CONCORD, NH – New Hampshire’s advanced manufacturing job growth has increased since 2017, bucking a regional downward trend, but more coordination on workforce training is needed to grow the industry to its full potential, a report released by the Department of Business and Economic Affairs found.
The number of advanced manufacturing jobs in the state grew 2.6% between 2017 and 2022, while New England overall had a 1.4% loss, the Advanced Manufacturing Industry Cluster Report and Strategy found. National growth was 3% over that period.
The report assessed the Granite State’s $8 billion advanced manufacturing cluster, the latest in a series of business and industry assessments the BEA has completed over the past two years.
The cluster represents 42,327 jobs in New Hampshire, which is 5.6% of the state’s total employment. Growth in the industry between 2017-2022 accounted for 8.6% of overall job growth in the state. The cluster comprises six manufacturing sectors: computer, communication and electronics; fabricated metal products; machinery; electrical equipment, appliance and components; aerospace and defense; transportation equipment.
The biggest challenge to greater growth in the cluster is workforce availability, and the report calls for more statewide coordination and collaboration on training and education at all levels. Of the top 20 occupations in the industry, 13 require only a high school diploma or the equivalent for entry, which should be a selling point and training focus, the report suggests. Other strategies to sustain and support the industry outlined in the report are strategic partnerships and targeted marketing.
“New Hampshire has a long history of innovative and modern manufacturing, and this data demonstrates that this industry cluster continues to see growth and remains on the cutting edge,” said BEA Commissioner Taylor Caswell in a news release. “The report gives BEA, industry and institutional partners, and business leaders further insight into the opportunities, as well as challenges, facing the industry and defines near and long-term steps that can be taken to help keep the industry pushing forward and punching above its weight”
The six sectors include a wide range of businesses, including those that produce medical devices, semiconductors, aircraft engine parts, precision optics, and many more.
“From local machine shops to defense contractors and high-tech devices created in clean rooms, advanced manufacturing touches every corner of the New Hampshire economy, and it necessitates the collaboration of a variety of partners and stakeholders,” a news release introducing the report said.
Manufacturing has a domino effect on other industries, and is considered an exonomic driver, the report points out.
“Manufacturing drives productivity and innovation and stimulates more economic activity than any other sector as the multiplier effect from turning raw materials or parts into finished goods is unrivaled,” said Michael Skelton, [resident and CEO of the Business and Industry Association, New Hampshire’s state affiliate of the National Association of Manufacturers. “BIA members are deploying cutting-edge technologies in advanced manufacturing and next-generation operations in the burgeoning bio-fabrication sector. Developing business conditions that support the growth of manufacturing will deliver new opportunities for Granite Staters.”
Computer, communication and electronics manufacturing represents 34% of advanced manufacturing jobs in the state, with 14,360 employed in the industry. It’s followed by fabricated metal products, with 9,780 jobs – 23% of the industry.
Some takeaways from the report:
- Advanced manufacturing accounts for 5.6% of the state’s total employment, above the national average of 3.5% and New England’s average of 3.7%.
- The number of jobs in the industry grew by 2.6% from 2017-2022, adding 1,067 net new jobs and representing 8.6% of New Hampshire’s job growth; New England’s industry job growth for the same period fell by 1.4%; national growth was 3%.
- Wages in the industry average $111,728, above the national average of $106,302, but below the New England advanced manufacturing average of $118,731. The state’s overall average annual wage is $82,673.
- There are 1,175 payrolled business locations in New Hampshire’s advanced manufacturing cluster, averaging 36 jobs. The New England average is 34 jobs per business location; the national average is 33.
- The cluster contributes $8.3 billion in gross regional product to the state’s economy, which is 7.7% of the state total.
- Total sales for businesses in the cluster were $14.5 billion in 2022. They were primarily export-oriented, with 87% occurring outside New Hampshire.
The state’s emerging life sciences industry is one beneficiary of the growth of advanced manufacturing.
“The report reinforces what the life sciences community in New Hampshire has known for a long time, that our manufacturing industry is vibrant and a leader in the region,” said Andrea Hechavarria, president and CEO of NH Life Sciences. “The success of the life sciences industry is directly linked to the strength of our advanced manufacturing sector, and NH Life Sciences will continue to engage and work with leaders across the state to ensure we are doing everything possible to lean in and further develop these two high-growth sectors.”