New Brunswick, NJ, October 7, 2002 — For the seventh consecutive year, New Jersey’s pharmaceutical and medical technology industry emerged as New Jersey’s economic powerhouse and continues to expand. That conclusion was validated by the HealthCare Institute of New Jersey’s annual economic study, “Healthy Opportunities,” which was recently unveiled at an unprecedented meeting with key members of the McGreevey administration.
That’s encouraging news at a time when the state and national economies continue to recover, HINJ’s economic report confirms that the pharmaceutical and medical technology industry continues to generate healthy economic, employment, cultural, and educational opportunities for the State of New Jersey — a $23.8 billion impact in 2003.
As in previous years, this year’s study illustrates the vitality our industry adds to New Jersey and the prime environment the state provides for HINJ member companies.
Here are some important highlights from this year’s report:
- Despite some modest consolidation, our industry remains a significant employer in New Jersey, with over 63,000 individuals working for HINJ member companies.
- Our employees receive competitive pay and progressive benefits commensurate with their high skill and education levels. On average, employees earn an annual salary of $85,423 and total compensation worth $96,939, making pharmaceutical and medical technology workers among the best compensated in the state.
- HINJ member companies are also the finest places to work — especially for women — and are frequently found on some of the most prestigious “Most Admired” lists.
- Perhaps most important, however, is the industry’s impact on other sectors of the state’s economy. The industry’s supply of well-paying jobs to state residents keeps innumerable businesses growing and many people working throughout New Jersey. Last year, HINJ members spent over $4.8 billion on vendor contracts and invested $1.2 billion on capital projects.
- Nearly 94,000 spin-off jobs were created as a result of this industry. But our healthy optimism doesn’t stop there.
In addition to economic benefits, the pharmaceutical and medical technology industry consistently supports the state’s overall quality of life and cultural vision. Our members invested over $3.5 billion in sales revenue back into research and development in New Jersey, an area that creates and establishes long-term R&D opportunities and helps realize the breakthrough medicines of tomorrow.
HINJ members also play a leadership role in philanthropic contributions, directing $155 million to New Jersey arts, health, social service, community/civic and educational causes, making them model corporate citizens.
Since its inception in 1997, HINJ’s economic impact study has become an important benchmark measure for one of the state’s leading business sectors. As such, the survey routinely reports on the general health of the industry, revealing trends and activity in the workforce, capital investments, philanthropy, and R&D activity. This year, for the first time, the report compared our industry to other leading sectors of NJ’s economy and provided important information about how the industry is anchored to the state.
This data illustrates how vitally important our industry is to New Jersey’s economy. For instance, this year our study estimated the total state income and sales taxes paid by HINJ member employees and calculated the impacts on the New Jersey State Budget. The total impact was estimated to be $213.1 million, providing between 3 percent and 66 percent of various departmental budgets.
While the findings in this year’s economic impact report are compelling, no one could have summarized the state of the industry better than New Jersey State Treasurer John E. McCormac, who observed:
“The HealthCare Institute of New Jersey study documents the condition of New Jersey’s pharmaceutical and Medical technology industry: The vital signs are strong and the prognosis is excellent. The industry’s success is great medicine to the New Jersey budget and the State’s economy.”
For more specific information or to download the report, please visit www.hinj.org.