Listen to this articleThe basics:
- Bayway Complex generates $21.3B in statewide economic output
- Nearly $7B added to New Jersey’s Gross State Product in 2023
- Complex supports more than 12,000 jobs across multiple industries.
- NJBIA warns policy decisions will affect Bayway’s long-term viability.
A new economic impact analysis by the New Jersey Business & Industry Association and the New Jersey Institute of Technology finds that the Bayway Industrial Complex in Linden is one of the Garden State’s most significant economic engines. According to the report, the site generates $21.3 billion in statewide economic output. Additionally, it contributes nearly $7 billion to Gross State Product.
The study was conducted using NJIT‘s IMPLAN economic model for the year 2023. It shows the 1,300-acre complex supported more than 12,000 jobs, factoring in direct, indirect and induced employment.
The report evaluates the combined activity of five major companies located at Bayway:
Together, the businesses span refining, chemical manufacturing, power generation, fuels, logistics and environmental services. NJBIA says the findings underscore Bayway’s central role in New Jersey’s economy. The organization warns that future policy decisions will directly affect the site’s viability as well as the state’s fiscal health.
Stakeholders presented the findings during an event at the Complex Nov. 14 in Linden, featuring business leaders, lawmakers/government officials and others.
“While non-renewable energy sources and chemical manufacturing sometimes come under ideological attack in the state, what the Bayway Industrial Complex provides is absolutely essential to the state’s economic output, and an unmitigated driver of the regional and local economies,” said NJBIA President and CEO Michele Siekerka.
“As policy choices will directly influence the future trajectory of the Complex, it is imperative that our policymakers appreciate both the investment these companies make, their value and partnership within their immediate community, and the output they wholly provide to the state in terms of revenue and jobs and beyond the state in terms of energy and supply chain.”
According to the report, the Complex provides more than half of New Jersey’s refining capacity. It plays a critical role in the Northeast’s energy supply.
“Phillips 66 has been part of the fabric of the City of Linden and Union County, New Jersey, for more than 100 years,” said Bayway Refinery Vice President Don Susanen. “We are incredibly proud of the contributions our people and our products that have supported growth in our community and the state.”
Key report findings include:
- $21.3 billion in total statewide economic output in 2023
- Nearly $7 billion contributed to New Jersey’s Gross State Product — close to 1% of the entire state economy
- 12,091 jobs supported statewide, including 1,600 direct on-site jobs
- $1.2 billion in labor income generated
- $1.15 billion in total federal, state and local tax revenues — including $507 million for state and local governments
- $124 million in annual capital investment in facility upgrades and environmental technologies
- $4.8 billion in economic activity from supply-chain purchases and $3.2 billion from household spending
Central to the mission
U.S. Rep. Tom Kean Jr., R-7th District, stressed the Bayway Industrial Complex as a massive economic driver for the state and region.
“As we work to strengthen energy security, drive innovation, and expand economic opportunity, Bayway remains central to that mission,” said Kean. “I look forward to continuing to build on this progress to demonstrate that New Jersey can and will lead in creating a stronger, more secure energy future that lowers costs for families.”
Siekerka noted the economic and strategic significance of different industries within the Complex should not be understated.
“It is also important to recognize the extent of how the operations within the Complex connect international energy supply to local markets, all while providing jobs and wages to thousands of New Jerseyans,” Siekerka explained.
She said the NJBIA encourages policymakers not to seek out costly and disruptive burdens for job creators within the Complex.
“In addition to the employment, labor income, and revenues provided by its continued operations, the businesses within it have made investments in new technologies to ensure positive future economic and environmental outcomes,” said Siekerka.
