The New Jersey Business & Industry Association will turn 100 next month, marking a century of service to its member companies. NJBIA was formed in February 1910.

Originally called the Manufacturers Association of New Jersey, NJBIA was founded by eight business leaders who recognized the need to speak with a single voice on the major issues of the day, such as a proposed workers' compensation system.

Throughout its long history, NJBIA has remained steadfast to its original mission, growing in strength as the leading voice for business in the Legislature and State agencies. Today, NJBIA and its staff of eight lobbyists work tirelessly to represent the interests of its 22,000 member companies. They analyze hundreds of pending bills and regulations annually, working to defeat anti-business laws and to support programs that will help businesses grow and create good jobs.

As former State Commerce Commissioner Borden Putnam once put it: "If NJBIA didn't exist, they'd have to invent it."

Over the past 100 years, NJBIA has become much more than an advocate. It has evolved into a business-service organization that helps employers lower their costs, expand their businesses, and navigate state laws and regulations.

"At NJBIA, you get the best of both worlds," Kirschner said. "We have the prestige and respect that comes with 100 years of excellence. But NJBIA is not anchored in tradition. We are a dynamic organization that is constantly changing and adapting to the modern business world in order to better meet our members' needs."

To help manufacturers meet their insurance needs, the Association's founders loaned their own capital to create the New Jersey Manufacturers Insurance Company in 1913. Today, NJM Insurance Group is the State's largest property and casualty insurer and is top-ranked nationally for low costs and excellent service. Since its founding, NJM has paid dividends to policyholders totaling more than $4.8 billion for all lines of insurance. In November 2009, during a deep recession, NJM paid $45 million in dividends to 406,000 personal-auto policyholders.

NJBIA also provides its members with valuable, timely information on the latest business trends and practical topics, such as how to comply with government laws and regulations, get the best deal on health insurance or tap into low-interest loans, grants and tax credits. Much of this information is provided by NJBIA's monthly magazine, New Jersey Business, and through the Association's business-to-business seminars.

Over time, NJBIA has expanded to meet the needs of a diversified membership. Made up almost entirely of manufacturers in 1910, the Association today is well represented in professional and business services, retail and wholesale, construction, transportation, real estate, finance and technology. The changing face of its membership prompted a change in name to the New Jersey Business & Industry Association in 1976. Visit www.njbia.org/celebrate to read the President's letter.

For years, many small businesses were unable to take advantage of the employee training programs funded by the State because they could not meet the minimum participation requirement of ten employees.

Three years ago, NJBIA entered into a partnership with the NJ Department of Labor and the NJ Community College Consortium to provide access to basic skills training for employees at small businesses. The NJBIA Basic Skills Training Program pools small numbers of employees from different companies for training in computers, communications, mathematics and English as a second language.

The program has been an overwhelming success, providing basic skills training for 11,000 employees at 1,000 businesses.

Under legislation recently signed into law, the program would become a permanent part of the Labor Department's training programs. On January 11, the Legislature gave final approval to S-3113 (Cunningham)/A-4325 (Lampitt). Acting Governor Stephen Sweeney signed the bill on January 14.

In addition to allowing small businesses to pool their employees for training, the program provides training at no charge to participating companies and eliminates burdensome paperwork requirements.

To find out how your business can obtain training, call 609-393-9009 or contact Christopher Emigholz.

The NJ Board of Public Utilities has launched a new program called Direct Install to pay for energy efficiency upgrades at small and medium-sized businesses.

The program offers businesses a free energy audit and will pay for 80 percent of the energy efficiency upgrades the audit recommends, including lighting, HVAC equipment, refrigeration, motors, and more. This includes the costs of both materials and labor.

The program also pays the contractor directly, so the customer doesn't have to wait for a rebate.

Direct Install is available to any commercial or industrial building in New Jersey with a peak electric demand of 200 kilowatts or less that is served by one of the State's seven regulated electric or gas utilities. This includes restaurants, retail stores, convenience stores, small office buildings, gas stations and auto repair shops and small manufacturing companies.

For more information, visit the NJ Clean Energy Web site.

NJBIA successfully defeated legislation to prevent nonunion contractors from being shut out of public works contracts by requiring them to have approved apprenticeship programs.

A-4305 (DeAngelo) would have made public works contracts more expensive by eliminating less costly, quality nonunion competition.

The bill required apprenticeship programs for each and every trade an employer utilizes, which is simply not feasible and eliminates qualified, less costly nonunion contractors from competing for public contracts. In short, this bill would greatly increase costs for the taxpayers. For more information, contact Art Maurice.

NJBIA is backing legislation that would help improve the quality of education and make local schools more efficient by expanding the State's Interdistrict Public School Choice program.

NJBIA supports A-3472 (Jasey, Voss), which was released January 4 from the Assembly Appropriations Committee, and S-2982 (Turner, T. Kean), which was released November 23 from the Senate Education Committee. Both bills would expand the State's existing school choice pilot program, which permits students to go to different school districts than the ones they live in. Currently, only 15 school districts serve as choice districts.

With numerous construction projects delayed because of the recession, NJBIA successfully urged legislators to approve another Permit Extension Act.

Both houses of the Legislature recently gave final approval to A-4347 (Greenwald, Malone)/S-3137 (Sarlo), sending the bill to Governor Corzine. The measure would extend until December 31, 2012 any permit approval expiring after January 1, 2007.

The State enacted a Permit Extension Act in 2008 as the economic crisis put numerous construction projects on hold. That law extended the approvals until July 1, 2010. NJBIA has argued that the same conditions that justified permit extensions in 2008 persist today and are likely to continue for some time. Otherwise projects will have to go through the expensive and time consuming permit process all over again. For more information, contact Art Maurice.

NJBIA has been fighting four bills that would expand the scope of New Jersey's prevailing wage laws. These laws cost taxpayers a great deal of money by requiring government contractors to pay inflated union-scale wages.

NJBIA convinced legislators to defeat the worst of these bills, A-4151 (Watson Coleman), which would have extended prevailing wage to all government food service and janitorial services contracts, such as cafeteria services in public schools. The bill would have increased costs to taxpayers by $40 million. Two bills with far lower costs did get through, though. One would extend prevailing wage to projects financed by the Board of Public Utilities (A-4293, DeAngelo, Egan/S-3028 Buono, Baroni), and another would extend it to large maintenance-related projects in public buildings (A-4268, Cryan). But the Legislature did not consider A-4291 (DeAngelo), which would have extended prevailing wage to housing projects financed through the Home Mortgage Finance Agency. For more information, contact Art Maurice.

NJBIA's long fight to stop raids on the Unemployment Insurance (UI) Fund and other payroll-tax-supported programs has been successful. It is now up to the voters. The Assembly on December 7 gave final approval to a bipartisan constitutional amendment, SCR-60 (Sweeney, T. Kean)/ACR-134 (Burzichelli, DeCroce), which would prevent the State from diverting employer payroll taxes to pay for unrelated budget expenses. If voters ratify the amendment in the November 2010 elections, the State will be prohibited from diverting funds that support unemployment benefits, temporary disability insurance and job training.

NJBIA has fought against the UI-fund raids for many years, predicting they would force employers to pay higher payroll taxes when they can least afford it-in a recession. New Jersey employers absorbed a $350 million UI tax hike last year, and the fund still faces a shortfall of up to $1 billion this year. Past administrations of both parties diverted $4.7 billion in payroll taxes from the UI fund between 1993 and 2005. Had they simply left the fund alone, there would be enough money to pay benefits without increasing payroll taxes. For more information, contact Art Maurice.

NJBIA brought together 250 members and top legislative leaders at its December 8 Public Policy Forum to tackle the tough economic issues facing the State, beginning with a potentially large unemployment insurance payroll tax increase caused by the depletion of the Unemployment Insurance (UI) Fund.

The program (The Economy and Government Policy: What's in Store for New Jersey?) also featured a panel discussion on the economy, a taping of New Jersey Network's On The Record discussing the gubernatorial election, and an overview of the federal healthcare reform effects by former Congressman Robert Franks, president of the Healthcare Institute of New Jersey.

During a legislative leaders' discussion panel, moderated by 101.5 Radio Correspondent Kevin McArdle, Assembly Republican Whip Jon Bramnick said New Jersey employers would face a UI tax increase of "well over 100 percent, maybe more" if nothing is done between now and March 31.
He urged the Legislature and the Christie Administration to address it directly, so businesses would not lose confidence in the State. "Even though some of this news is grim, once we face it and business knows we're facing it, and knows we're taking positive steps, we'll be optimistic and move ahead," he said.

Assembly Speaker Joseph Roberts, who recently retired, said the State would likely get help from the federal government for the UI fund. He noted that the Corzine administration partially replenished the fund last year, adding $450 million in State funds and federal stimulus money.

"With some continued help from the federal government, we can mitigate what would be a dramatic and debilitating increase in the UI rate," Roberts said.

Responding to an audience question, the four legislative leaders agreed this is not a good time to require contractors to have apprenticeship programs, thereby shutting out many nonunion contractors and limiting competition in public contracts. NJBIA opposes the apprenticeship legislation because it would eliminate qualified and less expensive nonunion contractors from bidding on public contracts.

"No, not now," said Senate Republican Leader Tom Kean. "It will increase the cost of doing business in the State of New Jersey. I think it will drive out competition in important sectors of our economy."

State Senator Raymond Lesniak agreed. "Project labor agreements can be a very effective way to have good management and labor relationships," he said, "but I think we should leave well-enough alone, and be very cautious in terms of any expansion of them."

In the keynote address, Franks discussed government with a Republican Governor and a Democratic Legislature.

Franks said he served during the divided government of the Republican Kean Administration and a Democratic Assembly. "They found a way to move New Jersey forward," he said.

He predicted that Christie and the Legislature would work together because they have to. "This notion that Chris Christie can't work with these guys or these guys can't work with him, it's not true. Generally, this has presented historic, unique opportunities for cooperation and very significant progress."
On healthcare reform, Franks predicted that the political fallout from from their constituencies if they did nothing would drive the Obama Administration and congressional Democrats into passing it in some form.

Also at the Forum, a panel discussion on New Jersey's economic outlook featured Richard Bagger, senior vice president for worldwide public affairs at Pfizer, Inc.; Robert Staudinger, president & CEO of National Manufacturing Company, Inc.; Michael McBride, managing partner of Connell Foley LLP; and John Coiro, executive director, Ernst & Young.

At the same time, New Jersey Network Senior Political Correspondent Michael Aron taped an edition of his talk show, On The Record, with State Democratic Party Chair Joe Cryan, Republican State Senator Jennifer Beck, Republican Strategist Dale Florio and Democratic Strategist Harold Hodes. NJBIA also presented the Paul L. Troast Award to Assembly Speaker Joseph Roberts and, State Senators Joseph Kyrillos and Raymond Lesniak. The Leonard C. Johnson Award was presented to The NJ Community College Consortium for Workforce and Economic Development.

Thank You to the 2009
Public Policy Forum Sponsors

Premier Sponsors
NJM Insurance Group
The Port Authority of New York & New Jersey

Grand Sponsors
Connell Foley LLP
Horizon Blue Cross Blue Shield of New Jersey
South Jersey Industries
United Water
Verizon

Event Sponsors
AT&T
ConocoPhillips
Delta Dental of New Jersey, Inc.
CenturyLink
Fidelity Investments
Hartz Mountain Industries, Inc.
Healthcare Institute of New Jersey
Jersey Central Power & Light Co., A FirstEnergy Company
Johnson & Johnson
New Jersey Association of Health Plans
New Jersey Community College Consortium for Workforce & Economic Development
New Jersey Natural Gas
New Jersey Society of CPAs
NuStar Energy Corporation
Oyster Creek Generating Station/Exelon
Pfizer
Riker, Danzig, Scherer, Hyland & Perretti, LLP
sanofi-aventis
Sills Cummis & Gross PC
Wachovia
Wakefern Food Corp.

New Jersey's recession deepened in 2009 as individual companies, faced with plunging sales and profits, made dramatic cuts in spending and employment, according to NJBIA's 2010 Business Outlook Survey.

The 1,400 New Jersey employers who responded to NJBIA's annual fall survey also expressed little hope for a quick turnaround in the year ahead.

Forty-eight percent of survey respondents reduced employment at their companies over the past year, while only 8 percent hired more workers, making 2009 the worst year in a quarter century for this employment indicator. Most respondents said they do not plan to hire additional workers over the next 12 months, leaving an employment outlook that is flat. A majority of companies said they expect business conditions to remain at current low levels in 2010. Most also said they expect to keep a tight lid on spending.

"Our member companies don't believe the economy is going to bounce back quickly from this terrible recession we're in," said NJBIA President Philip Kirschner during a Trenton press conference releasing the findings. "Another challenging year is certainly in store for New Jersey employers."

Among the survey findings:
- Seven in ten companies said their sales revenues shrank in 2009, with two thirds of this group reporting double-digit declines. Forty percent expect their sales to improve moderately in the year ahead, 32 percent expect sales to fall, and 28 percent expect little or no change.
- Seven in ten companies said their profits fell in 2009, with two-thirds of this group reporting double-digit declines. The 2010 outlook for profits is flat, with 36 percent of companies expecting their profits to rise, 34 percent expecting them to fall, and 30 percent expecting no change.
- The outlook for private-sector employment remains essentially flat. Sixty-seven percent expect to keep employment at current levels, while 16 percent anticipate adding jobs, and 17 percent anticipate making further employment reductions.
- Seven in ten companies spent less on purchases in 2009, with two-thirds of this group reporting double-digit spending cuts. Thirty-six percent anticipate keeping their purchases at current levels in 2010, about 35 percent
anticipate spending less, and 30 percent expect to spend more.
- A bright spot in the 2010 business outlook can be found in respondents' outlook for their own industries. For the first time in five years, the overall outlook for companies' own industries has climbed into positive territory. Thirty-four percent of companies believe their industry conditions will improve
in 2010, 35 percent believe conditions will remain about the same, and 31 percent believe conditions will deteriorate. The net percentage expect­ing a change for the better, therefore, is 3 percent (with rounding). The move into positive terri­tory is small, but it is positive nonetheless.
- A detailed analysis of the outlook by industry (see Table below) indicates that companies in four industries hit hard by this recession- namely housing construction, manufacturing, retail sales and transporta­tion-believe the worst is be­hind them.

Business confidence in New Jersey as a place for business expansion has continued to fall. Eleven percent of survey respondents said New Jersey is a good place for expansion of their business facilities, a record low, and down from 50 percent just nine years ago.