CONCORD — A strong manufacturing sector is critical to economic success and that’s particularly true in New Hampshire.

The multiplier effect of turning raw materials or parts into finished goods is unrivaled. From local jobs to research and development that drives innovation and increases productivity, manufacturing’s impact ripples throughout the economy.

The Business & Industry Association is the New Hampshire affiliate of the National Association of Manufacturers and statewide chamber of commerce. Manufacturing is the heart of the BIA, which was founded in 1913, when a group of manufacturers concerned about current legislation and government intervention and regulation of business, formed the New Hampshire Manufacturers’ Association.

The state Department of Business and Economic Affairs’ recent report shows the value and importance of advanced manufacturing in New Hampshire. The sector contributes $8.3 billion in Gross Regional Product to New Hampshire’s economy, 7.7% of the state’s total. More than 1,100 businesses employ over 42,000 people, 5.6% of the state’s total employment, and the sector is growing, adding over 1,000 jobs from 2017 to 2022. These are well-paying careers. Average annual earnings for an advanced manufacturing worker in New Hampshire are $111,728, while the average for all industries is $82,673.

What is advanced manufacturing exactly? Among the many definitions, I find the following to be the best: The use of innovative technologies to create new products, refine existing products, and perform production activities that improve the quality and process of manufacturing.

BEA reports three industry subgroups show particular strength in New Hampshire and have potential for job growth and additional economic activity. They are aerospace and defense; computer, communication and electronics manufacturing; and machinery manufacturing. A recent example is BAE Systems’ pending receipt of $35.5 million in awards from the U.S. Commerce Department that will allow the defense contractor to quadruple production in New Hampshire for key semiconductor chips used in F-35 fighter jets and commercial satellites.

New Hampshire’s burgeoning life sciences and biofabrication sectors are also reshaping the Granite State’s advanced manufacturing landscape. The ReGen Valley Tech Hub, centered in Manchester, aims to make New Hampshire a global leader in regenerative therapies to address chronic disease and organ failure. Led by the Advanced Regenerative Manufacturing Institute, the hub has received over $44 million in federal investment to further develop biofabrication therapies, invest in manufacturing and incubate tech startups to support continued advancements.

Manufacturing offers great jobs and careers today, and the life sciences and other advanced manufacturing sectors offer new generational opportunities. There are, however, challenges to overcome to fully take advantage of this opportunity and they will not come as a surprise. BEA reports New Hampshire’s advanced manufacturing growth is outpacing other New England states, but finding enough workers is holding some companies back. We need to build a workforce that allows manufacturing and affiliated industries to prosper. Retaining our younger residents and attracting new working-age people is critical.

BIA will continue to unify business support for state policies and legislation to build the pipeline of future workers. Efforts include increasing the supply of housing, fostering more collaboration between our K-12 and post-secondary education systems and businesses, and increasing access to quality, affordable childcare.

These goals, plus the need to lower New Hampshire’s energy costs, will not be achieved in a single legislative session. That’s why BIA is building partnerships with diverse stakeholders including BEA. It’s an essential component of our Blueprint N.H. 2030, a data-driven assessment of the competitiveness of New Hampshire’s business climate and long-range vision for the state economy. Blueprint N.H. 2030, which we will formally launch early next year, sets an aggressive timeline for addressing our top challenges because we understand the once-in-a-lifetime opportunity at hand and the time to act is now.

The 2025 legislative session starts next month. There is no silver bullet solution to our biggest challenges, so we must make steady progress through state policies and legislation. BIA, representing our 400-plus members and joined by our array of partners, will promote the vast economic benefits of creating a favorable business climate. Building on the foundation of New Hampshire’s advanced manufacturing sector will deliver the broadest prosperity our state has ever seen.

Michael Skelton is president and CEO of the Business & Industry Association. Visit BIAofNH.com.