Tag Archives: New Jersey

Industrial Sector Will Continue to be Driving Force in NJ Construction Next Year

Industrial development is going to continue to be a driving force in New Jersey’s construction industry in the near future but land supply will likely fall short of the demand, according to CBRE, a commercial real estate and investment firm, which released its third quarter industrial market report for the state and looked at 2020 and 2021 as well.

“The demand is there,” said Mindy Lissner, CBRE industrial broker and executive vice president told RealEstateNJ. “It’s justifying the pipeline and what’s getting built, so I don’t think we’re overbuilding—I think we need more buildings right now to satisfy requirements.”

Projected deliveries through 2020 will add roughly 22 million square feet to New Jersey’s stock of industrial space, Lissner said. About a third of that space is “already leased or spoken for,” she said, adding that the firm is tracking between 40 million and 50 million square feet of current demand overall. That would be nearly two-thirds of the state’s overall construction pipeline that CBRE is tracking over a five-year horizon, which comprises about 150 projects spanning 65 million to 70 million square feet, according to the article.

E-commerce companies looking for warehouses to store their products are a primary factor for the quest for more space. But it’s not just about space. These corporations are also looking for more modern, better functioning facilities that have higher ceilings, technology, and better, more efficient layouts than the buildings of the past, Lissner said.

Some of the biggest industrial projects in the state include: the 4.1 million square foot Linden Logistics Center; the Opus Warehouses 975,000 square-foot distribution center in Phillipsburg; and Kingsland Meadowlands three million square-feet of warehouse space on more than 700 acres spanning parts of North Arlington, Lyndhurst and Rutherford.

Industrial construction won’t be the only area to see growth in the near future. The CBRE third quarter office market report released last week predicts that office construction in South Jersey’s Philadelphia suburbs will improve as well with space more than doubling in Philadelphia and the surrounding area, the report said.

New Law Aims to Expedite TTF Projects, Aid Infrastructure Repair

As Newark residents deal with the crisis of lead in the water, once again the dangerously aging infrastructure in New Jersey is in the spotlight.

Last month, Governor Phil Murphy signed a bill into law that aims to better the process for Transportation Trust Fund projects, which is intended to reduce delays in planning and bidding and save money. That should also impact the ability to get moving on infrastructure projects around the state, according to the bill sponsors.

“If we are going to improve our failing infrastructure, the state must do a better job with the TTF money.” said assemblyman Anthony Bucco (R-Morris), one of the sponsors of the bill.

Projects similar in size and scope that are funded in part or completely through TTF can now be bundled and included under a single contract, according to njspotlight.com. Supporters of the law say that should expedite approvals, control costs and get projects moving more quickly.

State senate president Steve Sweeney said the law will “facilitate the timely contracting and completion of capital projects by allowing third-party engineering consultants to ensure that contractors are completing projects on time and within budget. This will make the construction and repair of vital transportation projects more efficient and more effective. We want to put people to work and get the projects done in a timely manner so that improvements to our roads, bridges and other transportation facilities are made as quickly as possible.”

We’d like to know what you think—will this law have a positive impact?

Apprenticeship Law Impacts Companies

This year’s new apprenticeship requirements appear to be impacting the number of contractors who seek public works registration certification.

The law requires New Jersey public works contractors to participate in a U.S. Department of Labor-approved apprenticeship program to get or renew a public works contractor’s registration certificate. It requires any apprenticeship program include training for “every classification of worker that is employed on public works projects.”

According to the NJ Department of Labor and Workforce Development, the year to date numbers show a marked decline in contractors seeking the certification in the state.

As of June 30, 2018, NJ Labor Department registered 4,429 contractors.

As of June 30, 2019, there were 2,518 contractors registered.

While we can’t say how much of the drop is caused by the new law, which was signed by the governor in January, anecdotally, we do know some contractors have not sought a new license this year specifically because of the apprenticeship requirement.

“The Labor Department is committed to working with contractors to help them into compliance with the new apprenticeship requirement,” a department spokesperson said in an email.

We’d like to hear from you. How has the apprenticeship law impacted your company?

South Jersey Sees Big Things For the Future

At last week’s Southern New Jersey Development Council Construction (SNJDC) Forecast, council president Marlene Asselta said she is hopeful about economic development for the area in the near future, according to NJTV News. She called South Jersey an “awakening giant.”

At the event, the redevelopment of the former Echelon Mall in Voorhees Township was discussed, and a call was put out to engineers, planners, and developers for what the township hopes will become an entertainment destination. The first floor of the former mall could even become a culinary arts center.

But Voorhees wasn’t the only place with big plans.

In Burlington, there is talk of a mixed-use development project around the Delaware River. It would have retail, restaurants, a hotel, and maybe a water park on the property of the old McNeal Mansion and U.S. Pipe in Burlington City.

When it comes to stimulation spending, libraries in the area could get in on the coming building boon too. Thanks to the Libraries Construction Bond Act, money could go for new construction or renovations, according to the state librarian.

While all of New Jersey is hoping for construction that brings new choices for retail and entertainment across the state, the SNJDC believes South Jersey will be the Garden State’s place to develop and build in the next few years.

 

Report: Construction Slows on Much Needed Bridge Repairs Across U.S.

The American Road & Transportation Builders Association (ARTBA) released its 2019 Bridge Report, and it is a good news/bad news (mostly the latter).

While there are fewer structurally deficient bridges than the year before, construction to fix them has slowed to the point where it would take 80 years to make the needed significant repairs, according to the report. That is not a good trend when the more than 47,000 structurally deficient bridges across the country are in need of “urgent” repairs.

Based on data from 2018, the “highlights” of the findings include:

  • Four out of 10 bridges need to be replaced or repaired
  • 47,052 of America’s 616,087 bridges are rated “structurally deficient” and need urgent repairs
  • The pace of repair in 2018 slowed compared to previous years—with only a 1 percent net reduction of deficient structures.
  • Americans cross these deficient bridges 178 million times a day.
  • Average age of a structurally deficient bridge is 62 years, compared to 40 years for non-deficient bridges.
  • 235,020 (38 percent) of U.S. bridges have identified repair needs.
  • 18,842 (1 in 3) Interstate highway bridges have identified repair needs

The report breaks down the crumbling infrastructure by state.

Rhode Island ranked first on the list by the percentage of deficient bridges with more than 23 percent of its 780 bridges found to be structurally deficient. Pennsylvania was fifth on the list with 3,770 of its 22,737 bridges listed as deficient, which is more than 16 percent. New York was 13th (1,757 out of 17,521/10 percent). New Jersey was 23 (544 out of 6,746, 8.1 percent).

Northeast Projects At Risk of Delay, Defunding To Pay for Border Wall

There are many government construction projects in the Northeast that could be delayed and millions of dollars in funds may be diverted to pay for President Trump’s Border Wall. The  Department of Defense list of military projects that could potentially be impacted was released this week by a senator on the Senate Armed Services Committee.

In New Jersey, a $41 million construction project at Picatinny Arsenal is at risk of being delayed, but the four projects—including work on electrical systems and mechanical systems, as well as exterior renovations and  cleaning and repairing lift stations and catch basins—totaling more than $100 million for Joint Base McGuire-Dix-Lakehurst would go ahead as planned because those contracts are scheduled to be awarded in March, April, May and September, and the Defense Department said it would not divert funding from projects scheduled to begin before Oct. 1, according to NJ.com.

In New York, The U.S. Military Academy in West Point could lose up to $160 million designated for a new engineering center and parking centerArmy Times reported.

Four projects in Pennsylvania are at risk, including a $71 million submarine propeller manufacturing facility in Philadelphia. In Delaware, the $39 million aircraft maintenance building at Dover Air Force could be delayed, according to Delaware Business Now.

As of now, no project would be cancelled to fund the Border Wall, the Pentagon said. But for that to hold true, Congress must approve the request to fully replenish the funds, according to the Army Times.

Murphy Focuses on Infrastructure; NJDOT, NJTA Advance More Than $1B in Contracts for 2019

Construction will play a big part in New Jersey governor Phil Murphy’s plans for the future. The governor is focused on fixing the state’s crumbling infrastructure, among other core issues. In this week’s state of the state address, he spoke repeatedly about investing in _infrastructure as a way to bring jobs to the state now and in the future.

The state had already put money behind those priorities. In December, the New Jersey Department of Transportation and New Jersey Turnpike Authority announced it was advancing more than $1.1 billion in construction contracts for 2019.

NJDOT will issue over $500 million in construction contracts between now and March 2019 and the NJTA will issue more than $600 million, adding over $400 million in new projects currently under design, according to the press release.

Murphy isn’t only focused on roads and rails. At one point during his speech, he specifically called out the water infrastructure issues:

“Let us use this year to also turn our attention to our aging water infrastructure. More than 1.5 million residents – north, central, and south, rural and urban – are currently serviced by water with elevated lead levels. We must leverage every opportunity to build a modern water infrastructure network that ensures the delivery of clean water to every child, and every family. We have inherited water infrastructure that is, in some places, a century old, if not older. … Outdated infrastructure is a national problem, and it requires a federal solution. I will continue working with our Congressional delegation to press the federal government for greater support and assistance — whether it pertains to clean water, or getting the Gateway Tunnel built,” he said.

2014 Is Your Year to Grow and Prosper

Three Tips to Help Material Suppliers Increase Sales

The weather outside is frightful and it may seem the perfect time for construction material suppliers to wait out the cold weather in anticipation of the busy season (when the call for concrete, gravel, fencing, landscaping, signage, etc. will be in full swing). It’s true, winds and snowstorms cause construction project delays, temporarily sidelining crews throughout the Tri-State Region, delaying the purchasing of materials.

However, spring is coming! Plan ahead by using your down time to get your company’s products and services in front of would-be customers and to look for ways to upsell or increase the average spend of existing clients. Many general contractors and subs have their usual list of suppliers. Want to become a go-to resource? Get in front of them by considering these ideas for kick-starting sales in the New Year:

 Get Social!

Networking, as you already know, is not only worthwhile, it’s necessary if you want to find new clients. You can do it the tried-and-true way; face-time allows you to find out, in person, how your company can help them overcome their challenges in the marketplace. In addition to catching up with current clients, you may get an opportunity to shake hands with key decision-makers you haven’t been able to get to take your calls. Don’t forget to ask happy customers for referrals and introductions, as well!

Of course, don’t forget about social media. If you personally prefer not to “Link,” “Like” or “Blog,” find someone in your organization who knows their way around the Internet. Every time you make a move online to talk about your company, your message gets shared with an exponential number of online users. It’s like distributing your business card to thousands of people at once.

When Disaster Strikes, Are You Ready to Sell?

In the wake of SuperStorm Sandy and a host of Nor’easter blizzards, there is a lot of attention being paid to disaster planning and how rising tides and other climate issues will impact construction requirements. Whether this is your core business or not, don’t miss out. Think restoration, fortifying foundations, raising, moving, building infrastructure to repair damage and prepare for changing climate and the next disaster.

To make sure your company is not missing out on disaster-related opportunities, apply to be included on the U.S. Federal Contractors Registration as well as FEMA’s Debris Removal Contractor Registry. Both of these registries are go-to resources after disaster strikes. Additionally, the New York Governor’s Office on Storm Recovery advises residents to check with municipal building and construction officials for recommendations on “Finding Reputable Contractors.” Regardless of which state your company is located, go shake some hands and get listed on the lists of referred contracting material suppliers in your region.

Want More Sales? Get Serious about Advertising

In addition to your company’s website (which should be updated regularly), it’s important to become familiar with the variety of online advertising resources that will allow you to reach prospects. The Internet is called the World Wide Web for a reason; there are many options out there, at a variety of price points.

Be smart; put your money where your would-be clients are looking. To maximize your budget and increase your hit rate, choose advertising outlets that allow you to reach your target audience — prospective clients in your ideal geographic region. Point of note:  you are reading this article and so are your clients and competitors.

CIS can help you meet all three of the objectives outlined in this article. The great thing about Internet marketing is that you can change direction, literally, with the click of a mouse button. Take the time now to prepare multiple targeted messages that can be implemented in online ads and emails over the next several months, as needed. In addition to having something ready to go to market your company if disaster strikes, you can think ahead to seasonal promotions and be ready to reach customers fast!

CIS’ advertising opportunities help companies like yours reach thousands of potential clients and partners. It’s targeted by geography and interest. Like you, CIS’ online visitors are bidding on work found on CISLeads.com and winning jobs. Contact CIS for assistance with a customized advertising plan that will take your business to the next level in 2014.

When it comes to winning more business in 2014, you need to find a way to connect with more people. Further, it’s important to do more than just talk about what you are selling; make sure your audience needs to buy what you have to sell. Whether you opt for the old fashioned face-to-face meeting or the consistent “e” communication with an online newsletter, blogging or electronic advertising, you have to set in place a strategy for winning new business and work your plan.

CIS is here to help. If we can help you reach more customers, please let us know. Visit cisleads.com or email customer service at Sue@cisleads.com.

 

Updated Digs May Give NJ Students Reasons to Stay

Plans Underway for College Campus Construction Projects
By Chris Colabella

New Jersey residents may not always agree with how elected leaders spend their money but, like it or not, more tax dollars are spent to educate public schools students here than in almost any other state in the country. In fact, according to the National Education Association, per-student spending on New Jersey K-12 public education was the second-highest in 2010-2011.

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Goya Breaks Ground on Jersey City Headquarters

N.J. Tax Incentives Give Company a Reason to Stay, Create Construction Jobs
By Chris Colabella

goya

The original Goya Foods sign – circa 1937.

Thanks to the fact that almost two dozen of the largest pharmaceutical companies call it home, New Jersey is actively working to retain and attract many other international companies. That’s great news for the local economy as well as the construction industry, since major N.J. tax initiatives are incentivizing companies to stay put and expand here – adding up to great construction jobs.

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