Black Americans in New Jersey represent more than 9% of construction businesses available for government contract work, but they received less than 1% of the dollars for construction projects with values that range from more than $65,000 to $5.71 million, according to a recently released study that could upend the state’s politics.

John E. Harmon Sr., the founder, president, and CEO of the African American Chamber of Commerce of New Jersey, sees a multitude of factors at work behind the statistics that hinder the ability of his constituents to maximize their full economic potential.

But in an interview, he made it clear that project labor agreements that essentially exclude nonunion companies from the bidding process figure prominently in the equation. Harmon cites figures from the N.J. Association of Builders and Contractors, a trade group representing nonunion construction companies, that show 98% of African American and Hispanic construction companies in New Jersey are nonunion.

“New Jersey, from a public policy perspective, is largely preferential to unions and the trades,” Harmon said. “We’re all paying taxes in the state, but it seems like only the unions get the preference and the reciprocity.”

Gov. Phil Murphy, a two-term Democrat elected in 2017, commissioned the disparity study, which examined public contracting opportunities for minority- and women-owned businesses during a 60-month period between July 2015 and June 2020. Murphy was elected with 94% of the black vote and reelected with roughly the same amount in 2021.

“We’re not just talking about the governor, but anyone on the Democratic side who is in office has to recognize black people contributing to them being there,” Harmon said.

So, with disparity figures suggesting that black voters are receiving a poor return on their investment in the Murphy administration, is a political shake-up in order?

“I think black people, and particularly black business owners, have always been open to a conversation with people who would respect them, respect their ability to provide value, and afford them an opportunity to compete with the best out there and to show that not only do we belong, but we want to contribute to the greatness of this state,” Harmon said.

Former President Donald Trump attracted about 100,000 people to his rally in Wildwood, New Jersey, earlier this month. On the campaign trail, the former and perhaps future Republican president frequently touts the economic gains black Americans experienced during his administration. Figures from the Labor Department show black unemployment fell to record lows during Trump’s time in office.

Although a Republican presidential candidate has not won New Jersey since George H.W. Bush in 1988, recent polls show Trump down just 7 percentage points to President Joe Biden. There is also the example of the most recent gubernatorial race in which Republican Jack Ciattarelli, a former assemblyman and businessman, nearly upset Murphy in 2021. Cittarelli has announced he will run again in 2025.

Harmon does credit Murphy for “moving without haste” to complete the study and for “being responsive” to feedback from him and other members of the state’s African American Chamber of Commerce. Harmon’s goal is for the administration and the chamber to press ahead with a list of recommendations for opening up contracting opportunities to black business owners by June.

“The numbers are unconscionable, they are abysmal, and they show a total disregard for the inclusion of people who represent about 14% of the state’s population,” Harmon said. He points out that the opportunity costs associated with lost business opportunities affect not just his membership, but the state as a whole.

The study estimates that since black Americans represent 9.19% of construction businesses while receiving just 0.14% of dollars allocated toward construction contracts in the $65,000 to $5.71 million range, they are losing out on about $209 million in potential business.

“This lack of inclusion affects everyone,” Harmon said. “But if black businesses are able to be part of the supply chain and provide value, then this improves the overall competitiveness of the state, and everyone wins.” 

Murphy’s Treasury Department was responsible for overseeing the disparity study, which pulled in more than 1.2 million records and 240,000 contracts from 60 contracting agencies, commissions, and state colleges and universities. Researchers examined records not just for black Americans, but for Asian Americans, Hispanic Americans, American Indians, Alaskan natives, Caucasian women, minority business enterprises, and female business enterprises.

In addition to construction, the study also examined professional services valued at more than $40,000 and up to $800,000 and goods and services valued at more than $40,000 up to $360,000. The research team found significant disparities for minorities and women across all sectors.

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For starters, Harmon would like to see project labor agreements and the political favoritism toward unions brought to heel. That could be a tall order since Murphy and other Jersey Democrats are on the receiving end of substantial contributions from unions that benefit from agreements.

“In essence, union contributions have more value than the black vote,” he said. “The union money will get people out on the street and get the signage and the commercials. But black people are going to the polls, and they’re not getting anything in return.”

Kevin Mooney (@KevinMooneyDC) is a contributor to the Washington Examiner’s Beltway Confidential blog. He is an investigative reporter in Washington, D.C., who writes for several national publications.