More than $22 billion total economic impact on state
69,209 directly employed by industry
Average base salary is $80,246
Capital investment of nearly $2.4 billion
Charitable contributions totaled $45.5
Hillside, NJ, April 15, 2003 — Despite the sluggish economy, member companies of the HealthCare Institute of New Jersey (HINJ) contributed more than $22 billion to the state’s economy in 2002, surpassing previous years’ numbers, according to a study released today by HINJ. The study — commissioned by HINJ and conducted by IBM Business Consulting Services — surveyed 20 HINJ member pharmaceutical and medical technology companies regarding their 2002 performance.
“We have long believed that New Jersey’s pharmaceutical and medical technology companies are driving the state’s economy, and this year’s economic impact study strongly supports that belief,” said Bob Franks, President of HINJ. “At a time when New Jersey is suffering from severe budget cuts and bad economic news, HINJ member companies are sustaining our state by providing jobs, investing in capital expenditures, and supporting the non-profit community.”
Specifically, the data showed that HINJ members employed 69,209 workers, up from 66,000 in 2001.
According to the study, research and development (R&D) accounts for one-quarter of the workforce, with other major employment sectors being corporate administration and sales and marketing, with 24 percent each. A total of 16 percent of the workers are employed in manufacturing and quality control. The remaining eleven percent of the employees were not identified by any particular function.
The skill and education of the workforce is reflected in the wages paid to industry employees in 2002. On average, workers received $80,439 in wages (total compensation was $91,512). That is up from $73,668 in 2001.
The increase in the average wage, in addition to the increase in 2,500 new positions, is also responsible for a total payroll of more than $6.8 billion for all HINJ member companies in 2002 — up almost one billion dollars from 2001.
To plan for those new jobs — in R&D and in other areas — the study showed that HINJ members are making major capital investments in New Jersey. During 2002, more than $2.4 billion was invested by HINJ members in the construction of facilities and other related infrastructure. Renovation of existing facilities accounts for nearly $1 billion of this total. Increases in the construction of entirely new facilities totaled more than $1.5 billion.
The study also found that HINJ members continue to make substantial contributions to the arts, education and community activities. In addition to more than $45 million contributed to charitable causes, HINJ members also provided more than $42 million in product donations to indigent patients and other humanitarian causes. An additional $6 million was donated to charities aiding the victims of September 11th.
This year’s economic impact study is the sixth annual report released by the HealthCare Institute of New Jersey. It was first commissioned in 1997. The data is derived from companies that were members of the HealthCare Institute of New Jersey during 2002 and is intended to reflect industry activity during 2002.
Actual data is supplied for the period of January through September 2002; estimates were used for the final quarter of calendar year 2002. Multipliers supplied by the New Jersey Council of Economic Advisors were used to generate the estimated economic impact of HINJ members on the state’s economy.
The HealthCare Institute of New Jersey is a trade association for the research-based pharmaceutical and medical technology industry in New Jersey. Founded in 1997, the Institute serves as a unified voice for the industry and seeks to build awareness of this industry’s impact on New Jersey’s quality of life and economic well-being.
With more than 60,000 consultants and professional staff in more than 160 countries globally, IBM Business Consulting Services is the world’s largest consulting services organization. IBM Business Consulting Services provides clients with business process and industry expertise, a deep understanding of technology solutions that address specific industry issues, and the ability to design, build and run those solutions in a way that delivers bottom-line business value.
For more detailed information, please consult the report. A copy can be obtained by contacting Hollie Gilroy at HINJ (908) 624-9888 or by visiting the HINJ website: http://www.hinj.org/ibmreport.cfm