 jobs in that sector. As offshore wind continues to develop in New Jersey, the industry is poised to support even more good-paying jobs and boost the statewide economy.” 

“NJBIA has always been supportive of investing in the development of new clean energy resources such as offshore wind as part of a diverse energy portfolio, and we are excited to see research about how New Jersey manufacturers and the entire state economy can best benefit from the growth in New Jersey of this important industry,” said Michele Siekerka, President and CEO of NJBIA. 

Looking ahead, NJMEP emphasizes the importance of informed collaboration between manufacturers, suppliers, and local vendors to foster a robust ecosystem conducive to supply chain development. Initiatives such as Attentive Energy Two’s commitments and industry partnerships overall play a vital role in supporting small businesses to enhance their competitiveness and visibility in the market. 

“New Jersey stands at the forefront of a transformative shift towards a clean energy economy,” said Damian Bednarz, Managing Director of Attentive Energy Two. “By empowering local businesses and fostering collaboration today, we can unlock the full potential of the offshore wind sector while driving sustained local economic growth in the future.” 

As New Jersey continues to pave the way for renewable energy innovation, each contract secured by local businesses represents a milestone in the state’s journey toward a sustainable future. 

About NJMEP: The New Jersey Manufacturing Extension Partnership (NJMEP) is a private, not-for-profit organization that improves the profitability and competitiveness of New Jersey’s manufacturers. Backed by the National Institute of Standards and Technology (NIST), NJMEP enables organizations to enhance their productivity and efficiencies, reduce costs, and improve employee performance. For more than 20 years, NJMEP has used its extensive network of connections and proven track record of success to help manufacturers adapt to the latest innovative technologies and best practices to realize more than $7.6 billion in value.  

About Attentive Energy Two: Attentive Energy Two is an offshore wind project designed to help New Jersey meet its nation-leading offshore wind targets and will strengthen and expand upon the State’s foundational offshore wind investments. Attentive Energy Two is developing a holistic offshore wind project, informed by engagement with hundreds of stakeholders over five years, that will create economic opportunities statewide reaching all 21 counties. Approximately 42 miles from its nearest point in New Jersey, the project is expected to power over 650,000 homes with clean local renewable energy. As a joint venture between TotalEnergies and Corio Generation, a partnership representing one of the largest offshore wind portfolios in the world, Attentive Energy Two is uniquely positioned and committed to delivering this major offshore wind project for New Jersey. For more information, please visit www.attentiveenergy.com/attentiveenergytwo.  

New Jersey Manufacturing Assessment and Offshore Wind Readiness Gap Analysis