Invest: South Jersey

South Jersey 2020 An in-depth review of the key issues facing the South Jersey region’s economy, featuring the exclusive insights of prominent industry leaders.

Contents: 5 Economy: 6 Economy in numbers

8 Rising up: South Jersey’s economy performed well in 2019. Business leaders are optimistic about the future, despite COVID-19

9 Interview: Phil Murphy, Governor, New Jersey

11 Interview: Steve Sweeney, Senate President, State of New Jersey

13 Interview: Marlene Asselta, President, Southern New Jersey Development Council

14 Interview: Marty Small, Mayor, Atlantic City

16 Market voices: South Jersey benefits Anthony Fanucci, Mayor, City of Vineland; Kristi Howell, President & CEO, Burlington County Regional Chamber of Commerce; Dawn Hunter, Executive Director, Greater Vineland Chamber of Commerce

20 I nterview: Christina Renna, President & CEO, Chamber of Commerce Southern New Jersey

35 Interview: Chris Gibson, President, Archer

21 Camden County: 22 Invest: Camden County: Improved credit ratings and business attraction showcase Camden County’s rise to South Jersey gem

23 Interview: Mark Clouse, President & CEO, Campbell Soup Company

27 Interview: Louis Cappelli, Freeholder Director, Camden County

31 Interview: Dana Redd, CEO, Rowan University/ Rutgers-Camden Board of Governors

33 Professional Services:

34 Changing times: The legal landscape is being reshaped by bigger firms and technology, even during COVID-19

38 Interview: Alan Zuckerman, Managing Shareholder & COO, Flaster Greenberg PC

40 Roundtable: Tax & Accounting Marty Abo, Managing/Founding Member, Abo and Company LLC; Carl Bagell, Managing Partner, Southern NJ Friedman LLP; Reynold Cicalese, Managing Shareholder, Alloy Silverstein; Jim Rogers, Managing Partner, Haefele Flanagan

43 Real Estate

& Construction:

44 Building growth: Despite unsettling times caused

by COVID-19, the real estate and construction markets remain on a steady footing

45 Interview: Dante Germano, Chief Operating Officer & Chief Financial Officer, Nexus Properties Inc.

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Contents:

59 Interview: Carl Ortell, CEO, Holman Enterprises

61 Interview: Andrew Saporito, Executive Director, South Jersey Port Corporation

64 Interview: Tim Kroll, Airport Director, Atlantic City International Airport

65 Interview: Stephen Dougherty, Executive Director, South Jersey Transportation Authority

69 Infrastructure & Utilities:

46 Interview: Rich St. Maur, Managing Partner, Coordinated Project Solutions, LLC 49 Market voices: Space needs Leor Hemo, Founder & Managing

of South Jersey’s infrastructure push 71 Interview: Mike Renna, President & CEO, SJI 72 Interview: Gary Stockbridge, Regional

Estate Services; Ian Richman,

President, Delmarva Power &

Senior Managing Director –

Atlantic City Electric

International; Charlie Walters, The Pureland Group; Jason Wolf, Managing Principal, Wolf

73 Interview: Jeffrey Gottlieb, CEO, ResinTech 75 Interview:

Commercial Real Estate (WCRE) |

Susan Story, President & CEO,

Corfac International

American Water

52 Interview: John O’Donnell, CEO, The Michaels Organization

Clean energy is at the forefront

Principal, Vantage Real

Southern New Jersey, Colliers

70 Energized:

54 Interview: Stephen Schoch, Managing Principal, Kitchen & Associates

77 Banking & Finance: 78 Competitive: M&A is dwindling the number of banks but a stronger market is emerging, although COVID-19 may slow it down

57 Transportation & Logistics:

58 Interlinked: Transportation, logistics and manufacturing are interlinked and

79 Interview: Vincent D’Alessandro, President Southern Region, OceanFirst Bank 80 Interview:

strength in all three are needed,

Ernest Huggard, President & CEO,

especially in the COVID-19 era

South Jersey Federal Credit Union

2 | Invest: South Jersey 2020 | CONTENTS

81 Interview: Robert Curley, South Jersey/ Coastal Market President, TD Bank

85 Market voices: Performance Phil Corradino, Senior Vice President & NJ Regional Director, WSFS Bank; Brian Jones, President & CEO, The First National Bank of Elmer; Joe Tredinnick, Market President, Republic Bank

88 Roundtable: Growth outlook Peter Dontas, Executive Vice President & Market Executive New Jersey Commercial Banking, Wells Fargo; Vito Pantillione, President & CEO, Parke Bank; George Robostello, Regional President, Fulton Bank 91 Interview: Arnold Johnson, Market Director – Banking, Chase Bank

Contents: 92 Roundtable: Wealth Management H.W. Buzzerd, Executive Director & Branch Manager, UBS Financial Services; Albert Fox, Senior Vice President & Executive Director, Fox, Penberthy & Dehn at Morgan Stanley; Robert Hoey, Executive Vice President Wealth Management, Janney Montgomery Scott LLC; Michael Pallozzi, President, HFM Investment Advisors, LLC

98 Interview: Kevin O’Dowd, Co-President & CEO, Cooper University Health Care

99 Interview: Anthony Mazzarelli, Co-President & CEO, Cooper University Health Care 101 Interview: Alexander Vaccaro, President, Rothman Orthopaedic Institute 102 Interview: Joe Devine, Executive Vice President & Chief Experience

95 Healthcare: 96 Top rank: South Jersey’s hospitals are among the best in the state, but the system faced an unprecedented challenge with

Officer, Jefferson Health 104 Interview: Anthony DiFabio, President & CEO, Acenda Integrated Health 106 Roundtable: Keeping Jersey Healthy

COVID-19

Mark Baiada, Founder and Chairman, BAYADA Home Health Care; John DiAngelo, President & CEO, Inspira Health; Mike Munoz, Market President, AmeriHealth New Jersey; Dennis Pullin, President & CEO, Virtua Health

111

Education:

119 Interview: Harvey Kesselman, President, Stockton University 120 Roundtable: Eds & Meds Thomas Cavalieri, Dean, Rowan University School of Osteopathic Medicine; Donna Nickitas, Dean & Professor, Rutgers University School of Nursing – Camden; Annette Reboli, Dean, Cooper Medical School of Rowan University 122 Interview: Frederick Keating, President, Rowan College of South Jersey

125 Tourism, Arts & Leisure: 126 Hotspot: With wineries and craft breweries, South Jersey is rising up the list for tourism visitors but COVID-19 could have a lasting impact 127 Interview: Michael Snyder, Director of Operations, Visit South Jersey 134 Roundtable: Hospitality matters Matthew Knol, General Manager, Holiday Inn – Cherry Hill; Ehab Mehany, General Manager, Crowne Plaza Philadelphia - Cherry Hill; Eustace Mita, Chairman & Founder, ICONA Resorts

112 Thinking ahead: STEM is a key focus for the region’s educational institutions, even as the onslaught of COVID-19 reshapes the landscape 113 Interview: Ali Houshmand, President, Rowan University 115 Interview: Phoebe Haddon, Chancellor, Rutgers University—Camden 116 Market voices: Community College Donald Borden, President, Camden County College; Michael Cioce, President, Rowan College at Burlington County; Barbara Gaba, President, Atlantic Cape Community College

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EDITORIAL NOTE

South Jersey 2020

From the publisher:

ISBN 978-0-9988966-1-8 President: Abby Melone Chief Financial Officer: Albert Lindenberg

Dear readers,

Regional Director: Jack Miller

By now, it is apparent that the COVID-19 pandemic that has raced around the globe from the beginning of January 2020, rupturing world markets, will have a lingering impact on our lives and businesses. At the time of printing Invest: South Jersey, countries around the world, including the United States, were deep into implementing measures to contain and mitigate the pandemic, beginning with social distancing efforts and other social curbs, and in some cases culminating in the imposition of national states of emergency. By the end of May, worldwide contagion numbers were falling and in the United States, the country was starting the process of reopening the economy.

As part of its measures, the United States, which became a focal point for the pandemic in March, unleashed a $2.2 trillion economic rescue package to help businesses big and small, as well as individuals, to cope with the dramatic economic fallout from the virus’ spread.

Many of the interviews in Invest: South Jersey were conducted prior to the pandemic’s outbreak, but we have endeavored to reflect recent events throughout our editorial. Those interviewees who were able to comment on the potential long-term impact agree that the U.S. economy remains resilient, and most are optimistic that any downturn will be relatively short-lived. The economy’s underlying strength, many business leaders believe, will drive greater growth over the long term.

Capital Analytics shares this optimism. Especially at this difficult time, Capital Analytics remains steadfast in our purpose: to deliver in-depth business intelligence through its print and digital platforms. Now more than ever, information is not only necessary, it is vital.

Senior Editor: Mario Di Simine Art Director: Nuno Caldeira Executive Director: Josh Greenberg Regional Editor: Max Crampton-Thomas Writers: Sean O’Toole; Sara Warden Contributing Writer: Felipe Rivas Editors: Tomas Sarmiento, Esteban Pages Editorial Assistant: Claudia Martinez Invest: South Jersey is published once a year by Capital Analytics Associates, LLC. For all editorial and advertising questions, please e-mail: contact@capitalaa.com To order a copy of Invest: South Jersey 2020, please e-mail: contact@capitalaa.com All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the express written consent of the publisher, Capital Analytics Associates, LLC. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication.

Capital Analytics Associates, LLC accepts no responsibility for the return of unsolicited manuscripts and/or photographs, and assumes no liability for products and services advertised herein.

Capital Analytics Associates, LLC reserves the right to edit, rewrite, or refuse material.

Sincerely, Abby Melone

Photo Credits: Front Cover: Camden County Contents: Pg. 1 – Visit South Jersey; City of Vineland Pg. 2 – Visit South Jersey; Visit South Jersey Pg. 3 – Camden County Economy: Pg. 5 – Visit South Jersey; Camden County Pg. 6 – Camden County Pg. 8 – Camden County Pg. 10 – Southern New Jersey Development Council Pg. 12 – Atlantic City Electric Pg. 14 – South Jersey Transit Authority Pg. 18 – Southern New Jersey Development Council Camden County: Pg. 21 – Visit South Jersey; Visit South Jersey Pg. 22 – Camden County Pg. 25 – Visit South Jersey

Pg. 26 – Visit South Jersey Pg. 28 – Visit South Jersey Pg. 30 – Camden County Pg. 32 – Visit South Jersey

Pg. 58 – South Jersey Transit Authority Pg. 63 – Crowley Pg. 64 – South Jersey Port Corporation Pg. 66 – Phoenix Strategies

Professional Services: Pg. 33 – Flaster Greenberg PC; Lauletta Birnbaum, LLC Pg. 34 – Camden County Pg. 42 – South Jersey Industries

Infrastructure & Utilities: Pg. 69 – American Water; PCH Technologies Pg. 70 – American Water Pg. 74 – South Jersey Industries

Real Estate: Pg. 43 – Camden County; Project Solutions Pg. 44 – Nexus Properties Pg. 46 – Kitchen and Associates Pg. 50 – Nexus Properties Pg. 53 – The Michaels Organization Pg. 54 – Kitchen and Associates

Banking & Finance: Pg. 77 – Camden County; OceanFirst Bank Pg. 78 – OceanFirst Bank Pg. 82 – Camden County Pg. 84 – Camden County Pg. 86 – South Jersey Industries Pg. 88 – Chase Bank Pg. 91 – Chase Bank

Transportation & Logistics: Pg. 57 – Phoenix Strategies; RLS logistics

Health: Pg. 95 – Inspira health; Inspira health

4 | Invest: South Jersey 2020 | CONTENTS

Pg. 96 – Camden County Pg. 98 – BAYADA Home Health Care Pg. 100 – Joint Health Sciences Center Pg. 103 – Jefferson Health Pg. 104 – Joint Health Sciences Center Pg. 108 – Rutgers School of Nursing-Camden Education: Pg. 111 – Stockton; Thomas Edison State University Pg. 112 – Rutgers University-Camden Pg. 114 – Rowan College of South Jersey Pg. 120 – Rutgers University-Camden Pg. 122 – Rowan College of South Jersey Tourism, Arts & Leisure: Pg. 125 – Visit South Jersey; Camden County Pg. 126 – Camden County Pg. 131 – Camden County Pg. 132 – City of Vineland Pg. 134 – Icona Resorts

Economy: South Jersey is a consistent economic performer and the region’s leaders are taking steps to ensure continued growth. While it faces hurdles, including the impact from the COVID-19 pandemic, the region is primed to take advantage of its strategic location to bolster its prospects and generate a bright future.

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Economy in numbers: Current and Future Company General Activity Index:

Current and Future Total Sales Index:

80

80 Current Company Activity

Future Company Activity

Current Total Sales

60

60

40

40

20

20

0

Future Total Sales

0 2016

2017

2018

2016

2019

2017

2019

2018

Note: The diffusion index is computaded as the percentage of respondents indicating an increase minus the percentage indicating a decrease; the data are seasonally adjusted.

Note: The diffusion index is computaded as the percentage of respondents indicating an increase minus the percentage indicating a decrease; the data are seasonally adjusted.

Source: South Jersey Business Survey

Source: South Jersey Business Survey

Current and Future Employees Index:

Current Prices Paid and Prices Received Index: 80

80 Current Employees

Future Employees

Prices Received

60

60

40

40

20

20

Prices Paid

0

0 2016

2017

2018

2019

2016

2017

2018

2019

Note: The diffusion index is computaded as the percentage of respondents indicating an increase minus the percentage indicating a decrease; the data are seasonally adjusted.

Note: The diffusion index is computaded as the percentage of respondents indicating an increase minus the percentage indicating a decrease; the data are seasonally adjusted.

Source: South Jersey Business Survey

Source: South Jersey Business Survey

South Jersey Business Survey, First Quarter 2020 Special Questions: COVID-19 Effects: Question 1: Are you planning or have you implemented a partial or total shutdown of your business until conditions improve?

100% Partial temporary shutdown 90% Total temporary shutdown 80% Partial permanent shutdown 70% Total permanent shutdown 60% 50% 40% 30% 20% 10% 0%

Have already done so Number of Responses: 94

Definitely planning on doing so Data collected Mar 30 — Apr 6, 2020

6 | Invest: South Jersey 2020 | ECONOMY

Will possibly do so

Will not do so

No response

Source: South Jersey Business Survey

Unemployment rates for South Jersey and the United States:

Average weekly wages by county:

$1,100 – $1,249

4.4

$949 or below

United States 4.0

4.7

Camden division

Burlington

4.4

5.1

Camden County

Gloucester

4.8

Camden

Salem Atlantic

4.2

Burlington County

3.9

Cumberland

4.7

Gloucester County

Cape May

4.6 0.0

2.0 Jan-19

4.0

6.0

Jan-20

Source: U.S. BLS, Local Area Unemployment Statistics

Source: U.S. Bureau of Labor Statistics

Over-the -year changes in employment on nonfarm payrolls and employment by major industry sector Camden Division

United States Camden division employment (number in thousands)

3.5 3.0

Total non farm

2.5 2.0

Change from Jan. 2019 to Jan. 2020

Jan. 2020

Number

Percent

538.0

4.2

0.8

Mining, logging and construction

21.5

-0.5

-2.3

Manufacturing

40.3

0.9

2.3

124.9

-0.6

-0.5

6.4

-0.4

-5.9

Financial services

28.2

-0.7

-2.4

Professional and business services

75.2

3.4

4.7

100.0

1.1

1.1

Leisure and hospitality

45.7

-1.8

-3.8

Other services

19.1

0.4

2.1

Government

76.7

2.4

3.2

Trade, transportation and utilities 1.5 Information 1.0 0.5

Education and health services

0.0 -0.5 -1.0

Jan-17

Jan-18

Jan-19

Jan-20

Source: U.S. BLS, Current Employement Statistics

Source: U.S. BLS, Current Employement Statistics

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Rising up: South Jersey’s economy performed well in 2019. Business leaders are optimistic about the future, despite COVID-19 South Jersey’s location and history have helped to make it a consistent economic performer, but the present and future are characterized by extraordinary action and the hope of even greater success. Surrounded by some of the nation’s most formidable business and financial centers, the region has faced hurdles but remains an attractive place to live, do business, or both.

Always known for its manufacturing, the segment continues to thrive in South Jersey cities like Logan Township, while South Jersey Port Corp., the company that runs the region’s bustling ports, is responsible for attracting and facilitating a tremendous amount of foreign trade through the region. In recent years, the state’s economy has performed well and many new jobs have been created. For its part, South Jersey is tapping into that to diversify its regional economy, and all signs point to continued success.

Growth and consumer protection-oriented policies emerge from the state legislature and the governor’s office every year. These policies are designed to help the region continue to thrive economically. There are challenges, however. These include mounting global economic hurdles and complex demographic shifts throughout the state and region and a tax environment 8 | Invest: South Jersey 2020 | ECONOMY

that many businesses say is not as friendly as in some other states, hampering business attraction. The fallout from the COVID-19 outbreak and resulting global and local restrictions that took flight in March 2020 is another unknown that is provoking uncertainty and will impact the South Jersey economy.

Geographic location South Jersey, as its name suggests, is a peninsular region comprising the southern portion of the state of New Jersey, with the Atlantic Ocean to its southeast, the Delaware Bay to the southwest, and the lower Delaware River to the northwest. South Jersey’s topography is characterized as a coastal plain (the Atlantic Coastal Plain, specifically), consisting of broad plains and gently sloping hills. The fertile soil of this region helped New Jersey to earn its nickname of the Garden State.

The region itself is not an official political subdivision of New Jersey, but is rather a colloquially defined area based on cultural differences between the southern and northern halves of the state. Perhaps one of the key differences is the fact that South Jersey is generally considered to be part of the Philadelphia Metro Area, whereas the northern portion of New Jersey is more ( )

ECONOMY INTERVIEW

Innovation state The innovation economy will play a key role in regional development, and South Jersey is a prominent player in that effort

Phil Murphy Governor – New Jersey How has your focus on the innovation economy been reflected in South Jersey’s economic development?

We believe we are the state of innovation, and we have numerous initiatives in that space. We have a roadmap for a 100% clean energy New Jersey by the end of 2050, and South Jersey’s clean energy economy has a key role in that plan. A big piece of that project is offshore wind, which is nearly exclusively impacting South Jersey and driving job opportunities to the region.

The New Jersey Economic Development Authority (NJEDA) has created the “innovation challenge” initiative, which awarded 14 projects with $100,000 each to support the local innovation economy. Five of the 14 winners were located in South Jersey, across Camden County, Atlantic City, Atlantic County, Cape May County and the city of Bridgeton. We also offer the “NJ Ignite” program that helps entrepreneurs by providing rent support grants, allowing them to have more capital available for research and development.

The program also provides collaborative workspaces with a new tenant attraction tool. The NJEDA programs are all over the state and South Jersey is punching at its weight.

How will efforts like the Offshore Wind Economic Development Act and your Energy Master Plan help position the state as a leader in clean energy?

We are as exposed as any other state to climate change. We are aggressively getting ahead of the sea level and climate change effects. The offshore wind project is not the only measure, but it’s a big one.

With our plan to have 7,500 megawatts of offshore wind-generated electricity by 2035, New Jersey will be among the American leaders in offshore wind.

We want to do whatever we can to get the supply chain built here. Nuclear plants are an important noncarbon-emitting bridge in our transition to

offshore wind, solar energy and other renewable sources of energy.

What do you want to say to business owners and new companies looking for a home to establish?

We are conscious of the fact that we are not the lower cost state, like many other Northeast states. We are working with the legislature to pass a new generation of capped and targeted tax incentive programs for businesses, with a focus on innovative, high-growth sectors and world-class communities. These will be targeting the innovation economy that we are looking to build as opposed to the legacy economy of the past.

We also are making sure that our families and businesses are receiving quality services and programs in return. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

( ) closely associated with New York City. South Jersey Counties like Burlington, Camden, and Gloucester clearly represent this association with Philadelphia by the way that many of their residents commute into Philadelphia for work. New Castle County, Delaware, is another nearby region that pulls in New Jersey commuters, mostly from Salem and Cumberland counties. Atlantic County, chiefly Atlantic City, and Cape May both capitalize on their proximity to the Atlantic Ocean and pull in a healthy stream of tourist revenue. The region’s location also makes it perfect for businesses, with growing interest in areas like Burlington Township. “We have become a popular destination for people seeking to do business in the region because of our location. We sit along the Delaware River, just north of Philadelphia, with several major roadways nearby, US-130, Rd 541, I-295 and two exits in the New Jersey Turnpike. This has made us a popular location to do business. We’ve had particular interest from those in the warehousing and trucking business, due to our location and the growth in e-commerce, which resulted in the slow deterioration of the market for brick and mortar stores,” said Burlington Township Mayor Brian Carlin.

History Following the American Revolution, South Jersey arose as a powerful agricultural hub, but also played an instrumental role in the advent of American industry.

South Jersey was home to prominent glass and iron factories, coal refineries, shipbuilders and textile mills, many dating back to decades before the Revolution.

One of the industries that did not thrive in South Jersey was the slave trade, thanks in large part to

10 | Invest: South Jersey 2020 | ECONOMY

Between December 2018 and December 2019, employers in the state added 39,000 new employees to their payrolls.

the Quakers’ abhorrence to the practice (as in the neighboring commonwealth of Pennsylvania, South Jersey had a large Quaker population), leading to a much smaller slave population compared to even the rest of New Jersey, and making South Jersey a haven for former and escaped slaves. ( )

ECONOMY INTERVIEW

Rebuilding A wealth of affordable land, and innovative approaches to education are among the state’s strengths

Steve Sweeney Senate President – State of New Jersey

What are some unique advantages of the New Jersey region that the state can use to boost investment?

We have a lot of land. There are communities like Camden that are in a position to be repurposed and rebuilt and areas outside Rowan University that we want to repurpose. We just built a $400 million hospital and cancer center there. Our land is affordable, so having the right workforce and cost structure will help us improve on par with our peers.

How do initiatives like Rowan College’s 3 + 1 education program help improve the competitiveness of New Jersey’s higher education institutions?

The 3 + 1 program allows students to attend community colleges for three years, and in the fourth year go to university. At the end of the program they will obtain a four-year Bachelor’s degree for less than $30,000.

Young people are accruing so much debt now because they’re in school for so long, and they wind up with so much debt that it just weighs them down. Now William Paterson University will also adopt 3 + 1, because people are starting to see this really aids affordability.

How prepared is New Jersey to weather a potential economic recession?

I have been trying to draw attention to this issue for years; we are in trouble. When we did the Path to Progress report, we estimated that by 2023, we’d have a $3.5 billion deficit, without a recession, and we know a recession has to come. Hopefully it’s not a steep one, it’s simply a correction, but we need to address these issues. Our pension system was $11 billion in the red in 1995 and last year this was up to $115 billion. Our retiree health costs are $100 billion in deficit. These are huge numbers and the problem cannot be fixed just by pouring money into it.

What is your outlook for New Jersey in the next few years?

In the long term, I see Camden as a city similar to Jersey City, where people will want to be there because it’s affordable. I believe Rowan will continue to grow and attract industries. In particular, we are looking to attract startups and tech companies into the region. But a big contributing factor to growth is infrastructure. In the northern part of the state, it is gridlocked, whereas road improvements by 2024 will help in the southern part of Jersey. The Camden-Gloucester light rail service will really aid with connectivity. www.capitalanalyticsassociates.com

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ECONOMY OVERVIEW

( ) Manufacturing continued to boom in South Jersey towns along the Delaware River as America entered the 20th century, but as the century wore on these cities began to suffer a gradual decline as improved infrastructure and transportation technology precipitated an exodus to the suburbs. In fact, the archetypal suburb, known today as Willingboro, was built and opened in 1951 by William Levitt and influenced suburban development across the country.

Demographic shifts Overall, New Jersey’s population growth seems to be slowing down, owing to a sluggish recovery from the Great Recession. However, this statewide picture doesn’t tell the whole story, as individual counties and the cities within them each experience their own demographic shifts. In general, denser urban areas are experiencing a renaissance spurred by a reversal of decades of flight to the suburbs, meaning a corresponding decline of population in more rural areas.

Burlington has roughly followed this trend, with cities – particularly those along the River Line light rail – experiencing the most growth in the county, while more inland and rural communities experienced population declines. Largely rural Salem County also saw a population decline, owing largely to a lack of access to public transportation. Camden serves as a bit of an outlier, enduring the brunt of the opioid epidemic in New Jersey on top of decades of decline in its namesake urban center, it has failed to achieve the same kind of urban resurgence as elsewhere; however, there are promising signs of urban renewal, particularly as the city’s eds and meds corridor takes off. Gloucester enjoyed population growth above the state average,

New Jersey’s population growth has been modest over the course of the past decade, with a 3.6% overall increase in population.

CONSTRUCTION ECONOMY OVERVIEW

Marlene Asselta President Southern New Jersey Development Council

What is a key 2019 highlight for the council?

The SNJDC is essentially the on-the-ground presence that encourages investment in the eight counties of Southern New Jersey and advocates for businesses in the region with the state government. One of our recent accomplishments was advocating for Orsted’s application for the offshore wind farm project.

Offshore wind is a major component of Gov. Murphy’s Energy Master Plan. The coast of New Jersey is one of the most favorable sites for these projects with ample wind, a relatively wide and shallow shelf for the installation and a region that is ready to welcome this new industry with open arms. South Jersey is poised to become the offshore wind capital of the United States.

and Cumberland County mostly broke even. The Jersey Shore has also seen a marked dip in permanent population as residents move out in the wake of natural disasters like 2012’s Hurricane Sandy, and as economic concerns prompt the sale of permanent coastal homes to individuals seeking vacation homes, which are not counted on the census. Atlantic County in South Jersey has certainly felt the impact of these shifts away from the coast, with Atlantic City experiencing slower growth than past years, while Egg Harbor and Hamilton experienced enhanced growth. Cape May experienced similar decline throughout its coastal cities that was not quite made up for by inland growth.

Economic performance The economy of South Jersey performed very well in 2019, and this success has endowed many experts and

What other projects are you advocating for?

The Direct Connect project to provide a modern interchange between I-295, I-76 and Route 42 is a $900 million project consisting of perhaps the largest and most congested interchange in southern New Jersey. We are monitoring its progress and providing assistance to ensure it’s completion. Richwood Village is a 1-million square-foot mixed-use community in Mullica Hill, adjacent to routes 55 & 322 in Gloucester County. We are working with the developer to help them negotiate issues surrounding the water and sewer infrastructure. The NJ Board of Public Utilities asked Atlantic City Electric to upgrade their electric hub to better serve Washington Township and surrounding areas in Gloucester County, as well as bordering Camden and Atlantic counties. The SNJDC is working with these entities to ensure the project is completed in the best interests of the community.

What is your outlook for the region?

Given the COVID-19 pandemic, the outlook for the New Jersey economy is hard to predict. We are communicating with our members, answering questions and concerns and providing up to the minute information. www.capitalanalyticsassociates.com

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Marty Small Mayor Atlantic City

What are your main areas of focus as Atlantic City’s new mayor?

My No. 1 priority is the taxpayers. We want to generate more revenue streams for the state of New Jersey. Our constituents went through an unfortunate tax increase in 2018 and in 2019 capital flowed outward from Atlantic City to the tune of $154.5 million. The city gets no income from the parking, hotel and luxury tax. Our residents need another source of revenue to offset tax payments.

local business leaders with a cautious optimism for the region’s prospects in 2020. Barring the potential economic fallout from the global COVID-19 pandemic, there do not appear to be signs of the much heralded next recession arriving in 2020.

Many South Jersey businesses have been experiencing healthy growth over the last few years, and while the rate of growth may slow somewhat throughout 2020, there are no signs at present that it will stop or reverse.

However, the beating that the stock market has endured in the wake of the COVID-19 outbreak may create a bit of a disruption, and the outcome of this year’s presidential election will also likely impact the overall economy, which will be felt in South Jersey.

More locally, the South Jersey economy will likely be affected by the state government’s new millionaire’s tax, the $15 minimum wage, in effect by 2024, and the

What initiatives do you have in place to bolster safety on Atlantic Avenue?

Atlantic Ave was our primary business hub prior to The Walk or any other shopping centers in Atlantic City. If you needed anything, you got it from Altantic Ave: clothes, furniture, home appliances, you name it. Lately, it has become a less attractive destination, which has hurt businesses located there. We came up with a task force together with the chief of police to deal with the prevalent climate of Atlantic Ave. It is making a major difference. We are going to take the success of that program and springboard it into other troubled neighborhoods that require us to be more proactive than reactive. The program is poised to instill investor confidence as we are changing the way our people view our city and how we do business.

What specific businesses are you looking to develop?

We want to diversify our offerings. One of the things we do not market well enough is our restaurants, for instance. The results are always encouraging during Restaurant Week, but Atlantic City has a bevy of tremendous fine dining options. Our amenities only strengthen this appeal, such as the beach and the boardwalk. Exciting developments are beginning to materialize and add to these efforts, such as the Atlantic Club. Investor confidence is high. People are still bullish on Atlantic City.

14 | Invest: South Jersey 2020 | ECONOMY

Just 11.7% of the population in New Jersey reported using public transport in 2018.

ECONOMY OVERVIEW

Timothy Guim President & CEO – PCH Technologies Our largest growth area is cybersecurity and adding additional services to our existing clients. We mostly specialize in serving companies in the financial, hospitality, construction and manufacturing industries. Cybersecurity is very important for small businesses because they can be more of a target than other businesses.

We do a lot of work in cybersecurity to make sure our companies are compliant with the laws, but we also do things smartly and adjust to our clients needs and budget. We are constantly educating ourselves and participating in a multitude of conferences to help explore and offer the best solutions for clients.

new Paid Sick Leave Act, all of which could potentially have adverse impacts on some businesses’ bottom lines.

COVID-19 will also leave a lasting impact on many industries as the economic climate unfolds for the rest of 2020. These include microbreweries, restaurants, residential real estate, and large chains like Wawa.

Traditional retail also will likely continue to struggle as the population increasingly relies on e-commerce for more of its purchases.

In fact, the Federal Reserve Bank of Philadelphia’s South Jersey Business Survey for the final quarter of 2019 showed the region’s economy continued to expand during the period. The survey’s indicators for “activity, sales, and employment remained positive for the quarter. Nearly all of the survey’s six-month forecast indicators improved from their readings in the third quarter.”

Employment New Jersey enjoyed a banner year for employment in 2019. Between December 2018 and December 2019, employers in the state added 39,000 new employees to their payrolls, resulting in a nonfarm employment total of 4,218,100. All of the gains were in the private sector (41,400 employees), as the public sector actually contracted by 2,400 employees. This makes 2019 the 10th consecutive year of private sector job growth in New Jersey since the post-Great Recession low point of 2010. The industries that contributed to this growth were Leisure and Hospitality (+24,300); Education & Health Services (+8,400); Other Services (+4,700); Manufacturing (+3,700); Professional & Business Services (+2,200); Construction (+1,400); and Trade, Transportation, and Utilities (+1,300). The Financial ( ) www.capitalanalyticsassociates.com

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Market voices: South Jersey benefits

Anthony Fanucci Mayor City of Vineland

The food processing and agriculture industries are tremendous here compared with other places in the state. We are the largest city in New Jersey by land mass and we have a lot of greenery. The opportunities for getting into the produce business, whether by farming land or becoming a broker, are phenomenal. We have many large food processing plants that produce and package almost every food item imaginable, in addition to over 40 million cubic feet of cold storage capacity. That segment, along with scientific glass, other light manufacturing, and third-party logistics are driving the growth of our economy.

Burlington County has unique offerings, including farmland, open space and accessibility to major highways and connectors. Our transportation infrastructure is our main differentiator, offering access to urban communities and cities such as Philadelphia in just minutes. The chamber works very closely with our freeholders and economic development department to make sure that we are attracting new businesses to the county and our membership base. We also work with education and training to support the viability of businesses that are here, which also helps attract other businesses.

Dawn Hunter

Executive Director Greater Vineland Chamber of Commerce

Kristi Howell

President & CEO Burlington County Regional Chamber of Commerce

We are the largest chamber in the county, with an average of 500 yearly members from all over the area, not just Vineland businesses: Philadelphia, Delaware, Ocean County, Cape May County, to name a few. We open our doors to anyone that wants to do business in the region. We enjoy a great relationship with all of our elected officials, whether it is at the city, county, state or federal level. We are fully bipartisan and work with whoever is elected, focusing on the issues. We have a strong advocacy group, called the Advocacy Group of Cumberland County. We meet on a monthly basis to discuss legislative issues and business-related matters to make sure we communicate those out, acting as the voice of these businesses.

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ECONOMY OVERVIEW

( ) Activities and Information sectors actually contracted by 2,100 and 2,500 jobs, respectively.

This job growth occurred alongside a slight growth in the state’s unemployment rate. In November 2019, the unemployment rate stood at 3.7% where it held steady through December 2019 before increasing to 3.8% in January 2020. This is 0.2% above the national average of 3.6% as of January 2020, but is probably inflated somewhat by the return of workers to the labor market in search of new jobs.

Government State and local governments in New Jersey are busy enacting a slew of laws and policies with an economic(focus. Of course, anything that happens at the state level will impact South Jersey. First, there is the proposed “millionaire’s tax” being championed by Gov. Phil Murphy. Murphy predicts that the tax would raise $494 million for the state’s $40.9 billion spending plan for the 2020-2021 fiscal year, and would also help to alleviate citizens’ tax burden, support education and fund New Jersey Transit and the state pension system.

New Jersey already imposes a higher marginal tax rate on incomes of more than $5 million, but under the new plan, the tax rate on incomes of more than $1 million would increase from 8.97% to 10.75%. The hope is that this will not only more equitably distribute the tax burden while generating revenue for the state, but will also lessen New Jersey’s notoriously high property tax burden on property owners.

Paired with this increased tax burden on the wealthy is a proposed increase to the tax credit afforded to New Jersey’s poorest. Murphy has proposed that the Earned Income Tax Credit (EITC), a statewide incentive

Proposed ‘millionaire’s tax’ is expected to raise $494 million toward state spending plan hailed as a means of lifting thousands out of poverty in New Jersey, be expanded to lower the eligibility age from 25 years to 21 years old, adding approximately 60,000 eligible participants. The EITC entitles eligible taxpayers to a refundable tax credit, and is available to anyone with an income from $15,270 (individual) to $55,952 (married with at least three children). The EITC is said to free up more of lower income citizens’ income to be used for things they need.

Another set of state-level bills that will have a significant impact on the economy in South Jersey are the six aimed at employers that traditionally rely on independent contractors, which are set to go into effect on a staggered schedule in 2020. The new laws will require all employers in New Jersey to post employee classification rules in the workplace, and will increase the penalty for employee misclassification, including empowering state agencies to issue stop-work orders for noncompliant companies and making such companies

ECONOMY OVERVIEW

social and economic impacts, while opponents, including companies and even independent contractors themselves, worry that the laws will undermine the flexibility and independence that makes being an independent contractor affordable for companies and enjoyable for workers in the first place.

There are also important local initiatives in South Jersey that would stoke economies within the region.

For example, Camden will soon christen a Business Improvement District where there will be a heavy focus on street cleaning, graffiti removal, snow removal, landscaping, marketing, and management of public spaces – all managed by a single organization. The district would be funded by a tax on businesses within its boundaries, but schools, churches, and residential properties within its borders would be excused from the tax, as would charitable properties with a net value of less than $10 million. The hope is that the district’s services will lead to a general improvement and beautification of the area that will encourage more business and an overall revitalization.

97% of graduates from Rutgers University-Camden have a job or are in graduate school within six months of graduation.

jointly liable for underpayment of taxes by employees in the event of misclassification. The state can also make a public declaration of companies violating the new rules.

Like a similar (but much more strict) law passed recently in California, the New Jersey laws have sparked controversy. Proponents note that employee misclassification is a significant issue with far-reaching

Global factors Shifts in the global economy send out ripples that impact most, if not all, cities and regions in America, and South Jersey is no exception. If anything, South Jersey may be even more sensitive, given its strategic location right next to Philadelphia and close to New York and Washington, D.C., as well as its busy ports. That’s why there is some cause for caution in South Jersey in light of experts’ warnings of a potential recession. Although it doesn’t look like an all-out recession will be striking in 2020, the U.S. economy’s growth is showing clear signs

Charles Muracco CEO and Principal Consultant – CLM Advisors

Our biggest challenge has been trying to recruit from among traditional CPAs. CPAs have been conditioned to think historically, and we’ve flipped the traditional model, using the historical information to look forward. We need professionals who have the discipline to dive deep into the numbers. Traditional CPAs are the best at that. It has been a real challenge to get these professionals to understand our business model. As a result, we have been developing our model mostly with younger professionals. In South Jersey, the biggest challenge is the labor pool. Younger professionals are leaving the state, and we need to find a way to retain them and attract more talent to the region.

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ECONOMY OVERVIEW

of slowing, slipping from 3.1% growth at the beginning of 2019 to end the year at 2.1%.

Another global event that is sure to impact South Jersey’s economy is Brexit. As of Jan. 31, 2020, the United Kingdom is officially no longer a member state of the European Union, which precipitated an immediate dip in the value of the pound, and is anticipated to impact trade with the island nation. This will certainly be felt in South Jersey, given that the U.K. accounts for 7.1% of the region’s total export trade in 2019. A weakened pound could result in a reduction in these exports from South Jersey along with those from other regions.

The still developing coronavirus crisis also poses a threat to international trade, as the governments of countries around the world take drastic measures to impede the spread and contain the impact of the highly contagious virus, including telling businesses to cease operations and for workers to remain at home, prohibiting large gatherings at recreational and entertainment venues, and restricting international travel.

At the time of this writing, the situation is still developing, and there is no telling what the long-term economic impact of the virus will be, but the U.S. stock market is already showing signs of considerable shock and has suffered massive losses despite extraordinary efforts by the Federal Reserve to stem the tide.

International business South Jersey is a hub of international trade thanks to its strategic location and thriving port; however, on top of these natural advantages, a great deal of work goes into making South Jersey the trading powerhouse that it is. For example, Gov. Murphy’s sweeping economic reforms helped to facilitate the creation of the Office

of International Trade and Investment (OITI), which partners with government agencies and private companies to promote New Jersey internationally as a business and investment destination by highlighting assets like the South Jersey Port. Broadly, OITI also develops New Jersey’s Foreign Direct Investment attraction strategies, interfaces with foreign diplomats and business representatives within New Jersey and in neighboring states, coordinates international trade missions to and from New Jersey, and coordinates overseas promotion centers to pitch New Jersey. OITI’s efforts have helped to make New Jersey one of the top states in America for international trade and foreign direct investment: it is home to more than 20,000 exporters and trades with 200 countries around the world.

A good deal of the business generated by OITI in the South Jersey area ends up going through a facility operated by South Jersey Port Corp. (SJPC), the corporation that manages the region’s bustling ports. SJPC is undergoing a period of positive change, including welcoming a new executive director and chief executive officer, Andrew Saporito, who boasts more than 37 years of experience with the Port Authority of New York and New Jersey, and who will bring that experience to bear in taking SJPC to its brightest possible future.

SJPC is also in the process of developing the Paulsboro Marine Terminal, the 50-acre first phase of which was opened in 2017 and the second phase of which is set to be completed in the latter half of 2021. Paulsboro is already importing an impressive volume of international cargo, including 1.1 million tons of Russian-made steel slabs in 2019. SJPC also operates the Salem Marine

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Christina Renna President & CEO Chamber of Commerce Southern New Jersey

How would you describe the business environment in South Jersey?

Business is generally doing well. From a South Jersey perspective, we consider the region to be thriving if our three “anchors” are prospering. Those are Atlantic City, the city of Camden and the Joint Base (Fort Dix), which is in northern Burlington County.

The Joint Base is our biggest economic stimulator, especially in the northern portion of the region. Then, there is the city of Camden, which has seen incredible growth over recent years. Lastly, there is Atlantic City, which has seen strength from the casinos, but also a renewed focus on diversifying the economy away from just gaming, to a true entertainment destination that is family friendly and ripe for convention business.

If these three areas do well, the region does well.

Overall? Sure, there are ways South Jersey could improve, but that is and always will be the case during the best or worst of times.

What is the role of the Chamber of Commerce in the region?

Our chamber is 148 years old. We were started as the Camden Board of Trade in 1873 by Campbell Soup Company and RCA. Our former CEO, who ran this organization excellently for 25 years, recently retired.

As a result, the chamber is in a period of transition and evolution that is really exciting for us. We have developed new programming for 2020 that is aligned with our strategic priorities, core values and mission.

Some of that new content relates to small-business development in South Jersey. We also created a Women’s Council, specifically for women professionals, and a Diversity, Equity and Inclusion (DEI) Council to focus on how we can diversify our membership by way of age, race and gender, while also identifying ways that member companies can be more DEI friendly within their own workforces and to those minority, women or veteran owned businesses looking to procure contracts from regional businesses.

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Terminal, Balzano Terminal, Broadway Terminal, and port facilities in Camden, which import large quantities of things like cocoa beans and forest products. Under Saporito’s leadership, SJPC is making plans to position itself for further growth and success by focusing investment where it is needed most, such as renovating existing buildings, constructing new facilities, and upgrading terminal rail links. SJPC is also capitalizing on its Foreign-Trade Zone status and working to entice more foreign trade through FTZ No. 142.

Growing cities New Jersey enjoyed modest population growth over the course of the past decade or so, with a 3.6% overall increase in population between 2008 and 2017 making it the 35th fastest-growing state in the country.

America’s population increased by 6.9% during the same period. However, some parts of New Jersey are growing faster than others, and although North Jersey’s Hudson County dominated when it came to absolute number of people gained, some of the most rapidly expanding cities in terms of percentage of total population gained are located in South Jersey. Based on a comparison of data collected between 2008-2012 and data collected from 2013-2017, Brooklawn Borough in Camden County was the 15th-fastest growing city in the state based on percentage of population increase (10.77%); Elsinboro in Salem County was the ninth-fastest growing (13.66%); Downe Township in Cumberland County was seventh (14.99%); and Woolwich Township in Gloucester County was second (20.36%).

Looking ahead Like the rest of the United States – and the world – South Jersey will need to brace itself for the economic ramifications of the COVID-19 pandemic, which has already inflicted significant short-term damage on financial markets around the world that will likely take some time to fully correct. South Jersey also has to balance its population shift away from rural counties and into counties with the largest cities, while also ameliorating some of the problems that plague big cities, such as the still-raging opioid epidemic.

Fortunately, state and local governments are already working to enact proactive policies and legislation to ensure continued economic improvement and longterm success, such as the millionaire’s tax, expanded access to public transportation, use of Business Development Districts, and policies and initiatives to entice domestic and foreign businesses to set up shop – and invest – in South Jersey.

Camden County: Camden County is providing the perfect example of a successful turnaround. The county has bolstered its finances, attracted a variety of industries to diversify its economy and has vastly improved the quality of life of its residents. Credit ratings agencies have noticed, and so have businesses.

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Invest: Camden County Improved credit ratings and business attraction showcase Camden County’s rise to South Jersey gem Camden County has always been resourceful and innovative. A push to improve its finances and attract a wider variety of industries has paid handsome dividends. Today, it boasts a diversifying economy, a solid credit rating and is a live, work, play leader.

The beginnings of Camden County’s resurgence can be traced to the end of the recession sparked by the 2007-08 financial crisis that struck the national and global economies. It took a while to shake the impact of that recession, which ended in 2010. In fact, by 2012, unemployment in Camden County was still high, at 10.6% compared to the U.S. national rate of around 8%.

Smart financing and cost-cutting helped the county get back on its feet, to the point that in November 2013, Standard & Poor’s awarded Camden County its third-highest possible rating, upgrading its credit grade to AA from AA-. At the time, Freeholder Director Louis Cappelli Jr. called the result “remarkable and extraordinary” and said it was because of the county’s “businesslike approach in cutting the cost of government.”

In its report, Standard & Poor’s cited a key element of the county’s attractiveness: access to major employment centers outside New Jersey. Its enviable 22 | Invest: South Jersey 2020 | CAMDEN COUNTY

location continues to be a key factor for Camden County’s success. The county is a two-and-a-half-hour drive from Washington, D.C., one and a half hours from New York City and a stone’s throw from Philadelphia.

A solid transportation infrastructure network of road, rail, air and sea only adds to the county’s allure.

Blessed with an abundance of nature, including access to the Delaware River, Cooper River and the Great Egg Harbor River, that provides outdoor recreational opportunities, and a lower cost of living than other comparable areas, the region is also attractive to those who want a better quality of life and the ability to work and play where they live.

With a population that now numbers over 515,000 across 37 municipalities, the county is on the rise and attracting positive attention. Here’s why.

History Although the first Europeans to set foot in the region were Dutch families sent by the Dutch West India Company to establish a trading post, the area really started to take off with the arrival of Quaker settlements. One of the earliest accounts of European settlers in the United States was a group that set sail ( )

CAMDEN COUNTY INTERVIEW

Winning recipe Campbell Soup Company delivers a new recipe that focuses on its roots.

Mark Clouse President & CEO – Campbell Soup Company How was your first year as the head of Campbell Soup Company?.

2019 was an action-packed year relating to how the business evolved and how we consequently repositioned and reframed the company. In the past, we had a lot of endeavors: international businesses, a fresh business, venture capital businesses, to name a few. All had good intent centered on trying to evolve Campbell to meet the changing consumer landscape pertaining to food. What we learned through those endeavors is that although they might have been strategically sound, the core competencies to run those kinds of businesses are quite different from the company’s core businesses, which include soups, sauces, beverages and snacks.

A big part of 2019’s agenda was focusing the portfolio.

It involved six transactions bringing in about US$3 billion in proceeds, which were directed toward reducing debt, strengthening our balance sheet and improving our business focus. We re-centered our strategic framework toward one geography, North America, with two divisions – Meals & Beverages and Snacks. Our performance on our core business in 2019 responded very well and started to build credibility back in the company, across all of our stakeholders, but especially with the investment community.

What are the main objectives of this change of focus?

We have four primary objectives within our strategy.

First, create a sustainable, profitable growth engine.

It is really about a growth-oriented business model, the key contributor and the ability to efficiently create economic space for investment as its stepping stones.

Second, identify cost savings and margin-improvement that can fuel that growth. Third, build a team capable of doing the first two while creating a winning, diverse and inclusive culture. Fourth, delivering on the promise of our purpose, Real food that matters for life’s moments.

How are you guiding the company amid COVID-19?

We are living in unprecedented times as the nation and the world battles the COVID-19 pandemic. Lately, I’ve been drawing from many lessons I learned in the military years ago about leading in a crisis, making progress while surrounded by uncertainty and anxiety.

Those lessons include simplifying the mission: set clear priorities and focus on what matters most; control the controllables - understand there are many questions and unknowns so it’s important to focus on the things we can control; ; and finally, keep looking forward - recognize that this is not business as usual and we must be proactive in our thinking around the scenarios we may face, and then act decisively. www.capitalanalyticsassociates.com

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CAMDEN COUNTY OVERVIEW

( ) from Dublin in 1681 and put down roots in what is today West Collingswood. Camden was officially established as a county in 1844. By that time, the area’s population and businesses were growing as the arrival in the 1830s of the Camden and Amboy Railroad and a new canal that cut across the Delaware River made it an attractive place to settle, according to Gail Greenberg’s “A History of Camden County.”

As rail access expanded, Camden County entered the 20th century perfectly placed to exploit the burgeoning industrial revolution. Among the first major companies to emerge was Victor Talking Machine Company, the predecessor to RCA Records, that laid its roots in Camden City. The county quickly became an industrial and commercial hub, producing everything from cigars, patent drugs and leather goods to ships, carriage bodies and terra cotta products.

Today, the county continues to diversify its economy beyond manufacturing. It is now home to numerous corporations across a variety of industries, attracted to Camden County’s leading quality of life and strategic location. Campbell Soup Company has called the region home since 1869 and other major names include carmaker Subaru, Lockheed Martin and TD Bank.

In the burgeoning healthcare sector, Cooper Health System, Virtua Health System and Jefferson Health serve the local community, and Camden County College, Rutgers University and Rowan University are among the top higher educational institutes feeding the talent pipeline.

Economy Before COVID-19, Camden County was the picture of health on many fronts, and there is good reason to expect a return to economic normality after the pandemic passes. In 2019, unemployment in the county fell from a high of 4.8% in January to 4.2% in December, hitting a year’s best 3.2% in April. By March 2020, in the midst of the pandemic, the jobless rate sat at 4.2%, slightly better than the U.S. average 4.4.%.

Another testament to the region’s business diversity are the sectors that now lead the economy. The largest employment segment in 2018, the latest available data, was in healthcare and social assistance, which employed 44,300 people or 18% of the working population. This was followed by retail trade at 30,976 people and educational services at 22,695 people.

Although median household income in Camden County is below that of New Jersey and the greater Philadelphia-Camden-Wilmington area, it is above the U.S. average at $67,523 (2018), a 16% increase since 2013.

Camden County is home to a number of corporate headquarters, including Subaru.

The scope of the industries in the county is a clear reflection of the effort the county has undertaken to diversify activities and create a resilient economy.

According to credit reference agency Moody’s, which awarded Camden County’s Series 2020 $8.6 million County College Refunding Bonds a Aa2 rating earlier this year, the rating could be bumped up with improved resident wealth and income, maintenance of consistently higher Current Fund balance levels and sustained growth in the county’s tax base. Moody’s maintained its Aa2 rating on the county’s general debt, with a stable outlook.

As the largest city by population in Camden County, Camden City attracts a great deal of attention. Much of that attention in the past has been for its high crime rate and poor financial performance. But the city is now somewhat of a reflection of the broader county. In 2014, S&P upgraded Camden City to BBB+ on the strength of its investment grade bonds. In its report, S&P referenced the sound budgeting practices undertaken by the local authorities and a declining unemployment rate.

While Camden City has received attention for its battle back from the brink, other cities are also coming on strong. With its strong retail and office segment, Cherry Hill, the second-largest city by population, www.capitalanalyticsassociates.com

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CAMDEN COUNTY OVERVIEW

One of the first locations settlers from Europe landed, Camden County towns have a colonial touch.

is among the key areas attracting investment while Bellmawr and Pennsauken are among those that are seeing funds flow into their industrial parks.

Company attraction There are many reasons companies are turning to Camden County to locate their operations. Aside from economic incentives, housing is readily available, and at an affordable price. The median home value in the county is $168,000, with a median list price of $100 per square foot, lower than the average $135 in the Philadelphia Metro area.

Surrounding major cities like Camden are a plethora of small walkable towns, including Merchantville, Audubon, Collingswood, Haddon Township and Haddonfield, that offer an attractive quality of life for residents. These communities are cities unto themselves, offering local theater, arts and crafts festivals and craft breweries, among their many charms. When companies think about relocating, staying or expanding, they inevitably think about the employees who will work and live in the area. Camden County has proven a popular choice.

On the economic side of the equation, New Jersey’s 2013 Economic Opportunity Act overhauled the tax incentive system to create two new programs: the Economic Redevelopment and Growth Program (New ERG) and the Grow NJ Assistance Program (Grow NJ). Through a tax credit system, these programs are essentially a first version of the qualified Opportunity 26 | Invest: South Jersey 2020 | CAMDEN COUNTY

Zones program that was launched before the federal initiative. As a result of the federal legislation, Camden County now has four Opportunity Zones: Camden City, Pennsauken Township, Lindenwold Borough and Pine Hill Borough.

All this has not been lost on the private sector, and the list of companies calling the county home is a who’s who of leading corporations, some newly arrived, some having been in the county for decades. Among the latter is Japanese carmaker Subaru, which located its national headquarters in Pennsauken before moving to Cherry Hill 20 years ago. Having outgrown its Cherry Hill location, the carmaker chose to stay in Camden County and relocated to a new headquarters in Camden City in 2018.

Manufacturing giant Holtec set up the Krishna P. Singh Technology Campus on 50 acres on the left bank of the Delaware River, which opened in 2016 and included a $300-million investment. The NBA’s Philadelphia 76ers chose Camden City as the location for their new 125,000-square-foot athletic facility and office building.

The $82-million development opened in 2016.

Since 2014, the county has received more than $3 billion in private and public investment from the construction of the American Water Works corporate campus along the Delaware River to the construction of the new RutgersCamden Nursing School. The overall investment has maintained and attracted more than 10,000 jobs throughout the county leading to a revitalization of older industrial hubs and outer ring suburbs. ( )

CAMDEN COUNTY INTERVIEW

Opportunity Proximity to Philadelphia and a thriving educational environment are among the factors attracting businesses

Louis Cappelli Freeholder Director – Camden County

How is Camden County dealing with unemployment and poverty rates?

We are assisting new companies relocating into Camden City with their job-training efforts. We are trying to match up residents with potential jobs in the city through workforce development programs, with the added assistance of Camden County College. We view ourselves as partners with the city government. There is not another city and county in the state of New Jersey that work closer together than we do here in Camden County with Camden City. We support the mayor and the government body in any way we can. We make all of our job training available to the Camden Works program.

Every resource we can allocate through our workforce development, we do.

What unique business opportunities does the county offer?

No. 1 is our proximity to Philadelphia. No. 2 is our tremendous educational system. We have a thriving public education system with unique options for education in Camden City itself, which is helping to drive better education. No. 3 is an astounding park system that provides unique levels of quality of life. Added to that, our proximity to the Jersey Shore, New York and Washington, D.C., makes us a special county.

In terms of the businesses we’d like to attract, we have been targeting manufacturing, technology and life sciences. The Joint Health Board is providing educational opportunities in research that will boost technology development in Camden County. One such example is Holtec, an international company that has patented a storage technology for spent nuclear waste.

It chose Camden to house its headquarters. It combines state-of-the-art technology and manufacturing.

What steps are needed to make Camden City a more attractive destination?

We need to develop market-rate residential housing in the city. We want to attract middle-to upper-middle class residents to strengthen its attractiveness. There was a time when the population of Camden City was close to 125,000 people and we are down to 75,000. We are going to bridge that gap with these housing opportunities.

What is being done to tackle the opioid crisis?

The opioid epidemic has had a horrific impact on Camden County. We expanded our drug court system into all municipal courts in Camden County. The goal is to match those in need of treatment, or suffering from a dependency disorder, with providers. It has been in place for less than a year but the response has been great. www.capitalanalyticsassociates.com

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CAMDEN COUNTY OVERVIEW

Jeffrey Wheeler COO – Camden International Commodities Terminal

The United States is the second-largest importer of raw cocoa beans. That being said, we are close but not yet at the point to have the proper cost model to invest into automated handling equipment used in other countries. As Camden develops new opportunities for the younger generation, we believe there is a workforce that still counts on the jobs we offer today. What is unique about our commodity is that the way it is handled and stored demands a big real estate footprint: 150 burlap bags on large pallets consumes on average one square foot of space for every bag. South Jersey has 3 million square feet for cocoa bean space. We operate a million of that space. From a business owner’s perspective, you find yourself as interested in the real estate market as you are the commodity market.

( ) Healthcare One of the biggest contributors to Camden County’s diverse growth is the healthcare sector, and life sciences and pharma companies have been flocking to the county in droves. Major employers include Virtua Health, Cooper University Health Care, Jefferson Health of New Jersey, Coriell Institute, Rowan University Medical School and MD Anderson at Cooper University Hospital.

As healthcare as a business goes from strength to strength, so too does the county’s health provision for its residents. As of 2017, 93.5% of Camden County residents had health coverage, with 53.7% provided healthcare coverage through work, 17% covered by Medicaid and 11.9% on Medicare. Overall, physician accessibility is good in New Jersey, with only 12.8% reporting they were unable to see a doctor in the last 12

93.5% of Camden County residents had health coverage as of 2017 28 | Invest: South Jersey 2020 | CAMDEN COUNTY

The Cooper River is host to many national and collegiate regattas each year.

CAMDEN COUNTY OVERVIEW

months due to prohibitive costs and only 6.2% of the population uninsured.

The state itself is a life sciences powerhouse, home to 13 of the Top 20 biopharmaceutical companies in the world. From 2011 to 2016, the drug and pharmaceutical component of the state’s economy grew 10.5%.

Infrastructure Camden County’s slogan is “Making It Better, Together” and the Freeholder Board oversees a variety of activities related to employment, public works, parks and senior and disabled services to ensure the county’s growth remains resilient and sustainable.

One of the initiatives set up by the board is the Camden County Improvement Authority (CCIA), which is a public agency providing low-cost financing, economic development and project development services for local units, community organizations, and not-for-profit entities. The agency assists clients

$2.8 billion investment will bolster mass transit across Camden County such as municipalities, schools and fire departments to access funding and financing options. Last year, it bought a 102,000-square-foot property on Haddon Avenue for $13.9 million that will be transformed into a mixed-use development.

As part of the redevelopment of Haddon Avenue, Camden County plans to update the roadways and surrounding infrastructure. But until that plan is finalized, the Haddon Township Department of Public Works is investigating which sewer lines need updating and the township itself is planning some pedestrian-friendly updates.

The state is also leading a $2.8 billion investment to bolster mass transit across Camden County and South Jersey. The plan calls for a new transit hub and a 33-mile Cross Camden County trail from the Delaware River to the Atlantic County line. The investment is intended to further improve multimodal transportation in Camden County. The state government also awarded Camden County over $9 million in FY2020 County Aid grants for local infrastructure improvements.

Transportation Among Camden County’s most attractive features is its location. The county is in close proximity to Philadelphia, New York City and Washington, D.C. Two major highways, I-676, and U.S. Route 30, and two major interstates, I-95 and I-76, are within a few miles of Cherry Hill and Camden City. Philadelphia International Airport is just a 25-minute commute during peak hours.

With a growing emphasis on reducing carbon emissions, more people would like to leave their cars at home, making mass transit a necessity to attract businesses and visitors alike. Camden County is equally served by a multimodal transport system that gives residents a plethora of options for getting around including buses and trains.

CAMDEN COUNTY OVERVIEW

The main intercity train service is the River Line, a light rail service that covers South Jersey. An intermodal station at Pennsauken connects the service to New Jersey Transit’s Atlantic City Line. The Amtrak national passenger train also runs through the county, including a stop at Cherry Hill. Camden County is also serviced by the Philadelphia/New Jersey Hi Speed Rail PATCO (Port Authority Transit Corporation) system.

There are still plans for a new 18-mile GlassboroCamden light rail that will connect with the River Line at its northern end in Camden but the project remains stalled and its fate is up in the air.

On the road, the county is served by a 23-mile bus rapid transit system through South Jersey. The system includes three major park-and-ride lots with about 1,600 parking spaces.

Of course, people also like to use their feet and the county offers over 300 miles of bicycle and pedestrian trails that extend across greater Camden County, Philadelphia and South Jersey. The network is part of the Circuit, a planned 750-mile network to connect nine counties in Pennsylvania and New Jersey.

Education Camden County College is one of the largest community colleges in New Jersey and ranks among the top nationwide in terms of associate degree graduates.

Thanks to its technology-rich physical resources – located in Gloucester Township, Camden and Cherry Hill – and its highly-qualified, dedicated employees, the college has created a tradition of quality education and a reputation for agile, responsive service.

Camden County College sustains a vibrant academic community characterized by imaginative teaching, caring student services, energetic management and collegial discussion of diverse ideas and opinions.

Camden County has a strong relationship with Rutgers University, with a Camden Campus that offers a law school, a graduate school and a business school within throwing distance of the U.S. District Court for New Jersey. To satisfy the growing healthcare demand in a health hub such as South Jersey, Rutgers’ Camden Campus also includes a School of Nursing. A School of Arts and Science rounds out the college facilities.

But just across Cooper Street is the Camden County campus of Rowan University. The main campus is located in Glassboro, Gloucester County, in the heart of the 26-acre Rowan Boulevard project. The university has a strong relationship with many private companies, notably Lockheed Martin, which hired more than 100 Rowan engineers in 2018. Not only this, but the university has several new projects in 30 | Invest: South Jersey 2020 | CAMDEN COUNTY

Philadelphia is 15 miles from Camden County, with a variety of public transportation options for those working in the city.

the design or construction stage, including a new academic building along Route 232 and a sophomore village consisting of 750 student rooms and a 555-room freshman village.

Employment in Camden County is projected to increase by 12,686 jobs from 2017 to 2022, which represents a 7.25% increase. As companies struggle to find the right talent, it is more important than ever for the community to bridge the gap between academia and careers, which is where the Camden County Workforce Development Board comes in. Working across five key sectors — advanced manufacturing; financial services; healthcare; retail, hospitality and tourism; and logistics and distribution — the board addresses training and feeding the job pipeline.

But that pipeline begins in an earlier stage of life, at primary and high school, and some of the states leading public schools are located in Camden County, where approximately 76,000 students attend one of the 150 schools, including 13 charter/renaissance schools, in 36 school districts. STEM is a priority across the county’s schools that abound with options.

One example is Haddonfield Public Schools, which ranked No. 9 on ranking site niche.com’s list of top public school systems in New Jersey, and was No 1.

In Camden County. The district, with about 2,700 students in PK and K-12, won an A+ score, with the same grade in the areas of academics, teachers, clubs

CAMDEN CONSTRUCTION COUNTY OVERVIEW

Dana Redd CEO Rowan University/ Rutgers-Camden Board of Governors

and activities, college prep and health and safety.

Another school district in the county, Cherry Hill ranked in the top 55.

New Jersey itself is ranked the second-best state in the United States for education.

Arts and culture Camden County has had an affection for arts and culture for many years, and that is reflected in the county’s rich offering. Waterfront destinations and attractions like the Camden Adventure Aquarium provide a vibrant family-friendly oasis every day of the week. Concerts, festivals, and a varied restaurant scene only heighten the energy.

Founded in 1972, the Camden County Cultural & Heritage Commission is the designated agency in Camden County in charge of the New Jersey State Council on the Arts Local Arts Program and the New Jersey Historical Commission County History Partnership Program. The institution organizes events such as the Camden County Teen Arts Festival and the Senior Citizens Art Show to strengthen the cultural and historic framework of the county.

The Rutgers-Camden Center for the Arts is an initiative by Rutgers University that hosts exhibitions, performances, education programs and community projects in pre-K-12 education. It provides art education, community arts programs, exhibitions at the Stedman

What is the expected impact from the new Joint Health Sciences Center in Camden’s “eds and meds” corridor?

The Joint Health Sciences Center in Camden’s “eds and meds” corridor represents Phase I and II of a comprehensive health sciences campus development located in Downtown Camden. The facility houses two world-class public research institutions, a medical school and community college. We are home to Rowan University, Rutgers University-Camden, the Cooper Medical School of Rowan University (CMSRU), and Camden County College (CCC), along with the administrative offices of the Rowan University/RutgersCamden Board of Governors. The expected impact of the $72 million project will be not only in terms of how we leverage the existing medical, research and education assets of the institutions located in Camden, but also, how we attract businesses and startup companies to the innovation hub that is developing in Camden’s Downtown.

What are some major challenges facing the “eds and meds” sector?

Some major challenges facing Camden’s higher education and the “eds and meds” sector really affect higher education institutions statewide, and those are issues of affordability, retention and workforce development. In South Jersey, innovative partnerships and enrollment programs are emerging which are beginning to address the rising costs of student debt and tuition making college more affordable, while earning a 2- or 4-year degree. At Rowan College of South Jersey and Rowan College of Burlington County in collaboration with Rowan University, we see the emergence of the 3+1 program. Camden County College (CCC) and Rutgers University-Camden recently announced their premier partnership that allows residents of Camden County and South Jersey to earn both an associate degree and a baccalaureate degree, through a dual admission and seamless transfer of credits. www.capitalanalyticsassociates.com

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CAMDEN COUNTY OVERVIEW

coastal states, has to take extra precautions to protect itself from adverse weather effects and mitigate the impacts of global climate change. New Jersey Gov. Phil Murphy is pushing hard for New Jersey to rejoin the Regional Greenhouse Gas Initiative (RGGI), a cap-andtrade emissions platform. In 2012, then-Gov. Chris Christie pulled the state out of the system, reportedly costing the state $300 million in clean energy funding.

Last year, New Jersey finalized regulations for rejoining the trading system.

Clean Energy-funded improvements in New Jersey have generated efficiencies equivalent to removing the carbon output of 75,000 cars, or from the positive impact of planting about 6 million trees. This includes the state Clean Energy program, funded by a portion of taxpayer utility bills, which pays out $13 million in monthly incentives. Sustainable Jersey promotes gold star standards in water and energy, which includes participation from 80% of New Jersey municipalities and half of all school districts.

Wiggins Park is home to a variety of summer concerts each year.

Gallery and carries out special projects under the Eric Porter Fund. Discover Jersey Arts, meanwhile, provides a directory of upcoming performances and exhibitions, with discounts for members.

Entertainment, arts and amazing food can be found across the county. Cherry Hill, for example, offers topflight shopping and dining at the Cherry Hill Mall, while parents can entertain their kids at their Historic Croft Farms, or the Garden State Discovery Museum.

Throughout the county, the Board of Freeholders also sponsors concerts in the park, which are free to attend and include the Sunset Jazz Series at Wiggins Waterfront Park, the Twilight Concert Series at Cooper River Park, and the Sundown Music Series at Haddon Lake Park.

In fact, the parks system is among the leading features of Camden County. The region is home to an impressive 21 parks, including New Brooklyn Park Disc Golf Course, the Watchable Wildlife Trail at Maria Barnaby Greenwald Memorial Park, and the Timber Creek Dog Park, and conservation areas with over 2,000 acres of natural settings that are perfect for picnics and family gatherings. Waterways also offer opportunities for fishing or to simply take out a boat and relax. Among the county’s gems is Challenge Grove Park. The 18-acre park has won the Innovative Accessible Facilities Award and the Kinsey Facility Design Award.

Environment New Jersey is located on the coast, and like many 32 | Invest: South Jersey 2020 | CAMDEN COUNTY

Looking ahead Camden County has several more initiatives in the pipeline to address its issues. Since September, Camden County has received almost $800,000 in grants for a Medication Assisted Treatment (MAT) program that minimizes the impacts of opioid abuse with medication, support and counseling. The Camden Works: Reimagining Workforce Development in Camden program went live at the end of last year.

The program, which is funded by the private and nonprofit sectors, offers a process that matches Camden residents with jobs, support services and training.

There is little doubt the county has come a long way from the Great Recession. It has faced its issues and fought to create an environment that is friendly to business and friendly to families. A mix of smalltown charm and big-city savvy have helped position Camden County as a work-live-play destination, one with a bright and prosperous future.

Capital Analytics would like to thank Camden County for its contributions in compiling this chapter.

To learn more, visit their website at: www.camdencounty.com

Professional Services: M&A and technology are the buzzwords for the legal, tax and accounting entities serving the South Jersey region. The traditional landscape of a sector dominated by individuals and small firms is rapidly changing as bigger firms sweep in and swallow up their smaller counterparts. Meanwhile, AI and data analytics are quickly changing how these businesses do their work.

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Changing times: The legal landscape is being reshaped by bigger firms and technology, even during COVID-19 Similar to the legal markets of other states, the practice of law in South Jersey, as in the state of overall, was traditionally dominated by sole practitioners and very small firms that served clients across a broad swath of legal subject areas. Over time, again keeping pace with its counterparts in neighboring states, New Jersey’s legal services industry has shown a trend of consolidation and specialization, with increasingly specialized lawyers congregating into ever larger firms.

The consolidation of New Jersey’s legal market has been driven primarily by economic concerns, with the mounting costs of overhead and office space reducing the economic viability of many solo practitioners hanging their own shingle. The rapid pace of technological advancement has also precipitated law firm consolidation indirectly as templates for simple legal documents flood the internet and techdriven alternative legal services companies rise up to challenge the traditional law firm models for providing legal research and document review. This gradual evolution has led to several consecutive years of record-breaking numbers of law firm mergers and acquisitions across America, with multiple highprofile mergers taking place in South Jersey in 2019.

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As the COVID-19 pandemic demonstrated a worldwide need to change habits both in the business world and individually, the resulting transformation will challenge traditional business models and demand increasingly nuanced legal answers to complex questions. In particular, firms also will need to remain receptive to emerging tech trends. Fortunately, many of the country’s biggest firms are already proactively rising to the challenge.

Landscape South Jersey is home to a diverse legal market composed of national and international law firms, regional powerhouses, and smaller boutique firms that have a big impact on the community. Whatever the particular niche your legal needs fit into, there is a renowned law firm in South Jersey available to address them. As a quick snapshot of the breadth of legal services provided in the region and the diversity of the firms providing them, consider some of the firms whose lawyers were named the region’s best by SJ Magazine (as nominated by peers): Blank Rome (Casino/Gambling); Archer Law (many areas); Capehart Scatchard (many areas); Flaster Greenberg ( )

PROFESSIONAL SERVICES INTERVIEW

Busy times The confluence of public affairs and law is among the factors fueling growth at this law firm

Chris Gibson President – Archer What were some of the main successes for the firm over the last year?

2019 was a highly successful year for us. We achieved a 7.1 percent increase in revenues without increasing headcount. It is a trend observed in a lot of different markets but legal in particular was busy. We were firing on all cylinders in a lot of practice areas. For the first part of our fiscal year and the first part of 2020, most people were looking at a strong start. In 2013, we started Archer Public Affairs, a subsidiary of Archer. The confluence and synergies between public affairs and law are self-evident. The decision proved to be a great investment, so much so that we have decided to invest further in Pennsylvania in this specific regard, opening an office in Harrisburg. On the healthcare front, we have among our ranks the leading experts in the cannabis field, covering the entire process, from growing and distribution of medical marijuana and monitoring if it evolves into more of a generalized, legalized element.

How much of an emphasis is New Jersey placing on environmental litigation and regulation?

Regarding environmental litigation and regulation, Gov. Murphy has clearly made a commitment to the environment in several different areas. There is a lot of historical industrial development in New Jersey that now is considered brownfield. First, the governor’s and attorney general’s offices hired multiple skilled firms that work on a contingency basis to bring what they call natural resource damage claims: loss of services or loss of use of natural resources, even after a remediation was made. Those damage calculations can be quite substantial and we have dedicated significant efforts to represent a bevy of industries in the petroleum and energy fields. Second, the government is also bringing claims under consumer fraud and product liability laws for what they call Polyfluoroalkyl Substances (PFAS)

against 3M and Dupont. Third, the governor’s executive orders and his promulgation of an energy master plan that move increasingly away from greenhouse gas power generation and toward alternative energies such as solar and wind.

What impact is the increased emphasis on cybersecurity having on your business?

Archer has an entire cybersecurity group. We spend countless hours on the legal side advising clients on how to avoid problems and phishing attempts. We have been advising several clients who have fallen victim to these malicious practices. The need for cybersecurity in flourishing industries is acute because once you are breached, you are compelled to disclose it, creating a stain on your business reputation. www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

( ) (many areas); Kasen & Kasen (Bankruptcy); ongoing transition toward more specialized practice, Subranni Zauber (Banking & Finance, Debt Collection, and Stapleton has structured his new firm, located Real Estate, and Appellate work); the Law Office of in Mount Laurel, to provide the sort of specialized Daniel M. Rosenberg (many areas); and Borger Matez business litigation counsel that clients expect.

A pair of recent notable cases with roots in South (Family Law). This is only a small snapshot of the South Jersey firms whose lawyers made the list of South Jersey was McClain v. Bd. Of Review and Blake v. Board Jersey’s best, but it gives an edifying glimpse into of Review. Blake and McClain both centered around the region’s legal “who’s who,” as well as some insight employee entitlement to unemployment insurance under New Jersey’s Unemployment into how the field is shared by Compensation Law (UCL), N.J.S.A. local homegrown firms and major 43:21-1 to -71. The core of the players based in other markets. controversy in both cases was A noteworthy new entrant into that McClain and Blake had each the South Jersey legal scene is resigned from positions at their Stapleton Law, a new practice respective employers to accept opened by John Stapleton, alum positions with new companies; of Philadelphia midsize firm however, after already quitting Hangley Aronchick Segal Pudlin their old jobs, each employee had & Schiller. Stapleton made the their offer of new employment move after 14 years with Hangley rescinded. The question to be Aronchick, where he was a partner decided by the court in each focused on business litigation. case was whether an employee is Stapleton noted that his new Michael Horner, entitled to receive unemployment practice will still work primarily White and Williams LLP insurance benefits under the on business litigation, but with an added focus on public service law and pro bono work, UCL in circumstances where they had served a long with two pro bono cases in the U.S. Court of Appeals time with one employer, then left to pursue a new for the Third Circuit that he had been working on at opportunity only to have the new opportunity fall Hangley Aronchick – one on behalf of the ACLU and through due to no fault of their own. Both McClain and one related to the habeas corpus rights of a criminal Black were initially denied their benefits because they did not start their new jobs within seven days of leaving defendant – coming with him to the new firm.

Stapleton was motivated to start the new firm in part their old jobs, as required under the UCL. The Appeal for strategic considerations. The legal market is in an Tribunal affirmed the denials, and the Board of Review

We are not only competing with other law firms but with clients looking for in-house legal talent.

Lloyd Birnbaum Co-Managing Member – Lauletta Birnbaum, LLC

Our processes and our culture are designed to provide quick, exceptional response and turnaround times to clients. We pride ourselves on understanding what business people need and delivering at the speed of business – not the speed of your typical law firm. We started 11 years ago, in the middle of the recession, out of the real estate world which is my background and into the world of high tech and software licensing which was one of the few sectors in the economy that didn’t suffer the same pains during the recession.

My partner, Frank Lauletta, comes from a big firm and business background and is sought after by clients for his expertise in legal and business strategy, technology and M&A and software licensing. We grew from just the two of us in 2009 to 26 lawyers today.

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PROFESSIONAL SERVICES OVERVIEW

Kenneth Calemmo COO – Cooper Levenson

I think there will be a shift in the talent pool in terms of who we are looking to bring into our operations, especially in terms of attorneys with more technical capabilities. I predict a huge boom in the cybertechnology practice area around the world. We have to be looking for a talent pool that will be able to match those services and take us into the next generation of legal practice. I think also the talent pool internally will change as we rely on many more non-lawyers to manage data and provide data analytics along the way. There almost has to be a shift in the thinking of law schools to understand this change.

affirmed the Appeal Tribunal. Ultimately, the court held that both Blake and McClain were entitled to receive UCL benefits because they qualified for these benefits at their former employer at the time of their departure, they were scheduled to commence new jobs within seven days of leaving their former job, without regard to whether such employment actually commenced, and their new job offers were rescinded through no fault of their own before the start date. This decision is a clear move by the court to protect the rights and financial well-being of workers, and conforms the spirit of the UCL when it was passed by the state legislature.

M&A trends Law firm M&A activity has increased steadily in the years following a rock bottom of 39 deals in 2010 precipitated by the general economic calamity wrought by the Great Recession of 2008. In fact, 2019 ended with the highest annual total law firm mergers on record – 115 – which eclipsed the previous record of 106 set just one year earlier.

This was a surprisingly strong finish to a year that started out somewhat sluggish, with only 47 transactions announced during the entire first half of the year, and only one of those involving a party from South Jersey: the Berezofsky Law Group, a threelawyer plaintiff’s litigation boutique in Cherry Hill, was bought by Motley Rice of South Carolina. However, law firms’ continued desire to grow amid a declining pool of work and billable hours to go around, as well as the advent of a mass retirement of baby boomer attorneys that threatens succession planning issues for many smaller firms, led merger activity to spike during the second half of the year.

There were 115 mergers involving law firms in 2019, a record high The flurry of transactions included another South Jersey deal: the acquisition of four-lawyer firm Shivers Gosnay & Greatrex, again of Cherry Hill, by Princetonbased Hill Wallack. The acquisition of these small South Jersey firms is emblematic of the growing trend across the country of smaller firms being the primary targets of acquisitive competitors, with 88% of all combinations in 2019 involving the acquisition of firms between two and 20 lawyers and an average acquired firm size of 18 lawyers. These smaller deals are attractive because they are less complex and quicker to close, while providing an infusion of top-tier talent in the form of onboarded lawyers. “Finding qualified talent can be a challenge. We are not only competing with other law firms but with clients looking for inhouse legal talent. However, we have the advantage of having many universities and law schools in the region, which has helped us bring on top-notch talent.

Another challenge, yet also an opportunity, is staying in the forefront of learning the new industries that are www.capitalanalyticsassociates.com

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Alan Zuckerman Managing Shareholder & COO Flaster Greenberg PC

What sets Flaster Greenberg apart in the South Jersey market?

We are a midsized commercial law firm specializing in pretty much every practice that businesses and highnet-worth individuals, our primary clientele, would need. Most of our lawyers have come from large Philadelphia firms. We pride ourselves in doing the same type and quality of work as the larger firms, but at lower rates and more efficiently. Most recently, we have done a tremendous amount of deals and merger and acquisition work. We have also had some very large bankruptcy cases. Regarding M&A, it has been all over the industry. Most of our clients have usually been closely-held businesses, even some very large ones. At some point, some of those businesses have to be passed on to the new generation, or they are sold. As a result, we have been seeing a tremendous amount of activity in the sale market, and we have been representing a lot of companies in all business sectors that are selling, in many cases to private equity firms.

What are the main challenges facing firms and their clients in the South Jersey area?

One of the challenges is rate pressure, as our clients are cost-sensitive to legal work, as they should be, and that requires lawyers to be more efficient in their work.

From a local standpoint, the opportunities we find in the South Jersey market is that office spaces are much less expensive compared to Philadelphia, which is only a few miles away. Although we have seen most of our growth over the last few years in Philadelphia and expect to see more, we made the decision last year to renew our lease here in South Jersey because the occupancy cost is less expensive One of the downsides in South Jersey we face for that decision is the lack of transportation infrastructure. We get into Philadelphia but that is about it. There is no local transportation for the most part.

From a statewide perspective, taxes are very high, both income and property taxes, which make it harder for businesses to stay or relocate here.

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coming to South Jersey and being able to provide our clients the best possible advice and representation,” said Michael W. Horner, managing partner, Cherry Hill at White and Williams LLP. Technology The legal services industry has traditionally been notoriously reluctant to embrace emerging technology due to a variety of factors, including fears related to the security of precious, and confidential, client information; the onus of navigating to new databases from legacy systems, which are, in some cases, old-fashioned paper; and sometimes simply the stubbornness of older partners. However, in a world that is increasingly dominated by high-tech trends, such as AI or data analytics, and a legal services market that is increasingly helmed by a new generation of younger and more tech savvy attorneys, the law’s reputation for technological illiteracy is fading fast. In fact, 100% of the Top 10 law firms have named technology as the primary obstacle to their growth over the next two years, and the American Bar Association echoes the sentiment, stating that any firms that ignore tech trends will be woefully unprepared to compete for new business. “It is becoming clear that clients want to see technology used to improve efficiency in their matters and in the way that firms represent them. That is part of the value we offer to clients. There are so many law firms with quality attorneys who provide very good legal services, but are behind the times when it comes to technology. One way to set your firm apart is by leveraging technology to improve clients’ experiences and outcomes,” said Jeffrey Beenstock, managing partner at Ballard Spahr LLP. “Our Ballard360 suite is becoming well-known. We’ve seen clients ask for it. We use it when we talk to clients about doing their work, to show them what we can do, and it is very well-received.”

The most disruptive technology trend across all industries at the moment is knowledge automation, and in law specifically could amount to as much as 23% of lawyers’ time being automated. This potential time and money savings from using AI, machine learning, and improved user interfaces to automate the manual tasks that have heretofore consumed massive quantities of attorneys’ attention are massive, for law firms and lawyers alike. Knowledge automation has, therefore, become a top investment priority for leading law firms. The legal industry is particularly encumbered with data, with more than 350,000 new cases filed annually, and each of those representing thousands of pages of documents containing countless units of valuable information to keep track of. The

PROFESSIONAL SERVICES OVERVIEW

Brett Wiltsey Chief Operating Officer – Dilworth Paxon LLP

Dilworth Paxson has been recognized as one of the country’s Top 50 most innovative law firms. We see the legal industry changing dramatically over the next few years requiring law firms to become much more entrepreneurial. Clients are no longer happily paying hourly rates with increases every year. Instead, we work with our clients, as partners, taking a deep dive into their goals and needs to establish a fee structure that will enhance their experience with Dilworth Paxson. Our “Black Card Clients” enjoy the efficiencies and technological tools we utilize to deliver our legal services.

ability of lawyers to process and use this information accurately and effectively is absolutely vital to the continuing success of their firms.

All of the biggest firms have recognized this need, and some have already begun to implement knowledge automation solutions. Allen & Overy, for example, has taken steps to automate the creation and review of documents; Baker McKenzie implemented AIpowered document review processes that can analyze 50 documents in under a minute with results 10% more accurate than manual attorney review; DLA Piper has implemented Casetext’s CARA software to automate legal research; JPMorgan has automated contract and document review with its proprietary Contract Intelligence (COIN) software, allowing the processing in seconds of a volume of documents that would have taken lawyers 360,000 hours to get through; and

Deloitte is expediting contract review and approval through the use of the LawGeex AI-driven software.

“Technology has also introduced many efficiencies to law firms and clients. For example, the legal fees for smaller companies are no longer overwhelming because we are able to use the technologies we have in place and provide services more efficiently.

Our technology department is growing all the time and that is because our clients demand it,” said Horner of White and Williams. He adds, though, that for all the benefits there are also challenges with technology adoption. “The proliferation of the use of technology, particularly in the healthcare sector, has presented some issues that have led our clients to request more of our services and advice.

The impact that technology is having on healthcare is something that will continue to develop ( )

®

oundtable:

Tax & Accounting Leading players in the tax and accounting arena spoke with Invest: about the challenges and changes the sector faces as technology and other trends emerge to reshape not only how business is done, but what areas are now most in demand.

Marty Abo

Managing/Founding Member Abo and Company LLC

In which areas are you seeing the greatest change for your business?

There is constant change in the tax arena. The tax system overhaul presented in the Tax Cuts and Jobs Act boosted demand for our services. Companies and individuals need our assistance to comply with the new changes.

We are involved in numerous national organizations and the tax issue is a trend across the country.

Advances in technology are disrupting the accounting profession and our clients. The larger firms are dealing with artificial intelligence even while there is a need for us to have ongoing education. Our firm is still very much a ‘people’ organization, but we have seen larger accounting firms now heavily investing in AI, so accountants need to continually upgrade their skill sets.

Abo and Company, with its affiliate Abo Cipolla Financial Forensics, is an innovative, problem-solving boutique CPA firm. We recognize that no professional can be all things to all people. Anyone who knows us appreciates that we have an exhaustive list of outside resources available to us that we can call upon to satisfy your unique needs.

What challenges are you facing?

One of the main challenges in the professional services space is finding qualified talent. An appropriately qualified and trained staff is essential to carrying out the complicated services provided by accounting firms like us, and also larger and even smaller firms. All firms have seen an increase in demand for accounting and tax services, which has outpaced the availability of new accountants entering the profession.

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Carl Bagell

Managing Partner Southern NJ Friedman LLP

What services are seeing the most demand?

As a multidisciplinary firm with a growth mindset, we provide a wide variety of services and seek new opportunities to better serve our clients. In South Jersey, we focus on tax preparation, business valuation, forensic and matrimonial, international tax and tax controversy, and every area is expanding. For example, we expanded the number of our international tax practice partners in response to our clients’ growing needs in the face of ever-evolving global trends; the qualified Opportunity Zones segment of our real estate practice is seeing an increased demand for investment advisory; and our cybersecurity division is one of the fastest-growing areas in the region and abroad due to the cyber-threat landscape. Notably, SEC audits consistently play a major role in driving revenue for the firm and as such, we have offices in China with about 50 team members to address our clients’ needs.

What are some trends in the region’s accounting sector?

A big trend is outsourcing a significant amount of our tax work. This helps reduce costs for clients and increases production. There is also a trend of clients looking for education and advisory services. Clients are looking for a customized experience and a trusted adviser.

More broadly, a trend we continue to see is the impact of changes in tax law with each year and each administration. Our clients today need to be even more engaged with their accountants due to the everchanging federal tax laws, especially when it comes to estate planning.

PROFESSIONAL SERVICES ROUNDTABLE

Reynold Cicalese

Managing Shareholder Alloy Silverstein

What changes have you experienced in the accounting sector over the last few years?

Technology has brought significant changes to our industry, allowing us to better serve our clients beyond just preparing a tax return or financial statement. We are on the cloud ourselves, encourage our clients to be on the cloud, and use technology to help and collaborate with clients on a daily basis. We use software and apps that allow us to create KPI dashboards for our clients so they can have real-time data to make better decisions based on today’s information – not from last month or last year. We also have clients all around the world and we use meeting apps to constantly communicate with them. Artificial intelligence is severely disrupting the industry. The investment in AI will significantly increase within the next five to six years. We need to keep an eye on this trend and make sure we remain competitive.

With regard to audits, for example, it is expected that AI can look at every transaction and provide an efficient audit report. For regional and smaller firms it will be a challenge to compete with larger firms that have the capacity to invest in AI. How do you support the small-business community?

We find that many startups are underserved. We recently launched our Startup Hotline, which is a complimentary CPA Q&A for new and emerging businesses. Micro businesses may have questions regarding the type of entity they should start, for example. Through this tool, we give them access to our team of advisers and experts who can provide guidance on accounting, tax, payroll, and many other general business topics.

Jim Rogers

Managing Partner Haefele Flanagan

In which areas area you seeing the most demand for your services?

Much of the growth and demand for our services comes from the construction and real estate sectors. There is also a great deal of growth in the nonprofit world. From a business perspective, we do a lot of outsourced accounting work now as well, acting as a C-level executive, like a CFO or COO for smaller businesses. The South Jersey region is home to many small businesses, and many cannot afford to hire their own staff so they will outsource certain aspects of it. It makes sense for them, especially as the world becomes more digital. Regulation continues to change in regard to accounting and auditing standards and requires a different look at the way companies recognize revenue.

The tax laws also change every year, which is good for us because almost no one completely understands them so we can act as the experts in this field.

What challenges are seeing across the industry?

There are a number of challenges facing our industry.

Technology is driving the revenue in our firms to be more advisory and supportive than traditional compliance work.

A lot of the tax compliance work is becoming automated so you don’t need as many people to complete this work. The second major challenge is that accounting is not a “sexy” profession so the number of new people entering the profession has been diminishing. Recently it has gone up because the profession has done a good job of promoting itself as being more than just a traditional accountant. Also, in light of what is going on with COVID-19 there is going to be a major impact on the economic environment, but hopefully this only lasts for the short term. www.capitalanalyticsassociates.com

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PROFESSIONAL SERVICES OVERVIEW

( ) and likely be a growth area for the next five to 10 years.�

In a field that is all about knowledge, it is certain that law firms will need to keep abreast with advances in knowledge automation if they hope to remain relevant and competitive. This means that a future-proof law firm will have to consider trends in AI, machine learning, cybersecurity, and more. Fortunately, the historically conservative industry seems to finally be joining the present, and looking toward the future.

Looking ahead The world is an increasingly high-tech place, and the legal services sector is among the most notoriously opposed to tech-driven change. However, the landscape is becoming increasingly dominated by dynamic law firms led by younger, more futureoriented attorneys who recognize the need to tailor their services to the evolving needs of their clients.

This means adopting high-tech solutions, such as knowledge automation using AI, machine learning, data analytics, cybersecurity techniques, and a variety of other approaches to ensure that they can serve their clients at the level of quality and efficiency they expect, while continuing to maintain the security of information that is so important to the practice of law.

It also means continuing to consolidate in the face of an increasingly competitive legal marketplace.

The availability of templates and information online, as well as the growing market share of alternative legal service companies, means that fewer people are turning to traditional law firms than they used to.

Consequently, in addition to adopting the technology that will allow them to compete, many firms are also

2019 ended with the highest annual total law firm mergers on record with 115 mergers.

choosing to acquire or merge with competitors, thereby augmenting their staff of qualified attorneys while simultaneously reducing competition. This helped make 2019 the latest in a long line of record-breaking years for law firm mergers, with a particular focus on smaller firms of only a few attorneys being acquired.

Two such firms were located in South Jersey: the Berezofsky Law Group and Shivers Gosnay & Greatrex, both of which were located in Cherry Hill and both of which were acquired by larger firms based outside the South Jersey region – a clear sign of the attractiveness of the area’s legal talent.

Real Estate & Construction: Real estate and construction are often a mirror of the times. Today’s market is characterized by growth, particularly as the region becomes a hub for e-commerce and mixed use development. But the uncertainty caused by COVID-19 has cast a pall over the short-term outlook for both sectors.

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Building growth: Despite unsettling times caused by COVID-19, the real estate and construction markets remain on a steady footing The real estate market in South Jersey is demonstrating steady growth, particularly in the commercial and industrial areas. Residential also remains on an upward track but challenges like a high number of foreclosures and most recently, the COVID-19 pandemic, are adding pressure to the sector. The overall story remains positive but the uncertainty in the early months of 2020 put a cloud over the industry.

In the commercial segment, the story is characterized by slow but steady growth across submarkets, with declining commercial vacancies and particularly strong performance among industrial real estate thanks to the region’s establishment as a top e-commerce distribution hub; an overall stable office submarket; and a retail market that has languished under the rise of e-commerce, but which is beginning to successfully reinvent itself through mixed-use redevelopment. There is ample investment flowing into each property category, and lots of money to be made, according to insiders.

The region’s residential market also is on a growth path, with several South Jersey cities posting massive year-over-year increases in median sale price, and steadily climbing rents that are keeping pace with the national average and, in some cases, surpassing it.

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However, New Jersey also faces the nation’s highest rate of foreclosure, with some South Jersey cities confronting the highest overall rates. Like elsewhere in the country, the state also faces a crisis of affordable housing, with many residents spending a disproportionate share of their income on housing and in some cases working excessive hours at multiple jobs to do so. Gov. Murphy’s administration has passed legislation to tackle both issues, with early results that promise an increasingly healthy residential real estate market in years to come.

Throwing the normal state of affairs out the window is the sudden onset of the COVID-19 pandemic that struck people all over the world in early 2020, wreaking havoc on international and local economies. As South Jersey was going to print in May, South Jersey’s real estate market had started feeling the effects of COVID-19 in the form of a noticeable cooling of the housing market as people followed the social distancing protocol and kept to themselves, which also meant keeping their money in the bank rather than show or buy houses. The long-term impact of this ongoing emergency remains to be seen, but it goes without saying that the pandemic will factor into investment decisions for the foreseeable future. ( )

REAL ESTATE & CONSTRUCTION INTERVIEW

Broad landscape South Jersey offers a variety of opportunities but Nexus is betting on Glasboro becoming the core of the region

Dante Germano Chief Operating Officer & Chief Financial Officer Nexus Properties Inc. What are the main strengths of South Jersey’s commercial real estate market?

South Jersey is a broad landscape with different pockets of opportunity. Atlantic City has specific, unique development opportunities, as does Camden County and the City of Camden. We have concentrated our development efforts in Gloucester County. The latter might be considered as a sleepier type of environment with a lack of grand-scale developments. That changed when we became involved in the redevelopment of Downtown Glassboro in partnership with Rowan University and the Borough of Glassboro. We believe that Downtown Glassboro and the surrounding community will become the core of the region and we are working off that with a tentacle mindset. We are convinced it will become the economic hub for Gloucester County.

What are Nexus properties’ recent achievements in this sector?

We are most proud of the completion of the overall redevelopment project in Glassboro, which began for us in 2011 and was completed in 2018. We’ll likely wrap up the last retail tenant in the summer of 2020. This redevelopment attracted a flock of new retail tenants to the downtown. This, in turn, has attracted new residents and community members to shop and spend in the downtown. As the university continues to grow and other developments follow, such as Inspira’s new hospital, we expect this area to continue to thrive. It has also contributed to an increasing number of office tenants looking to lease space in the downtown.

Which real estate services are most in demand and what is driving that demand?

We believe there is strong demand for multifamily and mixed use projects in South Jersey. The millennial

generation is driving the demand as they delay home purchases and seek high quality, amenity-rich rental developments.

What emerging trends have you identified?

Downtown mixed-use redevelopment such as Rowan Boulevard in Glassboro seems to attract tenants from all generations. As a result, we are excited about expanding the redevelopment on Rowan Boulevard to adjacent parcels in the Downtown. We are under construction for a four-story, 125 unit apartment project across the street from Rowan Boulevard. This project will provide on-site amenities such as a pool, fitness center and community space but will also provide tenants the opportunity to take advantage of all of the new restaurants and shops on Rowan Boulevard. www.capitalanalyticsassociates.com

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Rich St. Maur Managing Partner Coordinated Project Solutions, LLC

What is driving the growth in the multifamily and mixed-used segments?

There are a few different points to which I would attribute the growth in multifamily and mixed-use properties, but one has been the trend of millennials being hesitant to buy a new home. They prefer to rent high-end apartments and townhomes with numerous amenities. Over the last year, we’ve also seen growth in the other sectors of the housing market. The demand for single-family properties seems to be coming back.

What advantages does South Jersey’s market afford investors?

The main advantage for real estate development here is the location. We are 90 minutes from New York, a couple of hours from Downtown Washington, D.C., and minutes from Philadelphia. There is no other area that is better suited for commerce than South New Jersey.

What trends or changes are impacting the real estate industry in South Jersey?

One of the main changes for the industry is the generation shift. There are over 72 million baby boomers in the country and that’s why the field of senior care is about to explode. We are working to develop a high-end senior living project that will include a lot of research and development. Our main focus is to provide the best care possible, and that is what this community will be about. One of several innovative features will be having celebrity chef Janet Davis, run the commercial kitchen in our facility. We will build in a TV studio to broadcast live cooking shows from our facility. We have a dozen of those innovative features to attract individuals to our state-of-the-art facilities.

A positive indicator is that we are beginning to see more demand for single-family housing, which helps build communities. All manner of healthcare, especially senior care, is growing as well. We are focusing our attention on the assisted living and dementia care side, but there are many other areas of growth within the sector.

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Commercial real estate within South Jersey remained mostly stable through 2019 but this could significantly change in 2020 due to COVID-19.

( ) Fundamentals Entering 2019, the South Jersey real estate market was generally stable across different categories of property. The vacancy rate of office space in the region decreased slightly to 13.6% by the end of 2018, but some individual counties experienced small increases in vacancy before holding steady for the balance of the year, such as Burlington and Camden counties. By Q219, sales volume and further prospecting activity related to office space were both on the rise, and gross leasing absorption for the region was positive, though barely. This tracks with the recent history of slow but steady growth in the South Jersey office space segment. South Jersey’s retail market can be viewed as two very distinct parts: successful shopping corridors and those that are languishing. Gloucester County has particularly high retail vacancy, which inflates the regional rate considerably, while Camden and Burlington have been decreasing their vacancy thanks to high occupancy at the Cherry Hill and Moorestown malls. Industrial real estate in South Jersey has seen numerous shutdowns alongside some very highprofile openings. Nine West’s warehouse operations shut down near the end of 2018, but there was also 3.7 million square feet of net absorption, thanks in large part to the construction of built-to-suit properties for

REAL ESTATE & CONSTRUCTION OVERVIEW

Amazon. The demand for new industrial construction remained strong into 2019.

On the residential side, you tend to get a lot more bang for your buck in South Jersey than in other areas, even North and Central Jersey. For example, $1 million in South Jersey bought considerably more than in the rest of the state toward the end of 2019. Again, though, the COVID-19 pandemic and its widespread impact turned the US economy on its head, with the stock market plunging to multiyear lows on expectations of a prolonged economic slump.

Commercial Although South Jersey’s commercial real estate market remained generally stable throughout 2019 and into early 2020, it did see the completion of major transactions in each submarket, as well as the continuing struggle of traditional retail space. In the office submarket, a particularly notable transaction was the sale by Pennmark Properties of one of its last few office assets in South Jersey as it makes a surprising pivot to retail. The sale of Pennmark’s 83,216-squarefoot Mount Laurel Office Center for $11.05 million closed at the end of December 2019. The office center consists of three office buildings developed in the 1980s and currently fully leased, mostly by the federal

government, which Pennmark noted as a factor in its decision to sell now.

Another characteristic of the center that adds to its appeal is its prime location at the heart of the 3M market of Mount Laurel, Moorestown and Marlton just off of Route 73, I-295, and the New Jersey turnpike, not to mention its close proximity to the Moorestown Mall. Pennmark is now down to 150,000 square feet of office space in its portfolio, which it plans to sell off once fully leased. It will then continue expanding into the retail space, where it is able to land excellent deals while other developers flee from the market amid the e-commerce boom. Despite a beleaguered retail sector, Pennmark has scored wins, such as the successful rehabilitation of shopping centers and malls in New Jersey and Pennsylvania.

The industrial market is also gaining from retail’s struggles, especially in terms of the addition of e-commerce warehouses and fulfillment centers. For example, a former Macy’s location in the Moorestown Mall is set to become the fulfillment center supplying Anchor Shops, the brick-and-mortar presence of 40 online brands set to open in Center City Philadelphia’s Fashion District. Anchor Shops is part of a new “comerchandising” concept that enables online retailers to establish a physical presence and facilitate more www.capitalanalyticsassociates.com

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REAL ESTATE & CONSTRUCTION OVERVIEW

David Cohen President – Needleman Management Company

South Jersey’s real estate sector has been strong for the past several years. It often feels like the region’s economic cycle lags behind the overall U.S. economy; however, the strong employment figures that we’ve been reading about on a national level feel like they are solidly hitting our segment of the market: Our portfolio occupancy rates are very strong; we’re seeing some increases in rental rates; we’re seeing some new business creation with individuals breaking off from their current employment to start new businesses.

meaningful connections with customers by offering a limited selection of their inventory in a brickand-mortar store. The approach also gives new life to defunct retail space, a boon for landlords in the e-commerce age. A wider stock will be available at the Moorestown fulfillment center, and will allow quick and easy shipping to customers. Anchor Shops and the fulfillment center will both be operated by the Philadelphia-based publicly traded trust PREIT. Another big Industrial transaction involved the purchase of a 21-building portfolio in South Jersey, just

South Jersey’s A.C. Moore will close all of its 145 stores off Route 73 in West Berlin. The bulk of the deal was made up of the 16-building Bloomfield Business Park, which was developed in the late 1980s and early 1990s.

Each building has a total footprint of 10,500 square feet configured to accommodate multiple tenants.

Bloomfield was sold by one of its original developers, Bloom Organization, to Blue Bell, Pennsylvania-based Industrial Investments Inc. Industrial Investments also purchased five buildings in the Commerce Lane Business Park and two 25,000-square-foot lots on Route 73 as part of the deal. The entire 21-building, 48 | Invest: South Jersey 2020 | REAL ESTATE & CONSTRUCTION

241,410-square-foot portfolio sold for a total of $16.05 million, or approximately $66.50 per square foot.

A strong sign of the growth of South Jersey’s industrial real estate market, due to the region’s status as a thriving e-commerce logistics hub, is the sale of a 300,000-square-foot warehouse in Mount Laurel for more than three times the amount it was purchased for in 2017. The property was sold by Endurance Real Estate Group, based in Bala Cynwyd, Pennsylvania, and Thackeray Partners, based in Dallas, Texas, for $32.2 million to Denver-based Black Creek Group. Endurance and Thackery paid $10 million for the property in 2017 and made about another $5 million in improvements, including knocking down 75,000 square feet of office space, updating lighting, installing dock doors, and replacing the building’s decades-old roof. At the time of the sale, the building was fully leased.

South Jersey’s retail market is a different story, but by no means an entirely bad one. There are plenty of closures and signs of trouble as retail lessees continue to struggle in their competition with e-commerce, which in turn creates a challenging market for lessors.

For example, South Jersey-based art supply store A.C. Moore is shuttering all of its 145 stores. This includes the flagship store that just opened in Center City Philadelphia in 2017 and was hailed as an indicator of the health of the chain and of that city’s resurgent retail real estate market. A.C. Moore was founded in Moorestown in 1985, and grew to a massive network of creative supply stores spanning from Maine to Florida.

However, the inability to compete with expanding competition from e-commerce in recent years is cited as a major factor in the decision to close retail operations.

The closures will mean the laying off of about 500 employees across A.C. Moore’s locations, but one of their competitors, Michael’s, will be taking over 40 A.C. ( )

Market voices: Space needs The large healthcare systems are taking over the traditional family practices and specialties. Dental specialists and oral surgeons are active in starting new practices or expanding them. The same can be said for physical therapists and chiropractors.

These specialty practices are growing and fueling a large demand for space. By the nature of their business, chiropractors, physical therapists and dentists are always interested in retail space for visibility and exposure purposes.

Leor Hemo Founder & Managing Principal Vantage Real Estate Services

The demand in the industrial market has continued to increase over the last 12 months. One of the biggest drivers has been our rental rates and sale prices on a price per square foot basis relative to neighboring areas such as Northern New Jersey and the New York metropolitan area. A significant part of our activity has been coming down the New Jersey Turnpike from these northern-based tenants, owner-users purchasers and investors.

Ian Richman

Senior Managing Director – Southern New Jersey Colliers International

Charlie Walters

Gloucester County has transportation systems that bring people from some of the urban and rural areas that aren’t generally connected to us. In most of Southern New Jersey, people need to get around by car. In the last few years, Gloucester County has taken it upon themselves to put in some transportation systems that stop at all the industrial parks along I-295. This has benefited the community, including us, and the local workforce.

The Pureland Group

Industrial real estate is a dynamic sector across the country with very few vacancies. If we had to put our money in one sector in South Jersey, I would choose this one, but the problem is there are not enough properties to meet demand. Retail is struggling like in other markets and quality Class “A” and “B” office buildings are performing well, as long as capital investments are made to maintain them.

Jason Wolf Managing Principal Wolf Commercial Real Estate (WCRE) | Corfac International

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REAL ESTATE & CONSTRUCTION OVERVIEW

( ) Moore locations, saving many jobs and cutting down on retail vacancies in the process.

As part of the overall decline of brick-and-mortar retail, malls have also struggled with vacancies as retail tenants – even anchors – shut down. The generally healthy Moorestown Mall lost anchor tenant Lord + Taylor at the end of 2019. The designer fashion store has experienced flagging sales and store closures for the past few years, and was only able to post a quarterly profit in June 2019 thanks to the sale of its flagship store in Manhattan. Lord + Taylor is the second anchor tenant that Moorestown Mall has lost since 2017, following the previous departure of Macy’s. Despite the loss of tenants and a dip in sales, the CEO of the company that owns and operates the mall, PREIT, is confident in its continued attractiveness as a retail and entertainment venue, as evinced by PREIT’s decision to sell the mall property and lease it back. PREIT will use the proceeds – and other long-term financing options – to fund the redevelopment of the mall into a mixed-use property replete with a hotel, residential units and, of course, retail and entertainment. By going mixed-use, Moorestown Mall hopes to not only survive, but grow in the future as the retail market continues to evolve.

Other malls are also exploring innovative ways to stay profitable. Phillipsburg Mall, which has also lost several anchor tenants in recent years, including JCPenney, Sears, and The Bon-Ton, and has demolished the space previously occupied by the latter two stores. The mall’s owners are open to any and all offers to get the space occupied, and have considered proposals to use some of its vacant space for warehouses or distributions centers, similar to what was done with the former Macy’s space in the Moorestown Mall. However, this would require

22 million square feet of new industrial construction is set for delivery in 2020 within the region.

REAL ESTATE & CONSTRUCTION OVERVIEW

extensive feasibility studies and, ultimately, the rezoning of the lot to allow its use for warehousing.

Investment The retail real estate scene is far from grim in South Jersey, of course, with plenty of big investments still being made in the segment throughout the region. “We have seen a lot of people looking at this market, including outside money which traditionally has not invested here. It is a market where there are opportunities in terms of value which don’t exist in other markets these companies traditionally invest in. Additionally,there continue to be opportunities for people who know the market well from a real estate perspective and a wider, economic perspective and can execute. Some of the incentives that have driven investment in select markets for the ‘User’ community have had little impact

on the broader market in general for investors. Hence, You need to evaluate these dynamics when you look at committing capital,” said Rick Schwartz, founder and principal at Veritas Real Estate.

Consider the recent sale of multiple large shopping centers, anchored by big-name tenants, for big money.

First, there’s the 100,000-square-foot Cross Roads Plaza at 1520 Route 38 in Burlington County, which is anchored by a ShopRite grocery store and sold for $25 million in early 2020. The shopping center was purchased by Medipower Public Co., which is based in Cyprus and invests in real estate internationally. Cross Roads also features a Wawa convenience store and gas station, a Wells Fargo bank branch, and is shadow-anchored by a Lowe’s home improvement store located nearby but under different ownership. Barely two weeks earlier and only four miles west of Cross Roads, the 128,172-squarefoot Larchmont Commons was sold for $12.9 million.

Larchmont is anchored by an Aldi grocery store and a Planet Fitness, and also features a Dollar Tree, UPS Store, Hair Cuttery, and a Primo Hoagies. The quick succession of the sales is no coincidence: Investors are turning en masse to retail investments anchored by tenants not likely to be driven out of business by the continued expansion of e-commerce, and grocery stores remain a safe bet.

There is also a great deal of investment in office space, such as Strategic Funding Alternatives’ slate of 23 acquisitions throughout South Jersey since 2016.

Most recently, Strategic bought the eight-building East Gate Business Center in Mount Laurel for $10 million.

East Gate is a mixed-use property situated on nine acres between I-295 and the New Jersey Turnpike, and was 90% leased at the time of the sale. Strategic also acquired a 57,000-square-foot Class A office building in Voorhees for $7.3 million, and a 56,000-square-foot office building in Mount Laurel for $3.2 million. Strategic invests in its acquisitions by making improvements, such as new signage or renovated common areas, to increase the buildings’ appeal and make them nice places for people to go to work.

South Jersey residential real estate was also performing well toward the end of 2019 and the beginning of 2020, with the important caveat that the COVID-19 outbreak is causing a rapid cooling of the market for the time being. Consider the $7.3 million investment in a mixture of commercial and residential space in Downtown Haddonfield by Property Management Services in late 2019. The developer plans to redevelop some of the commercial acquisitions in the portfolio into high-end residential units. The commercial properties purchased sold for between $490,000 and $990,000. ( ) www.capitalanalyticsassociates.com

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REAL ESTATE & CONSTRUCTION INTERVIEW

Affordable need As South Jersey grows as a ‘Meds and Eds’ hub, the need for affordable housing grows with it

John O’Donnell CEO – The Michaels Organization What challenges does your organization and the industry face going forward?

Affordability is a major issue nationally. The demand for affordable and workforce housing has perhaps never been greater, but rising construction and labor costs are making it difficult for these kinds of developments to “pencil out.” Soft funding is also harder to find and getting to a financial closing is complicated and, therefore, seems to be taking more time to achieve. Municipalities or housing agencies seem to be overwhelmed, and permits and other processes are taking longer. We are in 35 states and this is a challenge we see across our portfolio.

Tax incentives for workforce and affordable housing is probably the most overlooked sector across the nation. Households with middle incomes are spending more on rent than any other sector across the country.

What segments of the industry are seeing the most demand in South Jersey?

South Jersey has become a hub for the “Meds and Eds” economy, and that is driving the need for housing that is affordable to a growing workforce, including those served by the Low Income Housing Tax Credit program, but also those who earn outside of the LIHTC’s income restrictions. The workforce that earns between 60 percent and 100 percent of the area’s median income. So affordable and workforce housing will be a primary focus for us in South Jersey for the foreseeable future. There is also a growing need for more student housing.

We recently were selected, for example, to provide a second phase of on campus housing for Rowan University. We completed the first phase on their Glassboro campus in 2016.

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What are your main areas of focus for Michaels in South Jersey in 2020?

In addition to several large affordable housing developments, student housing is a major area of focus for us right. Institutions like Rutgers UniversityCamden, Cooper School of Medicine and Rowan University are growing and that will increase the demand for student housing. Every element of our education sector in South Jersey is doing well and we will continue to work with these institutions. We are also working with the Housing Authority of the City of Camden to revitalize some of their properties. We will also be focused on opportunities to develop marketrate communities. Whatever segment of the market we work in though our first priority is always our residents and ways we can live out our mission to live lifts. We are always focused on creating a legacy that the world’s a better place to live wherever we build and manage it.

REAL ESTATE & CONSTRUCTION OVERVIEW

Vacancy rates of office space in the region decreased to 13.6% by the end of 2018.

( ) Residential Numerous counties in South Jersey boasted hot real estate markets throughout 2019, with median home sale prices that skyrocketed in some places while remaining affordable. Mercer County enjoyed a 24.3% increase in median price, the highest increase in the Greater Philadelphia Area, to $261,000. Similarly, Salem County posted a 16.1% year-over-year increase, but also had the area’s lowest median sale price at $144,000. Atlantic County also performed well, with a 9% increase in number of sales and a 24% increase over the previous year’s median sale price for a median price of $225,000. This strong growth led to some high-profile (and high sticker price) sales and investments throughout the region, such as the receipt of $43 million by a joint venture between Verde Capital, Kushner Real Estate Group and Oxford Realty Group from Freddie Mac to refinance the Deer Creek Apartments. Deer Creek is a garden-style multifamily housing complex located in Plainsboro.

Another apartment complex, Coventry Place, located

in Magnolia sold for $14 million to California-based Canyon Partners.

However, the market also has its pain points. For the fifth year in a row, and despite decreasing rates, New Jersey had the highest reported rate of foreclosure in the entire United States. Some of the most affected areas were in South Jersey, including Cumberland County, which had the highest rate of foreclosure in the nation at 2.01%. Rural counties like Sussex were generally hit hard, but South Jersey’s metro areas were not unscathed. In fact, Atlantic City in Atlantic County had the highest foreclosure rate in the country among metro areas with populations of at least 200,000 at 1.33%. Compare these figures to the 2019 U.S. foreclosure rate of 0.36%, and New Jersey has some work to do; fortunately, that work has begun. In 2019, Gov. Murphy signed nine bills to improve the foreclosure process, codify foreclosure mediation, and ensure quick and efficient sheriff’s sales. This helped foreclosure starts to drop 21% in 2019 – the third- largest single year decline in the United States and double the nationwide figure. www.capitalanalyticsassociates.com

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Stephen Schoch Managing Principal Kitchen & Associates

What does Kitchen & Associates understand better about the construction business compared to its competition?

We come at our projects through a high degree of understanding of what our clients are looking for. We maintain several long-term business relationships that go back decades. Even on new relationships, we take a deep dive in terms of critical client drivers, whether they revolve around long-term maintenance or unifying operations among different facilities. At 80 employees, we are the largest architectural engineering services firm in the South Jersey area. It grants us the ability to offer services in a way that few can.

How are you leveraging technology in the design phase of a development?

The availability of faster information sharing is a big thing. In the construction and design world, it is a high added value to have real-time data exchange. When you can share issues in real time, sometimes realtime answers are expected, and that creates potential disruption if not managed properly. We use a highlevel Building Information Modeling (BIM) system. It is a 3D visualization and documentation process where we ‘build’ the facilities in a virtual setting, covering all aspects: architecture, structure, mechanical systems, to name a few. It reveals potential clashes and conflicts in the virtual setting so you can avoid getting them onsite. It is both a design and a quality-control tool. It provides visualization clarity for the owners on how their building is going to look and serves as an efficient communication tool with contractors. We also use a drone to gain perspective over the onsite progress of a development, documenting each stage at any particular point in time. It is a critical tool for the renovation side of our business. Improving existing assets is a huge part of the construction economy. Being able to use such a tool in our building survey work makes the process considerably more streamlined and accurate.

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Affordable housing A major victory in the fight against the affordable housing crisis was won in December 2019 when Murphy’s administration awarded more than $22 million in Low Income Housing Tax Credits, to be distributed among 1,200 affordable apartments being developed across New Jersey for low-income families, seniors, and those with special needs. The tax credits should generate up to $214.7 million in private investment in 17 distinct low-income housing developments. New guidelines enacted by the New Jersey Housing and Mortgage Finance Agency emphasize the need for locating developments in areas that give children access to better schools, providing seniors with on-site services, such as nurses and other medical programs that allow them to age in place, and ensuring mixed-income development to prevent segregation of housing on the basis of income.

Post-COVID-19 real estate development will be focused on designing buildings with health and wellness as top influences.

REAL ESTATE & CONSTRUCTION OVERVIEW

Mike Regina Principal & Co-founder – Big Sky Enterprises We are strong in the healthcare space, especially with dentists, which is a bit of a niche for us. Churches are another niche. We are developing a couple of projects in the church segment and about two or three could start in 2020. Some others could start in 2021. Our services are from concept to completion, so we do the development, we do the project financing, and the construction. By doing that, we get in early on a project.

We allow our clients the ability to focus all of their attention on building their organization, while we manage and execute the development, the financing and the construction. That gives them peace of mind, knowing that we’ve been doing this now for 17 years.

That is a game-changer for our clients.

Rental trends Rental prices are continuing to climb across the country, with a year-over-year increase of 3% as of April 2019, to $1,436 per month. Across New Jersey’s largest cities, however, average rents tend to be lower than the national average, and this is particularly true in South Jersey cities like Voorhees ($1,368), Maple Shade ($1,200), and Blackwood ($1,134). However, average rent in some cities in the region sit above the national average, such as Cherry Hill ($1,516) and Marlton ($1,458). Overall, though, New Jersey is considered a hot market for investment in rental properties, thanks to great school systems, proximity to numerous major metro areas, and more. South Jersey’s Camden County has the distinction of being one of the Top 5 counties in the nation for rental property investment, according to a HousingWire.com study. Camden has a gross annual rental yield of 12.9% and annual wage growth among residents of 5.5%. Add to this the fact that Camden is just one bridge away from Philadelphia and all the jobs and amenities it has to offer, and it’s clear why up-and-coming Camden is considered a great investment opportunity.

Construction Where there’s real estate, there’s construction. Broadly, the construction industry in the United States has performed very well in recent years, entering 2019 with a large backlog of projects, a healthy economy, and a considerable investment in infrastructure leaving no shortage of projects for construction companies.

However, the industry remains afflicted by a shortage of workers, having never recovered from the exodus of www.capitalanalyticsassociates.com

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skilled labor in the wake of the Great Recession. This forces some firms to leave projects on the table because they simply don’t have the manpower to take them on.

In addition, rising interest rates and materials prices threaten to undercut profits and box out smaller firms.

The South Jersey region saw a great deal of activity in commercial and housing construction in 2019, and a lot more is planned, including the redevelopment of the Echelon Mall site in Voorhees Township. The project will be a massive undertaking and expensive as material prices continue to increase, but the market is giving all the signals that it will be worth the investment. In Burlington, there are plans for an ambitious mixed-use development along the Delaware River waterfront in Burlington City consisting of housing, retail, restaurants, a hotel, and potentially a water park. In Gloucester County, there are bids out for a new academic building at Rowan. Finally, there is the Library Construction Bond Act, which was approved by voters in 2017. The act provides for library construction through a $125 million general obligation bond, out of which the state will pay 50% of the costs for approved projects – either new construction or rehabs.

Industrial real estate is also set to see a litany of new projects into 2020 and 2021, but these likely won’t satisfy the demand for industrial space in the region as e-commerce continues to clamor for a larger footprint. Even though some 22 million square feet of new industrial construction is set for delivery in 2020 alone, it will likely not be sufficient to satisfy the runaway demand of expanding supply chains, and about a third of it is already pre-leased. Actual demand is currently twice that, at 40-50 million square feet.

Clearly, there will be no shortage of industrial real estate construction work in South Jersey for the foreseeable future.

Despite the outbreak of the COVID-19 pandemic, work has not halted at construction sites across New Jersey, despite general warnings from local and state governments to stay home and away from others to avoid the spread of the virus. Unfortunately, the work cannot be performed remotely, leaving many workers to face the risk of infection or the certainty of losing their income. For now, the work must, and does, go on, but as the pandemic continues to develop that may change.

Looking ahead Commercial real estate in South Jersey has remained moderately hot overall for the past few years, with a demand that outweighs the low inventory, resulting 56 | Invest: South Jersey 2020 | REAL ESTATE & CONSTRUCTION

in shrinking vacancy rates and declining vacancies.

Industrial real estate has been a particularly hot commodity, as more e-commerce operations set up warehouses and distributions in South Jersey to take advantage of the region’s strategic location. Office space has experienced more modest growth, and retail has outright struggled due to the same transcendence of e-commerce that was a boon for the industrial submarket, but through innovative redevelopment and adaptive uses, landlords are still finding ways to see a return on their investments.

South Jersey has also enjoyed a hot residential market for the last few years, with median sale prices of single-family homes and rents of apartments both climbing steadily along with the national average.

However, these rising prices, so good for investors, have also led New Jersey to a housing affordability crisis and some of the highest foreclosure rates in the country, particularly in South Jersey. Gov. Murphy and the state legislature have taken steps to ameliorate

22 million square feet of industrial real estate was set for delivery in 2020 these crises through a series of bills incentivizing the development of affordable housing and mitigating the damage of foreclosures. Though the bills were only just signed into law about a year ago, they are already showing signs of positive impact.

Finally, the COVID-19 pandemic continued to grip the world in April 2020, with long-term economic ramifications expected to follow the short-term damage that has been done to the stock market and businesses in the United States. The impact is also being felt on the housing market in South Jersey, where seller’s are afraid to show their houses at risk of exposure, and buyers, many of whom lived through or came of age during the Great Recession, are afraid to make a large purchase while staring down the barrel of another recession.

Transportation & Logistics: Transportation, logistics and manufacturing are among the pillars of the South Jersey economy. The improvement and development of these areas will contribute to the region’s ability to continue attracting businesses, although the COVID-19 pandemic is reshaping the landscape and its full impact remains uncertain.

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Interlinked: Transportation, logistics and manufacturing are interlinked and strength in all three are needed, especially in the COVID-19 era A strong transportation network and a tradition in manufacturing and logistics have served South Jersey well, and are becoming even more relevant as the world goes digital and social distancing becomes the norm in the era of COVID-19. Prior to outbreak of the pandemic, the lower counties of the state were buzzing with activity and that activity is expected to continue, as cargo rolls through its ports, as companies like Amazon turn their eyes to the region’s industrial spaces, and as initiatives like a push for electric vehicles and infrastructure target ease of movement.

To ensure a continuance of the economic expansion the region has enjoyed over the last few years, these three interlinked segments also need to expand and grow.

Transportation New Jersey may be home to some of the most congested roadways in the United States, but it is working to ameliorate crowded conditions with a pivot to public transit, and is also positioning itself to become a leader in the future of environmentally friendly private transportation. Towns in the state are expanding access to public transportation in low-income areas 58 | Invest: South Jersey 2020 | TRANSPORTATION & LOGISTICS

so that those people eager to work have a means of reaching the jobs they’re qualified to do, trains are being made safer with cutting-edge technology, additional affordable airline routes are coming to the region’s airports, and a whole battery of legislation and funding is being directed toward electric vehicle access and infrastructure that promises to make New Jersey the national leader for electric car usage.

One of the biggest impediments to accessing a job is getting there. Transportation leaders in South Jersey recognize this reality and are taking steps to improve the quality of, and access to, public transportation.

One example is the expansion of the Pureland Shuttle in Logan Township, Gloucester County.

The office of Mayor Frank Minor recently conducted a survey of every single business located within Logan Township and found that there are 600 combined job openings among the various industrial parks located within the Township, with more openings on the way in the wake of improvements along Route 322 and additional business openings slated for 2020. When employers were asked about the biggest obstacle to filling these positions, the overwhelming response was that potential employees lack adequate access ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Building a future Proximity to key centers and access to top-rated education and health services are among South Jersey’s selling points

Carl Ortell CEO – Holman Enterprises What impact does Holman Enterprises have on South Jersey’s local economy?

Holman Enterprises launched our operations in South Jersey nearly a century ago. Today, this wonderful community helps us to attract tremendous talent through our proximity to New York City and Philadelphia, access to excellent educational opportunities, and leading healthcare services.

Although New Jersey is not the easiest state to operate in from a regulatory and tax perspective, our experience helps us understand those challenges and tailor our business formulas accordingly. Of our 7,000 people, more than 2,600 people are here and we intend to grow that number further. We are proud to be part of building and investing in South Jersey’s bright future.

In what areas of your business are you witnessing the largest growth?

Our fleet management business is where we see the most consistent growth. The market for fleet operations and technologies is expanding, and an increasing number of players are seeking ways to manage vehicles that operate differently. We have been able to grow and take on new types of fleets, such as Lyft, and offer emerging technology solutions that help achieve business goals such as improving driver safety and vehicle efficiency.

How does Holman Enterprises ensure sustainable, eco-friendly operations in its expanding business?

When it comes to Holman’s operations, we focus on three critical facets of corporate social responsibility: environmental sustainability, social sustainability, and ethical governance. Holman companies received five sustainability awards in 2019, and for 2020 we’ve already invested in nearly 50 projects focused on

increasing efficient use of energy.

How does Holman Enterprises harness new technologies?

For us, developing technology is tantamount to added value for our clients, providing them with optimized operations, enhanced security, and protected data.

Our organization develops many innovations inhouse, with a focus on continuous improvement of all digital properties to deliver better B2B and B2C customer experiences. By putting more mobile and self-serve capabilities in our clients’ hands, we empower them to access information they need, when they need it. We’ve even launched Holman Strategic Ventures, a team dedicated to evaluating emerging technology solutions. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

The New Jersey Partnership to Plug-In is a statewide effort to build electric vehicle infrastructure ( ) to the public transportation that they would need to reach these jobs. With these survey results in hand, the mayor’s office met with representatives of New Jersey Transit (NJT), South Jersey Transportation Authority and Cross-County Connection TMA, leading to the expansion of the Pureland Shuttle routes to include a Saturday shuttle with run times that mirror the Monday-Friday routes.

Another notable public transit initiative announced in early 2020 is the Federal Railroad Administration (FRA)’s approval of NJT’s revenue service demonstration (RSD) of its positive train control (PTC) system, a revolutionary new safety technology. This important milestone keeps NJT on track to meet the federal government’s deadline of PTC certification by Dec. 31, 2020. The FRA’s approval will allow NJT to conduct RSD on the Morristown Line between Summit and Denville.

The actions taken also reach the state’s roadway, in particular a push for electrification. In January 2020, Gov. Murphy signed legislation that would entitle purchasers of electric vehicles to receive a $5,000 rebate on top of the existing state sales tax exemption and federal tax credit for electric vehicles, which could mean that the sticker price of a $40,000 electric vehicle could be slashed to $28,000 in New Jersey. This suite of economic incentives is designed to guide consumers away from fossil fuel-powered cars and toward more environmentally-friendly electric vehicles in pursuit of the state’s goal of 100% clean energy by 2050, and may simultaneously lead to New Jersey becoming a national leader in electric car ownership. The state is already seventh nationwide in terms of the number of electric vehicles on the road. Proponents of the new law stated that, as the number of electric vehicles on New Jersey’s roads increases, air pollution will decrease.

This new law is in line with the 2019 New Jersey Partnership to Plug-In, a statewide partnership to build the necessary infrastructure to support electric vehicle use and ownership. The partnership is a collaboration between the New Jersey Board of Public Utilities, the New Jersey Department of Environmental Protection, and the New Jersey Economic Development Authority that will support New Jersey’s electric vehicle ecosystem, with the goal of registering 330,000 Zero Emission Vehicles by 2025.

Atlantic City International Airport Transportation improvements are also taking off in the air above South Jersey. The Atlantic City International Airport announced in February 2020 that Spirit Airlines, the renowned ultra-low-cost carrier, will be ( )

TRANSPORTATION & LOGISTICS INTERVIEW

Planning ahead Expansion and infrastructure improvements are among the strategies to bolster a key economic driver in the region

Andrew Saporito Executive Director – South Jersey Port Corporation How is the Port Corporation supporting South Jersey’s growth?

The South Jersey Port Corporation and its four marine terminals are economic drivers for the regional economy and South Jersey’s connection to the global markets.

During my first few months as the executive director and chief executive officer of the SJPC, I have been exploring the potential to expand SJPC businesses while remaining focused on retaining and growing our existing businesses with our long-time customers and tenants. We are primarily a bulk and breakbulk port so the type of cargo that we handle is labor intensive. It is a specialty area and we have a great reputation with our customers and throughout the industry for meeting their diverse needs.

We are also looking for ways to support the offshore wind sector along the Atlantic Coast of the United States. Our facilities would be an ideal site for manufacturing and we are spending a lot of time talking to customers and local companies to make that work.

How is the Paulsboro Terminal progressing?

The Paulsboro Marine Terminal is key to our growth. It opened for business in 2017 with the second phase of construction scheduled for completion in fall 2021. At full build out, it will have three berths on the Delaware River and a barge berth on the Mantua Creek. There is significant interest in that facility. We have 45 acres occupied, but there is still approximately 140 acres of available space. Over the next few months, we hope to announce exciting projects related to Paulsboro as we continue to deliver on the vision of Paulsboro as a source of new jobs in the South Jersey region. Already more than 4 million tons of steel slabs have been processed through Paulsboro.

What steps are you taking in terms of infrastructure?

We are developing a five-year capital plan to prioritize

our infrastructure needs across all our facilities including the possibility to rehabilitate existing buildings or demolish some buildings and replace them with newer, more modern facilities that can handle cargo. We are also investigating the use of solar energy, which is appealing to the companies that we are looking to attract. We will invest $6 million utilizing a recently awarded grant to provide seamless ship to rail capacity at Balzano Marine Terminal. We also are looking at newer equipment that is more efficient. We just brought in nine new forklifts for the terminals in our effort to be an incubator for more environmentallyfriendly equipment. We will also explore the possibility of electrifying one of our existing cranes and replacing an older crane with a newer electric crane to be ahead of the curve in terms of energy efficiency. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

Ray Rastelli Co-Founder – Rastelli Foods Group

We are growing dramatically in our three business segments. In our food service segment, we’ve moved to a national program. Prior to 2019, we were based in the Atlantic region. The infrastructure we recently built gives us a national footprint in the food sector. In the retail segment, we have been able to tie ourselves to some of the largest retailers across the country. The most significant change has been our e-commerce strategy, and our work with affiliated programs and partners. For example, our biggest affiliation is with e-commerce business QVC. In just a couple of years, we have become the largest food brand on QVC, sending well over 50,000 packages on a monthly basis. That has given us a national presence both as a brand and as an e-commerce platform.

Atlantic City International Airport served over 1.1 million passengers in 2019 ( ) adding flights between Atlantic City and its major markets in Fort Lauderdale, Orlando and Myrtle Beach, S.C. Pror to the COVID-19 outbreak, the frequency of flights to and from Fort Lauderdale were expected to increase to three daily, effective July 9, 2020; the frequency of flights to and from Orlando were to increase to 19 weekly from 14, effective July 9, 2020; and the frequency of flights to and from Myrtle Beach were to increase to nine weekly from seven, effective June 13, 2020.

This deepening of ACY’s partnership with Spirit will likely have a significant and positive impact for local and visiting passengers. The airport served more than 1.1 million passengers in 2019, with Spirit carrying roughly 91% of that total. The South Jersey Transportation Authority is optimistic that the additional Spirit flights will help the airport achieve its goal of 1.2 million passengers in 2020.

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Technology and ride-sharing In addition to traditional infrastructural development and legislative approaches to improving transportation throughout the South Jersey region, there are also some high-tech concepts that are being tested in local incubators. For instance, Rowan University has received a two-year, $100,000 grant from the New Jersey State Board of Public Utilities to research the best means of expanding electric vehicle infrastructure and use among New Jersey’s underserved communities. Lowincome communities, and those whose residents are primarily people of color, suffer a disproportionately high impact from vehicle pollution, according to the Greenlining Institute, and would therefore benefit enormously from increased access to electric vehicles.

The scope of the grant allows for Rowan to carry out market analysis on plug-in EV infrastructure and usage programs in low-income areas and multifamily properties. The initiative complements the Greenlining Institute’s assertion that people of color will need to buy electric vehicles at a higher rate than other consumers if the country hopes to reach its climate sustainability goals, as people of color are projected to be the national majority by 2044.

Another innovation is being tested at Rutgers University, in partnership with New Jersey Transit.

Rutgers plans to test three of French company Navya’s electric, self-driving vehicles around Fort Monmouth. If the vehicles perform well there during a two-year testing period, it is possible that they will then be expanded to operations on regular streets.

Transportation companies will have access to the

TRANSPORTATION & LOGISTICS OVERVIEW

The top exporter of goods from New Jersey in 2019 was Canada.

test results and will be able to make that decision for themselves. The vehicles are perfect for short hauls around college campuses or downtown areas, but not so much for regular highway commuting. The company’s bus-like shuttles can carry up to 15 passengers, max out at 15 miles per hour, have no steering wheels, and rely entirely on AI drivers; however, there is an emergency stop button. Rutgers and NJT are still seeking federal funding for the test.

Logistics and trade With its strategic location right on the Atlantic Coast and between New York City, Washington, D.C., and Philadelphia, New Jersey has the potential to be a

trading powerhouse. In 2019, the state did more than $126 billion in import trade and almost $35 billion in exports, which amounted to 5.1% and 2.2% of the U.S. totals for each trade category, respectively.

Some of New Jersey’s top imports for 2019 included medicaments in measured doses, light oils and petroleum oils, immunological products, passenger motor vehicles, palladium (unwrought or in powder form), cellphones, cheese, shrimp and wine. Top exports included passenger motor vehicles, waste and scrap of precious metal, cellphones, medical instruments and appliances, civilian aircraft engines, ferrous waste and scrap, and parts of airplanes or helicopters. These make up just a small sample of

Tim Kroll Airport Director Atlantic City International Airport

How are you working to create a “smart” airport?

We are working with the FAA William J. Hughes Technical Center, which handles development and research for the Federal Aviation Administration, as well as a newly formed group called the National Aviation Research & Technology Park, which just completed its first 40,000-square-foot building to attract companies to conduct aviation research. We have also been partnering with both groups to introduce smart technologies at ACY. The Atlantic County Economic Alliance was awarded a $1.6 million aviation grant from the federal government to do this kind of work.

It is aimed at incubators and accelerators to test new technology. We are excited at the potential and are at the beginning stages of implementation. We have close to 100 digital screens throughout the airport to notify passengers of their flights and of any emergencies, as well as for advertising. We have also introduced a new technology for tracking baggage delivery times.

We are a small, well-run airport surrounded by large international airports in Philadelphia, Newark and New York. One of our selling points is being more convenient and customer-friendly. So new technologies that can improve the customer experience are important to us.

What role does the airport play in local economic development?

The key role is bringing people to the area and getting our local residents to visit other destinations throughout the United States. Today, if you look at our service, it is heavy on outbound flights, people going to their destinations. About 68% of our service is locals leaving, while the remaining 32% consists of people coming to visit the region. This is a key opportunity for us. We are working to partner with local stakeholders to bring more visitors to South Jersey, especially to the casino region. Traditionally, the casinos have been a “drive market,” and we are working on partnerships with the casinos and airlines to deliver new services to the area that will attract more visitors and help local tourism.

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South Jersey Port Corporation imported over 1.6 million tons of steel in 2019.

the many imports and exports traveling through New Jersey, clearly indicating how busy and diverse the state is as a logistics hub. The list of exports in particular shows New Jersey’s importance as a manufacturing base.

In descending order, the Top 5 exporters of goods from New Jersey are Canada (20% of total exports in 2019), Mexico (8%), the United Kingdom (7.1%), China (5.1%) and Germany (4.5%). The Top 5 importers of goods into New Jersey are China (13.3% of total imports for 2019), Canada (6.8%), Germany (6.8%), India (6.4%) and Italy (5.8%).

This foreign trade is generated in part by South Jersey Port Corporation (SJPC) and its Free Trade Zone (FTZ) No. 142. FTZs are duty-free, quota-free secured areas located at designated ports of entry that are legally considered as outside U.S. Customs territory. FTZs allow foreign goods to enter the country without formal customs entry and permit warehousing, assembly, manufacturing, display, destruction, and other forms of processing. Another big plus: duty payments can be deferred, reduced or eliminated within an FTZ. There are two permanent FTZ locations in South Jersey: one at the Port of Salem and the other at Millville Airport.

SJPC handles bulk and break-bulk cargoes through

TRANSPORTATION CONSTRUCTION & LOGISTICS OVERVIEW

Stephen Dougherty Executive Director South Jersey Transportation Authority

its facilities. The port’s Camden facilities handle over 3 million tons of bulk, break-bulk and containerized cargoes annually. In addition to its three terminals in Camden, and its Salem Marine Terminal at the Port of Salem, the Port of Paulsboro opened in 2017.

Sitting on the Delaware River in Gloucester County, Port of Paulsboro cost $225 million in state funds to develop. Phase 2 construction that includes another two wharfs and infrastructure improvements is expected to be completed in 2021. The port is expected to create about 1,000 jobs when finished. “South Jersey is a strategic location because of the large number of frozen and refrigerated food manufacturers within a 250-mile radius. South Jersey also offers a terrific labor pool and compared to our peers in North Jersey, real estate prices are much more competitive here. The recent expansion of Route 295 and other infrastructure improvements has helped tremendously as well,” said Russell Leo, president and CEO of the Transportation Group at RLS Logistics.

But Leo adds that the logistics industry is facing challenges, and the biggest hurdle currently orginates with the federal government. “Overall, our greatest challenge has to do with the laws and regulations coming out of Washington, D.C. Recent regulatory

What impact have you experienced from the Roadway Environmental Advancement Initiative (READI)?

This initiatie has had a great impact in partnering with conservation institutions throughout the Northeast corridor. In Atlantic City in 2020, we are planning to host the Northeastern Transportation and Wildlife Conference with approximately 300 participants.

We are not just in the business of transportation and running a major highway, we also want to be a good steward of the environment. In some locations we are constructing tunnels under the Expressway so animals can cross safely, and in some instances, we are installing fencing along the roadways to protect animal populations.

Last year, we constructed three nesting platforms for ospreys, and we have a 40-acre wildflower program where we plant wildflowers along the side of the highway that are native to the area. The wildflowers attract and support butterflies and other pollinators.

How will Bill 2252 to electrify the transportation system change the region’s transportation landscape?

Prior to the enactment of S2252 (increase use of plugin electric vehicles), the Authority was researching and developing relationships with EV manufacturers and charging station entities for placement throughout our facilities for public and Authority use. As a result of S2252 and New Jersey Gov. Murphy’s Executive Order #100 (Energy Master Plan and Regulatory Reform to Reduce Emissions and Adapt to Climate Change), the Authority is collaborating with the NJ Department of Transportation, the NJ Turnpike Authority and NJ Transit on the development of a set of specifications for electric vehicles for use in our daily operations. The goal is to eventually replace our gas-powered light-duty vehicles with electric vehicles. www.capitalanalyticsassociates.com

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TRANSPORTATION & LOGISTICS OVERVIEW

In 2019, the state did more than $126 billion in import trade and almost $35 billion in exports.

enactments relating to food and truck safety, while necessary, add additional layers of complexity to our operations and costs.”

Manufacturing New Jersey has had a booming manufacturing industry that stretches back about 200 years. In fact, by some accounts New Jersey is the home of the American Industrial Revolution. Today, there are 2,500 advanced manufacturers operating within the state of New Jersey, ranging in size from multinational pharmaceutical companies to small local machine shops, with chemical, pharmaceutical, petroleum and food manufacturing traditionally representing the state’s biggest industries, and manufacturers of computers setting up shop more recently. Combined, these manufacturing outfits employ 245,000 people 66 | Invest: South Jersey 2020 | TRANSPORTATION & LOGISTICS

and contribute $37 billion to the state’s GDP. Some recognizable names in manufacturing that have operations in New Jersey include Anheuser-Busch, Benjamin Moore, Bristol-Myers Squibb, Lockheed Martin and Mondelez.

Of course, all of the goods produced by these manufacturers, as well as those shipped into New Jersey, need a way to get to consumers – and they need to get there faster than ever before in the age of e-commerce.

Fortunately, a distribution center located in New Jersey can reach 38 million consumers within a mere two-hour drive, and 33% of the entire U.S. population is within one day’s drive from any point in the state. This attracted e-commerce behemoth Amazon in 2012, and now New Jersey is home to 17,500 full-time Amazon employees across 10 fulfillment centers. Other e-commerce companies taking advantage of New Jersey’s logistics

TRANSPORTATION & LOGISTICS OVERVIEW

resources include Jet.com, Blue Apron, Wayfair and Boxed, and online fashion retailers like Rent the Runway and the RealReal are also growing here.

Looking ahead It’s still a long road ahead before New Jersey eliminates congested streets and has an adequately low rate of vehicle pollution, but the necessary proactive steps are already being taken toward achieving these goals.

Federal, state, and local governments are working together to promote public and environmentally friendly transportation, and are providing the necessary funding for the research and infrastructural improvements necessary to put innovative solutions to wide use. Institutions like Rowan University and Rutgers University are also getting involved and serving as incubators and first adopters of innovative new vehicles.

On the manufacturing and logistics side, South Jersey has played a major role in the state’s long and successful history as a center of manufacturing and trade. Today, this history is alive and well, conducting extensive trade with partners all over the world. The region serves as a major hub for Amazon, which opened a new fulfillment center in Burlington City in 2019, and other e-commerce giants, showing that the area is ready and able to leverage its traditional logistical advantages for a place in the future of shipping and commerce.

Transportation, manufacturing and logistics will continue to be major drivers of South Jersey’s economy.

The continued vitality of traditional manufacturing sectors and the growth of new markets promises to spur fresh initiatives, but it will take success in all three segments to ensure broad growth moving forward.

Infrastructure & Utilities: South Jersey is on the rise, but it will only go as far as its infrastructure can take it. Energy, in particular, is one segment underpinning the region’s growth, and efforts are underway to bolster the industry, while broadening its scope. Delays in highway and water improvements, however, remain key challenges.

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Energized: Clean energy is at the forefront of South Jersey’s infrastructure push Infrastructure is the backbone of the economy. As the area’s economy grows, the need for improvements is increasing right alongside it, particularly in the energy industry, which is a key sector underpinning South Jersey’s development. Wind and solar, especially, are on the rise.

New Jersey is a relatively low energy-consuming state, according to the U.S. Energy Information Administration. It ranks 39th of all states in terms of consumption, with just 240 million Btu consumed per capita in 2017, significantly less than No. 1 consumer Louisiana with 960 million Btu per capita. Although New Jersey has no fossil energy reserves, it still plays a major role in the country’s energy supply chain, with Port Reading one of the three storage sites for the 1-million-barrel federal Northeast Home Heating Oil Reserve. Gov. Murphy in January 2020 also unveiled a new Energy Master Plan that focuses on clean energy and set the state on the path to 100% clean energy by 2050.

Aside from energy, mobility is another segment that requires attention. Across New Jersey, average commute times are 30.9 minutes, above the U.S. average of 25.7 minutes and 5.5% of the workforce has a super commute lasting 90 minutes or more. This is mainly a symptom of the lack of public transport 70 | Invest: South Jersey 2020 | INFRASTRUCTURE & UTILITIES

availability. Just 11.7% of the population reported using public transport in 2018, while 8.19% carpooled and 70.9% drove.

But an understanding of South Jersey’s geographical makeup and the impacts of climate change are necessary both to understand what hampers the efforts to build better infrastructure and to demonstrate why more is needed.

Ecosystem South Jersey has a delicate ecosystem, with around 1.1 million acres covered by the Pinelands. This ecosystem is especially important, since the majority of New Jersey’s drinking water comes from rivers and reservoirs. Due to its sandy soil, the land could not be used for agriculture so since pre-Colombian times it has been largely neglected – first burned for charcoal and subsequently used for sawmills and cotton mills.

The Pinelands was designated Natural Reserve status

by Congress in 1978 and the New Jersey Pinelands Commission was set up to oversee the land.

As environmental stewardship becomes more important, more and more initiatives are emerging in South Jersey to protect water sources and ecological diversity. In November, Gov. Murphy announced that the New Jersey Department of Environmental ( )

INFRASTRUCTURE & UTILITIES INTERVIEW

Surprising pace Technology and electrification is pushing rapid change in an industry that has been generally viewed as static

Mike Renna President & CEO – SJI

How has the industry evolved over the last few years?

There is a general perception that the utilities industry is relatively static. Change often comes over a long period of time in utilities. One trend that may have caught the industry by surprise is the pace of change in the last three to five years. For example, it wasn’t that long ago that technology allowed the significant expansion of natural gas across the country, which unleashed numerous reservoirs that are calculated to provide about 200 years of supply. It transformed the business and suddenly customer bills were a fraction of what they were just 10 years ago.

In just the last two to three years there has been a drastic shift toward electrification, driven by concerns of global warming and climate change. That rapid change represents numerous opportunities for us.

How is SJI preparing the grid to deliver the service of the future?

We are trying to accomplish two main goals in parallel.

One is to deliver safe, reliable, affordable natural gas. Seventy-five percent of the state’s homes and businesses use natural gas for heating. We are a very densely populated state and our infrastructure needs to be maintained. Critical investments are needed to deliver on our promise to customers. At the same time, we are committed to advancing the goals of the state and finding new ways to help customers consume less and to lower the carbon content of the gas going through our system. There have been great technological advances in renewable natural gas, which takes the gas from landfills, wastewater treatment facilities and farms and purifies it, gets it into pipeline quality and lowers the carbon content of the natural gas. These are the kinds of investments that we are gearing up for going forward.

In what other ways are you embracing technologies to develop and administer environmental energy solutions?

We are embracing technological advancements that are helping to lower the carbon content in natural gas. We are investigating smart meters to help customers manage their energy, for example. There are huge savings to us operationally that can help to lower customer bills via smart meter programs. Across the company, we have made significant investments in technology, especially in data. We are now using data to make decisions on how we operate the company. This is something we were not doing three to four years ago, but database decisions make us more efficient, productive and have a positive impact on customer bills. www.capitalanalyticsassociates.com

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Gary Stockbridge Regional President Delmarva Power & Atlantic City Electric

How are you preparing the grid to incorporate more sources of clean energy?

A modern energy grid is the foundation for a clean energy future. The reliability investments we make annually are fundamental to making sure we have a strong, reliable energy grid. Our grid is historically built around large power plants and distributing that energy across the system to our customers. Most of our energy flows from west to east, but the future has a lot of distributed generation that is coming from within the service area, as well as offshore wind, which New Jersey is on the forefront of.

The state recently released its Energy Master Plan, which outlines the roadmap for achieving a clean energy future and the State’s goal of 100 percent clean energy by 2050. We are working to modernize the energy grid throughout South Jersey to support clean energy sources and new technologies, while maximizing solutions to support the State’s clean energy goals. For example, the State is pushing forward opportunities with new technologies like battery storage, which can be deployed on the energy grid to improve reliability and support the integration of more renewable energy sources. We are also working to reflect those changes in our rate structure. That is all in the very early stages.

What are the main challenges facing the energy sector?

We have more than 30,000 solar installations in our service area in southern New Jersey. t it also means that portions of the local energy grid are now reaching their capacity for interconnecting solar and we need to continue to modernize the local energy grid to allow for more customers to install solar panels and connect to the grid.

One of the short-term challenges we have now is enhancing the grid’s capacity to ensure all customers who request to install private solar are able to install it and interconnect with the grid.

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( ) Protection had purchased 1,400 acres of land in Cumberland County from Atlantic City Electric to protect New Jersey’s largest concentration of endangered species.

And Gloucester County Sen. Stephen Sweeney joined forces with Sen. Steven Oroho in February to spread economic incentives to those living in more rural areas. The incentive would cut the state sales tax within The Pinelands preservation areas by more than 2% and dedicate another 1% of the revenue collected in the zones to reducing property taxes in the respective counties. There has been a debate over the effectiveness of these proposals, especially from environmental conservation groups who are dubious about the impact these incentives could have on existing environmental protections for the area.

Climate change The rising water levels threatening much of the coastal United States is a particular concern for South Jersey, which is wedged between the Delaware River and the Atlantic Ocean. As a result, the New Jersey Department for Environmental Protection (NJDEP) developed the Wetland Program in 2013 with an update in 2019. Its priorities are to “improve and protect the significant ecosystem services and functions provided by wetlands, including flood control, shoreline stabilization, coastal storm surge protection, water purification, nutrient cycling, carbon sequestration, sediment retention, provision of habitat for plants and wildlife, reservoirs of biological diversity supporting food webs, as well as providing meaningful recreation, sustainable economic benefits from tourism and excellent opportunities for environmental education.”

In the north of the state, Pompton Lakes outlined a plan to rehabilitate riversides across the Ramapo River in an effort to make the area more resilient to floods and rising sea levels. Initiatives range from spending $50 to adjust downspouts on buildings to $100,000 to construct more than an acre of wetland. The initiative is being carried out in accordance with the Floodplain Restoration and Implementation Master Plan, developed with the Rutgers Cooperative Extension, which details how to protect residents and business owners from floodwaters. Although an initiative in North Jersey, Pompton Lakes hopes to set an example to neighboring counties through the program, which is important for a state that contains around 240 rivers, streams and creeks.

But New Jersey was dealt a blow this February as a $19 million study designed to explore the impacts of storm-surges in New York and New Jersey was put

INFRASTRUCTURE CONSTRUCTION & UTILITIES OVERVIEW

on hold by the federal administration. The study involved variations on sea wall plans as a response to the impact felt by Hurricane Sandy in 2012, which caused tens of billions of dollars’ worth of damage. But critics of the plan raised questions about the impacts on communities, fishing and ecology.

Water There are 22 regulated water companies and 10 regulated wastewater companies in the state of New Jersey. According to New Jersey American Water, a typical family of four consumes 6,000 gallons of water a month, coming in at $56.34. But because of years of lackluster infrastructure investment, the existing water infrastructure is at risk of a “capacity crisis,” according to a study from Rutgers released last year.

The study warned that the industry’s efforts to keep costs low over the years has created an avoidance of needed infrastructure. In the long term, this means that higher rates will be needed just to maintain current service levels.

An example of such investment comes from New Jersey American Water, which invested an estimated $375 million in the state’s infrastructure in 2019, installing more than 100 miles of main to replace and rehabilitate aging pipe and install new main to serve additional areas. The company also invested in leak detection technology and leak repairs. Water treatment was another large cost for the utility in 2019, with $51.2 million invested in improvements in water treatment plants.

In December, the utility sought approval for a rate hike in response to the spending, a move that would increase the average home’s water bill to $62.35, the company said, and the average monthly residential sewer bill would increase between $0 and $12.79, depending on the service area. The rate hike would boost annual revenues for the utility by $87.7 million.

In February, South Jersey’s Ocean County discovered that five residential wells in Windsor Park had been infected by trichloroethylene and tetrachloroethylene – both known carcinogens that are limited to one part per billion in New Jersey’s drinking water. The Windsor Park area is known for water issue. In 2006, it was found that 300-400 homes in the neighborhood still used private wells, and in the early 1990s, seven residential wells in the area were found to contain excessive mercury levels.

Electricity With a population of 8.9 million, New Jersey consumes more electricity than it produces but makes up the

Jeffrey Gottlieb CEO ResinTech

What is the economic impact of ResinTech in the South Jersey and Camden area?

Our agreements with the State of NJ (NJEDA) through the NJ GROW program require ResinTech to maintain a minimum of 265 jobs in the city of Camden. We are very focused on our immediate community, the Cramer Hill neighborhood of the city. It’s a wonderful area with tremendous potential for revitalization, and we are excited to participate from both a commercial and charitable standpoint. I am optimistic that, with our presence and the other work being done in Cramer Hill by the Mayor and the team at Coopers Ferry, we can play a part in the rebirth of Cramer Hill, which includes housing, healthcare, and much needed retail development. For now, we are committed to hiring Camden residents, reinvesting in the city, and offering financial support when and where we can. Our family has a long history of support & involvement in the Jewish community, and I believe we can and will make a difference in Camden.

What opportunities in the South Jersey area are helping the company with its work?

We’ve been operating in South Jersey for many years, since the company was founded here in 1986 with two employees with a $50,000 loan from the SBA. Over the years, the company has grown significantly, and we believe with the support of the NJEDA and NJ Grow Programs, we will continue to expand. My personal target is to achieve 350 to 400 full-time employees in addition to approximately 150 to 200 temporary workers.

I’m proud we are using the $138 million of tax credits we are receiving to bring manufacturing jobs to Camden.

Another part of our business, ActionPak, employs hundreds of people in semi-skilled and low-skilled positions to provide primary and secondary packaging solutions. We hope to fill many of those positions with Camden residents, and we are working with the city to provide training. We have already hired more than 30 Camden residents, and we have yet to relocate. www.capitalanalyticsassociates.com

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that natural gas is the primary source of electricity generation by the state’s utility companies, and it is more affordable than other forms, which means phasing it out would serve as a tax for the lowest income segment. Currently, he said, natural gas heats more than 75% of New Jersey’s homes and businesses, and generates more than 50% of the state’s electricity.

In January 2020 Gov. Murphy unveiled an Energy Master Plan that set the state on the path to 100% clean energy by 2050.

shortfall from the PJM wholesale electricity market.

The state is also becoming more self-sufficient, taking only 5% of its power from generators in other states in 2017, down from more than 20% in 2013. The majority of New Jersey’s consumption in 2017 came from natural gas, followed by motor gasoline and nuclear power. Just 16.5 trillion Btu was generated through coal. According to Electricity Local, the average monthly residential electric bill in New Jersey is $109.

According to Atlantic City Electric, during the past five years, energy system upgrades and new innovative technologies have driven a 22 percent decrease in the frequency of electricity outages. In 2019, the utility launched three major projects to increase reliability in South Jersey: The Orchard to Lewis substation and transmission line upgrades, the Monroe to Tansboro transmission line upgrades in Camden and Gloucester counties and the Rio Grande substation enhancement project in Cape May County.

But despite relatively clean generation, New Jersey is aiming for 100% clean energy generation by 2050.

The Energy Master Plan launched by Gov. Murphy contains a five-pronged strategy: reduction in energy consumption and emissions from the transportation sector; acceleration of renewable energy initiatives; maximizing of energy efficiency efforts and reduction of peak demand; reduction of energy consumption and emissions from the building sector; and decarbonization and modernization of the energy sector.

But critics of the plan are unhappy with the governor’s decision to phase out natural gas from the energy mix. Republican Sen. Anthony Bucco argued 74 | Invest: South Jersey 2020 | INFRASTRUCTURE & UTILITIES

Nuclear Nuclear power is considered clean energy, and in early 2019 the state’s Board of Public Utilities awarded Zero Emission Certificates (ZECs) to the state’s three nuclear power plants. The plants provide approximately 32 percent of the state’s energy mix and 90 percent of the state’s clean energy. The certificates will generate approximately $100 million in subsidies for each of the plants per year for three years and any additional funds collected will be returned to ratepayers.

Solar In 2019, the state of New Jersey reached a milestone of 3GW of installed solar power and 116,000 solar installations. In fact, the total capacity of solar installed in New Jersey can generate enough electricity to power 405,000 New Jersey homes annually. “New Jersey ranks in the top ten in the number of residential and business solar installations among all states with one of the most successful programs in the nation. In the past decade, the state’s solar program has grown significantly from just over 4,900 installations in 2009 to 116,000 installations today,” New Jersey’s Board of Public Utilities (NJBPU) said in a statement.

The state is endeavouring to ensure all segments – especially lower-income populations – have access to solar energy. The NJBPU recently launched a threeyear community solar energy pilot program that will allow lower-income families to access solar energy, with a capacity limit of 75MW for the first year and a capacity of at least 75MW for the subsequent years.

The program received 252 applications in the first year and is expected to cover around 45,000 residences.

South Jersey’s Millville also took steps toward ensuring greater access to solar energy in 2019 by seeking approval to build and operate a generating facility to service municipal properties, with the electricity delivered at a discount. The City Commission approved the 1.3MW project under developer Synnergy LLC and the city is expected to benefit by $4 million over the course of the project, based on $11,000-12,000 in energy saving expected every year. Electricity will be sold to the city at $0.059/kWh, with the prices rising 2% each year.

INFRASTRUCTURE CONSTRUCTION & UTILITIES OVERVIEW

Wind At the end of 2019, Gov. Murphy issued a goal for New Jersey to achieve 7,500MW of offshore wind capacity by 2035. One of the biggest themes for South Jersey’s energy sector in 2019 – and a huge step toward Murphy’s goal – is the Orsted offshore wind project, which is intended to supply clean renewable energy, powering more than half a million New Jersey homes, and generating $1.17 billion of economic benefits.

The Danish company has since carried out various initiatives to foster talent for the offshore wind sector. It has committed to awarding $200,000 to support Montclair State University’s Clean Energy and Sustainability Analytics Center. The money will be used for energy research initiatives, educational events, stakeholder engagement events and STEM programming for elementary, middle and high-school students.

But this project has invited skepticism from groups concerned about the impact on the surrounding environment and on vital sectors such as tourism and fishing. Orsted is working on the surveying phase for a similar project off the coast of New England, where it is using the glider detection of endangered whales to mitigate impact on the eco-system. Similar mapping will be used for the Ocean Wind array off South Jersey.

South Jersey’s coast has more potential than just the Orsted project. Recently Gov. Murphy signed a bill to expand the definition of a qualified offshore wind project. It also allows the Board of Public Utilities to carry out solicitations for offshore transmission facilities, which would invite more competition, more capacity and result in lower rates for the end user.

Challenges Any project on the scale of Orsted presents challenges, namely in finding enough skilled, qualified human capital, especially in an environment with a historically low unemployment rate. The companies such as Orsted making huge investments in the state are also making investments in ensuring there is enough human capital in the pipeline to satisfy their demand.

In July 2019, Orsted signed an MoU with the South Jersey Building and Construction Trades Council to only hire union labor for construction.

And to guarantee components for its supply chain, Orsted teamed up with EEW to set up a monopile factory in the Paulsboro borough. The initiative lays the foundation for the expansion of the offshore wind industry in the state. In addition the Danish company announced plans to establish a Pro-NJ Grantor Trust

Susan Story President & CEO American Water

What have been your major accomplishments with American Water?

The most important thing for me is that every day each of our employees can go home safely and without injury. Since I’ve been CEO, we have engaged in dedicated efforts to improve employee safety and been able to reduce all injuries by more than 62% and serious injuries by 72%.

What are American Water’s most recent innovations?

As the largest water and wastewater utility in the United States, we are one of the few utilities that have our own research & development department to help us develop new innovations on emerging contaminants, water quality and water technology. We also partner with the Environmental Protection Agency and other national and international water research organizations to conduct research on many of those same topics.

Over the past three years, we started to significantly invest in artificial intelligence and machine learning to better serve our customers and improve water quality research, water monitoring and similar efforts to help ensure that we are doing our part to keep our customers lives flowing.

What economic impact does American Water have in Camden and South Jersey?

American Water has been a part of Camden County and Camden City for more than 125 years. Since we relocated our headquarters and more than 600 employees to Camden in 2018, we have been humbled by the Camden community’s generosity and welcoming spirit. We are proud to support Camden’s revitalization by cultivating strategic partnerships with local businesses, community organizations and educational institutions to improve educational outcomes for Camden’s youth and to prepare residents to enter the competitive workforce. www.capitalanalyticsassociates.com

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with a $15 million initial investment to enable small businesses to enter the offshore wind industry.

Camden-based Hopeworks, in partnership with Rodriguez Consulting, is also working on human capital development with the introduction of an infrastructure training program in early 2020. The program is to include pre-employment training, an internship and infrastructure training, and an externship and career placement and has been touted as a strong alternative to a four-year degree for those that want to enter into a career in the infrastructure industry.

Electric vehicles As the ramp-up of renewable energy continues in New Jersey, one critical element to be addressed is emissions, and the state is making strides in electric vehicle development. In November, NJBPU awarded Rowan University a two-year, $100,000 grant to study how to best expand electric vehicle infrastructure in New Jersey. Gov. Murphy has a goal of putting 330,000 electric vehicles on the road by 2025.

Both the public and private sector are getting involved to ensure this goal is met. Atlantic City Electric is investing $42.1 million on expanding EV charging infrastructure needed to charge electric vehicles in its service area. And Tesla will install Tesla an additional 48 new V3 Superchargers at each to double the number of Superchargers already in place across the state. The state authorities are providing incentives not only for the installation of charging stations, but also for the purchase of EVs. In January, Governor Murphy signed a new incentive package into law that will pay consumers

up to $5,000 if they purchase an electric car, through a rebate system based on mileage. And in March, six municipalities were awarded grants of up to $9,500 to purchase EVs and install EV charging infrastructure.

Telecommunications Despite its position between New York and Philadelphia, New Jersey – particularly South Jersey – falls behind in telecommunications and 5G availability. New Jersey was one of the most active states in 5G legislation in 2019, passing four laws related to the technology, but much of the activity was focused on the north part of the state. In February 2020, ZenFi Networks announced it would expand its C-RAN network with the deployment of over 600 turnkey small cell nodes in Northern New Jersey to support a 5G network. South Jersey could learn from the example of its northern neighbour to prioritize 5G connectivity.

Looking ahead Infrastructure in South Jersey is a mixed bag. While strides are being made in clean energy generation, delays in highway and water upgrades will cost the region dearly in the long run if not addressed as a priority. As the population expands, it will be even more crucial to upgrade infrastructure to cope with higher demand. In March, the Department of Transportation announced grants of $30.1 million to allow municipalities to upgrade roads to allow for more efficient freight haulage. Through innovative funding measures, the state can address the problems before they become critical.

Banking & Finance: The banking and financial services sector will face challenges as the full impact of COVID-19 becomes clearer through 2020. In the past year, financial leaders have gotten both leaner and stronger, with M&A activity having an impact on the South Jersey market, and many entities have worked to position themselves for a downturn, which will serve them well in a time of crisis.

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Competitive: M&A is dwindling the number of banks but a stronger market is emerging, although COVID-19 may slow it down The trends in the sector across the state demonstrate the possibilities for the South Jersey market, which has not been a traditional focal point for the state’s banking and financial services. Make no mistake, banking is alive and well and positioned for strength in South Jersey, even amid an increasingly competitive landscape.

One particular area of concern is foreclosures.

South Jersey cities were among those registering the highest number of foreclosures in the state in 2019.

The COVID-19 pandemic might hinder a near-term recovery, but the economy is expected to return to its solid growth path after the pandemic passes, which should help reduce the number of foreclosures.

As of June 2019, there were 126 New Jersey and out-of-state-banks operating in the state, with 2,810 offices and total deposits of $342.8 billion in state accounts. Those 126 banks also operate 24,369 offices out of state, taking in $6.2 trillion in deposits in 2019.

The largest New Jersey-based state-chartered bank by far was Investors Bank, which has 109 branches in New Jersey and 39 out of state, with total deposits of $15.6 billion in New Jersey – or 4.55% of the market share. Valley Bank is the biggest New Jersey78 | Invest: South Jersey 2020 | BANKING & FINANCE

based federal bank, with more than 230 branches countrywide and over $37 billion in total deposits.

Although banking in New Jersey tends to be focused on the north of the state, with all the Top 5 New-Jersey state-based chartered banks having headquarters there, two of the Top 5 New Jersey-based federal banks are headquartered in South Jersey. OceanFirst Bank is headquartered in Ocean County and holds $6.2 billion in deposits and Newfield National Bank has headquarters in Gloucester County, holding a total of $596 million in deposits.

Performance 2019 Since 2017, the presence of commercial banks has declined in New Jersey, going from 35 as of June 2017 to 27 in June 2019. But both net income and total capital of commercial banks – and all other financial institutions – have increased. Total capital held by banks, savings banks and credit unions in 2019 reached $13 billion, up from $12.2 billion in 2017. Net income was $504 million, up from $406 million in 2017.

Loan delinquency in New Jersey has declined significantly since 2016 across commercial banks, savings and loans banks and savings banks. ( )

BANKING & FINANCE INTERVIEW

Opportunity 120-year-old bank is re-energized and growing after selecting South Jersey as its Northeast base

Vincent D’Alessandro President Southern Region – OceanFirst Bank Why are you situated in South Jersey?

Since 2014, we have had the opportunity to re-energize the OceanFirst organization, which is a 120-yearold bank. The reality is that we had to grow, and to expand in the best possible way meant expanding in geographies that best aligned with our vision. As we gave consideration to where we wanted to be situated in the Northeast, the South Jersey market came out at the top of the list. Our first acquisitions included Cape Bank, which had just merged with Colonial Bank and Boardwalk Bank, as well as Ocean City Home Bank, Sun Bank and Capital Bank. In South Jersey, we found a number of organizations requiring a level of scale to be empowered, which we could provide. Far removed from a hostile takeover practice, we rather spend time with these organizations to understand whether their culture and level of activity is going to bond with ours, parallel to our vision.

What opportunities does South Jersey’s economic landscape provide to financial entities?

South Jersey is a historically underserved region in terms of financial community. When we entered South Jersey, we realized the big players usually found in markets such as New York or Philadelphia were mostly absent. With the acquisitions made, we were able to develop a sense of scale that enabled us to provide more of what the larger banks usually provide. With the community-minded sense of who we are, we were also in an ideal position to provide a heavy level of financial support to the region, with a post-acquisition capacity to compete with most of the larger financial institutions. Considering the expensive real estate of New York, Philadelphia and even North and Central Jersey, South Jersey is an area where we see a significant number of companies gravitating toward. Here, real estate prices are much more attractive and business expansion move feasible.

What innovations are you introducing to your financial services portfolio?

In the world of technology where organizations are leaning in an increasingly heavy fashion toward automation and mobile banking activities, we propose a combination of multiple products where we can meet our clients’ needs. We have state-of-the-art digital products to support our clients’ increasing use of technologyimprinted services. We just hired a new CIO who is revamping our entire suite of technology products so we can be ahead of the curve. OceanFirst’s primary focus on its people has driven us to have our employees enrolled in a Certified Digital Banker program. It enables our staff to educate and communicate with our customers to make them comfortable with highly technological services and doing so at a very human level. www.capitalanalyticsassociates.com

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Ernest Huggard President & CEO South Jersey Federal Credit Union

How did 2019 unfold for South Jersey Federal?

In 2019, we successfully relocated four of our branch locations. We designed a rebranding strategy, which we are looking to unveil in late 2020. We will also be kicking off a strong plan to increase our membership. Our new marketing strategy will be developed throughout the year, which also marks our 80th anniversary in business.

How is technology changing how you do business?

Technology is leading the way in the financial services industry. Whether you are in the credit union space or in the banking space, customers and members demand technological tools. We are constantly looking at ways to improve and stay ahead of the competition. Normally, banks have an advantage over credit unions in regard to technology because they have the capital to afford it.

South Jersey Federal Credit Union is the largest credit union in South Jersey and we are trying to spend more money on technology to stay competitive.

Where are you seeing demand growth?

Our foundation is lending to the underserved. In communities like Camden, Vineland and Pleasantville many members are coming to us for their automobile loans and home equity loans. Those are the areas of growth for us. We also serve the small-business community. These types of businesses are looking for a better price and that is also to our advantage.

Because we are financially different than banks and we are tax exempt, we can put our profits back into our membership and small businesses.

How are you giving back to the community?

We have endowments with several organizations, local hospitals and universities. We also provide financing or grants to different community organizations and events, such as the San Juan Bautista Parade in Camden. We also provide scholarships for local colleges and universities.

On a yearly basis, we dedicate around $160,000 to philanthropic efforts.

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( ) The aggregate delinquency rate in 2018 was down to 0.63% from 0.88% in 2016. Net charge-offs, or “bad debt” reached 0.09% in 2018 from 0.12% in 2016. Still, the state was second behind New York for serious delinquencies of 90 days or more past due, according to Bankrate.

Mortgage foreclosures in New Jersey in 2019 totaled 1,631 in the final quarter of 2019, up from 1,217 in the third quarter but down from 2,004 in the same quarter of 2018. South Jersey was among the hardest hit, with the largest number of foreclosures for the state in Camden County, with 150 mortgages foreclosed, followed by Burlington with 139 and Ocean County with 129.

According to RealityTrac, New Jersey’s foreclosure rate is higher than any other state in the last three years, despite foreclosures having dropped at the same rate as the national count. In February 2019, the state recorded one new foreclosure for every 1,006 housing units, 2.5 times the national rate. This can be attributed largely to house prices increasing more than salaries increase, and the foreclosure process is exacerbated by financial institutions that go unpunished for dragging out the process. Some families in New Jersey still face foreclosure over the subprime mortgage scandal that caused the 2008 recession.

Competitive landscape Although the presence of commercial banks in New Jersey has declined since 2017, this can largely be explained by the significant M&A activity that took place over 2019 and early 2020. A total of 10 acquisitions were completed in this period, beginning with ConnectOne Bank’s acquisition of Greater Hudson Bank on Jan. 2, 2019. Since 2015, OceanFirst has been one of the most active in M&A activity, having bought eight banks. In January 2019, OceanFirst completed the acquisition of Vineland-based Capital Bank of New Jersey and one year later it took over Two River Community Bank in Tinton Falls. But as the bank builds new capacity, it is also streamlining services, announcing the closure of 13 retail branches In February. With the closure of branches, OceanFirst is investing more in its digital platforms.

Although it may appear that mergers are making New Jersey’s banking industry less competitive, there are new banks appearing regularly. A new community bank is being set up in Jersey City, for example, with the paperwork already having been filed with the New Jersey Department of Banking and Insurance. The new bank will combine the traditional banking products and services with modern technology-enabled delivery channels. ( )

BANKING & FINANCE INTERVIEW

Record high Competitive differentiators help TD Bank hit record numbers for commercial loans

Robert Curley South Jersey/Coastal Market President – TD Bank How did TD Bank perform in the region in 2019?

TD had a very strong year, especially in commercial loan production. I’ve been in the South Jersey market for 30 years and our commercial loan production reached a record high this year. The small business segment was a little softer compared to previous years, but still strong.

Overall, 2019 was one of the best years we’ve had in the South Jersey region. I believe the ongoing strength of our performance in South Jersey is due to a number of competitive differentiators, including that TD Bank maintains its headquarters in Cherry Hill, New Jersey.

As a result, we have achieved the status of number one bank by market share and great brand recognition. Our collaborative delivery model and consultative approach to every customer and business we serve, regardless of revenue size, also helps us stand out.

What were some notable changes in the region’s banking and finance sector over the last few years?

South Jersey has always been a very competitive market.

Almost all of the country’s top 10 banks have a presence in Southern New Jersey. A trend we have seen over the last few years is the consolidation of smaller banks. We had about 65 small banks 10 years ago, and now there are only about 45. I believe this consolidation will continue due to the high cost of regulation and technology that banks cannot ignore in order to grow and thrive.

What industries are seeing the most growth?

From my perspective, the top industries in South Jersey are healthcare and education. These two sectors continue to drive our economy, with major players like Cooper University Health Care system, Virtua Health system and Inspira Health actively engaged in the market. With the recent merger of Kennedy Health and Jefferson, there has been additional expansion in the healthcare space, which is highlighted by the fact that many of the

region’s previously vacant office and retail buildings are now home to healthcare companies.

How is technology disrupting the work you do?

Retail banking has been significantly impacted by technology. Our South Jersey stores remain extremely busy due to our market share. However, the nature of store transactions has evolved into a more consultative, advice-oriented approach as customers’ adoption of mobile and online banking continues to grow. To align with consumer preferences, we make sure we have the most up to date and secure products available for our customers. We have also worked closely with various technology companies, so we can continue to offer our customers the most convenient and efficient banking experience possible. www.capitalanalyticsassociates.com

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( ) In New Jersey, the most common concentration for Bachelor’s degrees is in the Business sector, with 8,590 degrees awarded in 2017. About 1,460 degrees were awarded in Accounting and 908 in General Finance. New Jersey certainly has the staff to intensify its banking presence. But according to South Jersey banker Gerry Banmiller, the founder and CEO of Collingswood’s 1st Colonial Bancorp who is retiring at the end of 2020, competition is not strong enough in South Jersey because of unattractive loan terms. He believes the willingness to cut rates drives the rest of the industry to follow suit, and promotes borrowing to the consumer, who then stimulates the economy.

And there are a plethora of ways South Jersey businesses can fund projects elsewhere and generate funding – including private equity and venture capital funds. In the public sector, one of the biggest sources of funding is the New Jersey Division of Investment, which operates on behalf of the state’s pension fund.

In 2019 it made a variety of investments including a private equity commitment of up to $100 million to MBK Partners Fund V and a $24 million private equity commitment to TPG Dragon Co-Investment. And

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South Jersey businesses can fund projects in many ways, including private equity and venture capital funds.

BANKING & FINANCE OVERVIEW

New Jersey-based private equity investor Normandy was recently bought by Columbia Property Trust in a $100 million cash and stock deal.

Growth drivers In the banking sector today, there are three main trends that dictate a bank’s success or failure: ability to generate high-quality loans, achieve deposit growth and diversification and enhanced banking technology. Banks that fail to adapt technology advances, in particular, can face a bumpy ride, and most are recognizing this reality. 1st Colonial is an example. Its new CEO Robert White has said that improving the bank’s mobile platform will be a main goal. White also said that consolidation in the sector is providing opportunities in South Jersey as talent and clients become available amid all the M&A activity.

Without doubt one of the biggest tests of the strength of South Jersey’s banking industry at the beginning of 2020 is the COVID-19 outbreak’s impact on the economy and the ability of companies to access funding to stay afloat. Already several federal measures have been put in place to mitigate impacts to businesses and employees, but some New Jersey banks have also announced stimulus measures.

Peapack-Gladstone Bank, for instance, announced it would enhance emergency overdrafts and over-

limit advances have been put in place. The bank also offers an Insured Liquidity Sweep account, which provides millions of dollars in FDIC insurance designed to keep small businesses afloat.

Beyond that, New Jersey has submitted an application to the federal SBA for disaster loan assistance and Gov. Murphy is urging banks to “do the right thing” and work with businesses and consumers on being flexible in terms of repayments. Deferred loan payments, new lines of credit for working capital and deferred mortgage payments have all been suggested by the governor.

The United States has nearly 27 million small businesses generating about 50% of GDP www.capitalanalyticsassociates.com

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Small businesses account for about half the country’s GDP.

Small business financing Small businesses are often recognized as the backbone of the US economy. The country’s nearly 27 million small businesses generate about 50% of the country’s GDP. Trust is still extremely important in South Jersey’s banking sector, and banks now have to find the right balance between deeper market penetration, offer more digitalization and simultaneously have the ability to service niche customers, such as small businesses.

As banks compete to attract as many deposits as they can, they also must keep in mind customer concerns surrounding the federally insured maximum $250,000 insured deposits. This is often why banks have to go a little further now than offering simply a checking account or online banking. Communication is key for clients.

Gov. Murphy announced an idea late last year that could eliminate competition altogether – a state-owned bank. Although this has been designed to open up access to credit and banking facilities to many more people, the proposal has been met with some criticism.

Concerns surround regulation, unnecessary risk over taxpayer funds and overcrowding in the market since many state agencies already offer funding options for certain demographics.

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For example, the New Jersey Economic Development Agency (NJEDA) offers a variety of incentives to businesses of all sizes, including the Grow NJ job creation and retention scheme that offers employers tax credits, or the Economic Redevelopment and Growth Program for residential, commercial and mixed-use developers. The NJEDA also has a Small Business Service that works closely with small businesses – particularly in underserved communities and minorities. The agency has launched the pilot Access program to provide direct loans or loan guarantees, the Micro Business Loan program offering up to $1.5 million and the Premier Lending Program offering low-cost loans, among many other options.

The Premier Lending Program was the reason Shawnee Trucking Company was able to access $11.5 million in 2019 to purchase a new six-acre property in Clifton. But in this instance, commercial bank ConnectOne was able to work with NJEDA to offer the funding so that the New Jersey-based company could access a 121,000-square-foot warehouse, 4,000 square feet of office space, and a 2-acre parking lot.Another agency that small businesses in New Jersey can approach is the nonprofit UCEDC, which provides ( )

Market voices: Performance

Phil Corradino

Senior Vice President & NJ Regional Director WSFS Bank

The professional sector is growing rapidly, and more and more we’re seeing people who used to work for larger firms go out on their own.We have about 50,000 primary core customers in South Jersey, and the secondlargest demographic among those customers is millennials, which may seem surprising for us since we are such an old institutionOur goal is to grow alongside millennials as they launch their own companies, purchase their first properties, and start their own families. The digital solutions WSFS has recently launched, and the future initiatives in the works, are being created to support our customers and their financial goals, and I’m really excited about the growth we are going to experience in the next three to five years because of that.

As a whole, the financial industry continues to be very competitive in respect to organic growth within the market. This hyper competition has led to more M&A activity within our geographic area. In order to remain competitive, the bank partners with the Small Business Administration (SBA), Cooperative Business Assistance Corporation (CBAC), New Jersey Economic Development Authority (NJEDA), and New Jersey Community Capital (NJCC). The significant economic growth within our local market continues to be eds and meds, supported by Rowan University and Rowan College of South Jersey, Jefferson Hospital of NJ, and Inspira Healthcare.

Joe Tredinnick Market President Republic Bank

Brian Jones

President & CEO The First National Bank of Elmer

We have 26 locations throughout South Jersey and Pennsylvania. We have also opened two locations in the Manhattan area and two near the shore. South Jersey is the home of our brand and we are focusing our growth in the region. Our expansion effort has been well-received by the community because they know our brand and the quality of our service. The Cherry Hill area is growing, due to its proximity to many businesses and commerce. South Jersey is a very important market for us and provides numerous opportunities to grow our retail footprint.

We are a $3 billion bank, so we mostly cater to small businesses. Over the last few years, we have consistently been a top small-business lender in the region. We focus on small businesses because South Jersey is known for its mom and pop shops. We promote our commercial customers and make donations to help attract consumers to their businesses and support their growth. We don’t limit our services to just one industry or type of business.

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( ) training, loans and various business tools. Loans can be taken out up to $5 million with fixed interest rates as low as 2.8% for eligible companies. Microloans are also available from the agency starting as low as $50,000. Throughout its history, the UCEDC has loaned $68.2 million and trained 10,500 entrepreneurs.

Technology If ever there was a moment to test banks’ use of technology it is now, as the COVID-19 pandemic results in social distancing that dictates that people should leave the house only when entirely necessary. Most banks understand the importance of having a strong digital platform — consumer preference has made that paramount as branch traffic decreases. An example is South Jersey-based Beneficial, which has branches in Bordentown City, Browns Mills, Chesterfield, Deptford and Sicklerville. The bank’s parent company, WSFS Financial, sold five Beneficial bank branches in 2019 to The Bank of Princeton for $2.2 million and will close four others because of a decline in branch transactional activity amid the rapid adoption of digital services, according to a WSFS statement. The Bank of Princeton now intends to invest $32 million in incremental savings from branch closures to upgrade technology and digital delivery systems.

Benefiting from the move to digital are auxiliary technology companies, which are going from strength to strength in South Jersey catering to the banking and finance sectors. Apex United, a software and network integration company, recently expanded in Toms River due to high population and loan growth. And New Jersey-based data and analytics company Azure

The banking world has been instrumental in helping the business community through the COVID-19 pandemic with the processing of PPP loans.

BANKING & FINANCE OVERVIEW

Knowledge earned a nod on Deloitte’s North America Technology Fast 500 ranking of the fastest-growing tech companies.

But with the move to online, banking clients can be forgiven for worrying about potential data breaches.

Just recently, Finastra, a U.K. company that provides a range of technology solutions to banks worldwide, announced it had been the victim of a security breach at U.S. financial institutions it services. The attack was thought to be a ransomware attack, which places a barrier around information and releases it only when a ransom is paid. The global Banking and Finance Security Industry is estimated to be worth $31.3 billion in 2019 and is expected to reach $175.1 billion by 2030 for exactly this reason.

As there is a greater shift online, there seem to be more and more attacks of these types, which is why

it is no great surprise that bank customers also want the personal touch in regard to their finances and why 100% online banks have not yet attained the market penetration that their competitors with branches enjoy. But with many banks now closing branches in an attempt to stop the spread of the COVID-19 pandemic, there may be a new normal in a few months whereby clients are used to online only access, and there is an opportunity here for technology providers to ramp up cybersecurity measures.

Regulations Libor is a concept that is often heard but never quite understood. Libor, known as the world’s most important number, began to be used in the 1970s and 1980s by bankers as a bank-to-bank lending rate.

Mortgages, student loans and government bonds ( ) www.capitalanalyticsassociates.com

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®

oundtable:

Growth outlook Banking leaders from across the region share their insights on the areas of greatest growth and the trends that are emerging.

Peter Dontas

Executive Vice President & Market Executive - New Jersey Commercial Banking Wells Fargo

What are some of the bank’s fastest-growing commercial services?

New Jersey is unique because we focus on a broad array of clientele and provide services to a number of different industries whereas in other areas of the country we might have a specific target such as technology, food and agriculture or healthcare.

However, we have experienced particular success with food-related companies like the supermarket business and beverage distributors. While the bank has a separate division that lends heavily to real estate developers, we also do a fair amount of business in that area and we also have several large clients among heavy-equipment dealers.

We are currently keeping an eye on mergers and acquisitions for companies in the midsize market. I don’t want to get into names but in the last three to five years, easily 25 to 30 midsize clients have been acquired by either private equity or other companies in the industry.

The question then becomes, if your clients are being acquired, how do you replace them?

What notable changes or new trends in the banking business have emerged over the last few years?

Compared to before, a lot of the debt financing at the upper end of the market, about $250 million and higher, is being arranged by the banks, but it is not on our balance sheets. Today, the banks are much better capitalized. There are fewer higher risk loan products on a bank’s balance sheet. Overall, the trend in the last three to five years is that the banks have done a better job of managing risk.

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BANKING & FINANCE ROUNDTABLE

Vito Pantillione President & CEO Parke Bank

What main changes have you observed in the banking and loan business in the South Jersey market?

We are in a great location to provide lending and banking services in New Jersey, and the Philadelphia area, in addition to expanding up into the Lehigh Valley area. Because of our growth, we’ve also grown our lending operation to North Jersey, Brooklyn and the Bronx.

The banking industry is always changing, I don’t think there is any other industry except maybe insurance where there are as many regulatory changes. There is also a lot more competition, even from nonbanking entities. We embrace competition because it makes you pay more attention and sharpen your pencil.

What services are most in demand for an institution like Parke Bank?

One of the services we’ve offered since we opened the bank is construction lending. It is a very attractive product, especially because many banks have discontinued this banking product. Even though the regulations for construction lending have become much more stringent, our structure allows us to handle it because we are well-capitalized and we have the experience and expertise.

We find that our construction lending product is very attractive in the Philadelphia and South Jersey area and most recently in the Bronx and Brooklyn. We carefully entered the Bronx and Brooklyn markets and now have multiple multifamily projects and commercial loans in these areas.

George Robostello Regional President Fulton Bank

What are some of the notable changes in the sector in the last three to five years?

From an industry perspective, we have seen consolidation. We have seen banks make decisions around their physical presence, mainly driven by technology. We are now at the stage that having a bank branch on every corner is not necessary. We need to ask ourselves how we can add value in new ways.

There has also been some non-bank competition with increased access to online lending opportunities and online savings accounts. We are not necessarily seeing demand for one particular product but rather for a toprated customer experience.

How do you support small businesses and how can you offer them value?

Small businesses are the driving force of the economy in the southern part of New Jersey. A key component of our success is the personal aspect and our face to face interactions which still drive a lot of success. We want to be active in the community, we support local charities, we know our customers by name, and we understand their business. We think having meaningful, engaging conversations with our clients is much more important than just pushing a product. We have adopted a smallbusiness loan origination system, which helps us to turn around loans more quickly than in the past. We have established a business loan center to provide quicker loan decisions, to help business access capital. This all allows us to spend more time with our customers. We have a specialized team of experts to help with the federal SBA programs, which is an area we do very well. www.capitalanalyticsassociates.com

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BANKING & FINANCE OVERVIEW

Steven Kantor Executive Vice President & Principal – KEH Insurance Agency, Inc. There is a need for business schools across the country to educate students about insurance. For example, what we find is that someone with an accounting major graduates from college and may have never reviewed an insurance policy. However, when they go into industry as a CFO or controller and they make a lot of decisions for their company without having any background in insurance or risk management. There are schools in the region like Saint Joseph’s, Temple University, and the University of Pennsylvania that have very good insurance and risk management programs, but more are needed. The biggest challenge the insurance industry has is attracting young talent.

( ) all depend on the Libor rate – at an estimated $200 trillion. But in 2021, this rate is to be phased out. There has so far been plenty of debate over the replacement and very little in the way of progress, leaving the banking industry globally mired in uncertainty over its future lending rates.

Mortgage foreclosure is an under-legislated area in New Jersey and stricter controls are required for predatory lenders. In May 2019, a whistleblower from inside Jersey-based World Business Lenders had fraudulently obtained $16.8 million in tax credits from the state Economic Development Authority. The EDA system has been mired in scandals but this case was especially controversial since the company involved is classed as a “predatory lender,” charging interest

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rates as high as 125%, with daily loan repayments sometimes coming in at more than $160 per day.

Since the 2008 financial crash, advocates like New Jersey Citizen Action have been calling for stronger and expanded federal and state regulation, oversight and accountability for nonbanks and fintech lenders.

And with higher living costs, it seems young people are the new prey for these kinds of lenders. According to a 2018 CNBC survey, nearly 40% of 18-21-year-olds and 51% of millennials have considered a payday loan.

Legislation has been in the works on a federal level to cut down on these kinds of predatory lenders but in January, the Office of the Comptroller of the Currency (OCC) moved to exempt payday and other high-cost lenders from state usury laws, prompting an outcry.

BANKING CONSTRUCTION & FINANCE OVERVIEW

Arnold Johnson Market Director – Banking Chase Bank

As mobile banking has become the norm, the need for brick and mortar banking branches and offices has significantly decreased.

Looking ahead There is no doubt that South Jersey’s – and the global – banking and finance industries face challenges in 2020. The world entered a sharp recession on the back of the coronavirus pandemic and it is still unclear when normality will return to capital markets. But after several years of unprecedented growth in the United States and South Jersey markets, banks that have used the upswing to position themselves well in preparation for an inevitable downturn will be rewarded with survival. Those that are not so prepared will not be so lucky.

As the economy inevitably recovers, the industry will need to continue thinking ahead and pushing legislators to create innovative legislation for unfolding issues such as cybersecurity, fraud and money laundering. It is the lean operations that are positioned to continue helping customers to succeed even through a rocky patch that will flourish when the tides turn. These are banks like Investors Bank, which is hosting the Movers & Shakers Small Business Competition to reward small businesses and help them elevate their marketing potential. And those that put the community at the center of their operations, such as First Bank, which donated $368,000 as well as nearly 2,000 man-hours, are sure to come out the other side with much more client loyalty.

What is the status and impact of your expansion effort in the South Jersey region?

One of our main efforts in the region is making sure we are opening enough branches to support the community. In the past year, we have opened four new branches: Camden, Cinnaminson, Mount Laurel and Marlton. We are excited to be expanding in Southern New Jersey and our fifth location, in Cherry Hill, is scheduled to open this summer. From a performance standpoint, we’ve been doing very well. The community has received us well and we are glad to be taking care of all their financial needs.

What makes Chase unique?

We are focusing on providing a holistic approach to our customers. We offer expertise within the branch in the whole life cycle of a customer. We are able to take care of basic checking and credit card needs, but also holistic needs, whether it’s retirement, buying a home, small business or learning about the financial aspects of life. For example, we offer Chase Chats—which are Chase-led conversations held in our branches on a variety of topics, especially financial health. We’ll do them in every Chase branch in 2020, across the country, including right here in Southern New Jersey. The Chase Chats allow our customers to visit us and learn about banking and how to help make the most of their finances. It’s an example of one of the things we always offer—education. By helping customers from a financial and educational standpoint, we are able to build solid relationships with the communities we serve.

What are some challenges in banking?

Some of the challenges that banks may see in their brick and mortar locations would be traffic coming into the branch. For Chase, we really utilize technology within the branch to help make sure we’re helping all of our customers as efficiently and effectively as possible.

As an example, our enhanced ATMs can perform close to 70% of routine transactions. www.capitalanalyticsassociates.com

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®

oundtable:

Wealth Management Wealth managers sat down with Invest: to talk about their differentiators, regulatory measures that could impact the sector and the most notable changes they are facing.

H.W. Buzzerd

Executive Director & Branch Manager UBS Financial Services

What are UBS Financial Services’ primary differentiators?

UBS Financial Services is the largest wealth manager on a global scale. We focus primarily on high net worth individuals and families. In fact, one out of two billionaires worldwide has a banking relationship with us. Our South Jersey advantage is that we bring the same resources to our clients locally that we provide globally, which allows us to provide solutions to a very broad range of client needs, from the relatively simple to quite complex.

What trends have you identified concerning the multigenerational approach to planning?

It’s generally assumed that the second and third generation of our clientele are all about digital: checking their accounts on a mobile app, making changes online, online messaging and swift responses related to the day-to-day operations. We built our digital platform to cater to these needs and people grow their wealth. But, what we found is that when big decisions need to be made, people pick up the phone and meet person to person. Generational differences dissipate when it comes to important life events: when to buy a home, planning for educational expenses, retirement strategies, to name a few.

Succession planning is also a key issue in family-owned businesses. We have found that organizing family meetings with our clients to create a conversational space around succession can be extremely helpful in laying the groundwork of the business’ continuity, regardless of the successor’s intentions to take over or not. Having an unbiased party in that exchange gets the family conversation going quite well.

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Albert Fox

Senior Vice President & Executive Director Fox, Penberthy & Dehn at Morgan Stanley

What are the main characteristics that set Fox, Penberthy & Dehn apart?

We are now in our 26th year and we have amazing client retention and client results. One of the things that differentiate us from a lot of people in financial services is that all our principals are certified financial planners, and we take a very holistic approach to solving people’s goals and objectives. It starts with pretty exhaustive interview work and discovery to really map out what a family is trying to accomplish, what have they done up until this point to actually accomplish it, and how have those goals been achieved or not. We are interested in what works well, but we are more interested in what adjustments need to be made for someone to stay on target.

What are some notable changes in the financial advisory industry in recent years?

Many changes in the financial services industry in the last few years involve technology. Technology has made the financial services practice more accessible to the public. It has also made information readily available at someone’s fingertips. What it hasn’t done is necessarily make solving the problems any easier. One of the things that we think goes on quite a bit is that people have this volume of information but they don’t know what to do with it, how to think about it, or how to make sure it doesn’t overwhelm them. We think the financial intermediary, the financial adviser and the full-service firm have never been in a more unique position to solve the needs of families, because someone needs to interpret the jargon, the pace of information, to help really remove the emotion associated with the barrage of financial information.

BANKING & FINANCE ROUNDTABLE

Robert Hoey

Executive Vice PresidentWealth Management Janney Montgomery Scott LLC

How is Janney Montgomery Scott different from its competitors?

We have several differentiators. Starting with our history in the Philadelphia area. Our parent company was formed in 1832, so we have been in this market longer than anybody else. We are predominantly a private-client wealth management business. Many of our larger competitors are capital markets-driven, mainly focused on large capital markets transactions and mega companies. We are focused almost uniquely on private clients and wealth management. We do have a middle-market investment banking capability, which also sets us apart.

What shifts are you seeing in the industry?

A lot of investment business has been commoditized.

We are seeing a shift toward online investment and robot management. What makes Janney particularly unique is the way we deliver our financial planning to our clients.

Virtually every wealth manager has a good desktop tool that they can use to do some basic planning. Because of our presence in Philadelphia, with our number of branches and our headquarters close by, we can bring highly credentialed members of our planning team from our headquarters out into the field to meet with our clients.

Where are you seeing the most growth?

The most rapid growth is in the advisory part of our business. We are moving away from transactional brokerage and moving much more in the direction of an advisory platform. That allows us to spend more time understanding the clients’ goals, objectives and needs, and to match those needs to a wide variety of opportunities.

Michael Pallozzi

President HFM Investment Advisors, LLC

What does HFM’s R.I.C.H. approach mean for the firm and its clients?

We strive to develop a deep, meaningful relationship with all of our clients to help their family or their business, and that’s what the “R” stands for: relationship building. “I” is to inspire our clients to think outside the box and what’s important to them, such as their financial situation, legacy or succession plan. “C” is to help compose a meaningful plan. Everything we do for our clients revolves around their personalized Action Plan. The “H” is for “holding you accountable.” We want to hold our clients accountable to their goals, objectives and Action Plans, and we ask that they also hold us accountable for what we promised. HFM’s biggest differentiator is our value proposition and the way that we work with our clients. In most firms, advisors work as a solo with their clients, so clients usually have only one person to talk to.

What are the notable changes in the investment management and financial services industry?

The biggest change has been the reduction in cost and improved technology within the investment platform offerings. With the rise of technology platforms in our industry, we’ve been able to offer more investment choices and provide more financial planning services at a substantially lower cost. I believe we are ahead of the curve for firms like ours in South Jersey. We are in the process of a major change in Q2 2020 for all of our clients’ investment choices through the use of a new technology platform. This will potentially save our clients on average of 25-35% on their investmentrelated expenses. www.capitalanalyticsassociates.com

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Healthcare: New Jersey ranks among the country’s healthiest states, and South Jersey is playing a vital role in maintaining that healthy marker, although the COVID-19 pandemic that erupted around the globe and hit the state particularly hard, has put an uprecedented strain on the system.

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Top rank: South Jersey’s hospitals are among the best in the state, but the system faced an unprecedented challenge with COVID-19 The focus is on healthy living in the Garden State. New Jersey was recently named one of the Top 10 healthiest states in the country, despite joining its neighboring states in the ongoing struggle against the opioid epidemic. South Jersey has seen a particularly high incidence of drug-related deaths in recent years, but Gov. Murphy’s administration and the state legislature are committed to stemming the tide of this pernicious addiction in hard-hit counties like Camden and elsewhere.

Public health is also set to get better throughout South Jersey in general, thanks to the steadily improving access to care made possible by the opening of new medical research facilities and hospitals across the region, as well as the ever-expanding world of health technology.

The system, however, faced an unprecedented strain in early 2020 from the COVID-19 pandemic. New Jersey was among the hardest-hit states in the country by early April, with officials saying that one in eight hospitalized people were COVID-19 patients. The state was second to New York state in terms of total number of cases, with almost 30,000, People were also getting used to social distancing practices and self-isolating. The epicenter in South Jersey in early April was Cherry Hill, with 74 cases 96 | Invest: South Jersey 2020 | HEALTH

in the township. The death toll from the new corovavirus in New Jersey had topped the number of deaths from the 9/11 terrorist attacks. Overall, New Jersey accounted for about 12% of all cases in the United States, according to the NJSpotlight website.

On the economic front, most professional observers were confidant that the hit to the economy, although substantial, would be overcome in the longer term.

Performance 2019 Southern New Jersey is home to a thriving network of hospitals and health networks, many of which have achieved statewide and national renown. For example, five providers in the region made U.S. News and World Report’s 2019-20 ranking of the top healthcare providers in the state, including Atlantic City-based AtlantiCare Regional Medical Center and Vorhees-based Virtua Voorhees Hospital, which tied for seventh in the state, as well as Our Lady of Lourdes Medical Center in Camden, Jefferson Health-Jefferson Stratford Hospital in Stratford, and Hackensack Meridian Health Ocean Medical Center in Brick Township, all of which tied for 11th. These highranking systems in South Jersey, as well as other state

HEALTH OVERVIEW

and national leaders based in other regions, such as Hackensack Meridian Health, RWJBarnabas Health, Cooper University Health Care, and Kessler Institute, have helped New Jersey ascend to the Top 10 healthiest states in America, according to the United Health Foundation’s 2019 America’s Health Rankings Report.

New Jersey rose to eighth-healthiest in the nation in 2019 from the 11th spot just a year earlier by leveraging benefits like a soaring high-school graduation rate of 90.5% and a relatively low rate of violent crime, and successfully managing challenges like a 63% increase in drug-related deaths over the last three years and the sedentary lifestyle of a high proportion of its residents. The Garden State’s clean bill of health is particularly impressive when viewed in the context of its surroundings, with neighbors Pennsylvania and New York coming in at 28th and 30th, respectively.

In Southern New Jersey, this reputation for successful health outcomes is being bolstered by the steady construction of new facilities by local institutions, as well as an influx of new entities to the region. One notable example is the new $70-million Joint Health and Sciences Center, which opened in October 2019.

The center is the product of a collaboration between Rutgers University, Rowan University, and Camden County College to provide classrooms, medical simulations, laboratories and research facilities in Camden’s burgeoning eds and meds corridor. Those involved envision the center’s development into a world-class biomedical research institution that will serve as an incubator for important cures and treatments for some of humanity’s most insidious and persistent afflictions, as well as being a driver for the

New Jersey is among the Top 10 healthiest states, according to America’s Health Rankings Report continued revitalization of Camden by providing its residents with better health and careers.

Inspira Health also christened a new facility in 2019, with the completion of its $356-million Inspira Medical Center Mullica Hill site. The medical facility is Gloucester County’s first new construction in this category in approximately 45 years, and brings with it much-needed upgrades in the form of cutting-edge medical and communications technology. The massive 465,000-square-foot facility spans 210 private patient rooms sporting a comprehensive suite of Smart Room software and hardware that aim to revolutionize clinical quality, safety, and patient experience. The Smart Room tech will automatically upload patient vitals into their chart, identify doctors and staff members who enter patient rooms in real time, and provide patients with access to the internet and other means of education and entertainment. The Mullica Hill site also features a www.capitalanalyticsassociates.com

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Kevin O’Dowd Co-President & CEO Cooper University Health Care

What were the major accomplishments for Cooper University Health Care in the previous year?

2019 was our strongest year ever at Cooper. We are particularly proud of our patient and employee satisfaction scores, both at all-time highs. As we look back at what a strong year 2019 was for Cooper, those two accomplishments are at the forefront.

What role does Cooper play in South Jersey’s economic development?

We are the largest employer in Camden County, with more than 7,500 employees. We provide world-class healthcare and as the largest academic medical center in the region, there is a social responsibility that comes with that. In January 2019, we were the first healthcare organization in the region to adjust our pay scale and move to a $15-an-hour minimum wage for our team members. While we were focusing on raising the bar for Cooper employees and their families, the ripple effect in the region was significant. We saw a number of healthcare organizations and other major employers in the region immediately follow us in taking action. We then saw the legislation and the governor of New Jersey come together to increase the state minimum wage.

What are some of Cooper’s recent efforts on community impact and education?

Through The Cooper Foundation, we are very active in a number of community initiatives including fair-market housing development for employees and residents, a vibrant Veterans program, free cancer screenings for low-income people, chronic disease education, jobtraining programs in conjunction with local colleges and organizations, community trauma prevention and training, participation in health and wellness fairs, revitalization of parks and other public spaces, annual backpack drive, holiday food drives, book drives, summer reading programs for inner city youth, the establishment of the Camden Health and Athletics Association, and summer concert series in local parks.

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South Jersey is home to many home healthcare providers like BAYADA Home Healthcare.

state-of-the-art maternity center with 15 labor/delivery and postpartum suites that offer an intimate and homelike atmosphere, and a 62-room emergency department.

The new facility sits on a 100-acre parcel, roughly half of which is still available for future construction of medical office space or education facilities.

There were also a handful of exciting footprint expansions throughout South Jersey last year by established health systems and brands based elsewhere. For example, Our Lady of Lourdes Medical Center in Camden was acquired by Virtua Health in 2019. Virtua pledged to maintain the medical center’s Catholic identity and values, while bolstering its reputation for medical expertise with the resources and talent that Virtua brings to the table. The combined health system boasts 280 distinct care locations and more than 100 buildings. It has 13,000 employees.

Philadelphia-based Magee Rehabilitation Hospital also expanded into South Jersey with the opening of its new outpatient center at Jefferson Cherry Hill Hospital. Magee invested $110,000 in upgrading the hospital’s existing outpatient rehab center, acquiring the necessary equipment to accommodate the needs of patients recovering from Parkinson’s disease, multiple sclerosis, and neurological or spinal cord injuries. ARS Treatment Centers also has opened a new treatment center in Rio Grande, Cape May County, as part of the ongoing fight against the state’s opioid epidemic, one of the leading contributors to the state’s drug

CONSTRUCTION HEALTH OVERVIEW

Anthony Mazzarelli Co-President & CEO Cooper University Health Care

death statistics. ARS now operates 10 such treatment facilities in New Jersey.

Policy updates It was a busy year in 2019 for healthcare legislation in New Jersey, and 2020 is keeping pace. Effective Jan. 1, 2019, the state passed its own version of the Affordable Care Act (ACA)’s “individual mandate,” which requires New Jersey residents to maintain a minimum level of essential health insurance coverage year-round or pay a tax penalty that the law refers to as a “shared responsibility payment.” Like its counterpart in the ACA, the mandate is designed to incentivize insurance coverage among residents of the state, particularly younger and healthier residents, to ensure that the insurance market has an adequate inflow of premiums to better absorb the healthcare costs of less healthy consumers. Residents who are exempt from filing a New Jersey Income Tax return are similarly exempt from the insurance requirement and the penalty.

Another slate of insurance laws also went on the books in New Jersey at the beginning of 2020. Gov. Murphy signed nine bills into law in January 2020 designed to preserve key elements of the ACA in New Jersey in light of the continued efforts of Republicans in Congress and the White House to dismantle the Obamaera health insurance law. The New Jersey laws include prohibitions against insurance plans excluding people with pre-existing conditions from coverage, allowing

How does Cooper help to decrease the care disparities in the South Jersey region?

We created the Urban Health Institute of Cooper University Health Care a few years ago. Instead of having underserved patients visiting multiple facilities to receive care, patients go to one location where our caregivers rotate around the patients’ needs. We also created the first dedicated group space in the country through this initiative. We started down the path to measure the social determinants of care to make sure our patients have what they need with respect to housing, finance and other factors beyond medical care that affect their health. We are now putting the technology in place to track those factors that can affect care, as the world starts to learn that those are the actual things that can affect an individual’s health sometimes even more than the actual diseases they may have. Well before people connected their electronic medical records, the entire South Jersey health system got together and connected to each other through a health information exchange. We did that work together to serve that underserved community and make better care available. We have also gotten together to figure out the best ways to treat different mental and behavioral health issues. That is unique to our region.

How do you believe Cooper is impacting education?

We are the main teaching affiliate and a co-founder of the Cooper Medical School of Rowan University. We are the only four-year, MD-granting medical school in South Jersey. Cooper’s medical staff serve as the faculty for the school, so we are able to directly guide the education of future physicians. Due to our expertise in trauma, surgery, and critical care, Cooper provides a wide range of military, diplomatic, and field affairs training programs.

In January 2019, Cooper was the first health system in the nation to enter into an agreement with the U. S. Army to provide advanced surgical trauma training to the elite Forward Resuscitation Surgical Team (FRST) through the Army Medical Department Military-Civilian Trauma Team Training (AMCT3) Program. www.capitalanalyticsassociates.com

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HEALTH OVERVIEW

dependents to be covered on their parents’ insurance until they turn 26, and requiring coverage of preventive care and contraceptives at no cost.

In another effort to manage the runaway cost of healthcare, Murphy has kicked off 2020 by proposing the establishment of an Office of Healthcare Affordability and Transparency, with Senior Policy Adviser Shabnam Salih as its first director. The office will help to bring various state agencies together to manage the cost of healthcare and insurance, as well as improve the transparency of healthcare pricing so that patients can know exactly what treatments will cost up front. Very few details of the plan have been made public so far, but the governor has stated that the first step would be an assessment of current healthcare costs for consumers.

Health insurance market The health insurance legislation had as core objectives the improvement of residents’ health and the stabilization of the health insurance market.

According to a rates report issued by the New Jersey Department of Banking and Insurance for 2020, the rates in the individual market are approximately 22% lower than they would have been had Murphy not signed the battery of health insurance bills into law over the past few years. The individual mandate that took effect in 2019 and the state reinsurance program were particularly effective, leading to a 6.8% and 15.1% reduction of individual market rates, respectively, and have kept average rates lower than they were in 2018.

Thanks to additional federal tax subsidies available to consumers earning up to 400% of the federal poverty level, most consumers will see no increase in

The prevalence of technology in healthcare is set to rise as result of COVID-19.

their insurance costs whatsoever in 2020, and those purchasing the silver plan on the state exchange may actually see their rates decrease. The 2019-2020 rate changes for carriers offering insurance on the state marketplace are as follows: AmeriHealth rates will increase by 11.0%, Horizon rates will increase by 6.5%, Oscar rates will increase by 16.8%, and Oxford rates will increase by 18.9%; together, these increases account for an 8.7% year-over-year increase in the average individual market rate. Rates, however, remain below 2018 levels. ( )

HEALTH INTERVIEW

Value-based care Bundled care paradigm expected to provide affordability without surprises

Alexander Vaccaro President – Rothman Orthopaedic Institute How is Rothman Orthopaedic contributing to accessible care?

We want to expand our value-based healthcare efforts, not only regionally but nationally. Our big effort at present is to take our model, which is patient-centric care, and introduce our bundled-care paradigms throughout the country. Through bundled care, we will be looking at the provision of care at an affordable, one-time price without surprise billing. We have been doing it for over nine years and it has allowed us to make sure our patients receive the right care, at the right time, at the right facility, with the appropriate post-surgical rehab.

Our ultimate goal is population health and the management of mass-scale musculoskeletal disease.

We are looking to address four main problems of health: redundancy, waste, variation and excessive cost. We try to manage these issues through well-thought-out clinical studies and partnerships with our healthcare partners, insurance providers and the government.

How do partnerships play into your services?

We have partnerships with multiple healthcare systems across the Northeast where we operate to deliver care. From a functional perspective, in terms of developing ambulatory surgical centers, we think that most inpatient care for non-emergencies and complex spinal deformity will go away, so we have developed ambulatory surgical units, which we call care suites, through our partnership with NueHealth and MUVE Health. This allows the performance of orthopaedic surgery in an environment that allows continuation of care until the patient is able to be discharged home.

In parallel to having relationships with healthcare systems, we developed this ambulatory surgical strategy so we can provide care at a 30% price reduction.

Where are you seeing the greatest demand?

We are seeing a high demand for outpatient surgical care. There’s a mass exodus of routine orthopedic procedures moving out of hospitals and academic centers into community hospitals and ambulatory surgical centers. The other area of demand is management strategies for the elderly. Adults who are 50 years old and older are becoming a larger percentage of the population, and we are seeing an increase in problems related to poor bone health, worsening osteopaenia and osteoporosis care and fall risk. We need to know how to manage surgery in the setting of poor bone mineralization, minimize the risk of anaesthesia and narcotic exposure in the elderly, with the end goal of improving health and avoiding unnecessary hospital admissions. www.capitalanalyticsassociates.com

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HEALTH INTERVIEW

Seamless care Location, innovation and telehealth approach are among Jefferson Health’s key differentiators

Joe Devine Executive Vice President & Chief Experience Officer – Jefferson Health In what ways has technology disrupted the healthcare industry?

Technology is so advanced and outstanding that it works extremely well. For example, we have a neural flow program for patients with mental health issues that helps us with their evaluation. We also have implemented home-monitoring care technology that improves access, and we have succeeded in advancing our linear accelerator when it comes to treating cancer patients, an area that is more precision-driven. The cost of such technology is higher, but we do not transfer that cost to our patients. We are working on ways to inject further efficiencies into the process to continue providing benefits to our patients, including our telehealth program (JeffConnect), 3D mammography, 3D ultrasound, and other advancements like ABUS (Advanced Breast Ultrasound System).

How does Jefferson Health stand out from other healthcare players in the region?

We have a seamless care system in the region. Our location in South Jersey is less than 17 miles from the main Thomas Jefferson University Hospital in Philadelphia. We also provide services in South Jersey that have historically only been provided by Jefferson in Philadelphia, such as Magee Rehabilitation, which recently opened a service at our Cherry Hill hospital.

Our technological innovations and telehealth are also sizable differentiators. Jefferson is a truly focused clinical academic medical center that combines teaching and medical care. In New Jersey, we are a teaching hospital for the Rowan University School of Osteopathic Medicine, as well as a training location for the Jefferson University Physician Assistant program.

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How is Jefferson Health tackling the local community’s health issues?

Every three years, we are required to undertake a community health needs assessment. What is great about this initiative is that all hospitals in Camden County work with the Departments of Health to shed light on the key health categories in which we should invest. In 2017, for example, it was primarily diabetes.

We created a medical school and a district program with a comprehensive diabetes management program for Medicaid recipients, powered by telehealth services and coupled with a robust home care component. It helped improve patients’ health while minimizing their hospital visits. We are looking to continue providing innovative services, while at the same time contributing to building an effective population health model, as healthcare transitions more into outpatient services.

HEALTH OVERVIEW

New Jersey passed its own version of the Affordable Care Act’s “individual mandate,” which requires residents to maintain a minimum level of essential health insurance coverage year-round.

( ) Research and care In addition to the developments in Camden’s eds and meds corridor, there are other notable medical research developments in the South Jersey area. For example, Mullica Hill-based Durin Technologies Inc. has raised $3.5 million in equity funding for further development of a blood test with the potential to detect incipient cases Alzheimer’s and Parkinson’s disease, at which point treatment of both diseases has a better outcome.

The minimally-invasive test detects the autoantibody biomarkers that a person’s immune system produces in response to these diseases. It was developed by Robert Nagele and provided the impetus for his founding Durin Technologies in 2010 as a spinout from Rowan University, where Nagel is a professor of medicine. The $3.5 million investment will be used to run additional clinical testing of the diagnostic method’s efficacy in the early detection of Alzheimer’s disease, which tests will generate additional data that Durin can use as the basis for marketing clearance from the FDA. Durin has also received funding from the Michael J. Fox Foundation and New Jersey Health Foundation Affiliate, Foundation Venture Capital, which invests in startups run by Rowan University researchers.

In cancer research news, Rutgers Cancer Institute of New Jersey announced plans for a new Cancer Pavilion in February 2020. The new pavilion will consolidate the institute’s laboratory services, outpatient clinic, infusion and chemotherapy suite, radiation oncology, imaging, and international radiology services into

a single 12-story building on Somerset Street in New Brunswick. Not only will this new building augment New Jersey’s only oncology inpatient hospital and expand services to cancer patients, the $750-million project will create 1,000 construction jobs and, once finished, will house 500-600 permanent employees.

Public health New Jersey was not immune to the nationwide opioid epidemic, which had a considerable impact on the state’s strong increase in drug-related deaths yearover-year, and South Jersey has been hit particularly hard. In fact, Camden County was named the county most affected by opioids out of all counties in New Jersey based on CDC data from 2013-2017. This data showed that Camden suffered eight drug-related deaths per 100,000 citizens each year, for a total of 915 deaths throughout the county during the period of 2013-2017 out of a total population of 510,996. To combat this epidemic in Camden and throughout New Jersey, in 2019, Murphy signed three pieces of legislation into law that are geared toward mitigating the ongoing crisis. The first law, A3292, places more stringent requirements on prescription drug labels, including a mandatory warning label or sticker on opioid medications dispensed in the state, with the goal of educating consumers about the risks of opioid addiction. The second law, A4744, requires the state Department of Human Services (DHS) to ensure that eligible persons are able to receive benefits for certain www.capitalanalyticsassociates.com

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Anthony DiFabio President & CEO Acenda Integrated Health

How is Acenda changing the way healthcare is provided?

The definition of healthcare is changing. Acenda was created with the vision of transforming the way healthcare is delivered across our region. Bringing together three organizations and an affiliate was a complex process, but our belief was that we needed to be bold and courageous in addressing the needs of our community. Leveraging research, literature, and our expertise, we are changing how care is delivered and value is measured and achieved. We are actively working to build business models and delivery systems based on a definition of healthcare that is whole-person and population-health focused. Funding and regulatory challenges not withstanding, we are working diligently to ensure that our programs and services are aligned with and responsive to a person’s individual health trajectory, including the impact of well-established social determinants of health such as access to healthy food, safe and secure housing, education and jobs.

We have 56 locations across 10 counties and over 130 programs. We provided services to over 21,000 unduplicated community members in 2019.

What are the fastest-growing areas of service and care?

We are seeing the most significant growth in behavioral health. We are expanding our locations and the portfolio of services offered at our outpatient centers to include mental health and addiction services. We have a great opportunity to build on some of our other programs, but the challenge is that many of our programs, especially those that are traditionally human and social services in support of child welfare involved families, at-risk pregnant woman, and those experience serious emotional and behavioral health challenges, are reliant upon state contracts. While these contracts allow us to bring vital programing into the community, they often not only restrict how we are able to deliver the services but also whether or not we are able to expand capacity.

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Advances in healthcare technology, like 3D modeling, are helping healthcare professionals better understand and treat symptoms.

categories of medication-assisted treatment through their Medicaid without prior authorization, so long as such treatments are prescribed and administered by licensed practitioners. Finally, SJR35 designates Oct. 6 as the annual “Knock Out Opioid Abuse Day� as a means of improving public awareness and education when it comes to the link between opioid abuse and heroin addiction.

In addition to these new laws, New Jersey will also become the first state in America to authorize paramedics to administer the overdose treatment drug buprenorphine to drug overdose patients as soon as they respond to the overdose call. Administration of buprenorphine, generally known by the proprietary name Suboxone, would follow the reversal of overdose by the opioid antidote naloxone. The revolutionary two-pronged approach will not only help to prevent

HEALTH OVERVIEW

Camden County was the hardest hit county in NJ by the opioid epidemic in 2013-2017 the withdrawal symptoms associated with Naloxone, sold under the brand name Narcan, but can also serve as an important first step toward long-term addiction treatment. This is because buprenorphine binds to the same pain receptors in the brain as opioids themselves, leading to “softer landings” for overdose patients.

However, despite the drug’s effectiveness in combating illicit drug use, buprenorphine is itself an opioid, and therefore a Schedule III controlled substance regulated by the DEA requiring medical practitioners with licenses to prescribe controlled substances to go through up to an additional 24 hours of training before they can administer buprenorphine. New Jersey’s paramedics will have to get permission from the physician overseeing their unit to administer the drug.

The state is also providing $7.8 million to county jails to fund addiction treatment for inmates and finance the sorts of community partnerships that are essential to keeping treatment going after inmates leave jail, as these individuals are some of the most vulnerable to opioid overdose. ( )

®

oundtable:

Keeping Jersey Healthy Local healthcare leaders discuss their services and the impact their companies are having on South Jersey’s healhcare sector and community.

Mark Baiada

Founder and Chairman BAYADA Home Health Care

What sets BAYADA apart from other home healthcare organizations?

The BAYADA Way is our mission and values. The fact that we are mission- and value-oriented and have a long-term vision makes us unusual. This drives us to invest in vision and on our people, which supports the quality and reliability of our service. Another big differentiator is that we provide more than one niche in home health care. We have nine types of home care, so we are more comprehensive. As a not-for-profit, we distribute our service broadly, rather than just serving one community.

What is BAYADA’s economic and community impact in the region?

We are, by far, the largest provider of home health services.

Because we are headquartered in the region, we are creating a lot of high-paying jobs. We employ 500 people in our main administrative building in Pennsauken, New Jersey. We want to help South Jersey become the mecca for the highest quality home health care in the world.

How is BAYADA’s making healthcare accessible to the underserved, particularly as a nonprofit organization?

Our main theme is providing people with the care they need at home so they don’t have to go to a hospital or a facility. Many of those services are provided to the underserved. We work with families and with the state government, providing services to a lot of elderly individuals. There is a need within this population for all types of care, including personal care support services, nursing, therapy and hospice.

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John DiAngelo President & CEO Inspira Health

What impact are you expecting the new Inspira Medical Center Mullica Hill to have on the sector?

The land in Mullica Hill is next to the Rowan University campus, and near two community colleges. Rowan is a very close education partner for us, and we are one of the largest teaching facilities in South Jersey, so this really solidified the “Eds and Meds” process in this area.

We have 100 acres on the site, but only used 60 acres to build this hospital, with a leading-edge cancer center right next to it. The facility gives us the ability to expand access to our community, so we can take care of our community in our community. This building has all the latest technology, including top-end operating room technology, robotic assisted systems and hybrid ORs. As a charitable, nonprofit organization, how is Inspira Health working to make healthcare more affordable?

Two of our counties, Cumberland County and Salem County, are the poorest in the state. The social determinants of care are problems that cross areas; they are not necessarily healthcare-related. But our goal is to take care of people who live near here and who need our help. We have been able to do that for the 20 years that I’ve been with Inspira Health. In fact, we are the only hospital in Cumberland County.

What plans does Inspira Health have for 2020?

The opening of Inspira Medical Center Mullica Hill and our leading-edge Cancer Center kicks off a promising 2020. We also have two large outpatient facilities that are under construction or will be under construction shortly, enabling us to provide more outpatient support.

HEALTH ROUNDTABLE

Mike Munoz

Market President AmeriHealth New Jersey

What is the key differentiator for AmeriHealth New Jersey in the South Jersey area?

Our exclusive focus on New Jersey and our commitment to the communities we serve is what sets us apart. We believe these two factors uniquely position us to better understand our members’ needs. For over 25 years, we have been providing health insurance coverage to individuals, small and midsize businesses, municipalities and boards of education across the state. The current administration continues to focus on bringing stability to the New Jersey health insurance market and we play an active role in that process. In addition, our associates are passionate about being of service to the community. We’re proud to have long-standing relationships with The Ronald McDonald House, Larc School and Special Olympics New Jersey.

Each of these organizations demonstrates an unwavering dedication to making a positive impact on the well-being of New Jersey residents, a mission that mirrors our own.

What impact has the rise of technology had on the health insurance segment?

We want to simplify the experience for our members and make accessing health care as easy as possible.

Technology has been key in helping us do that. One example is the use of text messaging to communicate important information, such as reminders to get preventive screenings, to our members texting has also helped simplify the renewal process. We can now send a text to members with a link to information regarding plan options for the upcoming year. If they are satisfied with their plan, they can simply Text2Renew.

Dennis Pullin President & CEO Virtua Health

What is Virtua’s community and economic impact in the region?

Virtua Health is now the largest private employer in South Jersey. That means we are heavily involved in our community’s economic development. We are part of the area’s work, community centers and school system.

“Meds and Eds” are among the biggest local economic drivers, and we are part of that ecosystem. We make sure that we connect with the community, that we are where the community needs us and that we provide the care and services the community has demonstrated it needs.

How is Virtua Health addressing social and health challenges like opioid addiction and behavioral issues?

We have found success in incorporating behavioral health specialists within our primary care practices. It helps to alleviate some of the stigma about having a behavioral health issue, because patients can receive intervention when visiting their primary care doctor. We also formed partnerships with other community-based organizations.

For example, we are making Narcan available to first responders, which in many cases is a life-saving drug.

How is the demand for outpatient services developing?

Over the last 10 to 15 years, we have seen a migration from hospital-based services to outpatient and ambulatory services. We are now focusing on providing as much care as possible in the home. Home care will become more prevalent through digital tools such as e-visits. We will see a trend of orienting services to the consumer and better responding to how they want to receive care. A lot of that will take place in 2020. www.capitalanalyticsassociates.com

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HEALTH OVERVIEW

Jean-Pierre Issa, MD President & CEO – Coriell Institute for Medical Research In the area of precision medicine, Coriell launched the Camden Opioid Research Initiative, which is supported by the state. It’s a collaborative work with Cooper University Health Care and the Cooper University Medical School of Rowan University.

This launched as I was joining Coriell, and it has been going very well. We have recruited more than 150 patients on this particular study. This is a unique biobank in the country, which speaks about the wisdom of the New Jersey legislature and the expertise at Coriell to try to tackle this really big problem of opioid addiction.

Another achievement we are proud of is our innovation in the area of stem cells in the context of biobanking, as well as being able to introduce a group of epigenomics researchers to the Institute.

This has gone very well.

35 healthcare organizations have signed participation agreements with NJII ( ) Overall, Gov. Murphy has allocated $100 million in each of his first two state budgets to tackling the opioid epidemic, as well as expanding access to Naloxone.

Health Technology In addition to statewide legislative efforts to combat the opioid epidemic, technology companies are also stepping up to fight the good fight. For instance, consider the example of the New Jersey Innovation Institute (NJII), which is a corporation that spun out of the New Jersey Institute of Technology. NJII will use a $6 million grant from the New Jersey Department of Health (NJDOH) and New Jersey DHS to lead the “Promoting Interoperability for New Jersey Substance Use Disorder Providers” program, which seeks to improve health information technology infrastructure throughout New Jersey and promote the switch from 108 | Invest: South Jersey 2020 | HEALTH

Five providers in the South Jersey region made U.S.News and World Report’s 2019-20 ranking of the top healthcare providers in the state.

HEALTH OVERVIEW

paper-based medical records to electronic health records by substance use disorder practitioners.

These objectives target one of the underlying causes of the opioid epidemic: opioid overprescribing. By adopting more intuitive and better organized electronic medical records that can be exchanged via the New Jersey Health Information Network, communication of patient records between primary care physicians, other healthcare professionals, and hospitals could be greatly improved. Once this communication is improved, the hope is that over-prescription could be mitigated. The program, led by NJII in partnership with the New Jersey Association of Mental Health and Addiction Agencies, will support substance use disorder practitioners at up to 120 healthcare facilities throughout New Jersey that have requested new or updated electronic health records technology through 2021. Thirty-five healthcare organizations have already signed participation agreements with NJII. Another piece of healthcare technology news coming out of South Jersey is the merger of Mount Laurel’s InSight Telepsychiatry and Chicago-based Regroup Telehealth, making the combined entity the largest provider of telepsychiatry services in the country. The core service provided by the company, telepsychiatry, consists of the traditional patient-psychiatrist interaction, but with the novel integration of videoconferencing technology to enable improved access to mental healthcare services to those traditionally underserved.

Looking ahead Like most states in America New Jersey is battling the COVID-19 outbreak and bringing the pandemic under

control remians priority No. 1. At the same time, other issues are not going away. The opioid epidemic has hit New Jersey hard, particularly South Jersey. However, there are countless statewide policies already enacted to combat addiction and drug-related deaths, and first responders and other members of the community have more tools at their disposal than ever before to combat overdose and addiction. This is a salient example of leadership looking ahead to a future free from opioid addiction, and taking the steps necessary to get there.

Many new medical research and healthcare facilities are also coming to the region, like Rutgers Cancer Institute of New Jersey’s new consolidated Cancer Pavilion coming to New Brunswick, the Joint Health and Sciences Center in Camden, which promises to lead to even more development in the city’s eds and meds corridor, and Inspira Health’s new Mullica Hills facility.

Emerging developments in health technology developed in South Jersey and beyond also promise to change the healthcare landscape in the region, such as the expanding reach of telepsychiatry and hightech efforts to fight the opioid epidemic alongside legislative efforts.

Finally, there are some rumblings that “Big Marijuana” is coming to Southern New Jersey, in the wake of industry giant Acreage Holdings’ acquisition of Egg Harbor’s Compassionate Care Foundation, the nonprofit operator of a grow facility and retail outlet. The move comes as New Jersey prepares for a potential legalization of marijuana in the state. Both houses of the legislature voted in December to put the legalization question on the November ballot.

Education: The educational system in South Jersey consistently demonstrates a forward-thinking, ahead-of-the-curve mindset. The system is also among the most prolific in terms of graduates. The great unknown, however, is the impact from COVID-19 that is gauranteed to reshape the landscape.

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Thinking ahead: STEM is a key focus for the region’s educational institutions, even as the onslaught of COVID-19 reshapes the landscape New Jersey is a highly educated state. Around 90% of the population graduated high school and 39% have at least a bachelor’s degree, which is a higher proportion than New York, Pennsylvania and the U.S. average. In 2017, 103,589 four-year degrees were awarded in New Jersey. The most common type of degree awarded is a bachelor’s, followed by a master’s, earned by 24% of graduates. Less than 4% hold a doctorate degree. The school dropout rate is just 11%, below the U.S. average of 12%.

The vital statistic, however, is not just the fact that New Jerseyans study, but the subjects they study. Around 46% of students are in STEM or STEM-related degrees, which is higher than the Pennsylvania, New York and U.S. averages. Around 21% study business and 11% study education.

But like other sectors of the economy, education took an unexpected turn in the early part of 2020 as the COVID-19 pandemic took hold across the nation and the world. Faced with the need to enforce social distancing and stay-at-home policies, education institutions had to make a sudden change in how they delivered education,pivoting to the online enviroment as never before.

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were practical hurdles to face. By order of the governor, certain statutory requirements regarding assessment and educator ealuations were waived. Budget and other deadlines for boards of education also were extended.

Looking further ahead, schools were trying to determine how to move foreward with the fall semester, given that most educators believe physical schools were unlikely to reopen by September. Some element of distance learning would also likely remain in place.

New Jersey has an overwhelmingly public education system, with overall public-school enrolment including K-8, high school and college sitting at 81%. Around half of graduates in New Jersey are white, while 18% are Latino or Hispanic, around 13% are black or African American and 9% are Asian. Women earn more degrees than men, with 44,275 degrees awarded to men in 2017 compared with 59,314 awarded to women.

Workforce preparation Among the top needs across industries in South Jersey, and indeed the state, is skilled labor. To meet this demand, area schools like Rowan College are working alongside governmental institutions to develop a labor force that has the necessary skills businesses require. ( )

EDUCATION INTERVIEW

Growth drivers STEM, medical school growth, research activities among the leading priorities for Rowan University

Ali Houshmand President – Rowan University What programs are seeing the most growth at Rowan University?

Our greatest growth is in the STEM fields and business.

We built new facilities for our colleges of engineering and business three years ago and doubled enrollment in their programs.

Another growth area is our medical schools. We are one of only three institutions in the nation to offer both an M.D. and D.O. medical degrees. Our commitment to medical education is important given the nation’s growing physician shortage.

What are some of the efforts you are making to attract and retain talent in the South Jersey region?

We are speaking with a healthcare network about creating a partnership to enhance research activities and medical education opportunities. Under that plan, we would recruit world-class surgeons who have an interest in research.

We are also discussing modern agriculture and food production with several companies. Both areas will become increasingly important as the world’s population grows and resources decline. We need to help prepare a workforce that’s ready to contribute to these increasingly important fields.

How is the South Jersey Technology Park acting as an economic engine for the region?

We have two facilities at our Technology Park and are planning a third. We created Rowan Innovation, a framework that incentivizes collaboration between departments, colleges, faculty and students as well as outside agencies and businesses. Companies that grow out of Rowan Innovation can apply for venture funding through the Rowan University Foundation.

Companies that start there eventually grow too large for our facilities and locate nearby.

How is innovation at Rowan University helping local communities?

We have dozens of initiatives and programs that really impact local communities. One that comes to mind immediately is our Street Medicine program where our medical school students volunteer to care for homeless residents in Camden.

A second project, more along research activities, involves a partnership between Rowan, Cooper Health Care and the Coriell Institute for Medical Research in Camden to study if gene therapy can be used to prevent opioid addiction.

We are also making great strides with the expansion of our School of Osteopathic Medicine’s RISN program, a center that provides for the health care needs of mentally disabled adults. www.capitalanalyticsassociates.com

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EDUCATION OVERVIEW

Eds and meds’ are two of the biggest economic stimulators in the South Jersey region.

( ) New Jersey’s median household income is $81,740 – much higher than comparable neighboring states, mainly due to the huge presence of technology and manufacturing companies across the state. The biggest employment sector by far is education, healthcare and social assistance, employing 1.06 million people in the state. In early 2020, global staffing agency Kelly Services announced it was acquiring education-focused recruiter Insight that works in school districts in New Jersey, among other states. The acquisition is an opportunity for Kelly Services to become more specialized in the education recruitment segment.

Other significant sectors in New Jersey are the professional, scientific and management segments, employing 570,000 people, and finance, insurance and real estate employing 360,000 people. Many of these highly specialized occupations pay upward of $100,000 per year. There is a shortage of highly qualified employees across the United States to work in ever-developing industries such as these. One way the United States previously resolved staffing issues was with the H-1B visa system for graduate workers in fields such as IT, finance, accounting, architecture, engineering, mathematics, science and medicine. Since President Trump took office in 2016, however, there have been several restrictions and modifications to this program. In the final quarter of 2019, the rejection rate for H-1B visas reached almost 25%, compared with 6% in the same quarter of 2015.

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person activities at local offices, including biometric appointments, permanent residence interviews, asylum hearings and naturalization ceremonies until April 1.

The H-1B registration period ended on March 20, with processing expected to resume in May or June. This means that tech companies are increasingly having to look for new ways to source highly skilled workers domestically.

Educational institutions are stepping up to provide workforce development programs to help industry source the right talent. South Jersey’s Rowan College offers workforce development programs out of its Gloucester and Cumberland campuses that cover a variety of sectors including adult education, health, computer training and small business development. Meanwhile Stockton University in Atlantic County signed agreements this January with Taiwan’s National Chiayi University and National Taichung University of Education for a student exchange program that allows up to three Stockton MBA students to attend the Taiwan-based university and three graduate business students from Chiayi to attend Stockton each year. The students will be eligible for a dual degree at the end of the program.

And it is not just highly skilled professions that are desperately seeking talent. New Jersey’s construction sector employs 242,152 people but developers are still scrambling to find talent. Of all over-25s, 45% fall into the breach between graduating high school and obtaining some higher degree. Around 28% of New Jersey’s population are high-school graduates with no ( )

EDUCATION INTERVIEW

Bridging the gap ‘Last-end’ scholarships are enabling access to Rutgers University for a greater number of students, and boosting enrollment

Phoebe Haddon Chancellor – Rutgers University—Camden What impact have you seen from the “Bridging the Gap” program related to affordable access?

“Bridging the Gap” is the scholarship program responsible to a great extent for our enrollment growth.

While we offer a number of different scholarships, Bridging the Gap is last-end money that enables students who would not be able to come to a place such as Rutgers University were it not for this additional resource. It has helped us to address an important area for us to grow, but also enables our students not to work as much as they might ordinarily to bridge that gap. Many can work on campus, through work-study and other programs, and some have even been able to stay in the dorms as opposed to commuting long distances. As its name suggests, the program closes the gap between federal, state, and institutional sources of financial support and the balance of tuition and the general campus fee. We automatically apply this grant to these remaining costs after all other need-based federal, state, or institutional aid has been applied, based on family adjusted gross income. The program is under review by the Federal Reserve Bank of Philadelphia in a longitudinal study to determine its replicability in other institutions.

Which of your programs is attracting the most demand?

Because we are a relatively small and nurturing institution, we are able to collaborate closely with our deans. Many of our programs have become multidisciplinary, both across campus and within their respective schools. Our offerings include a nursing school, a business school, a law school and comprehensive arts and sciences. Our students can take courses across campus, can engage in learning experiences that include research, internships, and learning abroad, and are able to work through programs from the certificate level to a Master’s.

What interaction mechanisms do you have in place with the local business community?

There is a significant number of new corporations located literally right down the street from our location. The influx of these corporate entities in Camden and South Jersey allows us to offer first-rate internship experiences.

We have been working closely with some of these entities to develop on-site faculty and programs that are suited to the workforce of these companies so they can benefit from training and hone their skills.

What are your near-term priorities for Rutgers University?

Our priority is to make sure we have in place the facilities we need for our students, coupled with ensuring their financial and food security. We look to provide all the available opportunities for our students to thrive. www.capitalanalyticsassociates.com

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Market voices: Community College

Donald Borden

President Camden County College

We are already working on our next strategic plan. What is encouraging is that much of the focus in our town halls or when talking to our stakeholders is making sure our strategic plan includes partnering with business and industry.

We have really increased the number of businesses and industries on our advisory boards, and my view is that we have to be servants to those individuals. It used to be that higher education was a “take it or leave it� proposition, but now we need to understand what the business community needs from our graduates. They have an opportunity to weigh in on our curricula and program development. As a result, when our graduates enter the local business community it helps them, it helps the business community and industry, and it helps the community in general.

We definitely had an early entry into the distance education online space so it is not something that surprised us. When we look at our student body participation, the number of students who graduate or leave having taken at least one online course is more than 50%.

Instead of being fearful or seeing online education as a threat, we have switched to a hybrid model for many of our courses that split time between meeting in a classroom and online. There is value in face-to-face interaction with faculty and peers, but we recognize that online is critical for students who have many priorities including working, family and activities on campus.

Barbara Gaba

President Atlantic Cape Community College

Michael Cioce

President Rowan College at Burlington County

It is an unprecedented event that took us all by surprise. We established a COVID-19 task force that includes all of my cabinet members, to look at how to proceed. One of the first things we did was to look at our emergency management plan that tackles infectious diseases, among other things. We focused on operational and communication measures. The former is relative to academic and business continuity. As Gov. Murphy enacted the executive order stating that no one was to come to campus, we moved to an online format for all classes. Fortunately, several of our programs were already entirely online.

Many of our students were already taking a combination of online and in-class programs, making them familiar with the online platform. We are sparing no resources or action plans to make sure our students get through this semester.

We are also launching discussions about recovery, how we are going to help people who are out of work to get back into the workforce, and what specific programs and certificates they will require for that to happen in the shortest of terms.

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EDUCATION OVERVIEW

Merodie Hancock President – Thomas Edison State University In New Jersey, we have a great mix of universities with different missions serving different populations. Thomas Edison is specifically focused on providing professionally meaningful degrees to adult students. As such, the three things we’re heavily focused on are student success, affordability and value of the credentials. We are enhancing our courses with OERs to reduce textbook costs while leveraging current research. We want to make sure that no students are left in a situation where they need to compromise on accessing the materials, and OERs ensure every student has access to every resource. Further, we are ensuring our classes are structured to drive student engagement; with the course, each other, and what is happening in their industry. Finally, we are constantly reassessing our student learning outcomes to ensure they are aligned with the ever-changing needs of our employers.

( ) further studies, while 17% have attended college without graduating.

This is why the New Jersey Building & Construction Trades Council set up the Youth Transitions to Work (YTTW) program across the state, in which high-school graduates who do not wish to go to a four-year college are exposed to career alternatives in the construction industry. Additionally, in 2019, the council placed 800 returning military veterans into apprenticeship programs through the New Jersey “Helmets to Hardhats” program, many of whom are women and minorities. New Jersey’s building trades unions and signatory contractors invest over $100 million every year on training.

And in Camden County, the new Camden Works program was set up in 2019 to focus on an oftenneglected cross-section of the population and match them with job opportunities. Camden Works will target four segments: high-school graduates who are ready for training and employment; previously incarcerated people or those returning from incarceration; recent local college graduates; and homemakers or displaced workers seeking a return to the workforce. The program is funded by a variety of financial partners, including American Water, The Michaels Organization, Wells Fargo and EMR and has a budget of $500,000 per year.

Higher education As staffing shortages continue, education becomes more and more important. University education is more accessible to more people, and that means university

Rutgers-Camden to start work on a new $750 million cancer pavilion in 2020 enrollments are increasing. In 2017, Rutgers New Brunswick graduated 12,873 people, up more than 35% since 2012. Similarly, Rowan University graduated 3,794 students in 2017, up almost 50% since 2012. To keep up with growing demand, universities and colleges also must expand and in 2019, South Jersey’s institutions announced a range of new projects.

South Jersey’s Rowan University has been one of the most active in expanding its facilities with the new Rowan Boulevard in the borough of Glassboro. The $400 million, 26-acre project is a way for the university to partner with companies such as Atlantic City Electric, which set up shop on the boulevard in early 2020. Other notable projects in the pipeline include a sophomore village consisting of 750 student rooms and a 555-room freshman village, which upgrades the college’s existing www.capitalanalyticsassociates.com

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EDUCATION OVERVIEW

Monica Adya Dean – Rutgers School of Business at Camden When you consider the fact that we are in an Eds and Meds corridor, we are competing with a large number of institutions in this region but we do have some distinct advantages as a public institution and given that our mission is very much driven by the fact that we are serving the broader population. One advantage is our online presence at both the undergraduate and graduate level, but I think the advantages that we can have further are in taking a more proactive stance in the intersection of technology, innovation, and entrepreneurship. That is an area where we could definitely be focusing our efforts, especially because it has the potential of providing a high return for the South Jersey and Camden area. That is a direction that I would like to head into next year. housing inventory. This year Rowan also set up a new Alms Center location in Cumberland County.

Rutgers-Camden, the largest university in South Jersey, is also expanding, with plans to start work on a new cancer pavilion in 2020. The total project budget is estimated at $750 million for the 12-story, 510,000-square-foot facility on Somerset Street and will house 96 inpatient beds and 74 exam rooms. It is designed to include laboratory services, an outpatient clinic, infusion/chemotherapy suite, radiation oncology, imaging, and international radiology.

As well, the university recently completed the acquisition of a parcel of land on Market Street in Camden for $1.45 million, where it intends to relocate its business school. The university is still in the middle of raising the $80 million it needs to make the move, so in the meantime the authorities have announced the land parcel will be used for parking. In February 2019, the university bought another 36,000-square-foot land parcel in Camden for $4.5 million for nonstudent-related administrative work.

And in a demonstration of the importance of healthcare in South Jersey, in October a $70 million, four-story Joint Health Sciences Campus that includes research space for Rowan, Rutgers-Camden and Camden County College was opened.

As a result of an $8 million philanthropic donation by co-Founder and President of American Cellular Network Corp John Scarpa, Stockton University is doubling down on its investment in Atlantic City. Stockton has struggled to expand in Atlantic City as many properties are zoned for casinos, and there are legal questions over converting them into university space. The university managed to build a new campus on vacant land but, with student 118 | Invest: South Jersey 2020 | EDUCATION

accommodation splitting at the seams, it requires $5 million in state aid to build a $64-million dorm that would fit 400 more students. The money donated by Scarpa will be used to expand Stockton’s academic programs and support health sciences programs at its main campus in Galloway.

It is not just sciences and businesses that are being expanded in South Jersey, but also creative ventures.

In November, Salem Community College celebrated the opening of its new 20,000-square-foot Samuel and Jean Jones Glass Education Center. The center contains facilities for glassblowing, including kilns, benches and lathes. And in Camden in January, the Institute for Development of Education in the Arts (IDEA) Center partnered with Subaru of America and The Michaels Organization to renovate a 1,800-square-foot space on Market Street where at-risk youth can learn about media and the visual and performing arts.

Schools in South Jersey are becoming a focal point for renovation, anchored by the ambitious new Camden High School project, in the works since 2016 and which broke ground in June 2019. The new school will be located on the site of the old Camden High School on Park Boulevard, will cost $130 million and will open its doors to more than 1,200 students in September 2021. It will contain facilities such as a gym, a cafeteria, a black box theater, a forensic science lab and a dance studio.

But controversy abounds as a recent construction law to launch a $12-billion school construction program across New Jersey did not include charters, and according to advocates, the charter school law itself does not provide for state funding for charter school facilities.

According to school reform group JerseyCAN, charter

CONSTRUCTION EDUCATION OVERVIEW

and renaissance schools are expected to require about $942 million in funding for new facilities over 10 years, largely due to overcrowding. This would be allocated to 200 projects over the next 10 years, with about $600 million going to new construction and $300 million to renovations. Charter school advocates have since filed a legal challenge to allow them to access the funding from the state budget.

Eds and Meds Corridor South Jersey has irrefutably promoted medical education across the region but shortages persist.

By 2030, it is predicted that New Jersey will be short 11,000 nurses, and this is being exacerbated by a lack of educational facilities. According to William Paterson, nursing department chair at the New Jersey State Nurses Association, as many as 56,000 qualified applicants were rejected from undergraduate nursing programs across the country in 2017 for this reason. Staffing shortages are also putting nurses at risk of injury due to heavy lifting requirements, a study by the U.S. Bureau of Labor Statistics found.

South Jersey is addressing this issue with the establishment of the Eds and Meds Corridor, where education meets medicine. In Camden, its economy lost half its manufacturing jobs between 1950 and 1970 and the reason it was able to stay in business was its education and healthcare facilities. The Eds and Meds Corridor is how Camden and the broader South Jersey area married their greatest strengths to create an economic powerhouse.

The Joint Health Sciences Campus between Rowan, Rutgers-Camden and Camden County College is part of this initiative. Within the sprawling facility, each university has its own space, with Rowan installing the Cooper Medical School of Rowan University’s advanced simulation lab, the School of Osteopathic Medicine’s Institute for Successful Aging, the virtual reality center and biomedical engineering labs focused on high-impact health research.

Rutgers facilities include the Center for Computational and Integrative Biology, which includes more than 40 internationally recognized scholars who are producing next-generation biomedical insights in such areas as predictive toxicology, metagenomics and biological rhythms. And Camden Community College has space for its Practical Nurse, Certified Nurse Aide, MultiSkills Technician and Alzheimer’s Journey Coordinator programs. This is complemented by 60,000 square feet of communal multipurpose space.

The Eds and Meds Corridor is envisioned to extend all the way from Rowan’s South Jersey campus to the ( )

Harvey Kesselman President Stockton University

How has the new branch campus for the university progressed?

This is a new branch campus, which consists of a 56,000-square-foot Academic Center, a 543-bed Residential Complex on the Boardwalk overlooking the ocean in Atlantic City, and a combination parking garage with seven floors for South Jersey industries, all located in the Chelsea section of Atlantic City. We opened in fall 2018 at capacity. We have almost 10,000 students at Stockton University, of which about 3,500 reside on our Galloway campus or the Atlantic City campus. One fact that we are really proud of is that 95% of our students attend full time. The reason for that is that we want them to graduate more quickly so they accumulate less debt and become productive members of society more rapidly. Young people don’t want to live with the kind of debt that places them at a disadvantage for the next 30 or 40 years. So that is a way of reducing their debt, while they graduate at a higher rate.

What programs have seen the most growth?

Health sciences and all its related aspects have grown dramatically over the last four or five years. We were ahead of the curve because we anticipated years ago the way healthcare was going to go. We knew it was going to be more about the people who support the doctors than about the doctors themselves, so we created undergraduate and graduate programs in those areas that we knew would support doctors.

What efforts are being made to attract students and retain talent?

Historically, we rely predominantly on South Jersey, but the demography of South Jersey does not lend itself to extensive growth so we have expanded our reach. We have enough awards now that it is no longer bragging: we have the best university relations and marketing effort of any university in New Jersey and we also have some of the most talented people. We always use data to inform our admissions process. www.capitalanalyticsassociates.com

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oundtable:

Eds & Meds Education and medicine are becoming major economic engines in the South Jersey region.

Education leaders discuss their efforts in this burgeoning area.

Thomas Cavalieri

Dean Rowan University School of Osteopathic Medicine

What is the main focus for the new campus being built

by Rowan University School of Osteopathic Medicine?

South Jersey has a significant shortage of physicians especially in primary care, we are committed to responding to that need. Central to our mission is training clinically skillful, compassionate, culturally competent physicians from diverse backgrounds who’ll become leaders in the community.

We are excited about this because the benchmarks for health in South Jersey need a great deal of improvement.

For example, the prevalence of diabetes, obesity, cancer rates, smoking, are amongst the worst in the state and nation. We want to improve the health status of the community by training physicians who emphasize healthy lifestyles aimed at keeping people well. We are emerging to become the largest medical school in the state and are looking to grow even further training 275 physicians per year.

What approach does the school’s new curriculum encompass?

Many believed the way physicians are trained in this country is outdated. Curricular changes in medical school are difficult to bring to fruition. It has been said that the medical education system in our country is not necessarily producing the types of physicians that our nation needs. We have set out to create a new curriculum that we believe will result in a better physician, a physician who is equipped to address the healthcare needs of our state and nation. Historically, medical education has been disease-focused. Our approach will greatly emphasize health and the avoidance of disease.

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EDUCATION ROUNDTABLE

Donna Nickitas

Dean & Professor Rutgers University School of Nursing – Camden

Annette Reboli

Dean Cooper Medical School of Rowan University

Where are the main gaps within nursing education?

We need to create a toolbox for our nurses that applies theoretical-based knowledge with evidence-based practices. How do we do that? We provide them with knowledge in the classroom and then we bring them into the clinical simulation laboratory where they can practice these skills, synthesize the knowledge and learn to make critical care decisions.

We revamped our clinical laboratory and created our Center for Excellence in InterProfessional Practice, Education and Innovation (CEIPEI). The CEIPEI has been recently accredited by the Society for Simulation in Healthcare. We are currently the only accredited simulation center in Southern New Jersey.

What are the specifics of the community outreach projects you manage?

Service to the community is an important part of the mission of CMSRU. Our students are required to do service learning.

We have an office at CMSRU dedicated to supervising our community service activities. Camden is one of the poorest cities in the United States but it’s on the cusp of a renaissance, which can be seen in the transformation of the waterfront area. Last year, the graduating class did over 16,000 hours of service to the Camden community. The array of programs that our students focus on include health and wellness, programming for city youth such as tutoring and programs that focus on vulnerable populations such as veterans and the homeless.

How are you leveraging new technologies and innovation to help students?

As a military nurse with 18 years of military experience, simulation is how we learned. We never went into the field without first preparing through simulation experience. We know that this works.

I can tell you that currently all of our students are learning remotely because of the pandemic, and we are leveraging that technology through case studies and virtual learning. When a student makes a mistake they are prompted to go back to the medical record and look for the correct information. It unfolds before them. If they administer the wrong medication and the patient suddenly develops an allergic reaction, they are prompted to make the necessary changes.

We have no choice but to leverage the technology to the practice.

What are the main challenges facing higher education in the South Jersey area?

Funding is always an issue, especially in medical education, which is very expensive. I would like to be able to offer our students their education tuition free but unfortunately, we are not at the stage of older medical schools like NYU that have started to do this. We do try to keep our programs affordable and offer grants and scholarships to help.

There is obviously a shortage of primary care physicians nationally. We have been awarded a federal grant from the federal agency, Health Resources and Services Administration (HRSA) for a three-year accelerated M.D. program with a focus on entering into a primary care residency track in internal medicine or pediatrics. Students finish medical school a year earlier, which helps them repopulate the workforce a year earlier and start earning a salary a year earlier. www.capitalanalyticsassociates.com

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Frederick Keating President Rowan College of South Jersey

What impact are you expecting from the partnership with Rowan University’s School of Osteopathic Medicine?

We entered into an agreement with the Rowan School of Osteopathic Medicine with the understanding that they would build on our campus, and that building is currently under construction with a completion date in 2020.

That brings medicine into the college and the county, with clinics on the first floor and five practices, plus an expansion of 150 more medical school applications with regard to their main campus.

What are most in-demand programs for the college?

We have changed our philosophy and are now driven by economic and workforce demand. We are trying to shift the gear so that higher education is reacting to labor statistics and demand, as opposed to preparing people for fields where we think there will be labor demand. The idea is that we have to prepare people for today’s workforce and take into consideration supply and demand.

We have narrowed our academic design around five pillars. The first and foremost is nursing and allied health, which now has been advanced to nursing and health professions. Our business division has risen to No. 2.

We have schools of business on both of our campuses.

Our third is STEM (Science, Technology, Engineering and Mathematics). We are fortunate to have Rowan, one of the best engineering schools in this region. Given that relationship, we are going to push forward with engineering and science, trying to expand our programs in alignment with Rowan University. Our fourth pillar is a combination of the humanities and education. We are not going to back away from the concept of preparing people for teaching, but we are also going to attach the humanities to it because there is still demand for English literature and history. The fifth pillar is criminal justice, which is always an essential component within the workforce and one that continues to evolve as technology advances.

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In 2017, 103,589 four-year degrees were awarded in New Jersey.

( ) north of Gloucester County, down to the southernmost point of Cumberland County and extending out to Camden County. It incorporates the Joint Health Sciences Campus and the Rowan, Rutgers and Camden College medical facilities, as well as the Chambers of Commerce and Inspira Health Network facilities. Other anchor institutions include CAMcare and Cooper University Health Care.

But the Eds and Meds Corridor did not spring up organically. It was the product of years of planning from the public, private and academic sectors. In fact, according to Louis Bezich, the senior vice president for strategic alliances at Cooper University Health Care, the critical first for the initiative was a 2002 economic stimulus package that laid the foundations for the project. This has largely paid off, with the corridor providing 55% of the jobs in Camden and generating an economic impact to the city of $2 billion.

But the success of the corridor is generating more and more funding. In October, Congressman Donald Norcross announced a $900,000 federal grant from the U.S. Department of Health and Human Services’ (HHS) National Institute of General Medical Sciences (NIGMS) would be awarded to Rutgers-Camden and Rowan University for their respective pharmacology, physiology and biological chemistry research programs. Not only is

EDUCATION OVERVIEW

of earning some of their four-year degree credits at the college, therefore reducing costs.

Under the program, students would be able to earn both their associate’s degree and their bachelor’s degree at the community college’s Blackwood campus, paying $4,320 per year – a fraction of the $15,000 charged by Rutgers. During the third year of the degree, students would transfer to Rutgers-Camden under a scholarship where they would pay only $4,320. For the fourth year, the full $15,000 would be charged by Rutgers. This would mean a four-year degree split across both institutions would come in at just $27,960, compared with $60,000 for four years at Rutgers-Camden.

Rowan University has a similar transfer scheme with community colleges – namely Rowan College of South Jersey and Rowan College at Burlington County. Both colleges are independent of the university, despite having adopted the name as a result of the number of students that transfer from the colleges to the university programs. Beyond this, Rowan College of South Jersey is hosting free workshops that help families apply for the 2020-2021 Free Application for Federal Student Aid (FAFSA) program. The workshop provides advice on the funding that may be available to them and helps them to fill in the applications correctly. the Eds and Meds Corridor being fostered on a state and local level, it has also garnered federal recognition.

Affordability and accessibility Of the over-25s living in New Jersey, 45% fall into the breach between graduating high school and obtaining some higher degree. Around 28% of New Jersey’s population are high-school graduates with no further studies, while 17% have attended college without graduating. This can be attributed to a number of factors, one of which is affordability.

The median tuition cost for a four-year private college in New Jersey is $29,300, and $11,619 and $20,718, respectively, for public four-year colleges for in-state students and out-of-state students.

This compared with neighboring New York state, where four-year private colleges cost $27,450, and public four-year colleges cost $6,670 and $16,320 respectively, for in-state students and out-of-state students.

To try to cater to the underserved population, Camden County College and Rutgers University launched an initiative at the end of 2019 to create a joint program, whereby students studying business administration, criminal justice, liberal studies, political science, and psychology will have the option

STEM There is no denying that South Jersey is a hub for STEM industries. In New Jersey, March is officially designated STEM month, with the goal of reaching 25,000 learners over the course of the month, according to the R&D Council of New Jersey’s Executive Director Kim Case.

Gov. Murphy prioritized STEM careers in his State of the State address in February as he laid out his 2020-2021 budget priorities. “Hundreds of high school students in Burlington, New Brunswick, and Paterson are preparing for the STEM jobs of tomorrow in innovative P-TECH classrooms, working toward a high school diploma, a no-cost associate’s degree, and workforce credentials, all at the same time,” he said. In February the governor announced a $200,000 grant to bring the P-TECH educational model to Trenton Central High School in Mercer County.

National STEM Day is held in November, and last year in recognition of this, the New Jersey Department of Labor and Workforce Development announced an initiative to offer financial assistance to first-time interns with placement offers in IT, life sciences and healthcare and energy, offering to reimburse employers up to 50% of salaries paid.

The government also partnered up with the private sector for the governor’s STEM Scholars program, www.capitalanalyticsassociates.com

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EDUCATION OVERVIEW

which selects top STEM students from across New Jersey and fosters their talent through symposiums and learning opportunities. The STEM in Academia Symposium, held in December at Rowan University, introduced the scholars to some of the state’s most distinguished academic STEM professionals. Not only this, but the Governor is making an even greater effort to incentivize STEM learning in New Jersey, setting up state grants of $2 million to train teachers to prepare K-12 students in computer science in the state’s public schools.

And Delran High School in Burlington County unveiled a $1.8 million STEM fabrication laboratory in the building that used to be used for auto shop.

The project was funded through capital reserve funds and donations as well as the school district’s budget.

Further expansion is planned, with a $609,000 proposal for the addition of a woodshop being approved by the education board.

Private industries are also getting involved in early STEM education in an effort to ensure they have a steady talent pipeline coming out of universities to incorporate into their companies. In December, Corning Incorporated Foundation, which is owned by glass manufacturer Corning Inc, made a $10,000 donation to Rowan College of South Jersey for STEAM promotion. STEAM is a learning concept that incorporates the arts into traditional STEM sectors to encourage creativity and curiosity. The donation will allow the college to partner with Millville’s Lakeside Middle School to promote STEAM-related careers.

Technology Technology is constantly evolving in schools, and there is no better demonstration than the ability of

teachers to swiftly adapt to school closures caused by the coronavirus outbreak by moving lessons online. As 2020 kicked off, uncertainty loomed for many sectors globally, and certainly the education sector. As the coronavirus swept the globe, schools and educational institutions across New Jersey were forced to close to mitigate the spread of the virus. But New Jersey institutions are adapting the way they do best and using technology such as Zoom and Google Classroom, lessons can be taught virtually. Education has evolved so much that even a global pandemic should not greatly limit learning opportunities.

The Cherry Hill school district in Camden County, for example, has made a concerted effort to ensure staff and students have all the materials needed for at-home and online learning. The school system started distributing Chromebooks as part of a remote-learning plan and the district’s website is being constantly updated.

Looking ahead The educational system in South Jersey is consistently demonstrating its forward-thinking, ahead-of-thecurve mindset. As the COVID-19 pandemic continued to grip the world, with a serious impact in New Jersey, this mindset will be necessary to navigate the new landscape.

By the end of April 2020, education insititutions at all levels had pivoted to an online environment to ensure students could continue receiving their education.

As would be expected, there were stumbles out of the gate as those institutions with little online experience adjusted to the new reality. The question going forward revolves around the new-look system and what elements will stay in place in a post-COVID-19 world.

Tourism, Arts & Leisure: With an envious location on the Atlantic Coast between New York City and Philadelphia, tourism has become a leading economic driver for South Jersey and the state overall. The industry was the state’s seventh-largest employer prior to COVID-19, providing almost 10% of all jobs, but it has also been among the hardest hit from the pandemic.

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Hotspot: With wineries and craft breweries, South Jersey is rising up the list for tourism visitors but COVID-19 could have a lasting impact The coastal region of the state of New Jersey is an area nicknamed the Jersey Shore, spanning 140 miles of oceanfront on the Atlantic and running through Middlesex, Monmouth, Ocean, Atlantic and Cape May counties, the latter three of which are considered South Jersey. Because of this privileged destination a stone’s throw from New York City and a fairly moderate climate with warm summers, the area is also a tourist hotspot.

In May 2019, Gov. Murphy announced that tourism spending in 2018 was up for the 10th consecutive year, with visitor numbers rising over 7% from 2017 to reach 111 million. Total spending was $44.7 billion, amounting to $5 billion in state and local taxes and $6 billion in federal taxes in 2018. And the state is betting on expansion, with an aim to reach 150 million visitors by 2023.

Recent events have thrown a spanner in the works for expansion of the tourism industry, however. After the novel coronavirus reached U.S. shores in February, it took just weeks for the federal and state governments to issue orders to limit social interactions, including ordering the closure of restaurants, bars and beaches, to limit the spread of the virus. This puts a moratorium 126 | Invest: South Jersey 2020 | TOURISM, ARTS & LEISURE

on South Jersey’s tourism industry and for some companies, it could sound the death toll.

Performance In 2018, the latest year for available data, arts, entertainment, recreation, accommodation and food services contributed $19.4 billion to New Jersey’s GDP – or about 3% of the total. According to a report released by the Department of State’s Division of Travel and Tourism, visitor spending sustained more than 530,000 jobs, making tourism the seventh-largest employer in the state. Almost 10% of New Jersey’s jobs are supported by tourism, the report said. In fact, without the tax money tourism provides, each New Jersey household would have to pay $1,545 to government revenues to sustain spending.

Although New Jersey is not known as a hub for business tourism, it has the benefit of being nestled in the shadows of both Philadelphia and New York City.

Tourists who go to New York or Philly for business have the option of staying in New Jersey to keep costs down or simply to escape the hustle and bustle of the big city. Average nightly hotel prices come to around $168 in New Jersey, while in Manhattan in 2018 this ( )

TOURISM, ARTS & LEISURE INTERVIEW

Surge in appeal Favorable location a key factor behind increased visitor numbers in recent years

Michael Snyder Director of Operations – Visit South Jersey How did Visit South Jersey close 2019?

Our charge is to promote tourism visitation and spending in our allotted region of New Jersey. We cover Camden, Burlington, Gloucester and Salem counties as well as marketing the Outer Coastal Plain American Viticultural Area (AVA) . We continue to grow in terms of visitors and spending in the region. Our latest metrics show that for 2018, our four county areas performed among the best in the state. Our visitation numbers neared 1 million people visiting the area; these visitors spent $3 billion in 2017 alone. Camden was up 13.9 percent compared to 2017, placing it as the No. 2 county in the state for visitation increase. Salem County was up 11.4 percent, placing No. 3. Gloucester was up 10.7 percent for the No. 4 spot and Burlington was up 8.1 percent, at No. 8. The state of New Jersey as a whole witnessed an overall visitation increase of 7.4 percent.

Our tourism spending metric encompasses hotels, lodging, dining, shopping and transportation. For 2018, we had an increase of more than $229 million spent.

What primary factors explain this performance?

Our location plays to our favor. We are centrally located between major markets, Philadelphia being the closest, with South Jersey within one mile away, while we’re within a couple hours drive of New York, Maryland, Delaware and Washington DC. There is a benefit of being within the area of the state that people traverse to get to these larger metro areas. New Jersey is famous for our beautiful shoreline; we occupy that middle area between city and shore, so that helps, as well. We provide something for every taste, from family fun, to wine and beverages, a historic Downtown, shopping, culinary experiences, agro-tourism, outdoor experiences and golf courses.

What challenges on a regional scale is your agency

facing in its efforts to promote South Jersey?

On the winery side of our efforts, we are working full steam ahead for South Jersey to obtain greater recognition. New Jersey has over 50 wineries, the majority of which are located in South Jersey. Our soil is perfect for growing grapes, comparable to the soil profile that you would see in Germany, France and Italy.

New Jersey wins national awards regularly, has been lauded in the top wine publications and performs well internationally in blind tastings. Our goal is to ensure that people who are enjoying South Jersey wine know they are consuming a high-quality, internationally rated product, not the fruit wine of decades past.

Changing that perspective has taken many years but we are finally there. www.capitalanalyticsassociates.com

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In 2019, Atlantic City’s casinos won about $3.3 billion from gamblers ( ) was $216 per night. A comparison on the trivago Hotel Price Index for November 2019 showed the average nightly hotel price in New York City was $229 versus an average $131 in Atlantic City.

In addition, South Jersey has two high-capacity convention centers: the 1.8-million-square-foot Atlantic City Convention Center and the 260,000-square-foot Wildwoods Convention Center. On Jan. 28, in fact, the Wildwoods Convention Center welcomed President Trump for one of his famous rallies, much to the delight of Wildwood business owners who enjoyed a rare, lucrative burst of off-season spending. Almost all motels

within walking distance sold out and all 500 rooms at the Days Inn & Suites directly across from the arena were sold within 24 hours of the event being announced.

Atlantic City One of the biggest points of attraction for South Jersey is undoubtedly the Las Vegas of the East Coast. Since the first casino was opened by Resorts International in May 1978, Atlantic City has flourished as a gaming town. It has nine hotel-casinos, ranging from basic economy to five-star luxury. Prolific casino chains own venues in Atlantic City, including MGM Resorts, which operates the flagship Borgata luxury resort, as well as Hard Rock, which opened its doors in 2018.

Casinos in Atlantic City have had a tough decade.

Around 2015, the industry suffered a quiet spell, and five casinos were forced to close their doors. But in 2019, Atlantic City’s casinos won almost $3.3 billion from gamblers, a 15% increase on the year and the first year since 2012 that the city’s casinos have surpassed the $3 billion mark. In addition, $300 million was earned in sports betting revenue, not including horse racing.

The city’s diversification into sports betting and internet gambling is one reason for its success,

TOURISM, ARTS & LEISURE OVERVIEW

Pennie Oliver Director of Sales & Marketing – Doubletree Suites by Hilton Hotel Mt. Laurel We have a very unique property that has allowed us to be one of the top five hotels in the area on Trip Advisor; we are very proud of this accomplishment and the personal attentive service we have come to be known for. We are also the only all-suite full service hotel in the area with beautiful outdoor event space that includes waterfalls, ponds, professionally landscaped gardens and outdoor seating. Our food and beverage team boast delicious freshly made farm to table foods and a reputation that proceeds us not only with our exquisite catering staff but a well known restaurant that stands on its own reputation REDZ, American fare.

industry experts said. Atlantic City’s casino industry has come a long way, but more work still needs to be done to draw crowds to the city, according to business leaders. The need to get rid of crime and blight from areas most tourists see is top of the list for Hard Rock President Joe Lupo. According to Resorts President Mark Giannantonio, making a noticeable reduction in crime could increase visitors to Atlantic City by 20-30%. The Casino Reinvestment Development Authority already contributes $3 million a year toward police funding.

It is not just diversification in betting that Atlantic City has its eye on. With casino executives in agreement that the industry is already saturated with the current offering, the city is looking for new ways to attract tourists, one of which is the American Dream retail and entertainment center, which opened in October after a two-decade delay. The 3-million-square-foot complex is now one of the largest shopping malls in North America and incorporates a theme park, ice rink, water park and over 450 retail stores. The mall also incorporates the Big SNOW American Dream, a 16-story, 180,000 square-foot indoor ski and snowboard park.

After the concept was developed in 1996, the reins were passed to several developers until Triple Five Group – the company behind Mall of America and West Edmonton Mall in Canada – put the finishing touches on the project last year. But the project has not been free of controversy. Although much of the funding for the initiative came from private developers, more than $1 billion in taxpayer money could be tied up in the project in the form of lucrative state tax incentives to local property tax deals and transportation upgrades.

Sports betting delivered $300 million in revenues in 2019 But some say it is worth the sacrifice since the project is expected to create 16,000 jobs in the area, along with an increase in tourism and revenue for New Jersey through sales tax. Additionally, the tax incentives cannot be redeemed by the developer until the mall starts making money. The Triple Five Group has also already made payments to surrounding municipalities for investment in police, courts and sewers. NJ Transit also plans to spend about $8 million a year to bring more transit options to the American Dream mall, both for consumers and employees.

The goal is for half of the mall customers to use public transport options, which is an ambitious target considering South Jersey’s well-known transit issues.

In New Jersey, over 70% of the population drives alone, while just over 11% use public transport. Three existing bus routes – the 85, 703 and 722 – will be expanded, while expansion of the Meadowlands train line is also in the works. The authorities want to increase the number of train cars on each route, which requires lengthening of platforms, with the goal of almost doubling the number of people transported to 18,000 www.capitalanalyticsassociates.com

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Chris Zhou General Manager – Best Western Plus Philadelphia-Pennsauken Hotel We saw Camden as a great opportunity to establish our hotel. We have an ideal location near the city of Philadelphia, Camden’s “eds and meds” corridor and BB&T Pavilion. We have a high overflow of guests coming to visit Center City, and we also see many visitors coming to the area for leisure, concerts and business travel.

We provide great convenience and rates to our guests. Our rooms are newly furnished with up-to-date amenities. We are located one mile from Cherry Hill, New Jersey, and four miles from Philadelphia, which makes our newly built hotel the ideal place to stay when visiting Liberty Bell, Independence Hall, Adventure Aquarium and Cooper River Park.

every 90 minutes on NFL game days. High parking costs have also been introduced – with event pricing reaching $30 – to discourage the use of cars.

Wildwoods With the American Dream mall now complete, South Jersey authorities are now setting their sights on another ambitious development project with the regeneration of the Wildwoods boardwalk, in Cape May County.

The county itself has a strong tourism connection, not only because of its beaches and boardwalks.

Over the years, the county has diversified its tourism offering to also include gourmet restaurants, fishing, historic and cultural sites, wineries, craft breweries and eco-tourism, turning the sector into a $6.6-billion industry that draws nearly 10 million visitors annually.

According to county officials, tourism is the backbone of Cape May’s economy, generating 26,572 jobs – nearly 43% of all employment.

This is one reason why authorities have so relentlessly pursued efforts to revitalize the Wildwoods boardwalk.

In February 2018, a proposal was introduced to allocate $56 million from the state budget to repair the boardwalk, to be appropriated annually in installments of $4 million from 2020-2034. But Gov. Murphy vetoed the measure in August 2019, creating additional tension with South Jersey that began to simmer after the governor froze $235 million intended for cancer treatment in the south of the state – but nowhere else.

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over 10 years. The funding would this time come from the Transportation Trust Fund through a new gas tax introduced by officials. But to be eligible for the funds, officials would have to introduce legislation that reclassifies the boardwalks as roadways.

The new boardwalk will be sorely needed if the Wildwoods continues to attract as many visitors as it does now. The Wildwoods refers to the cluster of small towns in southern New Jersey that was a popular summer destination in the 1950s, when hundreds of motels sprung up, mostly built by the Morey brothers.

The majority of the motels still exist, although not all are inhabited, projecting a kitschy 1950s time capsule into the present day that has proven a success in attracting tourists.

Cultural heritage New Jersey’s nickname is The Garden State, but few are really sure why. The name is attributed to early settler Abraham Browning. According to the official website of the state of New Jersey, Browning noted that the “Garden State is an immense barrel, filled with good things to eat and open at both ends, with Pennsylvanians grabbing from one end and new Yorkers from the other.” Despite protests, the name was cemented in 1954, even though at that point the state was rapidly industrializing and rife with suburban development.

Despite the industrialization, New Jersey’s background in agriculture still feeds into its culture today. Agriculture is New Jersey’s third-largest industry, behind pharmaceuticals and tourism,

TOURISM, ARTS & LEISURE OVERVIEW

generating $65 billion a year, and 17% of the state still plays host to nurseries, vineyards, orchards, horse farms, produce and livestock farms.

In fact, New Jersey’s 51 wineries generate between US$30-40 million of revenue annually and South Jersey is home to some gems, and no longer is wine tasting alone a competitive advantage for vineyards.

Willow Creek Farm and Winery in Cape May County is a sprawling 50-acre estate that offers vineyard tours, wine tastings and farm tapas, as well as private events. Atlantic County is home to Sharrott Winery, which offers a wine club, online shop and weekly live entertainment, including a trivia night. And the Auburn Road Vineyards in Salem County has The Enoteca – a European style vineyard wine bar.

And it is not only wine lovers coming to the state. Craft breweries are springing up all over South Jersey. The Eight and Sand Brewery, which set up shop in Woodbury, Gloucester County, in 2016, embraced the city’s railroad history when naming the store. “Eight and sand’’ is what rail workers would say as a train readied for departure, meaning “Have a speedy and uneventful trip.’’ And small brewery Zed’s Beer/Bado Beer in Marlton was awarded NJ Brewery of the Year this March. The brewery

Almost 10% of New Jersey’s jobs are supported by tourism.

TOURISM, ARTS & LEISURE OVERVIEW

In 2018 arts,entertainment, recreation, accommodation and food services contributed $19.4 billion to New Jersey’s GDP.

industry is so important to New Jersey that, after federal orders to close down all bars and restaurants amid the Coronavirus outbreak, several states including New Jersey relaxed laws to allow breweries and restaurants to offer an alcohol takeaway service.

Arts, attractions, events South Jersey is not just using its roots as a launchpad for cultural and arts activities, but is also coming up with new and innovative things to do for the state’s citizens and visitors. The BB&T Pavilion in Camden opened in 1995 as a waterfront amphitheater for music and performance events. Since then, South Jersey continues to attract new events, and one of the Smithsonian’s most anticipated museums – the Harriet Tubman museum – was set up in Cape May because of the activist’s roots there.

According to Art Pride’s Art Matters research, not-forprofit organizations accounted for almost 1,800 jobs and generated nearly $57 million in South Jersey in fiscal year 2017. In Camden, the Institute for Development of Education in the Arts (IDEA) Center believes in promotion of visual and performing arts as a way to create a greater sense of community. It has offered its programs at Rowan University, Camden County College and in the former Waterfront Technology Center (now the Governor James J. Florio Center for Public Service) and is moving into its own 1,800-square-foot space on 132 | Invest: South Jersey 2020 | TOURISM, ARTS & LEISURE

Market Street. The center hopes to provide programs for children, teens and young adults in the summer after completing renovations.

In Camden, there is a particular focus on the arts. The Rutgers-Camden Center for the Arts (RCAA) provides performances, exhibitions, education programs, and community projects for pre-K-12 children. RCCA includes the Stedman Gallery and the Walter K. Gordon Theater, a 650-seat theater. It hosts a range of community events, stage plays and choral performances. And the Cultural Heritage Commission at Camden College, founded in 1972, aims to further the arts by participating in events that bring together the whole community, as well as receiving and administering the New Jersey State Council on the Arts Local Arts Program and the New Jersey Historical Commission County History Partnership Program grants.

In neighboring Burlington County, a variety of events are available, including an Arts in the Park Festival, framing classes, coffee house nights, workshops, emerging artist exhibits, outdoor movie nights and poetry workshops. South Jersey is also home to a series of artisanal entrepreneurs in industries such as skilled crafters, jewelry makers, photographers, painters and glass workers. Local theater companies perform in venues like the Ritz in Oaklyn, the Broadway Theater in Pitman, or the Grand Theater.

South Jersey is also a champion of nature-based ( )

®

oundtable:

Hospitality matters The range of hotel offerings in South Jersey run the gamut from economy to five stars. Local leaders detail the characteristics and trends shaping the market.

Matthew Knol

General Manager Holiday Inn – Cherry Hill

How would you describe the strength of South Jersey’s hospitality sector in the aftermathof COVID-19?

The stay-at-home order from the governor, although necessary, has really hurt the hospitality sector. Most of the hotels in the region have seen a 75% or more loss of business. People are not traveling; groups and events are canceling even as far out as late summer early fall. I believe that we will see a number of restaurants, event halls and hotels go out of business. It may take years for the business to pick up to pre-COVID-19 levels.

How has the hospitality industry evolved in the last few years?

The hospitality industry is always evolving. Technology is a big demand from customers. We are seeing more technology-related trends in the hospitality industry, such as voice assistant, access to tools for streaming videos, wireless connections, and more places to plug in devices.

We have also seen some shifting of businesses moving into different areas within the South Jersey region and new businesses entering the market. After COVID-19, the hospitality industry will have to increase the levels of cleanliness and sanitization and increase protection from harm for their employees. New products, tools and practices will be put in place.

What type of visitor do you usually see?

We have a good combination of visitors. During the summer months, we welcome a lot of leisure visitors. We also receive business guests throughout the year. When we finish our renovation, we will focus on showcasing our new offerings and attracting all types of guests.

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TOURISM, ARTS & LEISURE ROUNDTABLE

Ehab Mehany

General Manager Crowne Plaza PhiladelphiaCherry Hill

What is the typical visitor profile for your hotel?

We are a group-based hotel. We have a healthy combination of types of visitors. Tourism and travel have done well. We also have a lot of association attendees and institutions coming to the region. Another big driver for us has been the Rowing Regatta. We receive numerous highschool and college sports teams attending the Rowing Regatta by Cooper River. We also receive a significant number of visitors related to the medical research and education sectors.

What are some trends you’re keeping an eye on for the region’s hospitality sector longer term?

There are about six hotels coming to the Philadelphia and South Jersey markets. We see that trend continuing.

Having a social media presence and feedback is also a big trend we are keeping an eye on. As a result, we are placing an emphasis on our digital and electronic marketing.

How would you describe the strength of South Jersey’s hospitality sector prior to COVID-19?

The sector was strong and growing. There was huge growth in the South Jersey and Philadelphia hospitality sectors. We saw a high traffic of people coming to conferences and for business, as new companies opened in the area.

Local corporations like the Campbell Soup Company are making numerous improvements. There is a great deal of potential for businesses in and for the hospitality industry.

I can see the growth reflected in our hotel’s performance.

I arrived here in 2014 and since then our business has grown about $6 million.

Eustace Mita

Chairman & Founder ICONA Resorts

How does ICONA Resorts differentiate itself from the competition in the region?

It all starts from the guest’s experience. From the moment our guests arrive, we endeavor to give them a five-star experience. It’s a medical fact that there are 18 inches between your head and your heart. It seems that the majority of companies lead with their heads when it comes to their businesses. To succeed in business, you must be data-driven, and you have to make a profit; however, the problems begin when you lead only with your head. The sole focus of those companies becomes data-driven to drive results for shareholder profits. At ICONA, we lead with our hearts, knowing the dollars will follow. To be part of Team ICONA, you need three things: You have to have a passion for people; you have to have a heart for hospitality; and No. 3, we view hospitality as a ministry and a vocation, and we want all of our guests to feel our warmth, welcome and love. For us, the most important feedback is the voice of the guest, and it’s music to our ears when they feel loved.

What is an industry trend specific to South Jersey that you are keeping a close eye on?

The trend that we are seeing in South Jersey is this; 25 years ago there were nearly twice as many hotel rooms as there are today. The reason is simple, hotels are being knocked down and condominiums are being built in their place. That creates a major challenge, because the No. 1 revenue generator for every town in Cape May County is tourism. What do you need in order to sustain tourism?

Hotel rooms! So what is interesting is that while there are fewer hotel rooms, the demand only continues to increase.

This makes for a challenging trend. www.capitalanalyticsassociates.com

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TOURISM, ARTS & LEISURE OVERVIEW

Nonprofits accounted for 1,800 jobs in South Jersey, according to Art Matters in FY17 ( ) tourism. In November, New Jersey officials bought 1,400 acres of land known as Holly Farm in Cumberland County from Atlantic City Electric and plans to combine it with the state’s Menantico Ponds Fish and Wildlife Management Area to create a protected area. The move is expected to support the economy through advancing nature-based tourism while improving and preserving the environment.

Holly Farm is home to a variety of rare plants and endangered or threatened animals, like Pine Barrens tree frogs and Cooper’s hawks, according to the DEP. Hotel performance Outside of casino hotels, South Jersey also houses a broad range of hotels and lodgings. New Jersey, located just a short distance from both Philadelphia and New York, has a thriving hotel industry, although Airbnb is a rising threat from its greater flexibility and lower rates offered for some travelers. Airbnb rooms can easily outstrip hotel rooms in most cities, and the hotel industry is making moves to limit its entry into the market.

In 2018, New York City began cracking down on Airbnb amid a housing crisis, which meant the logical next step for Airbnb was to turn to neighboring New Jersey to mitigate most of the damage. But then in 2019, the New York Hotel and Motel Trades Council, a union representing 40,000 hotel workers in New York City and North New Jersey, paid almost $1 million to the lobbying and political strategy firm that spearheaded the campaign against Airbnb in New York City and the battle moved into New Jersey.

In November, Jersey City residents voted overwhelmingly to preserve an ordinance that regulates short-term rentals, dealing another blow to Airbnb despite the $3 million it spent on campaigning against the ordinance. This means that, as of Jan. 1, 2021, short136 | Invest: South Jersey 2020 | TOURISM, ARTS & LEISURE

term rentals will be phased out of the city. Some are heavily critical of the decision, highlighting that Airbnb hosts in Jersey City made more than $16.7 million in summer 2019 alone. Although this is a greater topic of conversation in North Jersey rather than the south, there is potential impact to be felt from the decision. One outcome could be an influx of Airbnb properties into counties neighboring Jersey City, and in the long term the whole battle could move south.

Perhaps the most testing time for the hotel industry could be this summer – traditionally the most lucrative earning season for hotels globally. That changed with the announcement that hotels, bars and restaurants are to be closed in efforts to curtail the spread of COVID-19. In March, global hotel chain Marriott announced it was starting to furlough tens of thousands of employees as it ramped up hotel closings across the globe. Other hotel chains, such as MGM and Disney, are taking similar measures as the hotel industry tries to brace for impact.

Looking ahead New Jersey’s tourism promotion is severely underfunded, with the advertising and promotion of tourism receiving just 10% of a hotel occupancy tax, totaling around $9 million. Nevertheless, the state does the best with what it can, which explains why tourism, retail and hotels are such a huge driver of the state economy. in the first quarter of 2020, the state was rocked by the coronavirus outbreak, leaving many businesses within the tourism and arts industries wondering if they could be able to brave the storm.

But beyond COVID-19, the outbreak opens up a bigger conversation about the industry’s resilience and sustainability in the long term. This conversation also has to include environmental topics given South Jersey’s vulnerable location on the Atlantic Coast.

Over 2019, South Jersey was inundated with flooding and in one occurrence in November, a high tide caused flooding that led to road and bridge closures across parts of Cape May, Atlantic and Ocean counties.

And moderating access to beaches is also a question that has been raised across New Jersey to mitigate human impact on the environment. In July, there was a proposal to introduce “beach tags,” which would allow visitors to pay for access to beaches. The tags would be sold by municipalities at daily, weekly, and seasonal rates that range from $3 to $150. There is an argument that beaches should be free and open to all, but intense foot traffic on beaches can damage the natural environments.