CONSTRUCTION ECONOMY OVERVIEW
Marlene Asselta President Southern New Jersey Development Council (SNJDC)
How would you evaluate the strength of South Jersey’s economy? South Jersey’s economic engine is running strong. The state has partnered with private industry to create — from the ground up — a full-service wind port development and manufacturing zone. This investment will help New Jersey achieve its renewable energy goals while supporting a growing wind industry up-and-down the East Coast. Residential real estate prices in South Jersey are also among the highlights of the economy. In Glassboro, there was a huge redevelopment project that brought companies such as Lidl, Chase Bank, Chipotle and others. I was surprised to see that even at the height of the pandemic, the expansion did not slow down at all. retail accounts for 8%. In the short term, the situation may be a little tougher for the most COVID-vulnerable industries, but experts predict that strategic projects such as the expansion of the Atlantic City International Airport and the offshore $1.6 billion Ocean Wind Farm should help bolster recovery over the long term. Already, as the COVID vaccine continues to roll out at a rapid pace, the economic bounceback has begun. In fact, according to several sources, the only thing slowing down the recovery is the inability to hire labor quickly enough. This has been attributed to several factors, including continued struggles to find childcare, lingering COVID concerns and a higher income provided by unemployment benefits, as mentioned earlier. In South Jersey, two new companies, Action-Pak and ResinTech, have committed to new buildings in Camden, bringing 33 new jobs in the process. Target also recently leased almost 1 million square feet in Burlington County and Amazon leased almost 500,000 in Gloucester County, demonstrating optimism for an economic recovery. “The recovery is going to be as strong, if not stronger than other parts of the region, because we are already well positioned with our base, our eds and meds corridor. It will be just growth, growth, growth from here on out,” said Gloucester Chamber’s Garraty. ( )
How will the wind port project detonate economic development in the South Jersey region? Not since the 1970s and the introduction of the gaming industry to Atlantic City has South Jersey seen an economic driver of this magnitude. The bulk of the project work is based in Gloucester and Salem counties but eventually activities will spread to Atlantic and Cape May counties as well. Obviously, the development of a new industry requires a large-scale ramp-up in manufacturing capabilities. Everything from the monopoles and blades to turbines and engines will need to be manufactured, transported and installed resulting in economic benefits across the board. In addition, there will be indirect benefits, such as living accommodations, food and professional services, as well as real estate and equipment rentals. Everything is being done for the first time and on such a large scale that South Jersey will reap economic opportunities for years to come What is your outlook for South Jersey? I think we will continue to see a ramping-up of activity as the vaccination rate increases. The business community is ready to go, people have learned to do their job in new and innovative ways. By pivoting, we have refocused our employees to work smarter and more efficiently. www.capitalanalyticsassociates.com
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