Lure of the South takes a toll on corporate NJ; new demographics, globalization play roles
JANUARY 7, 2015, 11:36 PM LAST UPDATED: THURSDAY, JANUARY 8, 2015, 6:28 AM
BY HUGH R. MORLEY
STAFF WRITER |
THE RECORD
Forty-five years after New Jersey’s manufacturing industry began its decline, as companies started moving their factories to the South, there are signs that the state’s corporate sector may be going the same route.
Tuesday’s announcement by Mercedes-Benz USA that it plans to move its corporate headquarters from Montvale to metro Atlanta followed similar announcements in the last 18 months by Hertz of Park Ridge, which moved to Florida’s Gulf Coast, and Sealed Air of Elmwood Park, which is moving to Charlotte, N.C.
So now three Fortune 500 companies, along with nearly 2,000 jobs, are moving or have moved to Southern locations that years ago would likely not even have been considered by corporate executives.
Though they cited reasons for their moves specific to their business or industry, it’s clear that the South now holds an attraction that it once did not. A variety of factors are in play, including lower taxes and operating costs, an improved quality of life and a stronger workforce.
“I don’t think it’s a tidal wave yet,” said James Hughes, dean of the Bloustein School of Planning & Public Policy at Rutgers University. But change is clearly afoot, he said.
“What’s changed is the perception of the South,” he said. “After the first frontier companies moved there, they proved that there is no problem securing a high-quality workforce, and that people would migrate there if there were good jobs available.”
To be sure, many companies have left New Jersey for other destinations. New York’s Rockland and Orange counties, for example, still attract a good number of companies, including Hunter Douglas and Croton Watch Co. recently. Yet the lure of the South appears to be growing.
What will really hit the New York metro area is the rapid advancements in technology and communications, which will make it gradually unnecessary to have have “Wall St” and all it’s associated industries in law, accounting, etc., physically located in NY/NJ. This is a massive driver in terms of real estate, employment, and tax revenues for the tri-state area. The basic laws of supply and demand will eventually see this industry scatter. You might think your lifestyle and job is totally unconnected to Wall St, but you would be wrong.
All the $100K public pensioners will head south, too. If they live in Florida they don’t pay a dime to NJ in state tax and will have lower cost of living by not paying NJ premiums for everything available to them in Villages like Ridgewood. Greedy pigs want more even though taxpayers fund their gold plated lifestyles. Oink oink.
The unions and the Dems they voted for over the last 25 years must be so proud of their work to make us “Jersey Strong !”
Wait, What?
You mean the plan to “tax the rich” to fund the NJ economy and redistribute the wealth didn’t work?
How can that be?
It was such a good, well thought out, logical plan
Oh well, let’s try the same plan again – it will surely work next time.