NEW JERSEY CHAMBER OF COMMERCE
www.njchamber.com
a quarterly focus on the people and the issues that drive New Jersey business 3Q 2012
WHO WILL LIVE HERE NEXT YEAR? WILL HE BE GOOD FOR BUSINESS IN NEW JERSEY? THE CHAMBER IS BRINGING JAMES CARVILLE AND MARY MATALIN TO N.J. TO EXAMINE
THOSE QUESTIONS AS ELECTION DAY APPROACHES – AND YOU CAN BE THERE PAGE 14
Also Inside: Health Care Reform is the Law of the Land XX Chamber Members Weigh In XX What Next?
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table of contents
cover 14 The N.J. Chamber is bringing
James Carville and Mary Matalin to New Jersey on Sept. 27 to preview Obama vs. Romney.
features 04 Message from the President
It’s Political Season in Trenton, but the Times are Serious
Carville
Matalin
Just because they are married, doesn’t mean they agree – on anything.
22 News Makers
Children’s Specialized Hospital is Named the 2012 Hospital of the Year by NJBIZ
Focus on: news 06 Five Ways to Build Relationships
for Your Business
08 New Jersey’s Budget Relies too much on
Income Tax, Experts Say
environmental impact 09 What is Cloud Computing and
How Can It Save You Money?
10 New Jersey Utilities are Going Green labor/legal 12 Health Care Law:
18
Chamber Members Speak Out
13 Health Care Reform is Upheld: Now What? 16 Port Authority Chairman: ‘Culture Shake-Up’
Follows Years of Insulation
events 18 Cornerstone New Jersey Members Meet with
20
Gov. Christie’s Chief of Staff and Chief Counsel
20 500 Attend N.J. Chamber’s Open House 21 The N.J. Chamber Goes Golfing with
100 of its Closest Friends
21
president’s message
BY THOMAS A. BRACKEN
It’s ‘Political’ Season, but the Times are Serious The presidential election is this fall, and the New Jersey gubernatorial election a year later. To put it politely, “politics” in Trenton will ratchet up over the next 15 months. Sometimes that can detract from focusing on the real issues facing our state. But we have confidence that the Christie administration and the Legislature will continue to keep their “eye on the ball” – and not let politics interfere with the progress they have made to improve the business climate in New Jersey. Our team here at the Chamber of Commerce does a great job of cutting through partisan politics and working with the Christie administration and legislators on both sides of the aisle – reminding them that a lot of work remains to be done to push New Jersey towards a full economic recovery. Political gamesmanship could slow our recovery, and that is unacceptable at this crucial time in our economic cycle. The good news is Gov. Chris Christie and members of the Democrat-controlled Legislature have proven that they can work together to implement extraordinary change in Trenton, even while taking very partisan and very public positions on certain issues. Last year, they rose above the rhetoric to achieve something once considered undoable: Pension and health benefit reform that requires public employees to contribute more to the cost of their health care insurance and pensions. This year, state legislators from both sides of the aisle and the governor adopted something that was no less monumental - teacher tenure reform. It is a change to a century-old system that now makes it harder for teachers to gain tenure and easier for public schools to oust ineffective educators. Meanwhile, the two parties drew lines in the sand and could not compromise on cutting the income tax across the board. That was unfortunate. When the smoke cleared, however, we found much to like about the $31.4 billion 4 |
state budget. It preserves $347 million in business tax cuts initiated last year, it contains a surplus of more than $600 million and, like every budget in the Christie administration, it contains no tax increases. The budget remains the keystone in our shared quest to create a better economic climate in New Jersey. With that quest in mind, our lobbyists recently walked across West State Street and handed the governor and lawmakers a straightforward list of steps they can take to help New Jersey solve its systemic budget issues, and help attract new capital investment. The steps were recommended in a Chamber-commissioned study conducted by Capitol Matrix, a non-partisan California-based company with a lot of experience helping state governments manage budgets (see more on this study on page 8). First and foremost, Capitol Matrix recommended New Jersey reduce its dependence on the state income tax to fund state government, and alter the way the tax is structured to minimize its volatility. The income tax, which currently accounts for about a third of New Jersey’s revenues, is a volatile revenue source with ups and downs that make it difficult for state leaders to forecast revenue and create responsible budgets for the long term. That creates an economic volatility not conducive to a strong business climate. We have seen first-hand how a recession can rip a hole in our revenues and leave lawmakers with the unenviable choice of raising taxes or cutting services. It is a dilemma sure to repeat itself with every economic downturn, unless action is taken. Addressing the issue won’t be easy, but neither were pension, health care and tenure reform. These are serious times. We have several important elections to deal with. We also have positive economic momentum in place. New Jersey needs to continue on its course for success now, not after the elections. ❖
CHAMBER STAFF
Thomas A. Bracken President and CEO
Dana Egreczky Senior Vice President, Workforce Development
Michael Egenton Senior Vice President, Government Relations
Alfonso Romeo Director of Member Services
Ray Zardetto Director of Communications
Scott Goldstein Communications Manager and Enterprise Editor
Ric Principato Interactive Designer
New Jersey Chamber of Commerce Staff
216 West State Street Trenton, N.J. 08608 Phone: (609) 989-7888 www.njchamber.com
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For a complete list of discounts for N.J. Chamber member companies and their employees, go to www.njchamber.com/affinity.asp.
NJCC Board of Directors Officers Chairman
Jeffrey C. Scheininger President Flexline/U.S. Brass and Copper Corp. First Vice Chair
Ralph Izzo Chairman, President and CEO Public Service Enterprise Group
GROW. WISELY.
Second Vice Chair
Amy B. Mansue President and CEO Children’s Specialized Hospital
Everyone wants to grow. But grow how? In which
Treasurer
an advisor who really knows your business...and
Howard Cohen, CPA Chairman EisnerAmper LLP Secretary
Robert Podvey Director Podvey Meanor Immediate Past Chair
Dennis M. Bone
markets? At what cost? To grow wisely, you need
knows you. Who can deliver tailored solutions that create opportunities, maximize efficiency and build business. EisnerAmper is that advisor. We roll up our sleeves to get to the bottom of your toughest challenges so you get the advice and strategies you need to create sustainable growth. TM
Let’s get down to business. PUBLISHED BY
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ENTERPRISE 3Q 2012 | 5
focus on news
Five Ways to Build Business Relationships BY BRIAN ROBERTS
There is a decent chance that most of the investments your organization makes into sales and marketing are producing little to no return. Why? Because sales and marketing starts with building quality relationships. Conversations with prospects and customers should always focus on value first and fee last. Too often, the discussion is not about value, and your sales team loses control of the conversation. To put it another way, when the customer is able to see the wisdom of a relationship with you, fees are secondary. The following are techniques that can help you and your sales staff build relationships that result in a return on investment for the client and a profitable relationship for your company. Determine your clients’ objectives. People think based on logic, but they act based on emotion. Find out what the prospect needs and demonstrate how that need will be met by you.
Suggest alternative solutions to the client. Most folks know exactly what they want but very few know what they need; the difference between want and true need is your value.
“Every person in your organization holds an important role in client relationships.”
Focus on delivery. People don’t sign a contract with a courier service because of the size of a brochure or pitch, they purchase the service to make sure their products and correspondence get to the right place, at the right time, every time. Supply typical client results, testimonials, endorsements and references that are relevant to the prospect’s position. Two peers of a customer swearing by your product or service beat out the best brochure, promotion or flyer any day. Don’t teach your sales staff closing techniques, pitches, spiels or elevator pitches. Teach them questioning skills and relationship building techniques. A final word: Be aware that every person in your organization holds an important role in client relationships. Unwelcoming, rude, incompetent or unfriendly staff is a recipe for client dissatisfaction and will result in loss of potential business or worse: a damaged reputation. Offer people a cup of coffee or water, a cozy chair and a host of friendly faces. Business success starts with developing genuine, lasting relationships. ❖ Brian Roberts is president of Refinement Consulting Company, which specializes in improving individual and organizational performance. For more information visit www.RefinementCo.com or email him at BrianR@RefinementCo.com.
Hire a Hero – Job Fair More than ever, you need to hire the right people – people with the drive to succeed, the judgment to lead, and the experience to hit the ground running. No group fits that profile better than the men and women who have served in our armed forces. On Sep. 12, 2012, the Sun National Bank Center in Trenton will host“Hiring 6 | 6 |
Our Heroes” – a special job fair for these military veterans and their spouses. Register now to participate in “Hiring Our Heroes” and you will have access to hundreds of prospective employees all willing to bring the same discipline and “can-do” attitude to your business that they brought to their military service.
Veterans at “Hiring Our Heroes” will also receive career counseling services, career testing services, resume classes, job matching services and can attend a pre-employment workshop. The event is free for both employers and job seekers. Employers can register online at – http://HoH.GreatJob.net. ❖
Staying on top of business service. “Highest Customer Satisfaction With Business Electric Service in the Eastern U.S. Among Large Utilities” Ranked by J.D. Power and Associates Every day our customer service team works hard to deliver energy and provide solutions that keep New Jersey businesses running. This year we are investing $200 million to make infrastructure improvements that will help meet growing energy needs. We’re proud to serve more than one million residential and business customers and are committed to keeping the future bright with safe and reliable power.
www.jcp-l.com Jersey Central Power & Light Company received the highest numerical score among large utilities in the East region in the proprietary J.D. Power and Associates 2012 Electric Utility Business Customer Satisfaction StudySM. Study based on 24,385 total online interviews ranking the 12 largest providers in the East (CT, DC, DE, MA, MD, MA, NH, NJ, NY, PA, RI, VA, WV). Proprietary study results are based on experiences and perceptions of consumers surveyed April-June and September-December 2011. Your experiences may vary. Visit jdpower.com.
focus on news
New Jersey’s Budget Relies Too Much on Income Tax, Experts Say New Jersey’s state budget relies too much on income tax, a volatile revenue source with ups and downs that make it difficult for state leaders to forecast revenue and create responsible budgets for the long term, according to a recent study commissioned by the New Jersey Chamber of Commerce. So when the economy goes south – as it did during the Great Recession – a big hole is ripped into the state’s revenues, leaving governors and legislators with the draconian options of raising taxes, cutting services, borrowing or a combination of all three. The report, prepared this spring by Capitol Matrix Consulting, a financial consulting firm based in Sacramento, Calif., presents a variety of other options that would help New Jersey solve its systemic budget issues, and help attract new capital investment. “New Jersey’s governor and Legislature have teamed to make some great strides to improve the business climate in New Jersey,” said Thomas A. Bracken, president and CEO of the New Jersey Chamber of Commerce. “But there are systemic causes of the state’s fiscal difficulties that we need to address. We commissioned this report to gain insight on some of these problems and to share options we hope will be seen as beneficial and bipartisan.” Bracken added, “Some of the options suggested in the
Creating a More Stable Budget State budget reforms proposed in the New Jersey Chamber’s tax study:
report would not be supported by the Chamber, but we felt it was most helpful to offer an unvarnished look at everything the report says.” Causes of Volatile Revenue The gross income tax currently accounts for about 36 percent of New Jersey’s revenues, and its volatility can be attributed to the increased concentration of earnings among top earners, coupled with tax policies over the past two decades which increased the top income tax rates, according to the report. The top 10 percent of filers paid 68.2 percent of the total income tax in 2009, compared to 41 percent of the total income tax in 1991. The upward rate means the tax burden falls more heavily on a relatively small number of high-income taxpayers whose business and investment incomes have been subject to heavy fluctuations – in some cases due to the cyclical nature of business and in other cases because of challenging economic times. This in turn has made it extremely difficult for state leaders to forecast revenues and construct realistic budgets, resulting in abrupt changes in public services, structural budget deficits, debt increases and credit rating downgrades. While many states relying on income tax have seen some level of fluctuation, the report concludes the magnitude of New Jersey’s fluctuation is greater than most other states. ❖
NEW JERSEY STATE REVENUES (2010-11, Amounts in Billions)
XX Reduce the progressivity of the gross income tax rate so it is no longer heavily reliant on the upper income earners. XX Reduce the tax rate for capital gains – now taxed as ordinary income in New Jersey – to mirror the federal government’s policy. XX Rely more on alternative taxes or increase the base of the sales tax – more relatively stable sources of income. XX Allow income averaging on the gross income tax. XX Create and maintain larger budget reserves, especially during robust economic times to help cushion the effects of economic downturns. 8 |
Source: State Budget, Summary of Revenues, Expenditures and Fund Balance. 2012-2013. New Jersey Office of Management and Budget.
focus on environmental impact
What is Cloud Computing and How Can it Save You Money? BY MICHAEL MALONEY
Placing key data from your business in “the cloud” can save you a lot of money – and give you peace of mind – right here on Earth. But here’s the question many are asking these days: What is “the cloud”? “Cloud computing” is a new generation of computing that uses remote servers for storing your company’s digital data, hosting applications and data management. No matter the size of the business, cloud computing offers cost savings and, perhaps most importantly, the kind of security that helps you MICHAEL MALONEY sleep at night. Data back up is a popular use of cloud computing that everyone should consider. Whether you’ve been in business for six months or six years, you likely have amassed data that is critical to your operations.You need to have a backup plan in case something unforeseen happens to the
Before You Get on the Cloud Are you ready to move to a cloudbased model? Here are questions to consider before you go forward. Since your data is one of your most strategic assets, it’s best to choose your vendors wisely. Is the company credible? You’re placing your valuable data in the hands of another. Ask if they have security at all levels including physical, network, application, internal systems and operating systems. Investigate the company as you would
place you store your data, whether it’s your hard drive or on-site server. Traditionally, business owners placed important data on CDs to be stored offsite to guard against risk of theft, fire, flood or some other event. But business owners would forget and often those backups were left onsite. Today, business owners have options to securely back up their data in a “cloud” – servers hosted by trusted companies. One service, Mozy, allows users to upload photos, business documents, financial records and other digital files to a safe location on an automatic schedule. But backing-up is not the only service offered by the cloud. Consider this: The Yankee Group recently analyzed the cost of two email and messaging services for one year for a hypothetical business of 25 employees. In one case, which we could
any major business partner. You’re safe with companies like Microsoft, and there are others that are highly regarded. Are my people well trained? Before moving to the cloud or making any other major IT change, make sure you have a training and transition plan. Will I need help? Some businesses hire an expert to help them make the transition. You want to get it right if you are transferring your email from one system to the cloud. Consider bringing in someone who has done this before. Check their references.
call customary, the business relied on Microsoft Exchange and Outlook with servers located on premises. The other option allowed the business to use Microsoft Communication Services from Comcast Business Class – a cloud-based service. In the example where technology is located in-house, the business might spend $14,000 a year on software licensing, maintenance and cost of servers, backup and support. With the cloud computing option – costs were cut to $2,463. That’s an 80 percent reduction in cost. Cost savings also could be realized based on usage with cloud computing. Should your usage rise or fall, you pay only for what you need. The bottom line: Cloud computing can provide real business benefits. As you look to optimize your resources, this is an opportunity that is worth exploring. ❖ Michael Maloney is regional vice president of Business Services for Comcast.
Is my recovery plan strong enough? An automatic backup plan is great. Surely, you will sleep more securely knowing your data is safe. Yet a disaster recovery plan is more than about data. Your people will need the equipment and know-how to access the data during a disaster. Have I selected a telecommunications provider that will ensure my connection to the cloud is reliable and fast? Make sure you pick a provider that has a large, robust network that promises minimal connectivity disruptions, while also allowing for easy scalability in case your needs change. ENTERPRISE 3Q 2012 | 9
focus on environmental impact
New Jersey Utilities Are Going Green BY DIANA LASSETER DRAKE
During the hot summer months, when the demand for electric power is greatest, the New Jersey Board of Public Utilities has asked residents to take a coolheaded approach to energy efficiency. The agency, which regulates state utility companies, is offering a $1,000 gift card this summer to the winner of New Jersey’s first-ever Oldest Refrigerator Contest. To be eligible for the contest, the owner must unplug a workingorder fridge. By recycling, consumers can save money and energy refrigerators manufactured before 1990 use as much as three times more electricity than new appliances. But the green movement is not VINCE MAIONE just the responsibility of consumers. Energy efficiency – or “demand-side management,” as it is known in the industry – is one of the many ways that New Jersey utilities are helping the Garden State go green.
Elizabethtown Gas, a natural gas distributor, has its EnergySmart program for residential and commercial customers that offers furnace upgrade incentives and high-efficiency boiler incentives. “We’re encouraging the change-over to more efficient appliances, which not only are good for the environment, but will also save energy and costs for the customer,” notes Mary Patricia Keefe, vice president of regulatory affairs for Elizabethtown Gas in Berkeley Heights. Likewise, New Jersey Natural Gas in Wall filed with the BPU to continue its SaveGreen energy efficiency programs for customers through 2016. Meanwhile, Atlantic City Electric in Mays Landing launched the Green Power Connection program to en-
courage solar and wind power energy usage by its customers. “So far, 3,400 customers in our service area have gone solar and [signed up for] wind energy,” says Vince Maione, Atlantic City Electric’s regional president. “We are installing 500 to 1,000 customers a year, both residential and commercial.” Atlantic City Electric is also one of the many utilities focused on the efficiency and environmental impact of its employee vehicles. “We’re looking to go hybrid electric with our passenger vehicles, SUVs and trucks,” Maione said. And he doesn’t just talk the talk. Maione’s own work vehicle is an electric Chevrolet Volt – a car that gets the equivalent of 60 miles per gallon. ❖
PSEG’s Goal: Make Energy Green, Clean and Reliable Like our highway system, the infrastructure to move vast amounts of electricity is essential to New Jersey’s economic well-being. Newark-based Public Service Enterprise Group (PSEG) is investing billions in projects aimed at improving the reliability of New Jersey’s energy infrastructure. Here’s the bonus: The investments also are bolstering the environment and the economy. “We are pursuing a $6.7 billion investment program – one that is creating thousands of jobs,” said Ralph Izzo, PSEG’s chairman, president and CEO. “Utilities can be important al10 |
lies in addressing a range of pressing societal needs – for economic growth, good jobs, a healthy environment and thriving communities.” The New Jersey utility is investing $3.5 billion over three years in transmission projects that will help maintain and improve reliability and reduce costs for consumers. It also is spending $307 million to bring energy efficiency to customers who otherwise might not have been able to afford them. PSE&G is investing in gas and electric infrastructure improvements, and spending more than $700 million
in solar energy projects. The company is looking to do even more in this area, Izzo said, with a focus on solar projects on landfills and former industrial sites that can be brought back to life. Izzo pointed to the recent completion of $1.3 billion in advanced emissions controls at PSEG’s Mercer and Hudson coal-fueled stations. These projects made the plants two of the cleanest facilities of their type in America. “New clean power plants have been built in a cost-effective way,” Izzo said. “And existing plants improved as a result of competition in the power market.” ❖
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focus on labor/legal
Health Care Law: Chamber Members Speak Out BY DIANA LASSETER DRAKE
In a rare moment when the political world and much of the nation stood still, the U.S. Supreme Court on June 28 upheld the federal health care reform law – known as The Patient Protection and Affordable Care Act (ACA). N.J. Chamber members from around the state weigh in on how the big change will shake out here in the Garden State. Amy Mansue CEO Children’s Specialized Hospital, Mountainside “Thirty-two million Americans will be insured. For this to happen, there needs to be a dramatic change in the cost structure to pay for this. The Congress has decided that the benAMY MANSUE efits, or the services that are covered, will remain the same. That means all providers will be paid less for these services. Providers need to fundamentally examine how they are going to provide a higher quality of care for a lower payment. It will require a monumental change in everything we do today.” Jeff Scheininger President Flexline/U.S. Brass & Copper Corp., Linden “For companies that have worked to keep their health care costs low, it will raise them. For companies that have been generous in their health care offerings (to employees), as I have, the new taxation will become JEFF SCHEININGER punitive, and will require us to revisit our health insurance offerings.” Barry H. Ostrowsky CEO Barnabas Health, West Orange “The Patient Protection and Affordable Care Act is an opportunity to create innovative solutions to improve the quality, coordination and efficiency of care. As an example, the Barnabas Health Accountable Care OrganizaBARRY H. OSTROWSKY tion is designed to improve the value of health care by defining the elements of quality health care and helping providers work together to achieve this goal.
12 |
Gary S. Horan CEO Trinitas Regional Medical Center, Elizabeth “Many of the hallmarks of health care reform are those very things that Trinitas Regional Medical Center has worked for years to put into place. Our major priorities include quality and GARY S. HORAN patient safety, as well as a focus on cost control, a stronger alignment with physicians and an investment in information technology.” Robert Wise CEO Hunterdon Healthcare System, Flemington “The Hunterdon Healthcare System and its medical staff are well-positioned to respond to the insurancepayment mandates and the healthdelivery initiatives in the Affordable ROBERT WISE Care Act. The communities we serve will benefit from those preparations through lower premiums and higher quality outcomes of care.” Dennis Shah President Studio Printworks, Hoboken “I am a small business owner. Under the new rules, we will basically be given three options: drop coverage, maintain our current plan or go into the small business exchange. Because of my company’s size, we will not be penalized for DENNIS SHAH dropping coverage. But we don’t feel we have all the tools yet to evaluate which direction we’ll take. While this legislation is providing a great deal of access to insurance, it is doing little to contain the cost. We must provide incentives for competition and for lowering the total health care cost. There needs to be an industry-wide response to this from insurance providers, insurers and drug companies.” ❖
Health Care Reform is Upheld: Now What? BY SHERYLL POE
Now that the Supreme Court has decided the health care law is here to stay, businesses of all sizes are regrouping and trying to decide what to do next to keep their costs from soaring. A growing chorus of businesses says they’ll opt out of offering health insurance to their employees altogether and pay the governmentmandated, $2,000 per employee fine. A significant number of respondents to the U.S. Chamber of Commerce’s recent small business quarterly survey reported the likelihood of canceling insurance coverage for employees, as paying the penalty would be less expensive for their company. Similarly, a Gallup Poll found that “Americans say the law will make things worse rather than better for taxpayers, businesses, doctors, and those who currently have health insurance.” The Washington Post reports on a study that takes an in-depth and sobering look at the actual costs of dropping health insurance and the news for employees is not good:
“[If] an employer decides to drop insurance coverage altogether and let workers handle it themselves … that saves the company about $5,000 per employee. Workers, meanwhile, end up spending an average of $12,888 more on health care costs than they did when they had an employer plan. That figure, it’s worth noting, includes any tax subsidies that the law would provide to the employees.”
“Americans say the law will make things worse rather than better for taxpayers, businesses, doctors, and those who currently have health insurance.”
Thirteen thousand dollars is a lot of money for the average working family … money that could be spent on child care or buying a reliable car to get breadwinners to and from work, for example. That’s if the breadwinner still has a job. A CNN Money story showed that businesses are looking into whether they can cut back on the number of full-time employees or their hours to avoid hitting the 50-employee threshold that triggers the employer penalties for not providing insurance. As business owner Mary Miller, CEO of JANCOA Janitorial Services, Inc. recently told Congress, “because of the employer mandate, the health reform law will force many employers to stop offering the coverage that they currently offer and encourage employers to consider restructuring their businesses and moving their employees to part–time status in order to remain in business. This is not good for employees, it is not good for business and it surely won’t help our economy.” And for those looking for a job, well, the health care law is not their friend. Just 3 percent of small business owners in the U.S. Chamber’s survey report that the Supreme Court’s decision to uphold the law will make them more likely to hire new employees. Seventytwo percent said the health care law will make it harder for them to hire. ❖ Originally published July 2012. Reprinted by permission, freeenterprise. com, July 2012. Copyright© 2012, U.S. Chamber of Commerce. ENTERPRISE 3Q 2012 | 13
America’s Best-Known Political Analysts Are Coming to New Jersey THE N.J. CHAMBER IS BRINGING JAMES CARVILLE AND MARY MATALIN TO EDISON ON SEPT. 27 BY SCOTT GOLDSTEIN
Opinionated
Passionate
Liberal
Conservative
Democrat
Republican
Husband
Wife
Mary Matalin
James Carville Who will reside in the White House next year? President Obama or Governor Romney? The presidential election is just a couple of months away, and the health of the U.S. economy is a key issue, perhaps a determining factor in a race that is currently neck and neck. Before going to the polls, hear two of America’s best-known political commentators hold a lively, no-holds-barred discussion about the candidates and what the election will mean to the nation and the business community. And get plenty of laughs, too. James Carville and Mary Matalin will bring their happy marriage and outrageously divergent political points of views to the New Jersey Chamber of Commerce’s Forum 2012 at Pines Manor in Edison on Sept. 27. When this husband and wife get going – Carville the Democrat and Matalin the Republican – it is enlightening, sometimes shocking, and always entertaining. “I respect his politics,” Matalin said of her husband. “He’s not right, but not being right doesn’t make him the wrong man for me.” The authors of All’s Fair: Love, War and Running for President, Carville and Matalin are key players on the national political stage, each with more than 30 years of experience in politics. Individually, they have worked for Presidents 14 |
Ronald Reagan, George H. W. Bush, Bill Clinton and George W. Bush. The Issues With the election approaching, there’s no shortage of topics for them to cover. Business issues alone include the ramifications of financial troubles in Europe, unemployment, the expiration of the Bush tax cuts, and the ongoing implementation of health care reform. Voters “don’t think that there is a quick solution” to the sluggish economy, Carville recently told the Huffington Post. “The one thing Romney can’t say is, ‘You put me in there; we are going to create 300,000 jobs a month and incomes are going to go up by 6 percent a year.’ They will not believe it.”
It is critical for Obama, meanwhile, to convince Americans that his health care law will slow the rise in the costs of getting sick, Carville added. “The president needs to say, ‘I want to take the Affordable Care Act and really work on the ‘affordable’ part of it.’ This is an act to build on, not to sit on. This is not an accomplishment; this is a work in progress.” Then of course there are the politics. Romney’s camp has portrayed Obama as a “typical politician” who has done little to spur the economy and unemployment. Obama’s camp has attacked Romney for not revealing most of his tax returns. Obama has blamed the Republican for outsourcing and layoffs at companies owned by Bain Capital, the private equity firm at which Romney served as CEO. Matalin said outsourcing of jobs by some of the companies Bain Capital has held is a consequence of the global economy. The debate over Romney’s tax returns and offshore accounts, she added, is a “distraction.” “People don’t care where his bank accounts are. They care that they don’t have much left in their bank accounts,” she recently told ABC news.
State Chamber Members Prefer Romney Members of the New Jersey Chamber of Commerce expressed a strong preference for Mitt Romney (49.1 percent) over Barack Obama (36.2 percent) in the in the White House, according to the New Jersey
Chamber of Commerce’s Business Climate Survey for spring 2012. The survey of 112 members was conducted between April 19 and May 4. More than one out of three (37.9 percent) respondents said federal health care reform has had no impact on their business. The remaining Chamber members were
divided, with 38.8 percent saying it has or will hinder their business, and 23.3 percent saying it has or will help their business. Respondents said their greatest concern with regard to operating their business over the next 12 months is “consumer spending” – a concern that ranked fifth last year. ❖
“They don’t care about his taxes. They care about their own taxes … We could put two decades of tax returns out. Is that going to produce two jobs?” Home Life Carville and Matalin, who have been married for 10 years and have two children (one is Democrat, one is Republican, they have said), claim their domestic life is more tranquil than their political battles. “I would say the three ingredients to a successful marriage are surrender, capitulation and retreat,” Carville said on CNN. “If you got those three things, you’ve made it.” “Spoken like a true liberal; what a martyr,” Matlin responded. “Faith, family and good wine. That’s how we do it.” “We’re not a democracy,” she added. “We’re an enlightened mom-archy.” ❖ Scott Goldstein is communications manager at the New Jersey Chamber of Commerce.
See Them Live James Carville and Mary Matalin Discuss the Presidential Election
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New Jersey Chamber of Commerce’s Forum 2012 September 27 Pines Manor in Edison For tickets, go to njchamber.com or call Allison at (609) 989-7888 ext. 0. For sponsorship opportunities, call Amy Kolis with NJBIZ at (732) 2465730 or email akolis@njbiz.com.
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focus on labor/legal
Port Authority Chairman: ‘Culture Shake-up’ Follows Years of Insulation
Don Lynch, president of JCP&L; Jim Benton, executive director of the New Jersey Petroleum Council; Jim Simpson, New Jersey transportation commissioner, David Sampson, chairman of the Port Authority, Jack Hoffman, director of community relations and operations at Xerox, and Tom Bracken, president of the New Jersey Chamber of Commerce. PHOTOS BY: Ric Principato
The Port Authority of New York & New Jersey is improving efficiency and transparency in a “culture shake-up” that follows years of insulation at the agency, said David Samson, the chairman of the New York & New Jersey Port Authority, during a breakfast roundtable May 1 sponsored by the New Jersey Chamber of Commerce. Samson and state Transportation Commissioner Jim Simpson spoke about the state’s most pressing infrastructure problems and initiatives to about 100 New Jersey Chamber of Commerce members at the breakfast in Monroe. Samson said the Port Authority, under pressure to streamline by New Jersey Gov. Chris Christie and New York Gov. Andrew Cuomo, recently
required its employees to contribute to the cost of their health care insurance, eliminated employee sick-day payouts and longevity pay, stopped free E-ZPass for staff and retirees and has posted salaries of every employee on the Port Authority website. “Public employee compensation packages have been allowed to drift way out of proportion to public and private benchmarks,” Samson said.
State Transportation Commissioner Jim Simpson said the state is in the second year of the fiveyear, $8 billion transportation capital plan, a third of which is covered by the state budget.
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“We have begun to address that.” He added, “One of the problems with insulation has been that the Port Authority worked with blinders on while resources are not what they used to be.” The Port Authority recently approved toll increases to fund critical capital projects, such as raising the Bayonne Bridge to allow large cargo ships to reach the region’s ports; improve the Helix that motorists use to reach the Lincoln Tunnel in New Jersey; and replace key cables on the George Washington Bridge. “I don’t like to raise tolls, but we can’t levy taxes,” Samson said. Simpson said the state is spending $8 billion on infrastructure improvements, which is more than neighboring states are spending. Big projects include the widening of the New Jersey Turnpike to eliminate notorious congestion at Exit 8A. It also is critical to rehabilitate the Pulaski Skyway, Simpson added. According to Simpson, the state is in the second year of the five-year, $8 billion transportation capital plan, a third of which is covered by the state budget. Previous plans relied significantly more on borrowing. “The [current] plan gets us through the next three years,” he said. Thank you to Xerox for sponsoring the breakfast. ❖
David Samson, the chairman of the New York and New Jersey Port Authority, said “employee compensation packages have been allowed to drift.”
PAID ADVERTISMENT
Small to Midsized Businesses Get Big Solutions
PAID ADVERTISMENT | 17
PANASONIC
New Panasonic North American Headquarters in Newark, NJ scheduled to open in 2013.
Panasonic, long a household name in consumer electronics, has expanded its business solutions operations to serve the small and midsized business (SMB) market. The new division, the Panasonic System Communications Company of North America (PSCNA), provides total services and support to all of its business customers, regardless of their size. The SMB market – defined as under 500 employees – is diverse, ranging from retail and hospitality to health care, law and accounting practices. Instead of dealing with multiple-vendor channels, customers can look to Panasonic to provide access to a broader suite of products and solutions. It’s a single-source supplier of technology and equipment used to acquire and manage the information critical to running and improving business operations. Panasonic offers small businesses a wide range of computing, telephony, digital imaging, digital signage, tablets, headsets, displays, electronic and interactive white boards, point-of-sale systems, mobile technologies and videoconferencing solutions. Panasonic also offers financing, which frees up capital and cash flow for marketing and other investments focused on growing businesses. Putting vendor-supported solutions in place also allows owners to focus on their core business, rather than managing the technology around their business. Before the digital revolution, the saying went: Nobody ever got fired for buying IBM. Security and stability were built on the standardization of technologies. Then, a decade or two ago, technology shifted from mainframe to desktop. Today, it has shifted again, from desktop to mobile. Last year was the first year that PC sales took a back seat to mobile phone sales. Panasonic helps its customers make the connections between offices, employees and processes, and also makes the connections between the different hardware, software, applications and services that bring those
products to life. It also partners with other market leaders, such as Intel, on a broad range of applications, including networked video, mobile technology and office systems, and Qualcomm, for multimode technology for rugged mobile computers. Price-conscious SMBs can be averse to being tied to one supplier, but Panasonic takes a consultative sales approach, seeking to demonstrate that it can deliver best-of-breed products and broader solutions as needed. Panasonic has an established track record as a product leader in small business telephony and video surveillance, and numerous other best-in-category awards in the product arenas it serves. An example: market research firm T3i Group rates Panasonic as the market leader in telephony solutions for the 2-40 extensions market in North America for 2011. According to another research firm, MZA Ltd., Panasonic was the global market leader in corded PBX/IP PBX systems in the under 100 extension market for 2011. Today’s SMB customers are well-informed and experienced. On the upper age spectrum are individuals who have left a larger company – perhaps a large accounting or marketing firm – and want to make sure that the business solution they buy today can grow with them. On the younger age spectrum, Generation Y views technology as an extension of themselves. They gravitate toward best-of-breed technologies but also want products surrounded by prepackaged services. Being in business at all is a risk, and SMB customers must look at ways to mitigate the risk all around them. One way is to buy reliable technology with a reputation for quality, and to establish a supplier relationship that is streamlined enough to allow them to spend less time on managing technology and more time on their core business. Partnering with Panasonic can help SMBs optimize resources, delight their customers and grow their businesses. PAID ADVERTISMENT | 17
focus on events
Cornerstone New Jersey Members Meet with Gov. Christie’s Chief of Staff and Chief Counsel
Tom Bracken, president of the New Jersey Chamber of Commerce; Christie administration Chief of Staff Kevin O’Dowd; and Michael Egenton, senior vice president government relations at the N.J. Chamber.
Kevin O’Dowd; the governor’s Chief Counsel Charles McKenna; and Louis Goetting, the governor’s deputy chief of staff. PHOTOS BY: Scott Goldstein
There were only 10 days left for Gov. Chris Christie and the Legislature to iron out a hotly-contested new state budget, but that didn’t stop Christie’s top advisors, including Chief of Staff Kevin O’Dowd, Chief Counsel Charles McKenna and their top deputies, from meeting with New Jersey Chamber of Commerce Cornerstone members for exclusive breakfast powwow on June 20. These key advisors held a question-and-answer session and stayed for one-on-one conversations with 30 Cornerstone members to discuss crucial issues like the state budget and taxation. The event was held outdoors among the beautiful Gardens at Morven Museum and Garden in Princeton. The following 10 days were crucial in Trenton as the governor and the Legislature worked to produce a state budget, adopt tenure reform, fund transportation projects and reorganize higher education. It will be difficult for the Republican governor and the Democrat-controlled Legislature to work together over the following 18 months as the intense bipartisanism of election season heats up, warned O’Dowd, Christie’s chief of staff. “It will give us an opportunity to make progress in areas where the executive branch can work unilaterally, in 18 |
Kevin Luing, chairman of the board at Berkeley College, asks a question of Christie’s advisors.
Peter Cocoziello, president and CEO of Advance Realty Group, and Patricia Lunka, of J.P. Morgan Chase Bank.
Gov. Chris Christie’s Chief of Staff Kevin O’Dowd talks with Anthony LaRocco, administrative partner at the law firm K&L Gates.
The event was held outdoors among the gardens at Morven Museum and Garden in Princeton.
Cornerstone members network before the breakfast presentation.
areas that don’t involve legislative approval, like [rolling back] regulations that don’t work,” O’Dowd said. Also attending the event were Paul Matey, the governor’s deputy chief counsel; Louis Goetting, the governor’s deputy chief of staff; and Deborah Gramiccioni, the governor’s deputy chief of staff for policy. Cornerstone New Jersey members participate in special programs offering unprecedented access to the state’s political and business leaders and insights into the trends and issues impacting business. For more information on how your company can join the Cornerstone New Jersey program, call Al Romeo at (609) 989-7888 ext.147 or email him at aromeo@njchamber.com. ❖
Kevin O’Dowd (left) talks with Peter Mangin, president of Jersey City-based Garden State Development.
ENTERPRISE 3Q 2012 | 19
focus on events
500 Attend N.J. Chamber’s Open House The 15th Annual N.J. Chamber of Commerce Open House, the summer’s premier networking event, was a smash. We raised a huge tent in back of our Trenton headquarters and invited all our members. Attendees included legislators and state department heads. Overall, about 500 people packed under the tent for the June 14 event and feasted on food, live music, drink and, of course, good conversation. PHOTOS BY: Gary Gellman
Larry Krampf, CEO of Marke Communications; Jeff Scheininger, New Jersey Chamber chairman and president of Flexline/U.S. Brass & Copper Corp.; Don Tretola, Allies, Inc.; and Elise Tretola, Allies, Inc.
Jeff Scheininger, New Jersey Chamber chairman and president of Flexline/U.S. Brass & Copper Corp., and Walter Brasch, regional managing partner, ParenteBeard.
Danielle Alexander, executive assistant at MBI Gluckshaw; Scott Henderson, associate director of government relations, at Covanta Energy Corp.; Donald Lynch, president of Jersey Central Power & Light Co.; and Julie Holman, director of state government affairs, at Jersey Central Power & Light Co.
James Barrood, executive director of the Rothman Institute of Entrepreneurship at Fairleigh Dickenson University, and Steve Priolo, underwriting representative at NJTV.
Carol Paul, Nicole Klein and Russ Molloy of Meridian Health.
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Sen. Steven Oroho and New Jersey Chamber of Commerce President Tom Bracken
Sen. Tom Kean and Peter Hovnanian, principal of J.S. Hovnanian and Sons.
A Golf Tradition is Born
THE INAUGURAL NJ CHAMBER CHALLENGE IS A TRIUMPH
Niall Handley, director, Cara Resources; Harris Podvey; Bob Podvey, director, Podvey Meanor; Tom Bracken, president, New Jersey Chamber of Commerce.
Dave Gockel, Atlantic Wind Connection; Neil Wildonger, operations manager, New Jersey Chamber of Commerce; and Bob Mitchell, Atlantic Wind Connection.
The ping of driver meeting golf ball. The smell of fresh cut grass. The chirping of birds. A beautiful golf course and temps topping out at 71 degrees. That was the setting for the inaugural NJ Chamber Golf Challenge on May 7. One hundred golfers plied their skill on the 18 holes at Bedens Brook Club in Skillman in a fast-paced shotgun start that kept everybody on the move at a comfortable pace in a serene atmosphere. Awards were presented to the top performing foursomes but it was the networking that took place that made the day a great success. “This was a great way to get to know each other better and to network with people representing many diverse interests,” said Tom Bracken, president and CEO of the New Jersey Chamber of Commerce. “Based on the com-
Golf was followed by a networking luncheon.
PHOTOS BY: Suzanne Bellemore
Al Gaburo, senior executive, Princeton Public Affairs Group; Jim Benton, executive director, New Jersey Petroleum Council; Scott Ross, associate director, New Jersey Petroleum Council; Robert Marshall, senior vice president, Salmon Ventures.
ments I heard from all of the participants, we’ll do the tournament again next year.” In addition to the round of golf, each participant received a series of gifts including an elegant wood framed photo of his or her foursome as a keepsake. The Chamber Challenge trophy etched with the names of each year’s champions will remain on permanent display at the New Jersey Chamber of Commerce headquarters in Trenton. A special thank-you to Prudential, the golf outing’s prime sponsor. Additional thanks to platinum sponsors Ernst & Young and Capital One; and to Lowenstein Sandler for sponsoring the golf shirts. ❖
One hundred golfers plied their skills on the 18 holes at Bedens Brook Club in Skillman in a shotgun start that kept everybody on the move at a comfortable pace in a serene atmosphere.
ENTERPRISE 3Q 2012 | 21
news makers
CHILDREN’S SPECIALIZED HOSPITAL was named the 2012 Hospital of the Year by NJBIZ newspaper. “This year we will deliver specialized medical care to over 19,000 children with special needs at our 10 sites,” said Amy B. Mansue, president and CEO of Children’s Specialized Hospital. “This award is a true testament to the excellent care and compassion our staff delivers every day.” Dennis Bone, the immediate past chairman of the NEW JERSEY CHAMBER OF COMMERCE, retired on July 6 from Verizon New Jersey, where he served as president since 2000. Jim Gerace, who heads Verizon’s government and external affairs functions for the New York and Connecticut region, will assume responsibility for the company’s efforts in New Jersey, the company announced. NORTH HIGHLAND, a global consulting firm with offices in Princeton, led the category of large companies named to NJBIZ newspaper’s list of Best Places to Work. New Jersey Chamber member companies swept the top four spots on the list, including PATTON BOGGS, the Newark law firm (second place); WITHUMSMITH+BROWN, the Princeton accounting firm (third); and NOVO NORDISK, the health care company with offices in Princeton (fourth). THE PRUDENTIAL FOUNDATION recently awarded $1.25 million in new grants to YouthBuild Newark; Local Initiatives Support Corporation;
the Financial Clinic; and the Newark Trust for Education, which support Newark community development, public school education reform, youth development and financial empowerment services for the working poor. WELLS FARGO REGIONAL FOUNDATION presented a $700,000 grant to the Trenton Historic Development Collaborative, a group of more than 20 neighborhood organizations revitalizing Trenton communities. Joan D’Uva, a partner in the Litigation Services Group of EISNERAMPER, the accounting, tax and advisory firm, was the first woman elected president of the Princeton chapter of the American Society of Appraisers. TD BANK has pledged to donate $1 million toward the construction, rehabilitation and restoration of buildings in Camden, Elizabeth, Newark and Phillipsburg. Congratulations to NEW JERSEY CHAMBER members named among the state’s 50 fastest growing companies as identified by NJBIZ: IMMUNOMEDICS INC., Morris Plains (No. 3); AMCS CORP., Bedminster (19); Concord Engineering, Voorhees (24); EXPERTPLAN, East Windsor (25); ORION SYSTEMS INTEGRATORS, Monmouth Junction; (31); and DATAPIPE INC., Jersey City (46). ❖
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We help NeW Jersey groW more thaN Just its To find out how the NJEDA can connect you with the financing you need, call 609-858-6700 today or visit us online at businesslending.NJEDA.com. The New Jersey Economic Development Authority, the state’s “bank for business,” supports small- and medium-sized businesses with access to financing and incentives they need to reach their goals. The NJEDA has lending resources designed to grow your business in the Garden State. Let us help you succeed, just like the Smith family. © 2012 New Jersey Economic Development Authority.
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