Life Sciences Industry Cluster

New Jersey s Life Sciences Industry Cluster Prepared by: New Jersey Department of Labor & Workforce Development Office of Research & Information Bureau of Labor Market Information Fall 2017

THE GOAL OF THIS REPORT IS TO GET AN IDEA OF WHAT LIFE SCIENCES MEANS TO NEW JERSEY Identify the types of industries and establishments that make up the life sciences industry cluster based on a standard industry classification system. Describe any similarities and differences among its components with regard to such variables as employment, wage, occupation type, education, and demographic characteristics. Examine any present distinctions within the cluster and its components that give New Jersey a competitive advantage compared to neighboring states, regions or the nation, or show areas where New Jersey could improve to add to the state s economy. Analyze the current state of the life sciences industry cluster and provide an outlook for employment into the future.

LIFE SCIENCES INDUSTRY CLUSTER: OVERVIEW

MAJOR INDUSTRY COMPONENTS New Jersey s Life Sciences employment in 2016 was identified within three primary components: pharmaceuticals (40.8%), biotechnology R&D (38.5%) and medical device manufacturing (20.7%). The breakdown of the major segments are: Pharmaceuticals Pharmaceutical and medicine manufacturing Soap, cleaning compound, and toiletry manufacturing Druggists' goods merchant wholesalers Consists of services related establishments primarily engaged in scientific research, development, analytic and/or diagnostics. Establishments that are primarily engaged in manufacturing or distribution of drug related products. Biotechnology (R&D) Scientific research and development services Medical and diagnostic laboratories Medical Devices Electronic instrument manufacturing Medical equipment and supplies manufacturing Establishments primarily engaged in manufacturing medical equipment and supplies. Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

MAJOR NEW JERSEY EMPLOYERS Some of New Jersey s well known employers in this cluster include: Pharmaceuticals Bayer HealthCare Pharmaceutical Bristol Myers Squibb Co. Daiichi Sankyo Ethicon, Inc. Glaxosmithkline Johnson & Johnson Merck & Co. Inc. Novartis Pharmaceuticals Pfizer, Inc. Sanofi, U.S. Teva Pharmaceuticals West Ward Pharmaceuticals Biotechnology (R&D) Celerion, Inc. Chugai Pharma USA Community Medical Center Collagen Matrix, Inc. Covance, Inc. Immunomedics, Inc. Lab Corp PAREXEL International Progenitor Cell Therapy PTC Therapeutics, Inc. Quest Diagnostics Raritan Bay Medical Sandoz, Inc. Medical Devices Abbott Laboratories Becton Dickinson & Co. C. R. Bard, Inc. Honeywell International, Inc. Integra Life Sciences Micro Corporation Ortho McNeil Pharma Oticon, Inc. Roche Molecular Systems, Inc. Safilo USA, Inc. Sivantos, Inc. Stryker Orthopedics Source: 2016 InfoUSA

OVERALL STATE IMPACT The Life Sciences Cluster has an enormous impact on providing high quality jobs and adding significant value to the State s economic activities. Recent New Jersey highlights included: Employment Total: averaged 117,260 or 3.5 percent of all private sector workers in the state for 2016. Nationally, the proportion was just 1.9 percent. Well paying Jobs: Paid over $16.5 billion in 2016 annual payrolls; 7.8 percent of the state s total wages. Establishments total: over 3,200 in 2016. Over a five year period (2011 2016) even with numerous industry related reorganizations New Jersey s drug & pharmaceutical component still grew (by +10.5%). Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

ALL PRIVATE SECTOR VS. INDUSTRY CLUSTER EMPLOYMENT Employment Index Year 2006 = 100% 105 100 95 90 85 80 75 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Life Sciences Total NJ Private Employment After increasing slightly from 2006 to 2007 (+0.54%), the NJ life sciences industry experienced a steady decline from 2007 to 2013 ( 13.7%), flattened out from 2013 to 2014 (+0.1%), increased from 2014 to 2016 (+1.58%), and is currently below the 2006 employment level ( 11.2%). Total statewide private sector employment has led life sciences employment from 2010 to 2016 and is currently above the 2006 employment level by 1.3 percent. Gray area denotes U.S. economic recession as defined by the National Bureau of Economic Research (NBER) Development, Quarterly Census of Employment and Wages, 2006-2016 Annual Averages

EMPLOYMENT SIZE, GROWTH, SALARY & LOCATION QUOTIENT Employment Growth 2011 2016 8,000 6,000 4,000 2,000 0 2,000 4,000 6,000 8,000 Medical Laboratories Dental Laboratories Druggists Goods Merchant Wholesalers Medicinal & Botanical Mfg. R&D in Biotechnology Pharmaceutical Preparation Mfg. 10,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Annual Average Wage 2016 The above bubble graph has four elements: 1. Total 2016 employment represented by the size of the bubble. 2. 2011 2016 employment growth shown on the Y axis, or vertical position. 3. 2016 annual average wages shown on the X axis, or horizontal position. 4. Location quotient indicated by the color of the bubble. The location quotient compares the concentration of the industry subsectors in the state to those of the nation. Industries with a location quotient above 1 are known as basic industries which (in theory) export a good or service from the state and in return, bring in wealth. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

LIFE SCIENCES INDUSTRY CLUSTER: EMPLOYMENT ANALYSIS

5 YEAR EMPLOYMENT TREND Annual Average Employment 140,000 120,000 100,000 80,000 60,000 40,000 121,660 116,550 115,050 115,180 116,700 117,260 26,120 43,410 Employment Trend 2011 2016 24,840 24,250 23,670 24,160 24,320 41,800 40,780 39,710 44,690 45,120 52,130 49,910 50,020 51,800 47,850 47,820 20,000 2011 2012 2013 Year 2014 2015 2016 Pharmaceuticals Biotechnology Medical Device Industry Cluster With an average of 117,260 workers employed in this NJ cluster in 2016, the employment over the 5 year period experienced a decline of 3.6 percent. The pharmaceutical component experienced the largest total percent loss over the 5 year period ( 8.3%). Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

SUB SECTOR EMPLOYMENT In 2016, the 117,260 jobs within this New Jersey cluster were concentrated in: Pharmaceuticals Biotechnology (R&D) Medical Devices Pharmaceutical and medicine manufacturing 47.8% Scientific research and development services 67.5% Electronic instrument manufacturing 51.3% Druggists' goods merchant wholesalers 33.6% Soap, cleaning compound, and toiletry mfg. 18.6% Medical and diagnostic laboratories 32.5% Medical equipment and supplies manufacturing 48.7% 47,820 jobs The pharmaceuticals component accounted for 40.8 percent of the life sciences industry cluster employment. 45,120 jobs Scientific research and development services accounted for more than 30,440 employment. 24,320 jobs Medical devices is the smallest of the three components and makes up 20.7 percent of the life sciences industry. Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

PHARMACEUTICALS INDUSTRY TOP EMPLOYMENT, 2016 Druggists' Goods Merchant Wholesalers Pharmaceuticals Industry 16,050 Made up 40.8 percent of the life sciences industry cluster s employment in 2016. Pharmaceutical Preparation Manufacturing Toilet Preparation Manufacturing Soap and Other Detergent Manufacturing 1,110 6,440 15,790 0 5,000 10,000 15,000 20,000 2016 Employment Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. Pharmaceutical & medicine manufacturing ( 31.1%) and soap, cleaning compound, and toiletry manufacturing ( 2.2%) both experienced a decline from 2011 to 2016 while druggists goods merchant wholesalers experienced significant growth (+23.2%). Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

BIOTECHNOLOGY INDUSTRY TOP EMPLOYMENT, 2016 R & D in Physical, Engineering & Life Sciences Biotechnology 15,060 Accounted for 38.5 percent of life sciences industry cluster s employment in 2016. Research & Development in Biotechnology Medical Laboratories 11,360 14,070 Scientific R&D industry service sectors declined ( 0.8%) over the 5 year period from 2011 to 2016. Diagnostic Imaging Centers Social Science/Humanities Research 3,330 1,310 0 4,000 8,000 12,000 16,000 2016 Employment Medical and diagnostic laboratories experienced significant growth over the same period (+15.3%). Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

MEDICAL DEVICES INDUSTRY TOP EMPLOYMENT, 2016 Surgical Appliance and Supplies Mfg Surgical and Medical Instrument Mfg Electromedical Apparatus Mfg Electricity & Signal Testing Instrument Mfg Dental Laboratories Industrial Process Variable Instruments Analytical Laboratory Instruments Automatic Environmental Control Mfg Irradiation Apparatus Manufacturing Fluid Meters and Counting Devices Medical Devices 250 70 70 960 890 750 1,320 1,900 2,540 6,870 0 2,000 4,000 6,000 8,000 2016 Employment Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. Accounted for 20.7 percent of the life sciences industry cluster s employment in 2016. Electronic instrument manufacturing slightly grew (+0.8%) over the 5 year period from 2011 to 2016 while medical equipment & supplies manufacturing declined ( 3.6%) during the same period. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

LIFE SCIENCES INDUSTRY CLUSTER: ESTABLISHMENT ANALYSIS

5 YEAR ESTABLISHMENT TREND Annual Average Establishments 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 3,130 3,040 3,040 3,110 3,180 3,280 760 730 700 Establishment Trend 2011 2016 690 700 700 1,400 1,370 1,350 1,390 1,430 1,510 970 950 980 1,030 1,050 1,070 0 2011 2012 2013 Year 2014 2015 2016 Pharmaceuticals Biotechnology Medical Device Industry Cluster Establishments in this cluster totaled 3,280 in 2016 after experiencing a notable growth (+4.8%) from 2011 2016. Pharmaceuticals has seen an upward trend from 2011 to 2016, adding an additional 100 establishments. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

SUB SECTOR ESTABLISHMENTS In 2016, New Jersey had 3,280 establishments in this cluster engaged in: Pharmaceuticals Biotechnology (R&D) Medical Devices Druggists' Goods Merchant Wholesalers 58.8% Scientific research and development services 52.7% Medical equipment and supplies manufacturing 55.3% Pharmaceutical & Medicine Mfg. 24.9% Soap, Cleaning Compound, & Toiletry Mfg. 16.3% Medical and diagnostic laboratories 47.3% Electronic instrument manufacturing 44.7% 1,070 establishments The pharmaceutical component accounts for 1/3 of all life sciences industry establishments. 1,510 establishments R&D related sub sectors accounted for 46.0% of all life sciences establishments. 700 establishments The medical devices component has the least establishments of all three life sciences industry components. Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

PHARMACEUTICALS INDUSTRY TOP ESTABLISHMENTS, 2016 Druggists' Goods Merchant Wholesalers Pharmaceuticals Industry 630 Accounted for 32.6 percent of the life sciences industry cluster s establishments in 2016. Pharmaceutical Preparation Mfg. Toilet Preparation Mfg. Soap And Other Detergent Mfg. 30 110 200 0 200 400 600 800 2016 Establishments Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. Establishments in the soap, cleaning compound, and toiletry manufacturing industries ( 19.0%) declined from 2011 to 2016, while pharmaceutical & medicine manufacturing (+10.7%) and druggists goods merchant wholesalers (+21.6%) realized growth. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

BIOTECHNOLOGY INDUSTRY TOP ESTABLISHMENTS, 2016 Medical Laboratories R & D In Physical, Engineering & Life Sciences Biotechnology (R&D) 380 490 Made up 46.0 percent of all establishments in the life sciences industry cluster in 2016 with 1,510 establishments. Research & Development In Biotechnology Diagnostic Imaging Centers Social Science/Humanities Research 330 220 90 0 200 400 600 2016 Establishments Scientific R&D industry service sectors (+10.5%) and medical diagnostic laboratories (+5.6%) both experienced growth from 2011 to 2016. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

MEDICAL DEVICES INDUSTRY TOP ESTABLISHMENTS, 2016 Dental Laboratories Surgical Appliance and Supplies Mfg Surgical and Medical Instrument Mfg Industrial Process Variable Instruments Electromedical Apparatus Mfg Electricity & Signal Testing Instrument Mfg Analytical Laboratory Instruments Automatic Environmental Control Mfg Irradiation Apparatus Mfg Fluid Meters and Counting Devices Medical Devices 10 10 20 30 40 50 60 90 100 160 0 20 40 60 80 100 120 140 160 180 2016 Establishments Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. Represented 21.4 percent of the life sciences industry cluster s establishments in 2016 (700). Electronic instrument manufacturing ( 8.0%) and medical equipment and supplies manufacturing ( 12.2%) both declined from 2011 to 2016. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

LIFE SCIENCES INDUSTRY CLUSTER: ANNUAL AVERAGE WAGE ANALYSIS

ALL PRIVATE SECTOR VS. LIFE SCIENCES ANNUAL AVERAGE WAGE Annual Average Wage $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 $99,070 $51,380 $104,310 $53,590 $107,550 $54,930 $111,480 $54,540 $114,760 $55,740 $119,430 $56,890 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Life Sciences All Industries $126,790 $58,090 $130,410 $59,030 $137,290 $60,150 $144,410 $61,980 $140,770 $62,420 Wages in the life sciences cluster have averaged 211.8% of the statewide annual average wage since 2006. Annual average wages for the cluster have risen +42.1% over the ten year period from 2006 to 2016. Development, Quarterly Census of Employment and Wages, 2006-2016 Annual Averages

5 YEAR AVERAGE ANNUAL WAGES TREND Annual Average Wage $200,000 $150,000 $100,000 $50,000 $0 $145,460 $153,800 $81,650 $92,830 $147,060 $168,730 $136,520 $191,680 $66,680 $67,190 Industry Sectors $92,230 $101,760 $97,190 $115,310 2011 2016 $56,890 $62,420 This cluster s average annual wage was $140,770 in 2016, which was 125.5 percent higher than the state s total private sector s average annual wage of $62,420. All three of this cluster s components had 2016 wages that were significantly higher than the state s total average annual wage. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

PHARMACEUTICALS INDUSTRY TOP ANNUAL AVERAGE WAGE, 2016 Druggists' Goods Merchant Wholesalers Pharmaceutical Preparation Mfg. Toilet Preparation Mfg. Soap & Other Detergent Mfg. Pharmaceuticals Industry Annual average wages increased $12,721 (or +9.4%), from $134,720 $168,730 in 2011 to $147,440 in 2016. $56,970 $90,120 $156,410 $0 $50,000 $100,000 $150,000 $200,000 2016 Annual Average Wage Due to disclosure issues, medicinal and botanical mfg., surface active agent mfg., other biological product mfg., in vitro diagnostic substance mfg., and polish and sanitation good manufacturing are not included in the chart above. Increases in the industry sectors ranged from soap, cleaning, compound, toiletry and pharmaceutical manufacturing (+8.1%) to druggists goods merchants wholesalers (+14.7%) in annual average wages from 2011 to 2016 Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

BIOTECHNOLOGY INDUSTRY TOP ANNUAL AVERAGE WAGE, 2016 Research & Development In Biotechnology R & D In Physical, Engineering & Life Sciences Social Science/Humanities Research Diagnostic Imaging Centers Biotechnology (R&D) Annual average wages were $151,165 $226,270 in 2016, up +30.3 percent from $116,031 in 2011. Medical Laboratories $91,850 $69,830 $66,420 $168,050 $0 $100,000 $200,000 $300,000 2016 Annual Average Wage The industry sectors experienced increases ranged from medical & diagnostic laboratories (+0.8%) to scientific R&D services (+40.4) over the same 5 year period. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

MEDICAL DEVICES INDUSTRY TOP ANNUAL AVERAGE WAGE, 2016 Surgical and Medical Instrument Mfg. Surgical Appliance and Supplies Mfg. Analytical Laboratory Instruments Electricity & Signal Testing Instrument Mfg. Electromedical Apparatus Mfg. Irradiation Apparatus Mfg. Industrial Process Variable Instruments Automatic Environmental Control Mfg. Fluid Meters and Counting Devices Dental Laboratories Medical Devices Annual average wages $146,630 were $112,722 in 2016, up +16.2% from $125,850 $97,026 in 2011. $65,070 $55,300 $80,740 $71,940 $94,640 $92,960 $92,610 $86,490 $0 $40,000 $80,000 $120,000 $160,000 2016 Annual Average Wage Due to disclosure issues, search, detection & navigation instruments, other measuring & controlling devices, dental equipment & supplies mfg., and ophthalmic goods mfg. are not included in the chart above. Growth for the industry sectors ranged from +10.9% (electronic instrument manufacturing) to +18.6% (medical equipment and supplies manufacturing) over the 5 year period. Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

LIFE SCIENCES INDUSTRY CLUSTER: REGIONAL AND COUNTY ANALYSIS

EMPLOYMENT BY COUNTY, 2016 ANNUAL AVERAGES Annual Average Employment 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 16,850 14,960 13,360 11,580 10,390 5,970 4,720 4,080 3,140 In 2016, more than one third of Bergen County s employment was found in medical and diagnostic laboratories (5,720). 18.3 percent of the employment found in Morris County was in the druggists goods merchant wholesalers industry (2,740). 1,670 1,360 1,180 970 790 320 260 190 130 120 County Due to disclosure issues, Essex and Middlesex Counties are not included in the chart above. Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

LIFE SCIENCES ANNUAL AVERAGE WAGE BY REGION 5 YEAR TREND Annual Average Wage Life Sciences Annual Average Wage Trend $170,000 $158,340 $160,000 $152,860 $150,910 $150,000 $144,440 $140,000 $135,920 $130,000 $120,000 $129,540 $126,400 $129,820 $121,340 $118,990 $114,300 $110,000 $107,330 $100,000 $94,250 $93,690 $89,770 $85,720 $86,980 $90,000 $83,900 $80,000 2011 2012 2013 2014 2015 2016 Year Northern Region Central Region Southern Region Northern Region (Bergen, Essex, Hudson, Hunterdon, Morris, Passaic, Somerset, Sussex, Union, and Warren Counties) Annual average wage increased 16.5 percent from 2011 2016. Central Region (Mercer, Middlesex, Monmouth, and Ocean Counties) Annual average wage experienced a 21.0 percent growth over the five year period. Southern Region (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties) Smallest annual average wage increase over the period amongst the regions (+9.3%). Development, Quarterly Census of Employment and Wages, 2011-2016 Annual Averages

COUNTIES IN THE NORTHERN REGION The highlighted region to the left consists of Essex, Passaic, Morris, Somerset, Union, Hudson, and Bergen Counties. Establishments A majority of the Life Science industry related establishments can be found along major highways in NJ within a close proximity to New York, NY. Employment Represent more than half of the life sciences employment in New Jersey in 2016. Due to disclosure issues, Essex County life sciences employment is not included in the map to the left. Average Wage The average wage for these counties in life sciences related industries is comparatively above the statewide total average in this cluster ($151,290 vs. $140,770). Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

COUNTIES IN THE CENTRAL REGION The highlighted region to the left consists of Mercer, Middlesex, Monmouth, and Ocean Counties. Establishments These counties account for more than a quarter of all establishments in the life sciences industry cluster in New Jersey. Employment Employment for these five counties makes up nearly one third of employment in the life sciences industry cluster. Due to disclosure issues, Middlesex County life sciences employment is not included in the map to the left. Average Wage The average wage for these counties in life sciences related industries is relatively below the statewide total average in this cluster ($129,820 vs. $140,770). Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

COUNTIES IN THE SOUTHERN REGION The highlighted region to the left consists of Burlington, Camden, and Gloucester Counties. Establishments Having a close proximity to Philadelphia, PA these three counties account for eight percent of all life sciences industry establishments in New Jersey. Employment The three counties have slightly more than 9,040 employment. Average Wage The average wage for these counties in life sciences related industries is below the statewide total average in this cluster ($96,490 vs. $140,770). These counties also account for 5.0 percent of total life sciences annual average wages paid in 2016. Development, Quarterly Census of Employment and Wages, 2016 Annual Averages

LIFE SCIENCES INDUSTRY CLUSTER: OCCUPATIONAL ANALYSIS

TOP OCCUPATIONAL GROUPS, 2016 Occupational Title 2016 Employment 2016 Average Salary All Life Sciences Occupations 116,580 $81,210 Production 20,640 $41,570 Life, Physical, and Social Science 15,340 $100,430 Office and Administrative Support 14,930 $45,000 Management 13,450 $171,960 Business and Financial Operations 8,820 $86,440 Healthcare Practitioners and Technical 7,830 $68,210 Architecture and Engineering 7,730 $101,910 Computer and Mathematical 6,700 $105,420 Sales and Related 6,390 $92,110 Transportation and Material Moving 4,990 $33,210 Healthcare Support 4,770 $38,500 Installation, Maintenance, and Repair 2,360 $57,720 Life Sciences Industry Cluster Office and Administrative Support 12.9% Life, Physical, and Social Science 13.2% Production 17.8% Management 11.6% Other 12.4% Business and Financial Operations 7.6% Sales and Related 5.5% Healthcare Practitioners and Technical 6.7% Architecture and Engineering 6.7% Computer and Mathematical 5.8% Note: Due to disclosure issues, of the total 116,580 jobs identified, only 99.7% could be used for this occupational analysis. Development, Occupational Employment Statistics, May 2016

INDUSTRY CLUSTER TOP 20 OCCUPATIONS BY EMPLOYMENT, 2016 New Jersey Life Sciences Cluster's Top 20 Occupations NAICS and Occupational Title 2016 Employment Education 19 2031 Chemists 4,400 Bachelor's degree 51 9111 Packaging and Filling Machine Operators and Tenders 3,540 High school diploma or equivalent 31 9097 Phlebotomists 2,700 Postsecondary non degree award 41 4012 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 2,360 High school diploma or equivalent 11 9121 Natural Sciences Managers 2,330 Bachelor's degree 19 1021 Biochemists and Biophysicists 2,290 Doctoral or professional degree 19 4031 Chemical Technicians 2,190 Associate's degree 51 9061 Inspectors, Testers, Sorters, Samplers, and Weighers 2,080 High school diploma or equivalent 53 7064 Packers and Packagers, Hand 1,800 No formal educational credential 11 1021 General and Operations Managers 1,770 Bachelor's degree 29 2011 Medical and Clinical Laboratory Technologists 1,770 Bachelor's degree 43 4051 Customer Service Representatives 1,760 High school diploma or equivalent 51 1011 First Line Supervisors of Production and Operating Workers 1,660 High school diploma or equivalent 51 9011 Chemical Equipment Operators and Tenders 1,660 High school diploma or equivalent 51 9023 Mixing and Blending Machine Setters, Operators, and Tenders 1,580 High school diploma or equivalent 53 7062 Laborers and Freight, Stock, and Material Movers, Hand 1,470 No formal educational credential 51 2022 Electrical and Electronic Equipment Assemblers 1,320 High school diploma or equivalent 43 4171 Receptionists and Information Clerks 1,290 High school diploma or equivalent 43 6014 Secretaries and Administrative Assistants, Except Legal, Medical 1,220 High school diploma or equivalent 43 9061 Office Clerks, General 1,220 High school diploma or equivalent Development, Occupational Employment Statistics, May 2016

PHARMACEUTICAL COMPONENT, 2016 Life, Physical, and Office and Social Science Administrative 12.0% Support 13.5% Management 11.9% Sales and Related 9.1% An occupational analysis of 47,150 jobs revealed that five major occupational groups in this component accounted for nearly threefourths (71%) of the employment. Production 24.5% Other 9.6% Healthcare Practitioners and Technical 4.2% Business and Financial Operations 8.4% Transportation and Material Moving 6.8% Sales and related and transportation and material occupational groups are in the top seven components for the pharmaceuticals sub sector and not for the total industry cluster. Note: Due to disclosure issues, of the total 47,430 jobs identified, only 47,150 could be used for this occupational analysis. Development, Occupational Employment Statistics, May 2016

PHARMACEUTICAL S MAJOR OCCUPATIONAL GROUPS, 2016 Pharmaceutical & Medicine Manufacturing Business and Financial Operations 8% Office and Administrative Support 8% Manage ment 12% Other 16% Life, Physical, and Social Science 19% Production 37% Soap, Cleaning Compound, & Toilet Preparation Manufacturing Installation, Maintenance, and Repair 7% Management 7% Transpor tation and Material Moving 16% Other 18% Office and Administrative Support 16% Production 36% Drugs & Druggists' Sundries Merchant Wholesalers Business and Financial Operations 11% Healthca re Practitio ners and Technical 12% Management 14% Other 21% Sales and Related 22% Office and Administrative Support 20% In all three industry groups, office & administrative support workers account for a significant portion of the employment. A majority of occupations in pharmaceutical and medicine manufacturing and soap, cleaning compound, and toilet preparation manufacturing are production related while occupations in drugs & druggists sundries merchant wholesalers are sales and related occupations. Development, Occupational Employment Statistics, May 2016

TOP PHARMACEUTICAL OCCUPATIONS, 2016 3,500 3,000 Employment Average Salary $120,000 $100,000 Employment 2,500 2,000 1,500 1,000 $80,000 $60,000 $40,000 Average Salary 500 0 3,250 Packaging and Filling Machine Operators and Tenders 2,770 Chemists 2,040 Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 1,610 Chemical Equipment Operators and Tenders Occupation 1,550 Mixing and Blending Machine Setters, Operators, and Tenders 1,480 Inspectors, Testers, Sorters, Samplers, and Weighers 1,180 Laborers and Freight, Stock, and Material Movers, Hand $20,000 $0 Development, Occupational Employment Statistics, May 2016

BIOTECHNOLOGY (R&D) COMPONENT, 2016 Life, Physical, and Social Science 20.9% Management 12.8% Healthcare Practitioners and Technical 12.7% Other 9.8% Office and Administrative Support 12.2% Healthcare Support 10.5% Computer and Mathematical 9.4% Business and Financial Operations Architecture and 6.6% Engineering 5.1% An occupational analysis of 45,310 jobs revealed that five major occupational groups in this component accounted for more than two thirds (69.1%) of the employment. Life, physical, and social science occupations employed the most in this component with more than 9,490 jobs, and accounted for more than one fifth of the component. Note: Due to disclosure issues, of the total 45,390 jobs identified, only 45,310 could be used for this occupational analysis. Development, Occupational Employment Statistics, May 2016

BIOTECHNOLOGY (R&D) MAJOR OCCUPATIONAL GROUPS, 2016 Scientific Research & Development Services Medical and Diagnostic Laboratories Office and Administrative Support Architecture and 7% Engineering 8% Other 15% Office and Administrative Support 23% Other 12% Business and Financial Operations 9% Computer and Mathematical 13% Management 17% Life, Physical, and Social Science 31% Healthcare Support 31% Healthcare Practitioners and Technical 34% Biotech s occupational groups show that these industry groups utilize a significant portion of professional, scientific, and technical workers with in depth skills and knowledge related to science and healthcare. Nearly 90% of occupations found in the medical and diagnostic laboratories can be found in three major occupational groups: office and administrative support, healthcare support, and healthcare practitioners and technical. Development, Occupational Employment Statistics, May 2016

TOP BIOTECHNOLOGY (R&D) OCCUPATIONS, 2016 3,000 $240,000 Employment Average Salary 2,500 $190,000 2,000 Employment 1,500 1,000 $140,000 $90,000 Average Salary 500 $40,000 0 2,700 Phlebotomists 1,770 Medical and Clinical Laboratory Technologists 1,600 Chemists 1,470 Chemical Technicians Occupation 1,470 Natural Sciences Managers 1,170 Medical and Clinical Laboratory Technicians 1,160 Biochemists and Biophysicists $10,000 Development, Occupational Employment Statistics, May 2016

MEDICAL DEVICE COMPONENT, 2016 Production 34.1% Architecture and Engineering 19.1% Office and Administrative 12.7% An occupational analysis of 23,720 jobs revealed that five major occupational groups in this component accounted for nearly ninety percent of the employment (82.3%). Other 12.3% Management 8.6% Transportation and Material Moving 5.4% Business and Financial Operations 7.9% Production occupations employed the most in this component with 8,080 jobs, and accounted for more than one third of the component (34.1%). Note: Due to disclosure issues, of the total 23,760 jobs identified, only 23,720 could be used for this occupational analysis. Development, Occupational Employment Statistics, May 2016

MEDICAL DEVICES MAJOR OCCUPATIONAL GROUPS, 2016 Navigational, Measuring, Electromedical, & Control Instruments Manufacturing Medical Equipment and Supplies Manufacturing Management 9% Business and Financial Operations 10% Computer and Mathematical 6% Other 9% Management 9% Transportation and Material Moving 10% Architecture and Engineering 7% Other 15% Office and Administrative Support 11% Production 25% Architecture and Engineering 30% Office and Administrative Support 15% Production 44% While the percentages differ, the top four occupational groups reveal that these two industry groups both have a need for many of the same type of workers. Occupations found in the medical devices component are production and architecture and engineering based, but other occupational family groups that make up a significant percentage are office and administrative support, and business and financial operations. Development, Occupational Employment Statistics, May 2016

TOP MEDICAL DEVICE OCCUPATIONS, 2016 1,400 1,200 Employment Average Salary $60,000 $50,000 1,000 $40,000 Employment 800 600 400 $30,000 $20,000 Average Salary 200 $10,000 0 1,320 Electrical and Electronic Equipment Assemblers 680 Electromechanical Equipment Assemblers 670 Packers and Packagers, Hand 660 Dental Laboratory Technicians Occupation 640 Medical Appliance Technicians 610 Computer Controlled Machine Tool Operators, Metal and Plastic 600 Inspectors, Testers, Sorters, Samplers, and Weighers $0 Development, Occupational Employment Statistics, May 2016

LIFE SCIENCES INDUSTRY CLUSTER: 2015 DEMOGRAPHIC OVERVIEW

EDUCATION CHARACTERISTICS Bachelor's degree 32.2% Educational Breakdown It is often mentioned that life sciences related Master's/ Professional degree 23.5% Some college/ Associates degree 21.3% Doctoral degree 7.1% High School or less 15.9% employers require a welleducated and highly skilled workforce to meet the high level and technical demands of many of the occupations they need to fill. Nearly two thirds of New Jersey s workforce employed in this cluster hold at least a Bachelor s degree, many holding even more advanced degrees. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016

NJ RESIDENTS IN LIFE SCIENCES INDUSTRY CLUSTER WORKFORCE Life Sciences All Industries Female 52% Male 48% Female 47% Male 53% Females outnumber males by 4.8%. The life sciences workforce has a greater proportion of NJ residents who are Asian (19.6%). Other 5.9% Asian 19.6% Life Sciences White 63.6% Other 8.8% Asian 9.6% All Industries White 68.4% Hispanic 13% Life Sciences Non Hispanic 87% Hispanic 19% All Industries Non Hispanic 81% Black 10.9% Black 13.2% The life sciences workforce has fewer Hispanics than average. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016

LIFE SCIENCES INDUSTRY CLUSTER VS. TOTAL NONFARM Less than 25 25 34 35 44 45 54 55 64 Age Breakdown of Workers in Life Sciences and All Industries New Jersey, 2015 The workforce of the Life Sciences industry is older than average with slightly less than 50 percent aged 45 and up compared to only 47 percent overall. The largest disparity among age cohorts occurs in the 35 44 year old age group, where nearly 30 percent of the life sciences industry cluster is found. 65 & over 30.0% 20.0% 10.0% 0.0% 10.0% 20.0% 30.0% 4.4 percent of the current NJ resident life sciences workforce is aged 65 and older. Life Sciences All Industries Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016

NJ RESIDENTS PERSONAL EARNINGS Total Percent of Workers 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 16.3% 34.6% Personal Earnings 2015 Life Sciences All NJ industries 20.8% 23.5% 16.4% 16.8% 12.5% 9.5% 18.1% 9.0% 7.0% 3.0% 8.8% 3.6% Nearly two thirds of the worker (62.9%) in this cluster earned over $50,000, whereas 58.1% of all workers (in all industries combined) earned less than $50,000. The percentage of workers making $150,000 or greater is almost a 3:1 ratio in favor of this cluster. Source: U.S. Census Bureau, 2015 American Community Survey Prepared by: New Jersey Department of Labor and Workforce Development, December 2016

LIFE SCIENCES INDUSTRY CLUSTER: TOP OCCUPATIONS OUTLOOK

TOP LIFE SCIENCES OCCUPATIONS OUTLOOK ACROSS ALL INDUSTRIES Employment Average Annual Occupational Title Actual Projected Change 2014 2024 Job Openings 2014 2024 Number Percent Total Growth Replacement Phlebotomists 4,880 5,890 1,010 20.7 200 100 100 Laborers & Freight, Stock, & Material Movers, Hand 83,850 95,360 11,510 13.7 3,650 1,150 2,500 Medical & Clinical Laboratory Technologists 4,850 5,470 620 12.8 180 60 120 Biochemists & Biophysicists 3,700 4,130 430 11.6 140 40 100 Packers & Packagers, Hand 30,170 33,280 3,110 10.3 1,110 310 800 Customer Service Representatives 66,030 71,660 5,630 8.5 2,190 560 1,630 General & Operations Managers 47,200 51,150 3,960 8.4 1,590 400 1,200 Pharmacy Technicians 9,200 9,890 700 7.6 160 70 90 Natural Sciences Managers 4,090 4,390 310 7.5 120 30 90 Chemical Technicians 4,430 4,630 200 4.6 150 20 130 Packaging & Filling Machine Operators & Tenders 14,610 15,020 420 2.8 560 40 520 Sales Representatives, Wholesale & Manufacturing, Except Technical & Scientific Products 43,610 44,820 1,210 2.8 1,020 120 900 Secretaries & Administrative Assistants, Except Legal, Medical, and Executive 65,690 66,020 330 0.5 730 30 690 Chemists 5,520 5,540 20 0.3 120 0 120 Industrial Engineers 3,760 3,730 30 0.9 110 0 110 Inspectors, Testers, Sorters, Samplers, & Weighers 10,490 10,340 150 1.4 260 0 260 First Line Supervisors of Production & Operating Workers 13,850 13,440 400 2.9 220 0 220 Mixing & Blending Machine Setters, Operators, & Tenders 4,900 4,650 250 5.1 110 0 110 Chemical Equipment Operators & Tenders 3,040 2,700 340 11.3 100 0 100 Extruding, Forming, Pressing, & Compacting Machine Setters, Operators, & Tenders 3,830 3,370 460 12.0 140 0 140 Source: New Jersey Department of Labor and Workforce Development, 2014 2024 Industry and Occupational Employment Projections. Note: Total job openings may not add up exact due to rounding.

PROJECTED ANNUAL AVERAGE OPENINGS FOR TOP OCCUPATIONS 2014 2024 Projected Annual Average Job Openings Laborers & Freight, Stock, & Material Movers, Hand 1150 2500 3,650 Customer Service Representatives 560 1630 2,190 General & Operations Managers 400 1200 1,590 Packers & Packagers, Hand 310 800 1,110 Sales Representatives, Wholesale & Manufacturing, Except Technical & Scientific Products 120 900 1,020 Secretaries & Administrative Assistants, Except Legal, Medical, & Executive 30 690 730 Packaging & Filling Machine Operators & Tenders 40 520 560 Inspectors, Testers, Sorters, Samplers, & Weighers 0 260 260 0 500 1000 1500 2000 2500 3000 3500 4000 Growth Replacement Source: New Jersey Department of Labor and Workforce Development, 2014 2024 Industry and Occupational Employment Projections. Note: Total job openings may not add up exact due to rounding.

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CONTACT INFORMATION New Jersey Department of Labor & Workforce Development http://lwd.dol.state.nj.us/ P.O. Box 057 Trenton, NJ 08625 0057 Office of Research and Information http://lwd.dol.state.nj.us/labor/lpa/lmi_index.html Alex Ancianis Labor Market Analyst Tel: (609)984 9683 Email: Alex.Ancianis@dol.nj.gov