Even during times of prosperity, business executives have a lot on their plate, but the difficult decisions they face on a daily basis become especially stressful when the economic climate is being tested by a multitude of factors like it is today, many of which are beyond their control. There is no question that businesses of all sizes from a range of industries have been significantly impacted by the effects of inflation and rising costs, by global conflicts and by the upcoming presidential election, leading to uncertainty across the board.
While long-term strategies are on hold in many instances, the news isn’t all bad. Some companies have managed to not only stay afloat but also invest in the future while remaining committed to their plans for both expansion and growth.
July marks an important time to evaluate the first half of the year, and South Jersey Biz took the opportunity to speak with two local leaders about the successes of 2024 so far, the challenges businesses are facing and their concerns moving forward. Matt Paparone is the vice president of marketing for Bruce Paparone, Inc., a prominent builder of new homes in South Jersey, and Kristi Howell is the president and CEO of the Burlington County Regional Chamber of Commerce.
How is business being affected by such issues as inflation, the upcoming presidential election and global conflicts?
Matt Paparone: “Usually in the past we would see a lot of fluctuation in election years and with inflation, and when rates went up we did have a dip in 2022, but in the first half of this year we’ve been pretty strong. Inventory is super low across resale homes and new homes, so our new-home business has really benefited from that. Sales have been strong and we also have a couple of jobs in really good towns across South Jersey: Mullica Hill, Lumberton and Monroe. We’re where people want to be, we’ve got a great product and there’s not a lot out there, so we’ve really benefited from that.”
Kristi Howell: “We’re hearing from business leaders in the chamber that inflation and the rising costs of doing business [are a challenge]. Even just taking clients out for coffee and lunch has gone up tremendously because of the food costs. Of course, I think we’re all focused on November and on what happens leading up to November’s presidential election. There are always changes in the economy before and after [an election] and it’s a big unknown right now, and we’re already kind of feeling a crunch. … It’s kind of a helpless position, so we’re seeing that businesses are spending very conservatively right now.”
Moving forward, what are the challenges on your radar as a company?
MP: “On the demand side, we’re always worried that affordability will be an issue. With inflation, we’re not raising prices to keep up with our costs as quickly as we were a couple of years ago, but prices are still historically high, and they got high historically fast. So we’re always worried about affordability, but that’s more of a theoretical or potential issue. Right now, our biggest challenges are on the supply side with getting projects designed and approved. New Jersey is a hard state to work in from the regulatory end of it, and things are always changing, whether it’s environmental rules with stormwater regulations or construction standards. We’re constantly trying to keep up with this stuff, and the more it changes, the harder of a time we have getting projects designed and approved to get them in front of the township.”
Are there any current developments in your industry that you are encouraged by?
KH: “Something that excites me is that the chamber is going to be partnering with the Joint Base [McGuire-Dix-Lakehurst] in October to host the first-ever ‘State of the Base.’ It will be the first time since joint basing and certainly since 9/11 that the base is going to be widely open to the business community, and they’re going to come in and get to hear about opportunities to do business and hear about the economic impact that the joint base has, and what that does not only for our county but for the entire state.”
Overall, do you feel optimistic about where things are headed?
MP: “I’m definitely optimistic. If I weren’t, it would be hard to get out of bed in the morning. As I said, we’re having a tough time getting things approved, but we’re at the tail end of some of those long slogs, and we’ve got some really exciting projects on the horizon. I think we’ve positioned ourselves well to be successful in the next few years.”
Do you feel like CEOs are losing sleep at night over the current challenges, or are they used to certain obstacles in business?
KH: “I don’t think anybody is quite at the point where they’re losing sleep but I think as we get closer to the election, there will be some concerns. But the Burlington County and South Jersey business community is a tremendous network of people who support each other and it’s unbelievably resilient. We saw that through COVID and that’s exactly where we are now. I often hear businesspeople referring to each other as friends, and here in South Jersey I think we’ve built and developed those solid relationships with one another, and people will help out to the best of their ability to see someone else be successful.”
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Published (and copyrighted) in South Jersey Biz, Volume 14, Issue 7 (July 2024).
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