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♪ >> This is NJ biz Beat with Raven Santana.

♪ Raven: hello, I am Raven Santana.

Thanks for joining me on NJ Business Beat.

As we inch closer to the end of the year, we are taking stock and the economic accomplishments in New Jersey as well as the financial challenges facing legislators, corporations, small businesses and working families.

The latest figures show New Jersey has collected close to $11 billion in revenue in 2023, that is a 4% drop compared to the same period last year.

Unemployment recently ticked higher, settling at 4.6% according to the latest report.

The business community has seen improvement in 2023, but according to a recent Outlook survey, many owners are still concerned about the economic outlook in 2024.

68% say the state is not doing enough to address affordability.

89% say they have been impacted by inflation.

37% say they expect to turn a profit next year, but that is the lowest outlook for profit since 2012.

Say they have staffing challenges, a 50% drop from last year.

Despite those challenges, 28% plan to increase hiring.

To learn more about the economic outlook for 2024 and what business owners one from legislators, I sat down with Michelle, President and CEO of the NJ BIA NG.

.

69% surveyed this year say the economy as fair or poor.

How would you describe the current state of business in New Jersey?

>> I would have to listen to what our business unity is telling us.

They are feeling tepid.

I say cautious optimism as we look into next year.

Good news here is the negativity is less than it was last year.

So, our businesses are crawling out from the whole.

This is a slow and steady repositioning of the business community.

Raven: the cost of doing business was a major concern for business owners in 2023.

You touched on that.

What were some other challenges for the business community in 2023?

>> Well, workforce continues to be an issue, but not at the height that it was the prior year.

The last three years, workforce was a significant challenge.

Hiring, attracting, retaining.

Right now, we see that is leveling off.

We see our unemployment numbers creeping up a bit in New Jersey, so people are in a better spot in terms of attracting, retention still a challenge.

Better than it was last year, still crawling up but we are moving in the right direction.

Raven: Governor Murphy easily double down on his promise to not renew the corporate business tax, but 68% of those surveyed say the state is not doing enough to address business affordability.

>> We talk about the fact when our policymakers use the term affordability, they do not think about it in terms of what it means to a business owner.

The corporate business tax is important, but that is for larger corporations.

Our smaller businesses are challenged every day with mandates and other types of programs that cost businesses more money in order for them to stay in business and do business and grow their workforce.

I had to go back to the regulatory challenges in the state.

Regulation, cutting red tape, people who need licenses, permits, simple things but they are difficult, they cost a lot of money.

These costs go up and time is money when it comes to business.

Every dollar and every minute matters.

Raven: Excellent point.

Let's talk about positives in this survey.

There have been improvements in staffing challenges and how New Jersey compares to other states in multiple categories.

Talk about that.

>> Absolutely.

Workforce continues to be a challenge, but not as much.

From a staffing perspective, our companies have been able to staff up more.

As we see the unemployment number ticking up, that means we have folks getting closer to that employment once again.

Where we win every year, K-12 education.

The quality of our workforce when it comes to being highly educated is something we can be proud of in the state of New Jersey.

That comes at a high cost.

Property taxes -- number one property taxes in the nation.

Property tax effects New Jersey business who pay almost 15% of those bills.

We are proud of our K-12 delivery system in New Jersey.

One more caveat, we at my great to many of our high school graduates out-of-state to go to college or to seek their careers and jobs out of the state of New Jersey.

Once we deliver that best in class K-12 education.

Raven: How do you think the business community is feeling about 2024, as we look ahead?

>> Cautious optimism.

They are being asked they are feeling better that inflation is under control, but we have supply chain challenges which is still putting pressure on them in order to meet their bottom line.

Probably one of the biggest things is controlling costs.

Unfortunately, they are not feeling comfortable about profits in 2024.

I think they are hoping they can continue to keep the margins high on their balance sheet.

I think the money they need to keep their businesses operating with a slight return on investment, but they are not looking at big profits in a lot of interesting responses in the survey but what is their biggest concern?

>> Our biggest concern is always business affordability.

We can talk about what it means, business affordability means what are businesses paying in taxes, property taxes, income taxes?

Escorts pay income tax through their personal return -- s corps pay income tax through their personal return.

We need this quicker so the cost of time and money is not so much a challenge to our businesses.

We need to continue to deliver and develop our workforce.

These are the things we pay attention to every day, business affordability first and foremost is what is on the minds of New Jersey business.

Raven: What is a big take away?

What do you want people to know about business in New Jersey?

>> We are resilient in New Jersey.

Our business community, we are tough and we get stuff done.

No matter what is thrown at us, COVID, post-COVID, inflation, etc., we pound away in New Jersey.

The take away is we have to continue to work with our policymakers to make New Jersey more affordable for our businesses.

Great is this is make rate communities.

The New Jersey business community, while tepid nonprofits, have a great outlook when it comes to their community and how they support their community.

Great business leaders make great businesses and that is the state of New Jersey.

Raven: Thank you for joining me.

>> Thanks so much, Raven.

Raven: one of the major accomplishments made in New Jersey's business community this year is the progress made in putting women in leadership positions.

According to the group executive women of New Jersey, women make up 29% of the 725 board seats at 74 New Jersey companies.

That is a 15% increase compared to a decade ago.

Only 3% of companies have no women on their boards.

That number was 30% in 2013.

For the first time, four companies in New Jersey have achieved inter-parity, meaning at least 50% of the board is women.

Those companies are Organon and Company, American water, the children's Place and Johnson & Johnson.

I sat down with Courtney McCormick, President of executive women of New Jersey, to learn how these strides were made in the past decade and where they will focus their efforts in 2024.

Courtney, I know that this is personal to you as an executive.

Let's talk about a seat at the table report.

What does this all mean?

>> It is fascinating.

We have been producing this report for over 10 years.

I think what it tells us and what we are seeing is that we are seeing tremendous progress.

This year, we found that 29% of the 74 companies that we surveyed had 35% or more women on their boards.

That is a vast increase from when we started doing the report in 2013.

I think what the report is telling us is that we are making strides, that companies are recognizing the benefits of having women in leadership position to overall results.

I think what it is also telling us is there are still challenges remaining, in particular when it comes to representation of women in color and incorporate leadership positions.

There, we have not seen the same uptick as we have seen women generally.

Raven: Why is that?

>> I think there are a host of reasons.

I think it is very difficult to bring folks up through the ranks, even for women in general.

Traditionally when you look at corporate board positions, what you would find is boards were looking for directors who had experience in what we would call P&L type positions, profit and loss.

You were actually either a former CEO, a sitting CEO or someone who was responsible for managing a direct business line.

Traditionally, the women who have, up through the ranks in executive positions have not always been the not.

That is where we found challenges in bringing women along.

Raven: With these DI initiatives, I sit on a board for the EI here at WNET and I know there have been a lot of initiatives and things to do.

My question is, still with that, it seems there are still so many challenges and I am not sure what else can be done.

>> I think there are a number of things.

One of the things we talk about is the role of mentorship versus the role of sponsorship.

As I am sure you have been mentor or mentor to other women, that is something that is valuable and important to helping women grow within the workforce.

However, sponsorship is something somewhat different.

It is being the one that is going to identify that Raven is an up and comer and I am going to make sure that I am using my influence and my power to ensure that Raven has opportunities that will then be looked at in the future as having built the right suite of skills that gets you into that executive type role.

While I think our DEI programs, we do a lot of initiatives at our company, they are definitely making strides.

Unfortunately, I think we really are still the women primarily doing most of the housework, the child rearing.

Raven: That is right.

>> You find a lot of women take themselves out of the game too soon.

I have often been asked by women, how do you balance, how did you manage with two kids to get to an executive level position?

Sometimes, the advice is, put your head down and work through it and find the support where you can find it.

Raven: We know there are people who are putting in the work.

There are companies putting in the work.

What companies are when we think about leadership roles among women?

>> a number of companies that we were on, 17 companies honored as part of our honor roll that achieved that 35% or more.

A number of companies that we saw that were achieving parity at the board leadership level.

One comes to mind is a company that is a New Jersey based company, they have got a female CEO.

They were newer to our list, American water has been a real leader that we have seen and my own company, PSEG, we have got a number of women in high-ranking senior positions.

Kim Hanneman is the president of our utility company, first female president.

We have a female head of our chief human resource office.

I think there are companies where you are really seeing, walking the walk and talking the talk.

You are really seeing actual -- when you see women in leadership roles, you are seeing things really happen for the women in the rings underneath them.

You and say, this person did it, why not me?

Raven: When you think about aspiring to hold a leadership role on the how do we make sure that young women are inspired before they even get that entry-level job, when they are in college, to conquer these roles?

>> among the women I am seeing come into the workforce now straight out of college, I think there is greater confidence.

I think the way we are working in terms for allowing for more remote work is changing the dynamic as to what is capable.

If I am not commuting to hours a day every day, that changes what I can see in terms of the possibilities.I think it is constant outreach and showing the example of, these are women in leadership positions, this is how it is done.

This is how I have done it because there is no set path.

Even providing an example that is feasible, it's possible and don't take yourself out of the game too soon.

Raven: Thank you for joining me.

Four LGBTQ+ business owners, this year marked a major milestone after the state launched a business certification program for the community.

The state began accepting applications for LGBTQ+ certification back in April.

Since then, businesses have opened up and received support in securing contracts at the local, state and federal levels.

I sat down with Gus, Executive Director of the New Jersey pride Chamber of Commerce, to discuss how this certification process has helped businesses and the legislative priorities for the community next year.

Tell me, what is the state of LGBTQ a businesses?

>> As of May of 2022, it is in a better state in New Jersey because now, we are recognized by the state, the Murphy administration signed Executive Order 295, which puts us in the same category as in WBE's through treasury, which opens up opportunities for now LGBTQIA plus owned businesses in the state.

Raven: How has that been a boast to LGBTQIA businesses in the state?

>> We can use the membership of the chamber as a guide.

When I took the position in January of 2022, we were 87 members strong.

After the signing of Executive Order 295 and it going live in May through treasury, we are now almost 350 members.

That is a clear sign that people were waiting for this, there is a need for this and we did this without any state funding, which we now have received some.

We hope in the next couple of years, we will be able to increase the funding because we are the only LGBT chamber in the state of New Jersey.

It is a big state, 21 counties, 9 million people.

We have a lot of space to cover.

Raven: That is right.

[LAUGHTER] >> Most of the organization is still volunteer.

Raven: The last time we spoke, people were boycotting Anheuser-Busch based on that partnership with a trans woman.

When we think about discrimination and anti-LGBTQ+ policy, where do we stand, especially in New Jersey?

We consider ourselves a progressive state.

>> We are a progressive state but also suffer the same negative side effects of some of the stuff we hear across the country.

We are not immune to it.

We do better at it because we get support from the leadership and from a lot of the communities.

New Jersey, I believe, is if not one of the, the most diverse state in the country.

We have been getting along even when we do not get along.

Raven: Right [LAUGHTER] >> It is part of what we are.

One day you want Mexican food, the other day want McDonald's.

The benefit is when you have support of your legislators, when the administration -- it does make a big difference.

There are some against us, they have made their points valid.

We are not here to argue.

We are nonpartisan.

We are not going to take right or left.

That is not our mission.

Our mission is to make more opportunities available to LGB EQ IA plus -- LGBTQIA plus businesses and vegetables who work with us.

There have been setbacks.

One of the ones that bothers me today is when I receive the most from business owners, I want to review my membership, do not publish my name in the directory because of fear of retribution of where their business is.

They have a brick-and-mortar store.

It hurts me because I am like, this is my hometown.

This is where I grew up in the Jersey shore.

Yeah, even New Jersey is still suffering.

To your question about Bush -- Raven: Anheuser-Busch and that partnership.

That made national headlines.

>> It did.

The thing is, everything is relative.

The news is going to say this is everywhere but I guarantee you, people are buying Bud Light.

The nfl, every commercial is a Bud Light commercial whether you like them or not.

They will find ways to recoup.

Raven: Back to your point about discrimination and shame.

Whether you are part of the LGBTQ+ community or not, I feel like in some way it can affect you.

Even for me, just having friends or speaking with people still in 2023 who still have this shame, whether they are entrepreneurs were not.

When I think about the business community and those challenges, that is heartbreaking to hear and that is unfortunate because those are the people putting in the work, as well.

What are some other challenges that may be unspoken?

>> Think of it this way.

Discrimination against people of color.

And openly out business, entrepreneur wants to open a again mortar store.

For some reason, the realtor or whatever feels there is something different about you and they find out you are LGBTQ.

It has already been leased.

I experienced this as a Hispanic growing up.

I know it means to be discriminated against.

As a openly gay, Hispanic male, I know what it is like to be hated as a gay male.

It has been documented.

Same thing for financing, it is more difficult to get financing.

Same as the other diverse communities in any state.

Yes, there are more options in New Jersey because the leaders, the elected officials for the most part do support the diverse community, including the LGBTQIA plus community.

What we are trying to do is make access to funding, access to entrepreneur dollars, access to be part of these being built throughout major cities in the state.

We want them to say this company , does not matter they are LGBTQ owned, but I want to open something here, whether it is a restaurant, a law firm.

We want to make sure they get the same opportunity as anyone else who wants to open a business in one of these cities.

Raven: Based on them being the best candidate, right.

>> As long as they show that they have everything they need, they should be given equal opportunity to do so.

Raven: Let's talk about partnerships because that is important.

Tell me about some of the most recent partnerships you have made.

>> the most recent and exciting was Bristol-Myers Squibb.

Raven: Big?

>> It is huge.

They were awarded, they hit the one billion list.

They hosted our supplier diversity Summit in October.

We were the first outside organization allowed into the corporate headquarters in Princeton.

We have posted the video.

Raven: Congrats.

>> A recap, my phone has not stopped ringing because it shows they are very dedicated to diversifying.

If you walk into that building, even the building itself, the structure, the painting, all of it is about diversity and inclusion.

They have been one of the best partners this year.

Close second is Horizon Blue Cross Blue Shield.

They have been amazing.

It was an honor for us as an organization to honor Wendy Lansky, who was the first person we met when we became partners, introduced her to the state wide Hispanic -- we are no longer colleagues, we are friends.

The CEO of Verizon has made sure that 2024 will be better than 2023 with the New Jersey private chamber.

Raven: We have talked about the accomplishments, the progress, what else needs to be done?

>> Right now, my top priority is codifying exec at a border 295.

I am working with Senator aphoe, Senator ruiz -- Raven: Supporters.

>> Who used to be the only LGBT legislator, now we have to -- to codify executive order 295.

We have two bills, as 3460 and a 5280.

We have to get it done and if we do get it done or when we get it done, we will be the first state in the country to have a law and the books that recognizes UBT owned businesses in the state -- LGBT owned businesses in the state.

I have received calls from states like California that Senators there are talking to our legislators because they want to do the same.

I want new jersey to get it done.

That is my number one priority, to make sure it is law and no one, no administration, can change it.

Raven: Thank you for joining me.

I love this conversation.

>> Wish we had more time.

Raven: Before we leave you, here is a look at the top business headlines from the week.

The clock is ticking for New Jersey homeowners and renters to secure property tax relief on the state thinker program.

The deadline to apply is December 29 and you can do so online, by phone, mail or visiting a division of Taxation field office.

So far, more than 1.6 million homeowners have received anchor benefits, up to $1750.

Seniors are getting a bit of a boost in the second round of funding.

$250 extra for those above age 65.

Anchors requirements are based on your 2020 income and if you apply for the first round of anchor funding, the state says your second round of application was automatically filed this summer.

According to NJ Spotlight News budget and finance writer John Wright Meyer, the state is trying to get the word out specifically to renters who can benefit from anchor.

>> for about a decade, the state had stopped providing these benefits as property tax relief and renters directly pay property taxes through the rents they pay their landlords.

Right now based on latest numbers from the Department of treasury, there is nearly 500,000 renters who have received anchor benefits in this latest round.

There are over one million homeowners who have applied and received benefits.

They are up over 1.6 million in all, a big share of that is the homeowners and they are trying to make it known to renters if you rented in 2020 and you meet the income and age qualifications, you could get benefit from anchor.

Raven: a major corporation is leaving Union County and it is relocating its critical research and development headquarters to New Brunswick.

Nokia Bell Labs announced this week it is setting up shop in the health and life science exchange, four helix campus.

In a statement, Nokia said it is reaffirming its commitment to New Jersey and upholding its 80 year history of working in our state.

Its current offices are in Murray Hill, where the company created the world's first solar cell and developed satellite medications.

Nokia says it plans to break ground on the new facility in 2025 and expects to open it by 2028.

Millions of dollars will be pumped into Atlantic City through a new program announced by the New Jersey economic developer and authority.

The Atlantic City revitalization grant program includes $19.5 million from American rescue plan funding the new construction and renovation projects.

Those projects must address one local need, including food insecurity, small business support and jobs and office spaces.

Grants will cover up to 15% of construction costs.

That does it for us this week.

Remember to subscribe to our NJ Spotlight News YouTube channel to get alerted when we post new episodes and clips.

I am Raven Santana.

We are off the next two weeks for the holiday.

We hope you enjoy yours.

Thanks for watching and we will see you in the new year.

>> Support for NJ Business Beat by Raven Santana provided by NJ M.V.P., a partner to New Jersey's manufacturing industry, focused on productivity, performance and strategic development.

More on NJM AP.org.

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