New Initiative to Strengthen NJ’s Defense Ecosystem

On Sep 3, 2025

The state has launched the Office of Strategic Defense Investment, which will support New Jersey’s defense industry by attracting new missions, safeguarding the competitiveness and sustainability of the state’s existing defense infrastructure, and fostering industry growth, Gov. Phil Murphy announced today.

Housed within the New Jersey Economic Development Authority (NJEDA), the Office of Strategic Defense Investment’s mission is to provide focused support, advocacy, and strategic planning for long-term growth for the defense industry, on par with the state’s other key industries.

“New Jersey’s defense sector is a cornerstone of our state’s economy and our nation’s security. With world-class military installations and a vibrant network of defense contractors, the Garden State plays a critical role in advancing cutting-edge military technology,” said Murphy. “We will continue working closely with our partners in government, industry, and the military to strengthen New Jersey’s defense ecosystem, keeping our communities safe and our economy strong.”

New Jersey’s defense ecosystem is vital to national security, innovation, research and development, manufacturing, and technological advancements. The state hosts major military installations such as Joint Base McGuire-Dix-Lakehurst (JBMDL), Picatinny Arsenal, Naval Weapons Station Earle (NWSE), and the 177th Fighter Wing, along with a strong network of defense contractors. Together, these assets play a crucial role in supporting the nation’s war-fighting capabilities.

The Office of Strategic Defense Investment will serve as New Jersey’s center of excellence and coordination hub for defense priorities, collaborating closely with the Governor’s Office, the Department of Military and Veterans Affairs (DMAVA), and leading defense stakeholders such as the Defense Enhancement Coalition (DEC), which supports Joint Base McGuire-Dix-Lakehurst and Naval Weapons Station Earle, and the Picatinny Enhancement Coalition (PEC), which advocates for Picatinny Arsenal.

“New Jersey is home to one of the nation’s most significant defense ecosystems, from three major military installations to thousands of defense contractors, employing more than 70,000 New Jerseyans and contributing billions of dollars to our state’s economy,” said NJEDA Chief of Staff and External Affairs Officer Emma Corrado, who will oversee the Office of Strategic Defense Investment. “This isn’t just about national security — it’s about jobs, innovation, and long-term economic competitiveness for communities across the Garden State.”

The defense sector is a significant employer in New Jersey, with more than 54,000 personnel working directly on the three major military bases, including more than 46,000 at JBMDL, 6,000 at Picatinny, and 1,500 at NWSE. An additional 22,000 New Jerseyans are employed as contractors or within the supply chain. These installations and contractors bring substantial federal investment to the state, with the Department of Defense (DoD) allocating approximately $9.4 billion to New Jersey in Fiscal Year 2023. This funding, which represents about 1.3 percent of the state’s Gross Domestic Product (GDP), includes $2 billion for salaries of active duty and civilian personnel, and over $7 billion in defense contracts awarded within the state.

Currently, New Jersey is home to roughly 7,091 defense contractors who collectively receive about $7.3 billion in DoD contracts. Of this, over $1.4 billion supports manufacturing and research and development across more than 1,700 New Jersey companies, underscoring the state’s critical role in advancing defense technologies.

“New Jersey’s citizenry and industry alike have always stood on the front line of national defense,” said Brigadier General Yvonne L. Mays, The Adjutant General of New Jersey and Commissioner of Military and Veterans Affairs. “We have it all: human talent, strategic location, and historic track record for excellence in critical requirements. New Jersey’s patriots set the conditions for success and victory.”

“Picatinny Arsenal has long been a center of excellence that is home to world-class research and development facilities, and a powerful economic engine that provides thousands of New Jerseyans with high-quality careers,” said Senator Anthony M. Bucco (R-25). “The creation of the Office of Strategic Defense Investment is an important step to solidify New Jersey’s role as a leader in our nation’s defense industry, protect our military assets, and continue to deliver cutting-edge technology to support the brave men and women who defend our nation.”

In July, Governor Murphy sent a letter to U.S. Secretary of Defense Pete Hegseth and U.S. Secretary of the Army Daniel Driscoll expressing his concerns regarding the Army’s proposed Transformation Initiative. The plan to restructure the Army’s acquisition enterprise by consolidating 12 Program Executive Offices (PEOs) into seven Capability Executive Offices (CEOs) could directly impact New Jersey’s Picatinny Arsenal.

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