I was honored to speak at the 22^nd annual New Hampshire Advanced Manufacturing and High Technology Summit Oct. 4. The N.H. Manufacturing Extension Partnership’s event coincides with National Manufacturing Day and October is National Manufacturing Month. The summit drew around 400 attendees, showing the commitment to growing New Hampshire’s manufacturing sector.

My message was that we are well positioned for continued growth given the strength of our regulatory climate and overall quality of life. However, the state faces significant challenges currently and on the horizon that must be addressed to achieve and sustain manufacturing growth and prosperity. Overcoming these challenges will require the full support and attention of policymakers.

The Business & Industry Association is New Hampshire’s statewide chamber of commerce, but we’re also the state affiliate of the National Association of Manufacturers. BIA’s 111-year history has always been aligned with manufacturing and always will be. Our organization got its start in 1913, when a group of manufacturers concerned about current legislation and government intervention and regulation, formed the New Hampshire Manufacturers’ Association.

According to the National Association of Manufacturers, New Hampshire manufacturers account for 10% of the state’s total output at more than $10 billion. New Hampshire Employment Security reports nearly 70,000 workers were employed in the manufacturing sector in 2022, 11.9% of private employment in the state. Only the health care and social assistance, and retail sectors employed more.

David Greer, retiring CEO of the Bedford-based Wire Belt Company of America, a BIA member, has long promoted the importance of manufacturing.

“I don’t understand how a country can be successful without making stuff. I just don’t see how that works,” said Greer, who will receive BIA’s Lifetime Achievement Award at our Annual Dinner and Awards Celebration, presented by Eversource, Oct. 23 in Manchester. “During COVID we saw all the supply issues, that all things are made in China. You have to make stuff. That’s where real economic growth comes from.”

Manufacturing drives productivity and innovation. It stimulates more economic activity than any other sector as the multiplier effect from turning raw materials or parts into finished goods is unrivaled. Developing business conditions that support expanded manufacturing will deliver new opportunities for Granite Staters and Americans.

As Val Zanchuk, president of Graphicast, a Jaffrey-based manufacturer and BIA member, tells me: “Manufacturing drives growth in the state. It’s one of the strongest sectors for salaries and benefits.”

New Hampshire is contributing to the U.S. manufacturing renaissance. BIA members are deploying innovative, high-tech production, advanced manufacturing and next-generation operations like the burgeoning bio-fabrication sector. However, challenges stand in the way of manufacturing reaching its full potential in New Hampshire. Two of the most pressing are our worker shortage and high energy costs.

The U.S. Chamber’s most recent worker shortage index shows New Hampshire has 28 available workers for every 100 open jobs, worst among the states. Increasing the need for solutions is the fact 27% of New Hampshire’s workforce is age 55 or older, the highest percentage among states.

BIA continues to unify business support for state policies and legislation that will build a bigger, better pipeline of future workers. Efforts include increasing New Hampshire’s supply of market-rate and affordable housing, fostering more collaboration between our K-12 and post-secondary education systems and businesses to better support workforce needs, and increasing access to quality, affordable childcare. Retaining more of our younger residents and attracting new working-age people is crucial.

As for energy costs, the numbers are daunting. U.S. Energy Information Administration statistics show New Hampshire’s electricity costs for industrial users this past June were 90% higher than the U.S. average. Such uncompetitive prices can keep manufacturers from expanding here, or worse, could cause some to relocate to less expensive regions of the country. New England’s industrial electricity costs overall are third highest in the nation behind the Pacific Contiguous and Pacific Noncontiguous regions.

It won’t be easy to bring regional costs down but that’s why BIA advocates for an all-energy-resources approach to achieve a cost-effective, resilient and diverse mix with a preference for market-based approaches and development of local sources. As part of that, BIA supports clear, consistent and balanced state energy infrastructure siting policies that make New Hampshire more attractive to new power generators.

Addressing manufacturers’ challenges will help the Granite State a whole. BIA will keep these issues at the forefront of the 2025 legislative session and solving the challenges are a key part of BIA’s vision to make New Hampshire the best state for business.

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