Energized & Accelerated

New Jersey Business, Sep 2007 by Manahan, Ilene Dorf

Historically, the cinch around New Jersey's waist ran between New Brunswick and Trenton. But today a drop-waist seems in vogue, with a magnetic force between the economic engines of Cam-den and Atlantic City pulling the two "coasts" closer and generating economic growth in the state's southernmost counties.

This economic stimulation in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties is attributable largely to the businesses, healthcare providers, educators and government entities that have identified regional needs and strengths and, using their skills and contributing their expertise and energy, are committed to enhancing the economy and improving residents' quality of life.

As the Chamber of Commerce Southern New Jersey holds its 23rd annual Business Expo, its president and CEO, Debra DiLorenzo, says while the region's economy is relatively strong, with a steady pace of employment and companies electing to remain in South Jersey, the economy could be even better with more support from the State Legislature and governor.

"Failure to act on cutting expenses in the state budget related to state employee benefits and pro-union positions really hurt the business community," DiLorenzo states, noting that as the only chamber in the southern part of the state with a staff lobbyist, the Southern New Jersey Chamber is a loud but balanced voice on behalf of the regional business community. "The state's prounion agenda (on paid family leave, for example) is creating an anti-business perception and an apprehension and nervousness throughout the business community."

Nevertheless, economic activity on both the west (i.e., Delaware River) and east (i.e., Atlantic Ocean) coasts is stimulating growth throughout the region.

Camden is one of the faster growing areas of the state, and Burlington, Gloucester and Salem counties are growing faster than the U.S., as a whole, in a variety of industries and businesses - including information systems, financial, biotechnology, education, hospitality and healthcare. This is resulting in a comparatively low unemployment rate, a trend that is likely to continue, says Joel Naroff, chief economist for Commerce Bank, Cherry Hill.

From a lawyer's perspective of the region's economy, Peter Spirgel, managing shareholder at Flaster Greenberg, Cherry Hill, observes the firm's commercial real estate practice is busy, but residential has slowed. "There's still a lot of activity in Atlantic City, assembling parcels for hotel-casinos and con-dos. There's no slowdown there. If anything, there's an acceleration."

On the West Coast...

With much of Camden's business activity focused on the waterfront, the port is a major economic driver. "Business has gotten better and better" for the South Jersey Port Corporation (SJPC) and is at a four-year high, reports Joseph Balzano, executive director of the SJPC, a state agency that owns and operates the import and export of international bulk, breakbulk and some container cargo at the Ports of Camden and Salem.

The record 3.8 million tons of cargo that passed through SJPC facilities in 2006 was 9.1 percent over 2005, with substantial increases in steel, scrap metal, wood products and cocoa bean cargoes leading the 2006 growth. Balzano projects Camden will become the leading cocoa bean port in the nation, serving such major manufacturers as Hershey in Pennsylvania, M&M in Hackettstown and Blommer in Chicago.

"The fact is that we're over-booked now and need new space," Balzano says. A 200-acre deep water port being built in Paulsboro should be ready within 24 to 30 months. With 2,000 linear feet of docks, Balzano says it might include more container traffic, as well as breakbulk.

Supporting the city's revitalization as well as Governor Corzine's Economic Growth Strategy, the New Jersey Economic Development Authority's (NJEDA) $16-million Waterfront Technology Center at Camden, a five-story, world-class facility on the Delaware River, provides 100,000 square feet of Class A office and technology space for both established businesses and startups in the biosciences, microelectronics, advanced materials, information technology and other high-tech fields.

One of the Center's primary tenants is the Rutgers-Camden Business Incubator. Located with-in Camden's Innovation Zone, one of three in the state (the others are located in Newark and New Brunswick), the incubator encourages entrepreneurs to locate their businesses in Camden and assists them with low-cost office and conference facilities. The incubator leases two floors and is 100 percent occupied. The second floor houses "virtual and physical tenants," businesses that need actual or "virtual" office and meeting space. The fifth floor offers wet lab space for life science and biotech operations.

Frank Keith, the Incubator's executive director, notes that "Cam-den is becoming a biotech cluster." It is home to: the internationally known Coriell Institute for Medical Research, with the world's largest repository of human cells for research; the UMDNJ School of Osteopathic Medicine, which con-ducts National Institute of Health research; Rutgers University's enhanced science curriculum, including a PhD program in BioInfomatics, using computer technology to study biotechnology; and, as a part of the governor's stem cell initiative, a $50-million research facility for the life sciences and stem cell research planned for the city. "We're constantly showcasing this part of Camden to domestic and international companies that have high-tech, high-growth potential," Keith reports.