Business, Profits and Strategy

An Open Letter to New Jersey Governor Jon S. Corzine

RE: Most Important Business Issues….

Dear Governor Corzine:

Financial executives have their finger on the pulse of corporate New Jersey. In the interest of understanding what keeps these corporate chieftains awake at night, we asked a group of CFOs to answer the following single question:

"What are the one or two most important business issues facing the New Jersey corporation or its executives today?"

I have attached some of the most direct answers, for your review. I trust you'll take these important perspectives into account as you make critical decisions that will affect the health of New Jersey's economy, the State’s businesses, and its residents.

Sincerely,

Andrew B. Zezas, SIOR
Relationship Manager,
Strategist, President & CEO

908.245.5999 x11
201.906.8964 cell
908.245.4411 fax
andrew.zezas@realstrat.com

Real Estate Strategies Corporation asked New Jersey financial executives to answer a single question. That question and select answers are listed below:

"What are the one or two most important business issues facing the New Jersey corporation or its executives today?"

Rising costs is definitely an issue we face today. It’s across the board. We see it in the cost of our raw ingredients as well as operational costs. Fuel, insurance, electricity, tax of one sort or another, everything is going up with no real relief in sight.

How can NJ based firms attract and retain highly skilled technology employees given the State’s poor economic development climate (property taxes, cost of living, traffic, etc.)?

How can a small company afford to continue to pay a highly competitive wage in relation to the cost of living in NJ?

First, “Family Leave”. Second, “Taxes”.

The most important issue we face today is the economy. If our customers aren’t confident enough to invest, then it is harder to sell them new technology, no matter how compelling the business case. In the last 8 weeks, we have not only seen a slowdown in orders, we’ve seen customers sign firm contracts but then procrastinate on getting together with our project managers to kick off the project. If customers think there may be a slowdown, and act like it, then it becomes self-fulfilling.

The continuing inability of federal, state and local governments to think long-term while acting short-term. Whether it be the "half-millionaire's tax", school funding, affordable housing, asset-monetization, etc, etc, we have seen a series of "quick fixes" that lack long-term public policy soundness. As a result, the most mobile of our citizens and residents - the top wage earners, the R&D part of pharma, the port-dependent shippers - are going somewhere else. We can no longer dismiss the out-migration as "a bunch of retirees moving to Florida". It is more drastic than that. We are no longer business, or resident, friendly.

Public service is not the public trough. We continue to apply half-hearted efforts to serious structural issues with our political leadership and state employee system – stop the double dipping in positions and pensions; stop the "pension padding" in the last three years of service; stop pretending that consolidation of school administrative costs lowers the quality of education, and that throwing money at school districts increases the quality of education; why stop at 60 for the retirement age instead of going to 65 for most jobs, etc, etc.

The single most important issue today is finding and retaining quality staff and the associated costs in accomplishing, this such those associated with health care benefits, family leave issues, training and education.

Clearly, the loss of jobs and business in NJ. The business climate needs to change and be competitive

The effect of BRAC, (the closing of Ft Monmouth) this will cost the state jobs and increase downward pressure on home values.

The lack of enough tax incentives provided by the NJ State Government to help retain business in the State.

The lack of a highly qualified work force.

As a company, we can be creative in our approach to our business model, to financing, to finding new opportunities, but how to continue to survive at all under New Jersey's Byzantine tax, regulatory, and environmental schemes is another matter. It is, unfortunately, a losing battle. Why stay in the State?

Real Estate Strategies Corporation, located in Kenilworth, New Jersey, and serving its clients throughout the country, helps companies create and execute Business DRIVEN Real Estate Solutions...and Opportunities, faster and with less risk. Visit www.RealStrat.com.

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