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SUPPLY CHAIN
NJMEP CEO : ' CHIPS Act Vital for Manufacturing Future '
By Diane C . Walsh Acting Editor
JOHN W . KENNEDY , PH . D ., has been fighting ever since he became CEO of the New Jersey Manufacturing Extension Program ( NJMEP ).
He is an irrepressible advocate for an ailing industry . “ Most people will say manufacturing is dead in New Jersey ,” Kennedy said , shaking his head because the 11,000 plants in the Garden State defy the obituary writers .
As an engineer who ran two manufacturing companies during his career , Kennedy is well credentialed to steer the private , not-for-profit organization that ’ s always ready to roll up its sleeves for manufacturers . He tripled the size of the NJMEP , instituted a variety of training / education courses and sent his staff across the state to help companies be more competitive , work smarter and become more efficient .
Under his leadership , the NJMEP also hosts regular conferences on the State of Manufacturing and an annual celebration of the industry , ‘ Manufacturing Day ,” which grew to 1,000 participant this year . He built coalitions with business groups , like the Commerce and Industry Association of NJ , to convince the state lawmakers to convene a manufacturing caucus . The caucus hones in on the issues facing manufacturers and tries to find solutions .
When the pandemic struck two years ago , the shortages of personal protective gear , like masks and gloves , and the supermarkets ’ empty shelves , thrust manufacturing into the headlines . Manufacturers were classified as “ essential workers ,” and were not required to shut their doors like so many businesses during the height of the health crisis .
Americans were baffled by the shortages of goods and supplies , however . The explanations invariably centered on “ supply chain .” The needed merchandise was made overseas and the restrictions imposed by the pandemic created huge shipping delays or the raw materials could only be sourced from aboard and they , too , could not be accessed .
The critical shortage of semiconductors became the rallying cry for the supply chain dilemma . Semiconductors or “ chips ” are key components in everything from cars to telephones to washer machines . Only 12 percent of
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We have to recognize the fact that we haven ’ t invested in our infrastructure at all and our infrastructure includes manufacturing . chips are now manufactured in the United States , compared to about 37 percent in the 1990s . Many foreign competitors , including China , are investing heavily to dominate the industry . The chips shortage illustrated manufacturing ’ s plight in the United States and its vulnerable
” position in the supply chain . Yet , Kennedy emphasizes the problem did not emerge in the pandemic . It ’ s existed for years and demands corrective measures , he said . “ What has to happen is we really have to change the conversation and I ’ m afraid we can ’ t any more .
“ I ’ m really scared about it , because if it ’ s not political , then we don ’ t want to talk about it ,’ Kennedy said . Despite his misgivings , however , the manufacturing advocate was encouraged by the CHIPS And Science Act of 2022 recently signed into law by President Biden .
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