NJBIZ

NJTC’s 2017 Innovation Forecast at Bell Works highlighted N.J.’s collaborative companies

NJ Tech Council President Jim Barrood said he couldn’t imagine holding the group’s 2017 Innovation Forecast anywhere but Bell Works.NJ Tech Council President Jim Barrood said he couldn’t imagine holding the group’s 2017 Innovation Forecast anywhere but Bell Works.

“We are back in this historic (place) that is being reimagined and looking amazing,” he said. “This is a great symbol for New Jersey.”

It mirrored the goal of the event, according to Barrood.

“It highlights all the great innovations from our largest companies to our small- and medium-sized companies throughout the state,” he said. “They all help each other in different ways.”

The idea, Barrood said, is to bring these disparate companies together because, ultimately, they share a common goal.

And, as a part of the same ecosystem, they feed of each other.

“The large companies need to innovate and license and buy small companies,” he said. “Small companies are much more agile and they are able to bring up new ideas, products and services much more rapidly.”

To drive that home, Marcus Weldon, president of Nokia Bell Labs, provided the keynote address.

In his remarks, Weldon emphasized the relationship between Nokia and its subsidiary, Bell Labs, and how that large company can support the innovation in New Jersey and around the world.

“You know that parent is big enough to support Bell Labs,” he said. “It’s about a 28 billion euro company and Bell Labs is about $200 million as an investment.

“So, you see, it’s about less than 1 percent revenue of the company goes into Bell Labs,” he said. “Unless you have a big company like that, you’re not necessarily going to have a viable Bell Labs.”

To further Barrood’s point, the event also featured presentations from both large and small New Jersey companies. Siemens, BASF, Stryker and ODH all offered presentations on their emerging innovations, while notable emerging companies, such as AeroFarms and Vydia, delivered pitches to the audience.

The afternoon was rounded out with a discussion on new innovation acceleration and funding models moderated by David Sorin of McCarter & English.

Rutgers Hall’s Class of 2017 features prominent businesspeople

The Rutgers University Alumni Association will induct four honorees into the Rutgers Hall of Distinguished Alumni on May 6, and the event will have a distinct business flair, featuring accomplished leaders in investing, construction, technology and health care.The Rutgers University Alumni Association will induct four honorees into the Rutgers Hall of Distinguished Alumni on May 6, and the event will have a distinct business flair, featuring accomplished leaders in investing, construction, technology and health care.

This marks the school’s 30^th annual awards ceremony.

“The Rutgers Hall of Distinguished Alumni celebrates Rutgers graduates who move our society forward in life-changing ways,” said Donna Thornton, vice president for alumni relations, annual giving and communications. “This year’s honorees make all of us in the university community proud to be scarlet forever.”

This year’s honorees, and their achievements, include:

Ray Chambers, School of Business, 1964
Ray Chambers co-founded a successful private equity firm before embarking on a second career in philanthropy and as a United Nations special envoy. His work has had a profound impact on global health initiatives and on the cultural, educational and economic life of his hometown of Newark, New Jersey.

Alice Lazzarini, Graduate School of New Brunswick, 1976, 1996
Alice Lazzarini is a renowned medical researcher and the author of “Both Sides Now: A Journey from Researcher to Patient.” During the mid-1990s, she co-discovered the first gene mutation linked to familial Parkinsonism, changing the paradigm of Parkinson’s research.

SY Lau, Rutgers Business School–Newark and New Brunswick, 2004
SY Lau is a leader in the development of China’s flourishing internet industry. He is senior executive vice present of Tencent Holdings Ltd., the fourth-largest internet company in the world, and president of its Online Media Group.

Richard Weeks, School of Engineering, 1950
Richard Weeks is chair of Weeks Marine Inc., one of the leading marine construction firms in North America. The company handles projects throughout North and South America, from inland waterways to offshore sites in the Pacific and the Atlantic.

More information about the event and the inductees can be found on the event website.

ACA repeal could be devastating fiscal hit to N.J. economy

The repeal of the Affordable Care Act, without a viable replacement, could be a devastating financial hit for New Jersey, where 18 percent of the economy is rooted in health care, according to Raymond Castro.

Castro, a senior policy analyst at New Jersey Policy Perspective, said that, in fact, growth in the health care sector “kept the state afloat” during the economic recession.

NJPP co-released a new chartbook with the New Jersey for Health Care Coalition, which provided county by county data on the number of people that have Medicaid and Marketplace coverage at stake.

The data also showed the loss of federal funds and health care jobs as a result of a repeal in 21 counties.

The greatest impact would be Essex County, which would see a total loss of coverage for 100,000 residents and about half a billion dollars in federal funding, Castro said.

In addition, of the estimated 86,000 jobs statewide that would be lost, 9,000 are in Essex County.

The lowest impact would be in Salem County, where more than 7,600 residents would lose coverage, nearly $30 million would be lost in federal funding and about 600 jobs would be lost.

A key concern is not just the fiscal impact for the government, industry and residents, but in addition, the utilization trends that were achieved with broader access to coverage in recent years.

Peter Kaprielyan, vice president of government and external relations at Inspira Health Network, said that those who gained access through the marketplace subsidies and Medicaid expansion were weaned off of the emergency department as a primary care option, and increasingly sought care from primary care and specialty doctors.

That trend could reverse if coverage is eliminated, taxing emergency departments and making health care costly again.

About 30 percent of the population in Cumberland County is on Medicaid, so the loss to the health system could be significant.

Inspira covers Cumberland, Gloucester and Salem counties and stands to lose nearly $30 million annually from the loss of Medicaid patients, Kaprielyan said.

In a city like Camden, where the focus of redevelopment was in part on the health care sector, the economic impact of the repeal of the ACA is also significant.

“The economic impact is greatest in our urban areas,” Castro said.

Employer-based plan designs are also at stake because even if the state tries to address some of the protections built into the health plans, the state can only regulate 30 percent of market, Castro said. Larger employers and self-funded plans were addressed by the ACA.

“The ACA is getting more popular as people find out what they are going to lose,” Castro said.

DK Entrepreneur Academy aims to fast-track profitable growth for business in N.J.

Successful entrepreneurs and business leaders Jack Killion and Matt Douglas have created the DK Entrepreneur Academy to help accelerate profitable growth for businesses in New Jersey.“I had been thinking about this idea for a couple of years,” Killion said, “when Matt recently said, ‘If you want to move forward with this, I’d love to be involved.’ ”

The academy’s inaugural Business Growth Action Program will kick off on March 4 at the Rothman Institute of Innovation and Entrepreneurship at Fairleigh Dickinson University in Madison.

Killion and Douglas are expecting nearly 100 attendees, in which a selection of business owners and company leaders with revenues up to $20 million will then be invited to attend a subsequent series of six, biweekly Saturday morning intensives focused on business development.

“We will focus on analyzing a business’ strengths, weaknesses, opportunities and threats at the launch session,” Killion said.

Killion earned his undergraduate degree in mechanical engineering from Yale University and his graduate degree from the MIT Sloan School of Management. He consulted with McKinsey & Co. early in his career before becoming a serial entrepreneur, launching and growing eight successful businesses in diverse industries including publishing, manufacturing, real estate, agriculture, fund investing, career coaching and online education. He continues to help coach thousands of emerging businesses and entrepreneurs on strategic business development, funding and mergers and acquisitions.

“I really admired his value system, his integrity and his desire to help others,” Douglas said. “Jack’s experience in entrepreneurialism is fairly unmatched, and I felt like my operational and corporate expertise and background greatly complimented his.”

Douglas earned his undergraduate degree in industrial engineering from Rensselaer Polytechnic Institute and his Master of Business Administration from Vanderbilt University. Early in his career, Douglas was a management consultant to Fortune 500 clients with Cap Gemini and Deloitte Consulting. He then led two teams as an operations executive at two tech startups that exceeded $250 million in sales before leading global operating teams at multibillion-dollar companies Andrew and Avaya. Douglas became an entrepreneur when he and his wife founded and grew a LearningRx franchisee business into the most profitable unit in the country before selling it in 2015.

In addition to sharing their own expertise and experiences, Killion and Douglas have assembled a team of business experts to lead discussions on key factors and obstacles to successfully driven growth; global expansion; brand development; cost-effective marketing; protecting and leveraging intellectual property; public speaking and presentation skills; business process automation and innovation; media support; and talent recruitment and development.

Participants will present their newly formed Business Growth Action Plans at the last session to an expert panel for review.

“When they leave that last session, we want them to have a very specific set of action steps that they will take to drive the future growth of their business,” Killion said.

Killion and Douglas plan to repeat this program a few more times this year. Additionally, the DK Entrepreneur Academy is developing boot camps for startups, online courses, and leadership retreats.

“We have a genuine desire to not only be consultants and lecture clients, but to really get to know them in order to help them grow,” Douglas said. “It is important to both of us that we provide meaningful, impactful assistance to our attendees.

“The question will be, six months after they have completed our program — 12 months, two years — are they growing their business?”

To learn more and register for the introductory session on March 4, click here and contact [email protected] and [email protected].

Here’s the Top 10 CRE developers in N.J. You’ll never guess how much square footage No. 1 controls

NJBIZ recently released the Top 30 largest commercial real estate developers, based on square footage owned or controlled in New Jersey.Here’s the Top 10:

10. Sudler Co.; 7.5 million

10. KRE Group; 7.5 million

9. Federal Business Centers Inc.; 8.36 million

8. Levin Management; 9.13 million

7. Whitesell; 9.3 million

6. Advance Realty; 10 million

5. Matrix Development Group; 15 million

4. F. Greek Development; 16.2 million

3. Heller Industrial Parks; 16.68 million

2. Mack-Cali Realty Corp.; 18.61 million

1. Prologis; 35 million

Prologis, Mack-Cali, Heller, F. Greek and Matrix all moved up one spot on the list from last year. Advance Realty remained in the same spot as before.

Whitesell, Levin and Federal Business moved from No. 9, 10 and 11, respectively.

The full list can be seen here.

Hospital Alliance hopes for greater charity care funding this year

While Washington fiercely debates the future of health care in America, we are fortunate in New Jersey to have leaders in both parties who stand up to support our most important health care organizations — our safety net hospitals.Over the last 7 years, Gov. Chris Christie has led the charge to protect and support New Jersey’s safety net hospitals. Senate President Steve Sweeney, Speaker Vincent Prieto, Senator Joe Vitale and Assemblyman Herb Conaway have also been incredible champions for these vital organizations. And now more than ever, we need these leaders to once again stand up and fight for our safety net hospitals.

Since 2009 our state has made big gains in health care. We expanded affordable coverage to almost 500,000 people through NJ FamilyCare. We invested $120 million in behavioral health. We created a coordinated plan to improve the health of all New Jerseyans by 2020. We launched one of the most innovative models of care in the country for our most vulnerable citizens. At the same time, New Jersey’s health care system has become safer and more stable

And now thanks to a bold and innovative proposal by our governor, we have now passed a law that will serve as a national model and guarantee access to treatment for our all our friends and family who are suffering from the disease of addiction.

Each of these triumphs can also be traced back to a choice our governor made. Our governor chose to expand Medicaid and put aside partisan politics to do what was right. He chose to brush stigma aside and become a much needed voice for the addicted. He chose to create one of the first Medicaid Accountable Care Organization programs in the country, funding innovative regional health care collaboratives focused on improving care for the most complex patients.

Last year, at a time when budgetary constraints led to one of the largest cuts to Charity Care in our state’s history, our governor chose to prioritize the funding of safety net hospitals. The bottom line is that in health care, our Governor chose time and time again to do the right thing for the people of New Jersey, even in the face of political expediency.

As CEO and president of the association that represents safety net hospitals, I want to personally thank the governor for his commitment to improving our communities and the lives of our patients. New Jersey’s safety net hospitals care for our most vulnerable citizens. They provide over 34,000 jobs in some of New Jersey’s lowest income communities. They treat people with problems that intersect health, poverty, criminal justice, mental health and addiction. Simply put, because of our governor’s leadership, not only is our safety net health care system stronger, but our entire health care system is stronger.

But the work is not done. Because of potential policy changes in Washington, further state budgetary constraints, and an intense push to earmark more funds to communities that do not face the same challenges as the underserved areas in our state, much of our progress and the health of our safety net institutions are at stake. That’s why we are asking Christie to stand with us once again. Without stable funding for New Jersey’s safety net hospitals, services could be cut in our poorest communities, jobs could be lost, and our collective progress towards making all of New Jersey a better place — especially for our least fortunate citizens – will stall.

The fact is that investments in our safety net hospitals are not merely investments in hospitals. They are investments in our entire communities — communities that are still in dire need. While only 8 percent of all New Jerseyans are living below the poverty line, according to the most recent census data, over 23 percent of people living in communities served by safety net hospitals live on less than $230 per week, and roughly 20 percent of our residents still lack health insurance. It is these communities where we should be investing the lion’s share of our limited state resources.

Real safety net hospitals are different than other hospitals. By mission, they serve communities in need. They prioritize service to the poor and to the vulnerable. They provide life-saving, innovative care to everyone who walks through their doors – in sickness and in health.

And they need your support.

Airbnb sees growth in the state N.J. hosts earned over 50M in 2016

It sure sounds as though it might pay to rent out that extra bedroom.Airbnb announced that New Jersey’s 6,100 active hosts earned over $50 million dollars in supplemental income in 2016 by welcoming approximately 257,000 visitors to the Garden State. This figure represents a 100 percent year-over-year increase in inbound guest arrivals, according to the company.

The company says a typical host in New Jersey earns $6,200 annually. The typical listing is occupied 44 nights per year and the average length of stay is 4.2 nights.

Josh Meltzer, head of Northeast public policy at Airbnb said of the growth:

“We are proud to see that more and more New Jerseyans have discovered home sharing as an opportunity to share their community with visitors from around the world, and earn a little bit of extra money along the way. From the Jersey Shore to Jersey City, Airbnb hosts are ambassadors to the Garden State and we are grateful they have embraced home sharing as a way to welcome thousands of visitors.”

As far as further economic impact, Airbnb is already collecting taxes in Jersey City, which is its largest market in the state.

Still, state legislation is required to extend the lodging tax to all short term rentals and authorize Airbnb to collect taxes on behalf of our community.

To address this, Assemblywoman Annette Quijano (D-District 20) introduced innovative legislation to allow Airbnb to collect and remit hospitality taxes on behalf of guests earlier this month.

The legislation represents a collaboration between the Assemblywoman and the company and is aimed to help to fill the Garden State’s budget gap while continuing to allow municipalities big and small to regulate short-term rentals in a manner consistent with the needs of their neighborhoods, Airbnb said.

N.J. ‘Day Without Immigrants’ protest shows consequences of an immigrant nation without immigrants

Some immigrants in New Jersey participated in the silent protest of “A Day Without Immigrants” Thursday to show what cities and schools would be like in their absence.

“New Brunswick is like a ghost town,” said Luis De La Hoz, vice chairman of the Statewide Hispanic Chamber of Commerce.

Meanwhile, owner of Chilangos in Highlands, Leo Cervantes, confronted the issue with a “sarcastic” response, he said.

The idea began when some of his employees approached him Wednesday and said they wanted to participate in the silent protest.

He supported their efforts and said he would shut down his business.

But then, an idea struck.

What if, with the four non-immigrant employees he had, he did open for dinner as usual, but rather than serve his usual fare, offer hot dogs and hamburgers instead?

Cervantes bought 30 hot dogs and 40 hamburgers, and anticipated the night would be a “total loss.”

By early Thursday evening, he already encountered several upset customers, while others understood the joke.

“We’ll end up eating (the hot dogs and hamburgers) tomorrow ourselves,” Cervantes said.

But he doesn’t regret the statement.

“People don’t realize how we could be affected in the restaurant and hotel industry by the immigration laws and the tax they are talking about for products from Mexico,” Cervantes said. “Listen, I’m a U.S. Citizen now. My priority is this country. My kids go to school here, I pay taxes, I contribute to the economy of this country, I own two restaurants, I own three houses, I have two food trucks…I was born in Mexico but I live here now. This is my country.”

He also has to balance the interests of his business, which imports more than 200 different types of tequila from Mexico, as well as the avocados he needs to serve guacamole.

Recently, when there was a shortage of avocados, a crate that cost $30 on average shot up to more than $100. That meant selling guacamole at a loss of $3 per serving at his restaurant.

If that became the norm, he could go out of business, he said.

In addition, Cervantes is one of many Hurricane Sandy victims whose comeback story has been made famous with the help of Lt. Gov. Kim Guadagno, who helped him cut through red tape to get his business back off the ground.

But that doesn’t mean all is well.

The damage to his business was estimated at about $300,000, which insurance only reimbursed half of and Cervantes is still fighting for the rest, he said. In addition, he still had to pay mortgage, electricity and other bills when the restaurant was closed for nine months after the hurricane.

Though business is returning, there is still a long way to go before he can recoup the loss. And with the threat of taxes on the items he needs, the future looks uncertain.

On an average Thursday, he can seat between 70-120 customers in the winter and spring months. In addition to staying open despite the protest, he also needed to buy the meat and breads for his special Thursday menu. Overall it would be a loss, but nothing compared to the nine months after Sandy, and nothing compared to having to permanently shut down if costs skyrocket.

The liquor distributor he uses told Cervantes he sells two million cases of Corona and Negra Modelo in five counties in New Jersey annually. The tax could make those numbers plummet.

“It’s a chain reaction with all these policies and these crazy laws,” Cervantes said.

After hearing about Cervantes’ idea, U.S. Sen. Robert Menendez said he thought the day was very impactful.

“The Day without Immigrants showed vividly the consequences” of an immigrant nation without its immigrants, he said. “In fact, today (Congressional) staff could not get their breakfast because immigrants are the staff.

“I applaud him for opening up his restaurant and showing the limits of what can be produced without immigrants. This is a reality of our country. So many immigrants wanted to join but were fearful to or couldn’t just afford it, but even with that, it’s an enormous result today and I think it showed the impact.”

Escape rooms becoming popular outlet for workplace bonding

Escape rooms — an immersive, physical adventure in which players are locked in a themed room and must use elements of the room to solve a series of puzzles and escape within a set time limit — are popular venues for friends and family members to socialize.

But they are also growing in popularity for corporate outings, as corporate managers and HR departments can see how escape room experiences actually benefit corporate teams in a number of ways.

Get a first-hand view of how your team works under pressure

A team leader or employer can watch the experience to get a first-hand view of how a team works under pressure. Whether or not it’s a new team or an experienced team that’s been working together for a while, putting team members in an unfamiliar environment and a pressured situation exposes personality and work-style traits that might not have been seen before.

New leaders emerge

Alpha males/females or the known “leaders” may excel or, do the exact opposite, if they are out of their comfort zone (they may be at a total loss about where to start or what to do next). This latter scenario often opens the door for others who may not previously have been the team leaders to take the reins and suddenly show leadership initiative, as well as the ability to organize and delegate. Supervisors may also ultimately witness unique traits among team members such as the ability to follow direction and be supportive of their team or, contrarily, the desire to work and produce results on one’s own.

Who likes being wrong?

By their nature, escape rooms are challenging so no one can be right every time. As a result, how people handle being wrong may come to light. Some will try to enforce their will on the challenge, puzzle or lock or even their team. Others will actually seek team input to derive a solution.

Good communications skills rule

Escape room experiences can reveal who has good communication skills and can offer positive reinforcement. They can also reveal the other side of that coin, i.e. the inability to work together, take direction, admit mistakes or ask for help from others.

The escape room process doesn’t end in the escape room

I urge corporate clients to dine locally immediately after an escape room experience. During activity the team is working together in a very intimate setting which opens the door to a debrief after the event where they can discuss their successes and failures in a comfortable atmosphere. People that don’t normally speak up suddenly find themselves chatting more easily. This may ultimately open future doors to communication which could lead to greater productivity and an improved work environment.

Jeffrey Berkman is the game designer and creator at Escape Room NJ with locations in Hackensack and Madison.

Seton Hall president to leave university

Seton Hall University President A. Gabriel Esteban is leaving the university for a similar job at DePaul University, two sources have told NJBIZ.Seton Hall University President A. Gabriel Esteban is leaving the university for a similar job at DePaul University, two sources have told NJBIZ.

The sources, who requested anonymity because they are not authorized to speak on the subject, said the university also has suspended its search for a new provost.

The search for a new provost began in Dec. 2016. In September of that year, former Provost Larry A. Robinson announced his decision to retire at the end of the fall semester.

Esteban assumed the role of Seton Hall president in 2011. Prior to this role, he was provost and chief academic officer at the university. He received his doctorate in administration from the graduate school of management at the University of California at Irvine and a master of science in Japanese business studies from Chaminade University in Honolulu, Hawaii.

Esteban’s last day will be June 30.

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