C-Suite Survey Shows Improving Attitudes Toward State, Economy

Online, May 27, 2011 (Newswire.com) - The attitude of New Jersey CEOs toward the state's economy and business climate has improved significantly over the last 18 months, according to the New Jersey Economic Policy Summit's latest "C-Suite Survey" (C-Suite VI) of Garden State CEOs. The findings, presented at the summit's fourth annual conference, show that 75 percent of respondents believe state government has become more responsive to the needs of the business community over the past six months, and 72 percent rated New Jersey's economy as fair or good. These figures are up from 35 percent and 34 percent, respectively, in the previous C-Suite Survey (C-Suite V), conducted in the fall of 2009.

"We are making difficult decisions about our future," said Gualberto "Gil" Medina, Cushman & Wakefield's New Jersey executive managing director, in his opening remarks. "We are fortunate to have leaders in Trenton who understand the factors that directly impact business decisions, job growth, and competitiveness. We have leaders who are transforming our economic development apparatus to create one of the best business-service organizations in the country."

The results of the survey show that New Jersey still is viewed as having a long way to go in terms of tax structure and regulatory environment compared to other states, "but attitudes clearly have gotten better," noted James W. Hughes, Ph.D., dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers, The State University of New Jersey, which conducts the survey. "In the current survey, 48 percent of respondents say state government is encouraging/enthusiastic or helpful/supportive, compared to 31 percent in the previous survey conducted in the final quarter of 2009."

Hughes and Marc D. Weiner, J.D., Ph.D., associate director of the Bloustein Center for Survey Research, presented the full survey findings at the event. The results also reflect significant shifts in the perception of economic improvement in New Jersey:

-42 percent of respondents - the highest percentage since the survey began in fall 2007 - reported they believe New Jersey's economy has improved during the past 12 months, while only 8 percent - the lowest percentage ever - reported that they think the economy has worsened.

-59 percent of respondents - also the highest percentage ever - believe New Jersey's economy will get better over the next 12 months, while 11 percent - the lowest percentage ever - believe the state economy will become worse.

"Companies' plans for the coming year, as indicated in the current survey, reflect this positive outlook," Hughes added. "Again, while there is room for improvement, this is good news for New Jersey."

-32 percent expect to increase their number of New Jersey-based employees (up from 15 percent in C-Suite V).

-74 percent of respondents expect revenues to increase in 2011 (up from 64 percent in C-Suite V).

-31 percent plan to increase capital spending (up from 19 percent in C-Suite V).

-15 percent expect to increase space utilization in New Jersey (from 5 percent in C-Suite V).

"The C-Suite Survey is our 'report card,'" said Lt. Gov. Kim Guadagno, appointed by the Governor to be his business ambassador. "The reduction of red tape will continue. We will not sign any more taxes on businesses. More needs to be done, and I am confident that with the help of the people in this room, we can continue to change direction."

The New Jersey Economic Policy Summit gathering, which took place at the Bloustein School's Civic Square Building on the Rutgers-New Brunswick campus, brought together key stakeholders from New Jersey's business, educational and political communities. Organized by The New Jersey Business & Industry Association (NJBIA), commercial real estate services firm Cushman & Wakefield, Inc. and the Bloustein School, the summit initiative aims to identify, understand and address concerns, challenges and opportunities for the future health of the state. PNC Bank, NJM Insurance Group and Cushman & Wakefield served as sponsors.

The conference, which also included opening comments by NJBIA President Philip Kirschner, concluded with a panel of top executives, who discussed the survey and their own perceptions of the state's changing business climate. Kevin McArdle, state house correspondent for Millennium Radio New Jersey, 101.5 FM, served as moderator. Panelists were Joseph Harbert, chief operating officer - NY Metro Region, Cushman & Wakefield, Inc.; Edward Graham, chairman, president and chief executive officer, South Jersey Industries, Inc.; Linda Bowden, Northern New Jersey regional president, PNC Bank; and Caren Franzini, chief executive officer, New Jersey EDA.

Expressing "guarded optimism," Harbert noted growing stability in the office market. "Vacancy is still high, but renewal activity is high, which means that companies are choosing to stay in New Jersey. In reality, however, companies are maximizing space - we are back at the same level of production as pre-recession, but doing it with fewer people.

"I give the Christie administration credit, but more still needs to be done for the private sector," Harbert said.

A slow, measured recovery is underway, according to PNC's Bowden. "The two key challenges are still jobs and real estate. We are looking at residential prices stabilizing by the end of the year, and we believe we are out of the worst of the slump."

The recovery is "slow and steady," Franzini concurred. She credited the improvement in New Jersey's image as a business destination to the new Business Action Center, a one-stop shop established by the Christie administration, and the Choose NJ marketing effort now headed by Tracye McDaniel, formerly of the Greater Houston Partnership.

"More companies are finding New Jersey attractive," Franzini said.

Regionally, "things have bottomed out in Atlantic City, and the resurgence has begun," said Graham. "Plans for a new casino have already created 2,000 jobs and will create up to 6,000 total. This resurgence will hopefully have a positive effect on the rest of South Jersey, and the Christie administration was vital in making this happen."

The C-Suite Survey - the focus of the Economic Policy Summit's efforts - is conducted biannually by Hughes and Joseph J. Seneca, Ph.D., University Professor at the Bloustein School. It targets senior executives from companies headquartered or with deep roots in New Jersey. Questions gauge their opinions about the economy and experiences doing business here. Its results serve as a barometer for New Jersey's business environment and future economic needs, and provide the foundation for major analysis and recommendations.