Enterprise 2Q 2015

NJ Chamber's Annual Gala Will Feature "Buzz" Aldrin, Michio Kaku and Shirley Ann Jackson  PAGE 14

NEW JERSEY CHAMBER OF COMMERCE

www.njchamber.com

a quarterly focus on the people and the issues that drive New Jersey business 2Q 2015

JERSEY’S CITIES OF GOLD Millennials Crave Apartments Near Cities, and Banks are Picking Up the Pace of Lending for New Apartments in Places Like Hoboken, Jersey City and New Brunswick  Page 18

ALSO INSIDE: Meet the Chamber’s New Chairwoman A Guide to Choosing a CPA for your Business Coming Soon: The Great Gas Tax Debate

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table of contents cover

18 With millennials moving to

cities, banks are shelling out big loans to apartment builders

features 04 Message from the President Dear Legislators: Increasing Taxes

Will Not Increase Jobs; Just Ask Our Neighbors in Connecticut 06 A natural gas pipeline in South

Jersey: Why we support it

focus on news 08 After the November elections, the state

Legislature will get serious about a possible state gas tax increase to raise funds for transportation projects

10 Amy Mansue has become the second woman

and the first nonprofit executive to be named chair of the N.J. Chamber board of directors

focus on education 11 Standardized exams in public schools may be

controversial, but they lead to skilled workers

focus on accounting 16 A Guide to Choosing the Right

Accounting Firm for Your Business

12 12 Mark Twain, Jules Verne,

The Terminator and Capt. Kirk: Science fiction that inspired some of the world's top innovators will be featured at the N.J. Chamber's Innovation Gala

14 N.J. Chamber's Innovation Gala

Oct. 26 will feature "Buzz" Aldrin, Dr. Michio Kaku and Dr. Shirley Ann Jackson

22 News Makers

focus on events 20 Fourth Annual N.J. Chamber Challenge

Is a Success On and Off the Course

21 Chamber Members Mingle at

Spring Member Networking Breakfast

10

President’s Message

Dear Legislators: Increasing Taxes Will Not Increase Jobs; Just Ask Our Neighbors in Connecticut

BY THOMAS A. BRACKEN

Much has been spoken in Trenton by Democrats and Republicans about the state’s need to encourage job growth and entice companies to expand here and relocate here. When legislators talk about it, they speak seriously. They seem to understand the urgency.

Yet, in June, as the deadline to adopt a state budget loomed, our Democratic-controlled state Legislature proposed a 15 percent surcharge on the Corporation Business Tax, and an increase in the income tax rate for wealthy individuals, a tax rate which already is one of the highest in America, and is the tax that many small businesses pay.

Now, how exactly would this attract more companies and more jobs to New Jersey?

It wouldn’t. That’s obvious because the tax increase proposal came on the heels of a cautionary tale.

Connecticut, this spring, put together a budget that featured an increase in the top marginal income tax rate and a surcharge on corporate taxes. The impact was immediate. Several bastions of the Connecticut economy – General Electric, Aetna and others – immediately said that the measures would undermine the competitiveness of Connecticut and lead to an exodus of jobs and business from the state. In fact, executives from those companies said the measures had already pushed them to consider greener pastures in other states.

Where is the logic in us proposing the same increases in even greater increments than Connecticut?

To put this in perspective, New Jersey’s current top marginal income tax rate, 8.97 percent, is already 28 percent higher than Connecticut’s new top marginal rate.

And the rate that the New Jersey Legislature proposed, 10.75 percent, would have been 54 percent higher than Connecticut’s.

The additional folly here is that the New Jersey legislative leaders that proposed the tax hikes knew all along that Gov. Chris Christie would veto them, which he did.

But the sheer fact that these tax hikes were proposed is an arrow in the heart of our state’s competitive standing in the nation.

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It has a chilling effect. It gives business executives – the ones that are already here and the ones that may consider moving here – pause as to what our Legislature will propose next to make it more difficult to run a business in our state.

This haphazard governance has to stop.

We have talked before about the adopted and proposed state mandates placed on business in recent years – mandated paid sick leave, annual increases to the minimum wage embedded in the state constitution, mandated paid family leave and more. The cumulative impact is death by a thousand cuts.

It is critical that leaders from the business community and leaders in the Legislature – few of whom are business owners - sit down together and discuss how we can make our state more competitive, and how we can ensure that jobs stay here and grow here.

Without the dialogue, the future of our state is in jeopardy.

So we ask our legislators: Please hear us. Soon, we will be inviting you to a business summit in September in Atlantic City for a sit and talk. Please accept so we can have this needed dialogue.

Let’s make something happen that is positive.

Let’s talk. Let’s act. And let’s grow together. ◆

Thomas A. Bracken President and CEO New Jersey Chamber of Commerce

CHAMBER STAFF

Thomas A. Bracken President and CEO

Donna Custard President, New Jersey Chamber Foundation

Michael Egenton Senior Vice President, Government Relations

Lawrence Krompier Vice President, Member Services

Ray Zardetto Vice President, Communications

Scott Goldstein Communications Manager and Enterprise Editor

Ric Principato Creative Director/ Web Tech Manager

New Jersey Chamber of Commerce Staff

216 West State Street Trenton, N.J. 08608 Phone: (609) 989-7888 www.njchamber.com

NJCC Board of Directors Officers

N.J. Chamber Events

July 22 Free Summer Networking Breakfast Meet the Chamber team, network with more than 100 of your fellow Chamber members, and maybe take home a great door prize.

8:30 a.m. to 11:30 a.m. Business School at Montclair State University

Chair

Amy B. Mansue President & CEO Children's Specialized Hospital First Vice Chair

Robert Doherty New Jersey State President Bank of America Second Vice Chair

Linda Bowden Regional President New Jersey PNC Bank Treasurer

Howard Cohen Executive Advisor – NJ Wholesale Commercial Lending Group Wells Fargo Secretary

Robert Podvey Director Podvey Meanor Immediate Past Chair

Ralph Izzo Chairman and CEO Public Service Enterprise Group, Inc PUBLISHED BY

280 Summer Street, Boston, MA 02210 Phone: 617-428-5100 Fax: 617-428-5118 www.thewarrengroup.com ©2015 The Warren Group Inc. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: The Warren Group, 280 Summer Street, Boston, MA 02210. Call 800-356-8805.

October 14 The N.J. Chamber Business and Legislative Awards The N.J. Chamber will recognize outstanding state legislators and proactive business leaders for the work they do to ensure New Jersey is business friendly, economically successful and a great place to live and work.

New Jersey Center of Excellence, Bridgewater October 26 2015 N.J. Chamber Innovation Gala: iGALA 2.0 The New Jersey Chamber of Commerce is recognizing the state’s legacy of innovation with a festive gala that will feature fun, surprises and a few revelations.

5 p.m. to 8:30 p.m. The Palace at Somerset Park, Somerset For more information, go to www.njchamber.com

ENTERPRISE 2Q 2015 | 5

A Natural Gas Pipeline in South Jersey Would Generate Clean Energy, Lower Bills and Create Jobs

BY MICHAEL EGENTON

The New Jersey Chamber of Commerce is supporting a major project in South Jersey that will provide the B.L. England electric generation plant in Beesley’s Point with the natural gas supply it needs to stop burning coal, and pave the way for it to become one of the cleanest power plants in New Jersey. The project also will provide a critical back-up route for natural gas to more than 142,000 customers in Cape May and Atlantic counties who now depend on a single pipeline.

We implore the Pinelands Commission to approve this project.

The plan, by RC Cape May Holdings, which owns the B.L. England electric generation plant, calls for building a 22-mile, 24-inch, high-pressure natural gas pipeline from just outside Millville in Maurice River Township, Cumberland County, to Beesley’s Point in Upper Township, Cape May County.

Once constructed, the new pipeline will provide the area with safe and reliable energy, make homeowners in the area less vulnerable to a service outage, and reduce air pollution as designed in the state’s 2011 Energy Master Plan, and as required in air pollution regulations.

This is important because B.L. England is the only significant electricity generator in southeastern New Jersey, making it crucial in providing electric reliability for citizens and business owners. This area’s already high demand for electricity will be exacerbated by the 2019 retirement of the Oyster Creek Nuclear Generating Station.

Under the plan, the plant will no longer operate on coal and oil. Instead, the project calls for repowering one of the plant’s units with a state-of-the-art, Michael Egenton combined-cycle natural gas turbine, and repowering another unit with natural gas. This will place it among the cleanest power plants in New Jersey.

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The emission rate of carbon dioxide will be reduced by 60 percent, and the use of water from Great Egg Harbor Bay would be reduced by 43 percent. This conversion will nearly eliminate emissions of smog-causing nitrogen oxides as well as sulfur dioxide, which causes acid rain and haze.

Under the plan, the plant will no longer operate on coal and oil. Instead, the project calls for repowering one of the plant’s units with a state-of-the-art, combined-cycle natural gas turbine, and repowering another unit with natural gas.

Converting this power plant to a clean-burning natural gas facility creates a win on many fronts. It will improve air quality and public health, it will reduce costs for the overburdened taxpayer, it will ensure energy reliability for the southern region of New Jersey, and it will provide a boost to the economy and job creation, all the while avoiding damage to our environment.

I serve on the New Jersey Clean Air Council. I was appointed by Gov. Whitman and was reappointed by Govs. DiFrancesco, Codey, Corzine and most recently Gov. Christie. I have sat in as the Clean Air Council has discussed this project and its environmental benefits for three years. Further, the Department of Environmental Protection supported it at a recent Pinelands Commission meeting.

We approve it. And so should the Pinelands Commission. ◆ Michael Egenton is senior vice president of government relations at the New Jersey Chamber of Commerce.

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focus on news

Senate Budget Chief Paul Sarlo: There Will Be No State Gas Tax Hike Before the November Elections

"To attract business, the state needs a strong transportation network," said Sen. Paul Sarlo, chair of the Senate Budget and Appropriations Committee.

Sen. Paul Sarlo (second from the right), a Democrat, said he and Sen. Steven Oroho (left), a Republican, are cosponsoring a bill that would raise the gas tax while lowering the estate tax.

Sen. Steven Oroho said that executives considering moving their companies to New Jersey or expanding here need to sense a strong infrastructure and a receptive tax environment.

"Capital is like water," said Sen. Steven Oroho. "It follows the path of least resistance to success."

Sen. Paul Sarlo, chair of the Senate Budget and Appropriations Committee, said there is little chance of a state gas tax increase being adopted before the November elections. “With all 80 (Assembly) seats up for reelection, nobody wants to talk about a gas tax,” Sarlo told New Jersey Chamber of Commerce members during a breakfast roundtable in Monroe.

Sarlo, a Democrat, said he and Sen. Steven Oroho, a Republican who also participated in the breakfast event on April 28, are co-sponsoring a bill that would raise the gas tax while lowering the estate tax. Sarlo said the bill can be tackled during the lame duck session – the period in November and December between the elections and the start of the new legislative session.

“I don’t think people are worried about raising the gas tax,” Sarlo said. “They are worried about politicians spending it on other things. It needs to be dedicated to transportation projects. And nothing else.”

Sarlo did caution that Gov. Chris Christie would be hesitant to sign legislation raising the gas tax if he is running 8 |

for president. Neither legislator addressed the prospect of the Legislature overriding such a veto.

The state’s Transportation Trust Fund (TTF), which pays for projects to maintain the state’s highways, bridges and mass transportation, has been a hot topic in Trenton. It is on life support, relying on borrowed money while lawmakers on both sides of the aisle have said it is imperative to replenish the fund.

“The (Transportation Trust) Fund is broke,” Sarlo said, and it’s not helping business attraction and retention.

“To attract business, the state needs a strong transportation network,” he added. “We need to get our heads out of the sand. I don’t know any other way than finding a dedicated revenue source.”

Oroho referred to a recently introduced package of bills that the Legislature should consider to help New Jersey get on a path to economic growth.

He agreed with Sarlo that executives considering moving their companies to New Jersey or expanding here need to sense a strong infrastructure and a receptive tax environment. If they don’t, they will simply go elsewhere. “Capital is like water,” Oroho said. “It follows the path of least resistance to success.”

A special thank-you to UPS for sponsoring the event. ◆

Assemblyman Burzichelli:

Gas Tax Should Rise Annually with Inflation

When lawmakers consider raising the state gas tax later this year, the legislation should include automatic annual increases to the tax that reflect inflation, Democratic Assemblyman John Burzichelli told a group of New Jersey Chamber of Commerce members at a roundtable breakfast in East Windsor on May 27.

The breakfast, which also featured Republican Assemblyman Anthony M. Bucco, was designed to discuss the state budget and the New Jersey economy.

“If a gas tax is going to move, it has to move with (annual) cost of living adjustments so this (issue) doesn’t come to us again,” Burzichelli said. He noted that New Jersey’s legislative body has for years disregarded the need for a gas tax increase. “We have to do something and I’m prepared to support whatever keeps our roads and bridges going,” Burzichelli said.

Bucco agreed that the Transportation Trust Fund needs to be replenished but he didn’t commit to annual increases to the gas tax.

Bucco stressed that New Jersey must emerge from its fiscal problems – which includes a massive pension deficit – by growing the economy to increase state revenue. “The economy is what is going to bring New Jersey out of the condition it is in,” Bucco said.

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ENTERPRISE 2Q 2015 | 9

focus on news

Mansue Named Chair of N.J. Chamber FIRST NONPROFIT EXECUTIVE TO LEAD THE CHAMBER BOARD, SECOND WOMAN CHAIR IN ORGANIZATION’S HISTORY

Amy Mansue, president and CEO of Children’s Specialized Hospital, has been selected as chair of the New Jersey Chamber of Commerce board of directors.

The move was confirmed by the board on June 10. Mansue will serve a two-year term.

Mansue has been serving as the Chamber’s first vice chair for the past two years and has been a member of the board of directors since 2004.

“I expect we will be aggressive as we push an agenda to make New Jersey’s economic climate one that is conducive to expanding companies and growing jobs,” Mansue said. “There is much to do. We must ensure New Jersey’s tax structure is competitive.

Our schools are second to none, our power and transportation infrastructure is fully modernized, health care is thoughtfully addressed and innovation is cultivated in large and small companies alike.”

Mansue succeeds Ralph Izzo, chairman and CEO of Public Service Enterprise Group Inc. (PSEG).

Mansue is the first executive of a nonprofit to serve as chair of the New Jersey Chamber. “Nonprofits and the private sector share a desire to make New Jersey a great state to work and live,” she said.

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She also is the second woman to serve as chair of the Chamber in its 104-year history. The first was Anne Evans Estabrook, of Elberon Development Co., who served as chairwoman from 2003 to 2005.

Mansue, named president and CEO of Children’s Specialized Hospital in 2003, leads a team of clinicians and therapists providing care for children at the hospital’s 13 sites throughout New Jersey. Mansue also brings government experience. She served as deputy chief of staff to Gov. James McGreevey, as a staffer on health care policy and as deputy commissioner of the state Department of Human Services under Gov. James Florio.

NJBIZ newspaper named Mansue one of the top 50 most powerful people in health care, one of the 100 most powerful people in New Jersey business and one of the top 50 best women in business. Mansue was inducted into the New Jersey Business Hall of Fame in 2014, and the Trenton YWCA New Jersey Women’s Hall of Fame in 2013.

She was honored by Modern Healthcare as one of the top 40 executives

under age 40. And she has been recognized by nonprofit organizations for her distinguished work on health care reform, as well as for helping to improve the lives of people with disabilities.

Under Mansue’s leadership, Children’s Specialized Hospital was named the 2012 Hospital of the Year

by NJBIZ. It was named among the Top Hospitals by the Leapfrog Group in 2014, and it is the only pediatric rehabilitation system to be named to New York Magazine’s Top Hospital list.

“We are extremely fortunate to have Amy’s leadership at this crucial time,” said Thomas A. Bracken, president and CEO of the Chamber. “To revitalize New Jersey’s economy, we need an active and productive partnership between the public and private sectors.

Amy’s experience managing a large organization such as Children’s Specialized Hospital coupled with years of government service will serve the N.J. Chamber and New Jersey well.”

Bracken also thanked Izzo for his significant contributions to the Chamber and his advocacy.

“We have been fortunate to have an advocate like Ralph,” Bracken said.

“His standing and stature in the business community and the communityat-large has helped lift the profile of the New Jersey Chamber of Commerce.”

In addition to Mansue, the board confirmed the slate of officers for the 2015-2016 term. First Vice Chair is Robert Doherty, New Jersey State president, Bank of America. Second Vice Chair is Linda Bowden, regional president, New Jersey, PNC Bank.

Treasurer is Howard Cohen, executive advisor for commercial banking, Wells Fargo. Secretary is Robert Podvey, director of Podvey Meanor. Immediate Past Chair and Nominating Committee Chairman is Ralph Izzo, chairman and CEO of PSEG. ◆

focus on education

Standardized Exams Lead to Better Workforce

BY DANA EGRECZKY AND MELANIE WILLOUGHBY We tend to think that millennials, who currently make up the youngest generation in the workforce, are highly advanced because they grew up immersed in transformative technology.

This is not necessarily the case.

According to a new report by the Organization for Economic Cooperation and Development (OECD), millennials in the U.S. rank near the bottom of all workers around the world in skills employers want most: literacy, practical math and even a category called “problem-solving in technology-rich environments.” The report is based on a test designed to measure the job skills of adults, aged 16 to 65, in 23 countries.

New Jersey prides itself on its outstanding schools, but no graduate is safe from global competition.

The OECD also reports that the top American millennials – those in the 90th percentile – still performed worse than their counterparts in 15 countries. This shouldn’t come as a surprise. According to the New Jersey Secretary of Higher Education, 47 percent of first-year, full-time public college and university students in New Jersey have to retake high school math or English classes.

It’s time to face the truth: our children are missing out on a considerable advantage because we have become complacent with their education. We have to know they are receiving the proper knowledge that will equip them with the skills to succeed in college and in the workforce. That begins with stronger academic standards. In 2010, New Jersey recognized the need to raise expectations for all students and adopted new math and language arts standards. Now it’s time to gauge how students are performing and whether they are progressing at an appropriate level.

The PARCC tests that New Jersey students took this year measure all the skills employers seek – literacy, math application and problemsolving. The test results provide detailed information that helps parents and teachers work with students to improve their performance and better prepare them for the later stages of their academic and professional careers.

The New Jersey Chamber of Commerce and the New Jersey Business & Industry Association support building a better workforce in New Jersey, which is why both organizations joined the We Raise NJ coalition and pledged to support the transition to better quality standardized tests for our teachers and students. The coalition’s Best Foot Forward initiative works to provide parents with resources and accurate information about the PARCC tests.

This OECD report really caught our attention because it validates what our employer community has been telling us for at least the last decade: students are underprepared for the workplace, whether they enter with a high school diploma or a college degree. To us, this is an economic development issue just as much as it is an education reform issue. We will fix what needs to be fixed, but we must keep moving forward – not backward.

Our children, our economy and the future we create demand nothing less. ◆ Dana Egreczky recently served as senior vice president of workforce development at the New Jersey Chamber of Commerce and president and CEO of the New Jersey Chamber of Commerce Foundation. Melanie Willoughby is senior vice president of the New Jersey Business & Industry Association.

Mark Grier, Prudential Financial vice chairman and NJ Chamber board member, spoke at an event on April 20, 2015.

Prudential Financial Executive Supports PARCC Exams: ‘We Must Be Clear About Standards and Expectations’ Mark B. Grier, vice chairman with Prudential Financial and New Jersey Chamber of Commerce board member, voiced support of Common Core State Standards and the PARCC Exams that were implemented in the state’s schools this year.

“We love to keep score,” Grier said. “In Little League baseball, we discuss win-loss records and batting averages. With cars, we discuss miles per gallon and how many miles a tire lasts. With social media, we count how many times a message is retweeted. Keeping score is what we do.

“How about being able to say every third grader in my school can read?” he added.

“Or every third-grader in my district can read? Or every third-grader in the state can read? If we can tap in to the compulsion to keep score, we would be off to the races.”

Grier’s statements came during a forum on April 20 sponsored by the We Raise NJ, a coalition of wide-ranging groups including the New Jersey Chamber of Commerce, New Jersey Business & Industry Association, New Jersey School Boards Association, the New Jersey Department of Education and New Jersey Council of Community Colleges.

“We [must] be clear about standards, clear about expectations,” Grier said “This is how we tell students what they need to do to achieve what’s next. The point of assessments is to support development. It’s not a ‘gotcha.’”

ENTERPRISE 2Q 2015 | 11

New Jersey Chamber's Innovation Gala: World's Top Innovations

Mark Twain, Jules Verne, The Terminator and Capt. James T. Kirk: The Science Fiction that Inspired the World’s Top Innovations will be Featured at the New Jersey Chamber’s Innovation Gala on Oct. 26

By Ray Zardetto

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Is Mark Twain responsible for the World Wide Web, since he uncannily described the Internet in a story he wrote in 1898? Did Jules Verne inspire the submarine when he wrote Twenty Thousand Leagues Under the Sea, published in 1870? Was Captain James T. Kirk, of Star Trek in the 1960s, one of the first users of a smartphone?

Celebrating the role of science fiction in inspiring some of the world’s real, groundbreaking innovations will be the theme of the New Jersey Chamber of Commerce’s second annual Innovation Gala (iGALA) on Oct. 26, 2015. Honored guests will include Apollo 11 Astronaut Buzz Aldrin; physicist and television personality Michio Kaku; and physicist Shirley Ann Jackson, president of Rensselaer Polytechnic Institute and the first African-American woman to earn a doctorate at MIT (see sidebar).

“The best of science fiction stimulates a curiosity and an interest in a topic,” Dr. Neil deGrasse Tyson, one of the world’s prominent astrophysicists and director of the Hayden Planetarium in New York City, once said.

Dr. James Kakalios, professor of physics at the University of Minnesota, said, “Both scientific research and sci-fi begin with the same two words: ‘what if …’”

So let’s look at the science fiction writers who have predicted technological breakthroughs, and have inspired innovators to convert science fiction into science fact.

Mark Twain and the World Wide Web While Mark Twain is known as a humorist, he occasionally dabbled in science fiction, and his story “From the London Times in 1904” was the first to describe a global network of anytime, anywhere communications. Essentially, Twain described someone surfing the Internet in the story he wrote in 1898, a century before the World Wide Web’s birth.

In the piece, Lt. Clayton of the United States Army – who sits in prison, accused of murder – is networked to the rest of the world from his cell, and passes the time “calling one corner of the globe or another, looking upon its strange sights, and speaking with its people and realizing by grace of this marvelous instrument he was almost as free as the birds in the air.”

War of the Worlds H.G. Wells was a prolific science fiction writer, and his 1898 War of the Worlds saga about a race of Martians invading an unprepared earth inspired a real Worcester, Mass., teenager

to dream about how to lift humans to other worlds.

That teenager was Robert Goddard, who spent the early years of the 20th century advocating for space flight to a skeptical nation. Goddard later created the physics of rocketry, built the first liquid-fueled rocket in 1926 and built the multi-stage rockets that became a NASA mainstay.

Goddard, in essence, opened the door to space travel.

Wells’ Martians also inspired another key 20th century invention – laser power.

The Red Planet invaders devastated Earth’s armies by using a weapon that concentrated energy into a single beam called a “heat ray,” described in the book as an “invisible sword of fire that destroyed all it touched.”

Fifty years later, Earthlings caught up to their fictional Martian adversaries by learning to energize atoms in a way that released the formidable power of light in a single, concentrated beam. That process became known as “Light Amplification by Stimulated Emission of Radiation – or LASER. Today, laser power does everything from scan barcodes to carry cable TV signals to make surgical repairs.

20,000 Leagues Under The Sea Jules Verne was a contemporary of Wells, and one of his most popular works told the tale of the enigmatic Captain Nemo and his adventures “20,000 Leagues Under the Sea.”Verne’s detailed description of the Nautilus submarine and the exquisite illustrations in the book made a deep impression on New Jersey native Simon Lake.

The aptly named innovator earned more than 200 patents for submarine design and technology, and when Lake built his first successful prototype, he received a congratulatory telegram from Verne himself.

Recognizing his profound contributions, the U.S. Navy commissioned the Simon Lake class of submarine tender boats from 1964 through 1999.

2001: A Space Odyssey One of the most impressive visionary authors was Arthur C. Clarke, author of the classic 2001: A Space Odyssey. In 1945, when rocketry was still more science fiction than fact, Clarke penned a piece for Wireless World in which he described an “artificial satellite at the continued on page 14 ENTERPRISE 2Q 2015 | 13

New Jersey Chamber's Innovation Gala: World's Top Innovations continued from page 13 correct distance from the earth which could give television and microwave coverage to the whole planet.”

Today, hundreds of artificial satellites orbit the earth providing everything from television signals to GPS service to photos of the outermost reaches of the cosmos.

For his prescience and advocacy regarding satellites, the International Astronomical Union honored Clarke by naming the geostationary band of orbit 22,000 miles above the surface of the Earth the Clarke Orbit.

The Terminator Thanks to the visions of more modern sci-fi stories such as “Blade Runner,”“Total Recall” and “The Terminator,” we are moving closer to a world of driverless cars, Google Glass virtual reality and one of the most popular staples of sci-fi, the robot.

Robots have been portrayed as coldly calculating (HAL in 2001: A Space Odyssey), servile (Robbie the Robot in “Forbidden Planet”), cute (R2-D2), sophisticated (Data in the Star Trek franchise), wisecracking (Rosie the Robot on “The Jetsons”), and relentless (The Terminator).

Experts predict within the next 10 years, commercially available robots will be commonplace. They will relieve office workers of mundane and repetitive work, or become domestic servants. In fact, Bossa Nova Robotics of Pittsburgh has proclaimed it will model its household servant robot after Rosie, the Jetsons’ wisecracking automated maid.

Star Trek The Star Trek franchise may have inspired more would-be scientists and innovators than any other.

Martin Cooper, the Motorola engineer who invented the commercial cell phone, was intrigued by the communicators used by the U.S.S. Enterprise crew as well as Dick Tracy’s two-way wrist radio. The inventors of smartphones and tablets cited the tricorders and medical instruments used on the Enterprise as their inspirations.

Even today, a generation of scientists are working to make real two of Star Trek’s most impressive technologies – faster-than-light travel (aka warp drive) and a transporter that can move matter from one point to another.

If these two innovations come to pass, they will do the same thing that generation of innovations did before them – create thousands of new companies and millions of new jobs.

Even Dr. Michio Kaku, the well-known physicist who will be the featured speaker at the N.J. Chamber’s Innovation Gala, credited Alex Raymond’s Flash Gordon as an inspiration.

“I watched Flash Gordon as a kid and realized that the real hero of the story wasn’t the handsome Flash; it was the brilliant scientist Dr. Zarkov,” Kaku said. “He invented the rocket ship, the invisibility shield and the power source for the city in the sky.

Without the scientist there is no future.” ◆ Ray Zardetto is vice president for communications at the New Jersey Chamber of Commerce.

Gala Will Feature ‘Buzz’ Aldrin, Michio Kaku and Shirley Ann Jackson At the Innovation Gala on Oct. 26, the N.J. Chamber will present a Lifetime Innovation Achievement Award to Apollo 11 astronaut Edwin “Buzz” Aldrin. The keynote presenter will be Dr. Michio Kaku, a visiting professor at the Institute for Advanced Study in Princeton who appears frequently on television and radio to promote and discuss science and physics. Dr. Shirley Ann Jackson, a physicist who is the president of Rensselaer Polytechnic Institute and the first African-American woman to earn a doctorate at MIT, will receive the N.J. Chamber’s inaugural Women Leaders in Innovation Award. Her many career accomplishments include service at Rutgers University and at Bell Laboratories, where she worked on semiconductor theory.

For more information and to register for the Gala, go to www.njchamber.com. For information on sponsoring the event, email Joelene Wolfe at joelene@njbiz.com or call her at (973) 444-3856.

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Showcase your company to the state’s business and legislative communities, top executives, members of the New Jersey Legislature and the governor’s office, as well as local and national officials. Readers include business owners, executives, managers, board members, local and national legislators, lawmakers and media outlets. They turn to the magazine for information on new laws and regulations, economic facts and trends, where the growth opportunities are, ways to improve their business, what professionals and companies are succeeding and how, and much more.

To learn more about Enterprise or to customize a marketing program unique to your business needs, call 800-356-8805 ext. 307 or email advertising@thewarrengroup.com.

ENTERPRISE 2Q 2015 | 15

focus on accounting

A Guide to Choosing the Right Accounting Firm for Your Business

BY ALICIA BROOKS WALTMAN

If anything can make business owners feel vulnerable, it’s putting their financial information in the hands of an outsider. Indeed, choosing the right accounting firm may be one of the most important decisions you can make for

“Are you looking for one service, or do you need multiple services?” asked Heather L. Weber, partner at the accounting firm Baker Tilly Virchow Krause, in Clark. “Do you need help with a tax audit, bookkeeping, 401K plan management? Can a particular firm hit all your needs?”

The Interview With a clear picture of these needs, check out company websites, look at staff bios and online reviews, and then proceed to the interview process. And while it’s nice to meet a partner, it’s often more useful to meet the staff members that will directly handle your account, and ask about their qualifications.

“On the surface, they all look like great firms. But you should ask, who are the individuals who are going to be on your account?” suggests B.J. Agugliaro, managing partner of PwC’s New Jersey practice. “You need to be able to build a Kelly J. Watson Walter Brasch Ralph Thomas B.J. Agugliaro relationship with those individuals.”

Any firm that does audits or financial With that in mind, Enterprise asked New Jersey acprojections in New Jersey is required to have a peer review counting executives to give advice to business leaders on done every three years. Ask to see it, and ask what kind of making this choice. Here’s what they said your company software they will use for your account. should consider, and ask, when choosing a firm to handle “Does the firm invest in technology to service clients your business’s confidential information. properly?” Hagaman asked. “And does a firm have other clients in your industry? The age of the accounting generalist Due Diligence is over. To succeed … you need to work with advisors who All seven of the executives interviewed agreed that have a deep understanding of your business.” companies seeking an accounting firm must do plenty of And personality matters. research.

“You want to envision yourself working very closely “Asking for a referral from a trusted banker or attorwith these people,” says Kelly J. Watson, managing partner ney is a good place to start, ”said Bill Hagaman, managof KPMG’s New Jersey office. “If you can’t envision staying partner and CEO of WithumSmith+Brown, which has ing in the room with them, even through an initial meeting, locations in New Brunswick and Princeton. then that is not a good fit.”

Colleagues in your industry and trade associations are other good sources of referrals, said Walter J. Brasch, More Research Ask for references, and call them. While firms will give partner and chief business development officer of the you the names of satisfied clients, there are specific quesaccounting firm O’Connor Davies, which has offices in tions you can ask to get the full picture.

Cranford.

“Ask references if they encountered any problems in After you’ve gathered recommendations, sit down with working with the firm. Was the work completed on time your staff and determine what accounting services you and in line with costs? Did you encounter any surprises?” need before you start calling candidates.

the day-to-day and long-term health of your business.

16 |

suggests Ralph Albert Thomas, executive director of the New Jersey Society of CPAs. You can also search the Better Business Bureau and the New Jersey Board of Accountancy at the NJ Division of Consumer Affairs (njconsumeraffairs. gov) to see if there are complaints against a firm or individual. You can check if an individual is properly licensed, for example as a CPA, at newjersey.mylicense.com.

And Engage When you’ve chosen a firm, request an engagement letter that specifies the scope of the work, the timeframe, an estimation of costs and who will be assigned to perform and manage the project, Thomas says.

“An engagement letter is important for all types of work, even just tax returns,” he says. And while price is always a consideration, it shouldn’t be the only one.

“To focus solely on price is a big mistake” said Timothy Tracy, New Jersey office managing partner of Ernst & Young. “Focus on reputation and responsiveness.”

“If a company … just goes with the cheapest price, that may be a base price,” Agugliaro said. “Every time you call the firm, they will bill you. You have to be very clear about what you are getting for that price.”

“If an accounting firm is way underpricing, be wary,”

Weber said. “Some will underprice just to get in with the company. If they are undercharging, they might not have the skill set for the work.”

Don’t Be Shortsighted “A company thinks ‘Right now, we are a certain size, so this accounting firm can service me,’”Weber said. “But if an owner’s five-year plan is to double in size, can this accounting firm handle all the services you’ll need along with that growth? You might need more help getting where you want to be.”

“You should perhaps go for an accounting firm at a level of sophistication up one level from where you are today,” Watson said. “Pick a firm with the highest integrity. You are sharing confidential information. You want to make sure they are working side by side as your advocate, and that you feel that level of trust.”

“This decision is critical,” Thomas said. “It can be costly, because if the work is not done properly, you may not get a loan, or accomplish some other goal. That could impact the financial viability of your company or you personally.”

“As with any business decision,” Brasch said, “you will know after year one if you got it right.” ◆

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ENTERPRISE 2Q 2015 | 17

focus on banking

As Millennials Move Back to Cities, Banks are Shelling out to Apartment Developers THE TREND IS MOST PRONOUNCED ON THE STATE’S GOLD COAST

BY DIANA DRAKE It starts with this global trend: People are moving back to cities. Here in New Jersey, it is fueling a boom in the state’s commercial real estate lending market.

Paul Doug John McWeeney Developers are getting building permits at the same rate they did during the 1980s housing boom, and banks this year have more than doubled the loans they shelled out to apartment builders since the year 2011.

Many of the apartment complexes are being built in New Jersey’s Gold Coast region – Jersey City and its surrounding towns.

“Without question, this is the hottest lending category within commercial real estate,” said John E. McWeeney Jr., CEO of the New Jersey Bankers Association in Cranford.

“Since 2011, lending is up $7.8 billion, a 133 percent increase,” added McWeeney, citing statistics from the Federal Deposit Insurance Corporation (FDIC). “It has more than doubled.”

Despite New Jersey’s rank as the fifth most expensive state for renters, builders over the last six months have received 12,798 permits, with 70 percent of those being for building apartments, the accounting firm CohnReznick said in a recent report. That’s a record number since the 1980s and 19.2 percent more than last year.

Fueling the demand for apartment housing are changing demographic trends.“The millennial generation is clearly becoming the most important economic generation as the baby boomers age and retire,” McWeeney said.“They have different lifestyle preferences and tend to want to live in urban places like Hoboken, Jersey City and New Brunswick.”

Another factor is the impact of the financial crisis. “Purchasing a home became a lot more difficult for some people because their credit was damaged,” McWeeney said. These consumers began to look at renting.

18 |

Occupancy rates for apartments are telling, said Kenneth R. Orchard, New Jersey regional president for TriState Capital Bank in Lawrenceville. “Vacancies are low and occupancies are high,” he said. Here’s another thing that banks like to hear: “Our customers are reporting that the cost of renting has stabilized, and is increasing in certain areas,” Orchard said.

How healthy is commercial real estate in New Jersey? Orchard went straight to the bottom line: “We don’t have any commercial real estate loans that have any problems,” he said. “Zero delinquencies.”

There has been “a tremendous demand for rental housing around New York City,” said Brad Dubeck, Bank of America’s New York and New Jersey market executive for real estate banking. “The big area of improvement has been the development (of) the Gold Coast of New Jersey, everything from Jersey City up to Edgewater and Fort Lee. That has always been strong, but we’ve seen it strengthen.”

Other areas of commercial real estate lending – warehouse and industrial space, retail and office – also are on an upward trajectory. “Warehouse lending has come back,” Orchard said.

“Anything that was vacant is being leased up,” driven in part by rapidly expanding online retailers that have built warehouse space in the state.

Office space, however, has lagged, McWeeney said. “We still have a lot of office space in New Jersey (that needs) to be re-leased or repackaged to become attractive to potential lessors,” he said.

And while commercial real estate lending is strong, New Jersey’s economy overall still has room to rebound. “I wish we had a little more job growth. That would help the residential single-family for-sale market,” said Doug Paul, senior vice president of commercial real estate banking in New Jersey for PNC Financial Services Group. “It is recovering, but slowly, in this part of the country.”

Still, the future looks vibrant: “When the financial crisis hit, a lot of people took the money out of the stock market and put it into banks because they are FDIC-insured,” McWeeney said. “Most of our banks are flush with deposits and have built up their capital. They have money to lend and they want to put it out there.” ◆

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To learn more about the New Jersey Chamber of Commerce marketing programs unique to your business needs, call 800-356-8805 ext. 307 or email advertising@thewarrengroup.com.

focus on events

Fourth Annual N.J. Chamber Challenge Is a Success On and Off the Course

The ping of driver meeting golf ball. The smell of fresh cut grass. The chirping of birds. And a beautiful golf course.

This was the setting for the fourth annual N.J. Chamber Golf Challenge on May 18, where business leaders plied their skill on 18 holes at the elegant Bedens Brook Club in Skillman.

Awards were presented to the top-performing foursomes, but it was the networking that took place – at brunch, on the course and finally at an awards reception – that made the day a success.

“This was a great way to get to know each other better and to network with people representing diverse interests,” said Tom Bracken, president and CEO of the New Jersey Chamber of Commerce.

In addition to the round of golf and the networking con-

20 |

tacts, each participant received a series of gifts, including a cap, a golf shirt and a wood-framed photo of his or her foursome as a keepsake.

The Chamber Challenge trophy, etched with the names of each year’s champions, remains on permanent display at the New Jersey Chamber of Commerce headquarters in Trenton.

The winning team in the “lowest gross” category consisted of Jim Schulz, Leslie Hayling, Terry Sawyer and Glenn Smeraglio, representing the New Jersey Dental Association.

The winning team in the “lowest net” category included Glenn Mekles, Mark Larner, Jeffrey LeBenger and Robert Booth, representing Summit Health Management.

A special thank-you to Barnabas Health, the golf outing’s premier sponsor. Additional thanks to event sponsors Investors Bank, JCP&L and QualCare. ◆

focus on events

Chamber Members Mingle at Spring Member Networking Breakfast New Jersey Chamber of Commerce members exchanged business cards and discussed ways to grow their business at a networking event held at the Roseland office of CohnReznick.

Members were joined by the chamber’s executive team, includ-

ing President and CEO Tom Bracken, Vice President of Member Services Larry Krompier, Vice President of Communications Ray Zardetto, Director of Government Relations Matt Malat and Foundation Executive Director Donna Custard. â—†

ENTERPRISE 2Q 2015 | 21

news makers

Lisa Chalkan

Kristyl M. Berckes

Sanyam Parikh

ATLANTIC HEALTH SYSTEM named Brian A. Gragnolati to serve as president and CEO. Former President and CEO Joseph P. Trunfio retired after more than 20 years of service.

Leadership Development program. As a result of the grant, 20 Newark residents, primarily teens and young adults, will obtain paid summer employment, as well as leadership development and career training.

JERSEY CENTRAL POWER & LIGHT was named “Business Leadership of the Year Honoree” by the New Jersey Conference of Mayors, recognizing the company’s efforts to establish strong working relationships with mayors across its service territory.

THE PSEG FOUNDATION awarded the New Jersey Association of Counties Foundation a grant of $12,000 to send county vocationaltechnical school graduates to a county or state college or university to study environmental science, green design, green technology, alternative energy or other related subjects.

THE INVESTORS FOUNDATION, which provides grant funding to nonprofit organizations that enhance the communities served by Investors Bank, announced a $100,000 award to the Liberty Science Center in Jersey City.

HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY was ranked No. 3 in DiversityInc Magazine’s Top 10 Regional Companies for Diversity. It is the fifth consecutive year in which Horizon BCBSNJ has been named to the Top 10.

Walsh, Jastrem & Browne, a public accounting firm based in Boston, merged its practice with WITHUMSMITH+BROWN. WJB will become the Boston office of WithumSmith+Brown, making it the largest accounting firm in Boston’s Seaport Innovation District.

Larisa Perry, Northeast lead region president for WELLS FARGO, was elected to the state board of directors of the Junior Achievement of New Jersey.

BARNABAS HEALTH, the state’s largest nonprofit health care system, launched a healthy cooking video series starring celebrity chef Sam Talbot. Talbot, a season two semi-finalist on Bravo’s Top Chef, teamed up with Barnabas Health to showcase recipes and dishes that promote wellness and healthy living.

BERKELEY COLLEGE appointed Chris W. Grevesen as the dean of its new School of Graduate Studies. Grevesen will launch the college’s master of business administration program in management.

Christopher Phelan, president and CEO of THE HUNTERDON COUNTY CHAMBER OF COMMERCE, was honored as 2015 Hunterdon Distinguished Citizen by the Boy Scouts’ Washington Crossing Council.

PEAPACK-GLADSTONE FINANCIAL CORP. and Peapack-Gladstone Bank appointed Lisa Chalkan to serve as senior vice president and chief credit officer.

The Bridgewater-based law firm of NORRIS MCLAUGHLIN & MARCUS named two new associates, Kristyl M. Berckes and Sanyam Parikh. Berckes joins the firm’s Matrimonial Group, while Parikh joins the Executive Compensation and Employee Benefits Group.

WELLS FARGO donated $25,000 to the Newark Community Economic Development Corporation to support the expansion of Newark’s Summer Youth Employment and 22 |

CHILDREN’S MIRACLE NETWORK HOSPITALS at Children’s Specialized Hospital and the NJDC2015NJ organizing committee are hosting the 2015 National Junior Disability Championships (NJDC).

Competitive events take place in Union County Parks (Warinanco, Rahway River and Oak Ridge) and the Cranford Indoor Pool July 18- 24, 2015. ◆

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