Monmouth Business Perspective Second Quarter 2011

Monmouth County Office of Economic DevelopmentMonmouth Business Perspective

Second Quarter 2011

Monmouth County Department of Economic Development and Tourism

Monmouth County Board of Chosen Freeholders

Robert Clifton, Director

John Curley, Deputy Director

Lillian Burry

Amy Mallet

Thomas Arnone

RepoRTing MeThoDs

The Department of economic Development queried all municipalities regarding non-residential permits valued at more than $25,000.

Municipalities responded with detail regarding these permits. The data was checked with internal sources for accuracy.

MuniCipAL RepoRTing sTATus

sixteen municipalities reported they issued no qualifying permits- Atlantic highlands, Brielle, Deal, Fair haven, highlands,Keansburg,Lake Como, Loch Arbor, Millstone, oceanport,Roosevelt, Rumson, sea girt, shrewsbury Borough and Township, spring Lake and spring Lake heights.

Large projects, valued at more than $500,000 each, were noted in Manalapan, Wall, Freehold Twp,howell, Red Bank and neptune Twp.

Monmouth Business Perspective

ConsTRuCTion spenDing upDATe AnD AnALysis

The combined dollar amount of construction in the four nonresidential areas that this department studies – Commercial/Retail, Office/Research, industrial and public – was $22,227,562 in the second quarter of 2011, compared to $11,005,928 in the first quarter of 2011. While the growth is modest, it does represent a significant uptick in spending.

The dollar value of permits issued in the Office/Research sector was $5,887,592, very close to the $2,792,298 of the first quarter. Significant projects in the reporting quarter are in howell Twp, Middletown Twp, Wall Twp, union Beach, Manalapan, Freehold Twp,and neptune Township. Most municipal construction offices report expansions and refittings of existing buildings.

in the Commercial/Retail sector, permits valued at $12,908,833 were issued this quarter, compared to $5,988,785 in the first quarter 2011 and $8,823,350 in the first quarter of 2010. sizeable projects were reported throughout the county, particularly by

Manalapan, Freehold Twp, howell Twp, Wall and Middletown. new constrution was reported in Red Bank,Freehold Twp, howell, Manalapan and neptune Twp.

As expected, there was little activity in the industrial sector. permits valued at $308,000 were issued in the current quarter, compared to $300,000 in the first quarter of 2011. This does represent a small, but steady improvement over 2010, when the first quarter permits in the industrial category totaled $68,000 and in the second quarter totaled $162,000. The projects in this quarter were in Freehold Twp.

in the public sector, permits valued at $3,123,137 were issued in the first quarter, compared to permits valued at $1,924,865 in the first quarter of 2011. These permits were mainly for roof repair and solar panel installations. however, in

2010, permits for public projects were quite robust, which is likely the effect of stimulus funds in 2009/2010 for upgrades and repair to schools and municipal projects.

Monmouth Business Perspective

WhAT iT ALL MeAns

in spite of the fact that the value of permits issued is less than they were a few years ago, the business outlook in Monmouth County is positive.

An analysis of trends and issues provided by grubb & ellis, Mid-year 2011 report, indicates that surging energy prices have likely stressed consumer spending. As energy prices are now declining, albeit slowly, there should be a concurrent increase in investor spending in Monmouth County for the remainder of the year.

The forecast for new Jersey is bright. With the excellent availability of commercial and warehouse properties, and the decreasing per square foot cost, it is very likely that investors will see central new Jersey as an excellent place to locate or expand.

As Monmouth County remains an active destination location, it is a natural choice for business location. The presence of major shopping venues, such as Monmouth Mall,

Freehold Raceway Mall and The Jersey shore premium outlet Centers makes the area ripe for ancillary and complimentary businesses.

Furthermore, Monmouth County has a vibrant manufacturing sector, an industry that creates good

paying, stable jobs with potential for growth. This department is actively working to assist our manufacturers by offering regular roundtable events with valuable topics that manufacturers need to keep growing. The roundtable format has been expanded to assist the banking industry and the real estate industry in an effort to offer every industry in Monmouth County valuable tools to grow.

Monmouth Business Perspective

Summary

The dollar amount of permits issued in this quarter is about $11,000,000 more than the first quarter of 2011. This steady and sustainable growth indicates that Monmouth County maintains a solid economic base that attracts quality investment at a steady pace.

if the economic downturn faced by the state and nation taught us anything, it is that the Monmouth County Department of economic Development must aggressively pursue its grow Monmouth initiative, an effort designed to empower business and create jobs. grow Monmouth is in the development stages and will roll out in the new year with an advisory board and concrete, defined goals set by business,

government and academia.

in the post Ft. Monmouth and recession economy, there is potential for tremendous growth and recovery. Monmouth County has natural resources that are in abundance, creating the ideal location for business, job creation and a healthy lifestyle.

Summary