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Cautious Optimism
South Jersey experts weigh in on rising costs, business resilience and what lies ahead.
Business owners and consumers alike across the entire South Jersey region are feeling the economic pinch in a variety of ways. Costs are rising for almost all daily needs, whether they are personal or business related, applying pressure across the area’s middle class as they try to get by with tightening budgets.
That strain is being felt from the price of fuel and utilities to the cost of office and warehousing space, labor expenses and everything in between.
“First, inflation remains elevated and continues to present challenges as businesses try to manage their costs and set the prices for their goods and services,” says Anthony J. DeSalle, second vice chair of the New Jersey Bankers Association and president/CEO of Crest Savings Bank.
“Second, the current interest rate environment presents another challenge as borrowing costs are high, which deters capital spending. Also, existing borrowers who are renewing their loans are seeing a significant increase in interest cost. Lastly, home affordability has made it difficult for businesses to attract new workers. What might normally be considered a good salary is often not enough to qualify for a home in many parts of South Jersey. This can have a real impact on businesses trying to attract talent.”
The issue of not being able to attract new workers in the region due to the increased cost of housing reflects how the economic cycle impacts consumers, employees and businesses, as rising costs hit businesses not only through their own expenses but also in how rising costs hit employees and consumers too.
As individuals and families are also being strained by the rising costs of everyday goods and services, they are becoming more thoughtful about what they purchase, particularly when it comes to discretionary purchases, and how much they are able to spend while still being able to afford the necessities.
“As households manage higher costs for food, energy, housing, insurance and credit, they are becoming more selective about discretionary spending. Businesses are seeing softer demand, greater price sensitivity and, in some industries, longer collection cycles. Many are responding with more cautious hiring, delayed expansion and greater investment in technology and productivity,” says Robert R. Bender Sr., regional vice president, commercial banking at TD Bank.
However, while all of that strain is being felt, hope for the South Jersey economic scene is not lost, as there is currently a lot of optimism from those in the banking and finance industries throughout the area about the state of the economy and how businesses are currently faring.
“Right now, I look at our local economy with cautious optimism because our business community is incredibly tough,” says Adam Remshifski, CCUE, senior vice president, marketing at American Heritage Credit Union. “Things are definitely slowing down and leveling out across the state compared to the wild ups and downs of the last few years. But this change actually brings a welcome sense of predictability. It is a transitional time, but I know that business owners who plan ahead can absolutely find great opportunities to succeed.”
This resilience in the South Jersey business market is in part credited to the adaptability of businesses and the responsibility of business owners and managers across the region, handling debt carefully and making smart business moves to make those tightening budgets stretch as far as possible in as many ways as possible.
“We always encourage our business clients and partners to prepare for the unexpected,” says Mike Dinneen, president & CEO of First Harvest Credit Union. “Whenever possible, reduce debt and manage expenses wisely. Given the interest-rate environment, businesses should be mindful of taking on additional debt unless it is needed for working capital or meaningful expansion. However, the rising-rate environment also provides opportunities for businesses with excess cash to invest.”
Taking the opportunity to invest where possible is vital, and Dinneen emphasizes that this goes well beyond just monetary investments, as focusing on tools for fraud detection and other cybersecurity measures that will protect both their own assets and the data and security of their customers is crucial. These steps should be a top priority for anyone looking to operate a safe business that consumers can trust with their sensitive financial information.
Financially preparing in the current economic climate also includes making plans for a range of different possibilities and outcomes and prepping for exactly how to respond to each in a way that will allow the business to remain resilient and stay afloat no matter the circumstances as the national economy continues to be in a state of uncertainty.
“Businesses are responding by becoming more intentional and efficient,” says James Andreacci, market president of Southern New Jersey at OceanFirst Bank. “Many are reviewing expenses more closely, renegotiating vendor relationships, investing in technology, improving productivity and being selective about hiring and expansion. We are also seeing companies strengthen their banking relationships, revisit their capital structures and focus more on liquidity planning.
“The businesses that are navigating this environment most effectively are those that understand their numbers, plan for multiple scenarios and communicate early with their advisors, lenders, accountants and legal partners. Local chambers of commerce, business organizations and economic alliances are also working closely with businesses to provide support and help bring additional opportunities to the markets they serve.”
The resiliency and adaptability of the people of South Jersey, whether they be in the position of just being consumers, owning a small business or helping to manage the operations of larger businesses, has allowed for some elements of the area’s economy to remain in good condition, most notably including the labor market and continued overall growth.
“The labor market’s been incredibly resilient here,” says Andrew Davis, head of investment strategy at Bryn Mawr Trust of WSFS Bank. “You’re seeing a cooldown in hiring, but you’re not seeing layoffs pick up, and that’s true nationally. But that’s also true of the broader Philadelphia, Camden, Wilmington, South Jersey area. And that’s a big one to understand because we’ve been pointing out that slowdown isn’t breakdown, and that's what we’re seeing. There’s a difference between slowing growth and breaking growth, and we’re really not seeing evidence of breaking growth.
“We feel like the expansion can keep going here even if it’s slower, and so that’s good news for businesses. But it’s just being more thoughtful about where you’re putting capital to work, how you’re creating flexibility in your balance sheet, that sort of thing. That’s how I’d be thinking about it.”
As the economic state of the country remains uncertain and difficult to navigate, owners of businesses, employees and consumers are all looking for reassurances about what to expect for the rest of 2026 and into next year, and what they should be doing to prepare for the realities ahead. While no economic forecast can say for certain what will happen in the near future, current conditions and trends can help point to where things will be going to help make informed plans for the last two months of the year and into 2027.
“I would say economic predictions would be like the prediction of going into the fall and winter weather,” says Stan Molotsky, president and CEO of SHM Financial Group. “What are you going to have in the fall and the winter that you didn’t have in the spring and the summer? Well, you’re going to have thunderstorms. You’re going to have snow, sleet, freezing weather, and I think you could probably and possibly have that within the economy itself. Stormy things, unpredictable things. You’ve got to look out for the sleet so you don’t fall.
“That’s what you have to look out for in the marketplace, stock-wise, and in the investing arena. These levels probably will not be sustained, and you have to be prepared for the worst. And you protect yourself against all the uncertainties that there are, and there are ways to do that, and that’s what people should be looking to do. Just protect themselves against the storms that are going to be coming as they do every season.”
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Published (and copyrighted) in South Jersey Biz, Volume 16, Issue 10 (October 2026).
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