Officials hope economy will look up in 2004

BY MAURA DOWGIN and COLLEEN LUTOLF
Staff Writer

Officials were guardedly optimistic that the local economy will improve in 2004.

Carl Spatoro, director of the Middlesex County Department of Economic Development, said the economy and job market are expected to improve in the coming year.

Middlesex County "is such a diverse county. There’s always an area [of business] that will pick up the slack," he said.

Although there may be fewer manufacturing jobs than there were previously, positions in the service industry are opening up all over the county, he said.

"The job rate is continuing to rise," Spatoro said.

The number of jobs is increasing while the unemployment rate is dropping, which is good news for all residents of the county, he said.

The desirability of the area for business was evident when Victoria Classics, a manufacturer of household products such as bed linens, recently announced its purchase of the former Electrolux site on Route 27 in Edison, Spatoro said.

When Electrolux shut the doors to its plant last summer, about 1,300 jobs in the local area were eliminated. The plant made Frigidaire air conditioners.

The local area will lose about 900 jobs, 800 of which are manufacturing jobs, on Feb. 27 when the Ford Motor Co. plant on Route 1 in Edison is slated to close its doors.

Other towns in the county also saw a loss in manufacturing jobs last year.

In North Brunswick, Johnson & Johnson announced plans to begin the shutdown of its local manufacturing division in February, which will take about 500 jobs away from the local area.

In Sayreville, Green Tree Chemical Technologies closed its doors and laid off more than 100 employees.

Around 150 jobs were expected to be lost with the closure of an Ecko Unlimited manufacturing site in East Brunswick. Additionally, Toys "R" Us’ closing of 182 Kids "R" Us stores affected many workers who were employed in the chain’s East Brunswick location.

Despite the closures, business all over the county is growing, Spatoro said.

While the northern end of the county leaned toward redevelopment projects, the southern end of the county is attracting new business development, he said.

Gloria Dittman, president of the Edison Chamber of Commerce, said there is a more comfortable feeling around the local area, the state, and the country when it comes to the economy.

"There have been large improvements over the last two years," Dittman said.

She cited recent events such as the capture of Saddam Hussein and the increase in the stock market as factors that make people feel as if they live in a "secure, safe society." The increased feeling of safety could contribute to safer feelings in the business world and more people spending money, she said.

In East Brunswick, the economic situation appears to be looking up, according to Marianne Wehrenberg, executive director of the East Brunswick Regional Chamber of Commerce. She noted a 22 to 25 percent changeover in local businesses, as has been the norm in recent years.

"The changes I do see mostly are with the smaller businesses either retiring or going out of business, and larger businesses coming into the area," she said. "For example, you have Kohl’s and Lowe’s and the larger corporations you did not have before."

She said Kohl’s replaced Bradlees, which was more of a regional chain as opposed to a national business.

Looking ahead at 2004, Wehrenberg said she believes business owners want to located in central Middlesex County because of its location.

"I think East Brunswick, Spotswood and South River offer the buyer and local people a cross between the very large shopping centers of the Edison and Woodbridge area, and what’s down in Freehold. It’s a central location and you can get whatever you need in this area, and that’s a good thing," Wehrenberg said.

Other local officials also expressed hope for a better 2004.

"It’s about the same," Carole S. Hila, president of the Woodbridge Metro Chamber of Commerce said. "It’s about status quo. We have hope but no real high expectations."

Hila said jobs are available, "but it depends upon what kind of job you’re looking for."

With Wegmans and two new hotels, the Fairfield Inn, Avenel, and the Hampton Inn opening last year, Hila said there are more jobs to be found locally. But post-collegiate job hunters will still have a hard time finding a place to begin their career path in Woodbridge.

"Are jobs still scarce? Sure they are," she said. "Unless you’re looking for a job at Wegmans, the higher-end positions are still scarce."

After 9/11, Hila said, corporate travel dropped tremendously.

"The restaurant and hotel industry went into a slump and travel went on hold," she said. "We’ll see if that improves this year."

Hila said businesses are courting customers with good service, and that means a lot.

"Years ago, businesses had a more impersonal outlook. We see that changing. Hopefully, that will have an impact," she said.

"[The business outlook] is just about the same," Hila said. "I’m always very hopeful."