Union County and Its Economy

Description

Union County, New Jersey is a highly urbanized and densely populated County in the New York City Metropolitan area, lying at the heart of the Northeast Corridor, one of the largest population and industrial areas in the nation. The population, estimated at 497,300 in 1996, is concentrated in a land area of 103.3 square miles, has a population density of 4,828 persons per square mile, four times the State average. Elizabeth, the County seat, is the fourth largest city in the state.

The economy of the County centered upon its strengths in transportation and manufacturing. The County is served by eight railroad lines and major highways such as the New Jersey Turnpike, the Garden State Parkway, Interstate Highways 78 and 278, and US Routes 1 & 9. In addition Newark International Airport, one of the fastest growing airports in the nation, and Port Elizabeth, a major container-ship facility, are located partially within the County’s boundaries. Many of the world’s leading corporations, including Exxon, General Motors, Lucent Technologies, Novartis, Schering Plough, and The Merck Company are located in Union County.

However, there has been a steady closing of rail facilities and manufacturing operations over the past forty years. Rail traffic has declined and many lines and yards are unused or underused. As manufacturing operations have closed or moved away, vacant or underutilized industrial buildings have become common throughout the County’s industrial areas.

This section of the OEDP document summarizes the County’s economic situation based upon an analysis of relevant data about the County and the region. Statistical tables and graphs supporting this analysis are found within the text.

Area Description

Union County is located at the center of the New York – New Jersey Metropolitan Region. Located in northern New Jersey, the County has an area of 103.3 square miles, making it the second smallest of the State’s twenty-one counties. Only Hudson County is smaller in land area. Essex County lies to the north of Union County, Morris and Somerset counties bound Union County to the West, Middlesex County lies to the south and the Arthur Kill separates Union County from Richmond County (Staten Island) to the east.

The County has twenty-one municipalities, including five cities, eight townships, seven boroughs and one town. The municipalities range in size from Winfield with a population of 1,585 (1990), to Elizabeth with a 1990 population of 110,002.

History

After several failed attempts by Dutch colonists to settle on the west side of the Hudson River in the mid-1600s, English settlers succeeded in establishing a viable colony with its capital at Elizabethtown in the 1680s. Growth was slow and the economy focused on agriculture through most of the eighteenth century. Though not the location of major Revolutionary War battles, what is now Union County was criss-crossed and fought over by British and American troops on many occasions during that conflict. During the same period Elizabethtown and Newark grew to become economic and civic rivals, a conflict that was resolved with the creation of a separate Union County with its county seat at Elizabeth by an act of the State Legislature in 1857.

Industry came to the area in the early nineteenth century and these manufacturing operations thrived as the railroad system tied Elizabeth and other communities to the ports in Hudson County and national markets to the west and south. Industrial development continued into the twentieth century as chemical firms in particular located in the Linden area. A very rapid rise in population accompanied this industrial growth.

The post-World War II era saw a tremendous explosion of growth throughout the County as both industrial and office operations moved from the New York area to the suburbs. The population growth during this period was phenomenal – some communities doubling in size within a decade. Union County prospered first because its manufacturing base grew and adapted to national needs, second, because it was well positioned to attract firms leaving the urban areas of New York, and third because it became the home to thousands of people who followed their jobs from the urban centers, or who opted to commute to those urban centers. The 1970s brought a marked turn of events for New Jersey and Union County. The oil crises of 1973 and 1979 exposed the weaknesses of an aging industrial base. Rising energy costs, rising labor costs and inflation in general made New Jersey manufacturers non-competitive against foreign operations and newer, more efficient operations in the US in the Southeast and the West. Also, as land for development became increasingly scarce across the County, housing development began to dwindle.

Union County was not well suited to capitalize upon the economy of the 1980s, which focused on the growth of the service and retail sectors along developable land with highway access in a suburban setting. Indeed, the County had little land to match this trend and the growth of office complexes and regional malls took place in areas outside the County. The County’s dependence upon manufacturing did not facilitate growth as that sector continued the long decline that began in the preceding decade.

The decade of the 1990s began with a significant recession that intensified the effects of long-term trends such as increasing international competition, widening deregulation, and increasing domestic competitive pressures. The results for Union County were the continued deterioration of the manufacturing and construction sectors, as well as losses of jobs among the white-collar sectors.

Despite all of this change and flux, the County and its leadership should not lose sight of the fact that Union County possesses considerable resources. Manufacturing is still a significant component of the economy and the current structure provides a solid base for continued growth and diversification. Transportation is still a key strength for Union County and renewed efforts to capitalize upon location as a development tool are important. These and other assets will be examined in detail in subsequent sections of this analysis.

Geography

Union County includes several distinct features stretching from the deep-water port at Elizabeth in the east to the Watchung Mountains in the west. The Port of Elizabeth can accommodate container vessels drawing up to thirty-five feet of water, and at one time the area to the south along the Arthur Kill was the scene barge and shallow draft vessel activity related to the petroleum refining operations that developed there. This area includes a tidal marsh area along the Arthur Kill and Newark Bay. These marshes do pose development problems because of the mud and marsh vegetation in them, but they are only a small portion of the area of Union County.

In general terms Union County is divided into two distinct geographic or topographic areas. The first is an area of gently rolling topography that runs from sea level along the Arthur Kill and Newark Bay to the base of the Watchung Mountains in Springfield, Scotch Plains and Mountainside. This area comprises about 2/3 of the County’s land area.

The other 1/3 of the County lies in the steep slopes of geologists refer to as the First and Second Watchung ridges. The mountains run parallel to the northwestern boundary of the County, and consist of hard basalt ridges that have resisted erosion and the influence of glaciers.

Political Geography

Union County is comprised of twenty-one municipalities, as noted above. The following table shows each, noting its geographic size and population.

The Port Authority of New York and New Jersey has planning and development authority with regard to the Port of Elizabeth and the Newark International Airport. There are no other entities that have the authority to control either location or development activities in the County.

Natural Resources and Environmental Concerns

Union County is highly developed and very little land is available for agriculture, mining, logging or other extractive industries. Indeed, the County has no mining or logging industries at all, and had only marginal representation in these areas in recent history. Agriculture was once a major industry, but the rapid pace of development that marked the twentieth century saw the conversion of farmlands into industrial and residential properties.

The County’s park system and municipal parks provide for over 6,000 acres of open space and recreational facilities for the County population. That acreage amounts to almost 10 percent of the County’s total land area.

Environmental concerns center upon the revitalization of the brownfields that are scattered across the County’s industrial areas. Changing manufacturing technology and techniques and an increased understanding of the effects of many formerly commonly used elements and compounds have created real and potential health hazards at many now abandoned industrial sites. The Union County Alliance, a countywide advocacy organization, has focused a portion of its efforts on examining this issue and developing strategies and programs to not only clean up the contaminated sites, but to restore these properties to the tax rolls. The County has completed an RFP (Request for Proposal) and will be awarding a contract in the Fall for the development of an inventory and assessment of the brownfield sites within the County with the intent of redeveloping these abandoned and underutilized properties.

Demographics

Union County’s population grew steadily in the period between the formation of the County in 1857 and 1970. The 1970 census figures, marking the high point of the County’s population, coincided with the high point of economic growth and activity and preceded the first of the economic shocks of the 1970s and 1980s. Though the population of the County has declined slightly since 1970, population estimates prepared by the New Jersey Department of Labor and the US Census Bureau have shown modest gains since 1992, reflecting the changing economic conditions as the 1989 recession ended.

Population

The following table presents the population of Union County since the 1900 census, and includes 1997 population estimates.

The population growth of the 1940s and the 1950s was the greatest in terms of numbers of people, though this growth barely exceeded that of the pre-Depression period. The graph on the following page illustrates these changes in both number of population change and percentage of this change. The decline in population between 1970 and 1992 reflects the general decline in population experienced by much of northern New Jersey. Union County’s decline of some 9 percent was in line with the 8 percent decline in Bergen County and the 9 percent decline in Hudson County, though it was behind the 16 percent decline experienced by Essex County. The northern portion of New Jersey suffered a population decline of 9.8 percent overall, a sharp contrast to the 7.8 percent growth experienced by the State as a whole.

An examination of the recent components of change in the population reveals a number of interesting trends in the County. The table below shows statistics for the period from 1990 through July of 1997 in four key areas of change: Births, Deaths, Net International Migration and Net Domestic Migration.

The number of Births has declined by 4.6 percent over the period shown. This decline is only one-half of the decline experienced by the State as a whole for the same period. At the same time the number of Deaths recorded in the County has increased by 5.9 percent, which is slightly more than the State increase of 5.6 percent. However, Union County is increasingly becoming a destination for international migration. The number of immigrants coming into the County from foreign countries has almost doubled during the seven years under consideration, exceeding the rate of immigration on a statewide basis. Union County ranks sixth among the counties in this category, and the 4,132 immigrants are 7.9 percent of the total that came to New Jersey in the 1996-97 period. It is interesting to note that Domestic Migration, which is an out-migration from the County, has slowed by 13 percent over this period. Thus an increase in international migration, a slowing of out-migration, and stable birth rate have combined to give the County a modest population increase during this decade.

The following table compares the population of Union County to that of the State for the 1994 Estimate of Population by Age Category. It is interesting to note that the County has a slightly higher portion of older citizens than the State. Union County lags State percentages in the age groups up to the 50 to 54 group, the margin narrowing as the age increases. At the 50 to 54 group, the Union County percentage exceeds the State and continues to do so through the 80 and over age group.

Population by Age Group, 1994
Union County and New Jersey

The distribution of population by sex in Union County is 48 percent male and 52 percent female. These figures are consistent over time and are comparable with State percentages. The racial composition of the County has shown a slight shift, even from the 1990 census. The following table compares 1990 data with the 1994 and 1996 estimates.

For comparison purposes, the white population percentage for the State in 1994 was 80.9, while that of the black population was 14.4. Though the absolute numbers are small, the Asian population showed a 35 percent increase over this short period, while those classifying themselves as Hispanic increased by 24 percent.

Though the County is growing in this decade, the population will decline slightly in the first decade of the next century according to NJ Department of Labor calculations. This population loss will be very modest, some 6,000 people, or a 1.2 percent decline. However, Essex County is the only other County projected to have a population decline during this period. The table below summarizes the Department of Labor projections, noting the loss and percentage of loss according to its model.

Educational Attainment

Educational attainment is an important measure of the job skill level of a community or area. In Union County 75.2 percent of the population has at least twelve years of education, while 24.8 percent has sixteen years of education. These figures rank Union County as 13th in terms of percentage of high school graduates and 8th in percentage of college graduates. The following table provides a more detailed presentation of these figures.

Union County exactly matches the State percentage of High School Graduates, but slightly exceeds the State percentage of those lacking a high school diploma. Though slightly lagging in percentage of college attendees overall, the percentage of Graduate or Professional degree holders is higher than State norms, reflecting the presence of the Lucent Technologies, Exxon and other research facilities.

Income

There are several measures of the prosperity of an area’s population. One of the most common is Per Capita Personal Income. The following table presents Union County and New Jersey figures for personal income for select years between 1980 and 1996. It is interesting to note that Union County income levels, though declining slightly from the 1980 difference, have been consistently above State figures, and well above national norms. Indeed, for 1996 Union County per capita income was 137 percent of the national figure of $24,436.

Total Personal Income (TPI), which consists of earnings (wages, proprietors’ income, and salaries); dividends, interest and rent; and transfer payments (social security benefits, welfare assistance and unemployment compensation), provides another view of the economic well being of a community or area. Union County compares well to other counties and the nation by this measure as well. Union County’s TPI for 1996, the latest available data, ranked 6th in the State, having grown at a 4.8 percent rate over the preceding decade. In 1996 earnings accounted for 63.9 percent of TPI, compared to 65.4 percent in 1986. The dividend and rental component of TPI remained stable over the period, but transfer payments increased from 10.9 percent in 1986 to 12.8 percent in 1996.

Poverty

The growth in transfer payments reflects upon the figures for persons in poverty. As the number of persons in poverty increases, more people turn to welfare assistance programs and unemployment compensation for support. Given the modest increase in transfer payments, an increase in poverty might be expected. Indeed, this is the case in Union County. The number of persons in poverty in Union County in 1990 was 35,220, constituting 7.2 percent of the population. This figure rose to 47,337, or 9.5 percent of the population, in 1993, the latest date for which figures are available. The increase reflects the recession of the 1989 to 1992 period, but not the subsequent recovery.

Labor Force

The Union County labor force shows little variation over the period 1990 to 1996. The largest number of people in the work force was the 268,600 people recorded in 1990. That number dropped by 8,000 between 1990 and 1994 to 260,800, but is expected to increase to 264,100 in 2000, to 265,900 in 2005 and to 276,100 in 2010. This one-half of one-percent decline is not significant, but it does not compare well to the eleven- percent gain anticipated for the State as a whole over the same period. The implication is that Union County will not see an influx of new operations, nor the significant expansion of existing firms.

Indeed, projections of employment by industry group indicate a decline of 14.7 percent in Goods-producing industries in the period 1994 to 2005, with a 17.7 percent drop in employment in the manufacturing sector in particular. This decline is in line with the anticipated loss of 18.4 percent for the State. The loss of 8,730 manufacturing jobs in Union County will be offset by the growth of some 16,820 jobs, a 9.5 percent increase, in the broad Service-producing sector. Though the Finance, Insurance and Real Estate group is expected to lose 1,210 jobs (10%), Services, such as health services, business services and social services, are anticipated to grow by 18.3 percent and the Retail group is expected to grow some 3,340 jobs (11.0%). These trends and figures are reflective of national and State trends away from Manufacturing toward Services, though the Union County growth will not be as dramatic as that of the State where a 30% growth is forecast. The composition of the economic base of the County is discussed below in Section E.

The majority of the work force in Union County resides there. However, firms in the County draw employees from a wide range of locations, including New York and Pennsylvania. The following table shows the top ten counties of residence for Union County workers.

Unemployment figures for Union County have tracked national and State trends for the past forty years. The table below presents unemployment rates for the County since 1980, with breakouts for the past two years and the first three months of 1998.

Though Union County has historically had higher levels of unemployment than the State in general, the difference has diminished in the past three years. A tightening labor market has made it increasingly difficult to find qualified workers, especially for skilled positions.

Economic Base

This section of the OEDP examines the structure of the economic base of Union County, noting trends in business activity and employment. Comparisons to national and State figures will be made when applicable or useful.

Distribution of Employment and Payroll

Manufacturing dominated the composition of the work force in 1970, employing 44 percent of the workers. This figure declined to 25.7 percent in 1995, and will continue to decline according to Department of Labor projections, reaching 17 percent of the work force by 2005. The Service sector, which grew from 14 percent in 1970 to 28.4 percent in 1994, and 29.2 percent in 1995, will continue to grow, reaching some 79,400 jobs and 32.5 percent of the work force, by 2005. The following table presents the percentage of employment by industry group for Union County in 1995. Figures at the national level are presented for comparison purposes.

Despite suffering a sharp decline in manufacturing during the 1980s and early 1990s, this sector still occupies a prominent position in the County’s economy, well exceeding national norms. The transportation and wholesale trades groups are larger than national norms, reflecting the importance of warehouse and distribution operations to the economy of northern New Jersey in general and to Union and Hudson counties in particular. The Retail Trade Group, Finance, Insurance and Real Estate group (FIRE) and the Services groups are underrepresented by national standards.

The table below shows the same industry groupings with the percentage of the total 1995 Union County payroll that each contributes. The calculation for the United States is provided for comparison.

The manufacturing sector contributes to the local economy well in excess of the national average, and in excess of the 25 percent of the work force that is employed in this group. The Retail Trade Group and the Service Group also contribute below their national counterpart and below its level of employment in the County.

These figures are supported by a Department of Labor analysis of wages by industry. This analysis shows the average manufacturing pay in Union County to be $46,704, compared to the State average of $44,126. Transportation group pay averages $39,095 in Union County, compared to $32,519 for the State, though FIRE pay lags State averages by $7,000. The following table presents these figures for each of the major groups.

Major Employers

Union County’s list of top non-governmental employers is diverse, including a number of manufacturing firms, a food distribution operation and a communications research facility in addition to the hospitals and medical centers that typically appear in such lists. This diversity speaks to the breadth and strength of the local economy. A list of the top ten non-government employers and the approximate number of employees for each follows:

The Presence of High Tech Industries

The presence of high tech industries is a topic of concern in most communities. These industries and jobs connote progress and the opportunity for growth and development.

High tech industries in the manufacturing sector are defined as those in which advanced scientific and engineering principles are applied to product and process developments. A 1991 study conducted under the auspices of the Rutgers University Center for Urban Policy Research established this definition and listed the 92 Standard Industrial Classifications that comprise this group. The broad categories in this definition are the Chemicals and Petroleum Refining industries and firms in the Industrial Machinery, Electronics, Transportation Machinery and Technical Instruments groups. The total number of firms in these high tech classifications in Union County is 411. The Chemicals and Petroleum Refining group encompasses 108 firms, just over 25 percent of the total. Machine tool and special tool firms number 95 in Union County, this sub-classification of the Industrial Machinery group accounting for almost another 25 percent of the high tech firms. Industrial machinery of several types accounts for another 38 members of the high tech group. High tech firms are found in most of the municipalities in the County with higher concentrations found in Linden (47), Kenilworth (40), Union (40), and Elizabeth (40).

Recent Economic Development Activity

Economic development is taking place across the County in a number of differing guises. A number of communities, including Elizabeth, Summit, Rahway, Westfield, and Plainfield are working on downtown renovation or redevelopment projects. Transportation issues are the focal point of efforts involving Union and Plainfield, and the County has submitted an application to the US Environmental Protection Agency for a $200,000 Brownfields Development Initiative for the Raritan Valley Railroad Corridor of Union County. The objective of the latter proposal is to identify and initiate action to restore idle industrial sites along this rail line to productive use.

The County is establishing a Transportation Development District that essentially encompasses the Route 1 and 9 corridor through Elizabeth, Linden and Rahway. The purpose of the District is to create a public/private partnership that will spur economic development and transportation improvement projects along the corridor. Transportation Development District funds totaling $150,000 have been allocated equally among Elizabeth, Linden and Rahway for planning purposes. Another $150,000 was divided among seven smaller communities through which the line would run to fund economic development planning.

Recently passed ISTEA legislation has allocated $30 million for rail design, engineering and construction in Union County. The County has begun to use some $386,000 for final feasibility studies pertaining to the light rail system.

The County is active in the international arena. A delegation of Union County government and business executives recently returned from Luxembourg. This trip followed an earlier visit by a group from that country interested in exploring business opportunities and trade.

Though the Incredible Universe Store in Elizabeth closed in early 1997, taking 170 jobs with it, the opening of a restaurant in Scotch Plains and the anticipated opening of a large food distribution operation in the Port Elizabeth Industrial Park will more than offset this loss. In addition Ikea is expanding by 35 percent, creating additional new jobs. The Jersey Garden project in Elizabeth’s Urban Enterprise Zone has begun construction, including significant infrastructure and highway improvements, while construction contracts will soon be awarded for the development of a major retail center at the Linden Municipal Airport. This focus on retail trade will generate a significant number of jobs in the County.

Infrastructure and Services

Union County’s highly developed and urbanized attributes provide it with a web of infrastructure, both hard and soft. Hard infrastructure includes roads, bridges, housing and public buildings. Soft infrastructure includes the wide range of governmental services which are provided to the County’s population.

Housing

As noted in earlier sections of this analysis, housing construction in Union County has slowed, as less space became available for home building. The following table illustrates this trend, noting the percentage of the housing stock constructed in each decade since 1940.

Nearly one-third of the building stock dates from before 1939 with almost another 25 percent dating from the 1950’s. Construction in the 1970s and even the booming 1980s was sharply lower than the preceding decade, and a straight-line projection to the end of the 1990s indicates that few new housing units are being developed.

New housing construction since 1994 has focused on single-family units. In 1994, 233 of the 459 units constructed were multi-family units, including one 209-unit project. Since that time multi-family unit construction has accounted for only about twenty-five percent of construction, and much of that has been the building of two-family units.

In 1990 60 percent of the housing stock was owner-occupied; renters occupied 36 percent of the housing stock, and 4 percent was vacant. The New housing construction since 1994 has focused on single family units. In 1994, 233 of the 459 units constructed were multi-family units, including one 209-unit project. Since that time, multi-family unit construction has accounted for only about twenty five percent of construction and much of that has been the building of two-family units. In 1990, 60 percent of the housing stock was owner occupied; renters occupied 36 percent of the housing stock; and 4 percent was vacant. The average number of persons per household in 1990 was 2.71.

Education

Union County has 24 public school districts, which include 90 elementary schools, 26 middle schools, 14 four-year high schools, two five-year high schools, and one six-year high school. Special facilities include five elementary schools and three secondary schools for the handicapped. The County also has a Vocational-Technical School offering para-professional, vocational and technical programs.

There are 58 non-public schools in the county, of which 43 are elementary schools, 10 are secondary schools and five are combined schools. School enrollments County wide have increased modestly over the current decade at all levels. However, projections indicate that school enrollments will increase into the next century, but begin to decline by the year 2005.

Higher education opportunities are available within the County. Kean University, located in Union Township offers undergraduate and graduate degree programs. Union College, which has campuses in Cranford, Elizabeth and Plainfield, offers associate degrees. The NJ Center for Visual Arts in Summit is a Rugers University program. Rutgers University Main Campus, The NJ Institute of Technology, Seton Hall University, St. Elizabeth College, Drew University and Fairleigh Dickinson University are other institutions of higher education located within commuting distance of Union County.

Health Care/Hospitals

Each municipality in Union County has its own emergency medical service or rescue squad. The following hospitals and medical centers provide a complete range of services and care to the residents of the County:

- John E. Runnells Hospital – Berkeley Heights

- Muhlenburg Hospital – Plainfield

- Children’s Specialized Hospital – Mountainside

- Overlook Hospital – Summit

- Rahway Hospital – Rahway

- St. Elizabeth Hospital – Elizabeth

- Elizabeth General Medical Center – Elizabeth

- Elizabeth Medical Center Nursing Home – Elizabeth

- Union Hospital – Union

Social Services and Assistance Programs

Union County has a full array of social service programs. The Division of Social Services operates under the auspices of the Union County Department of Human Services, administering the following programs and services to the County’s population. Key programs include:

- Aid to Families with Dependent Children

- Food Stamps

- Child Support and Paternity

- Adult Services and Homeless Assistance

- Medically Needy Programs

- Screening, Diagnostic and Treatment Programs

- Family Planning

- Medical Transportation

- Welfare to Work

- School to Work

Nearly 500 professional and clerical employees administer these programs in offices in Elizabeth and Plainfield.

Employment and Training programs are available to qualified persons and a Welfare to Work program provides opportunities for jobs and advancement for welfare recipients.

The Division of Aging offers a range of programs to assist the County’s 60 and over population.

Planning and Economic Development Programs

Union County has a unified and coordinated approach to economic development policy, planning and initiation. A number of key agencies and organizations actively promote the economic growth and prosperity of the County.

Overall policy direction is the responsibility of the Union County Board of Chosen Freeholders as the legislative governing body of the County. Within the County Government administration, the Department of Economic Development, headed by the Deputy County Manager, is responsible for planning and development activities on a County-wide basis, and for carrying out the policy direction of the Freeholders. The Department helps to coordinate activities of other organizations in a broad based partnership. The Department’s Division of Policy and Planning oversees economic development programs and projects, transportation development initiatives, and land use planning. The Division of Community Development oversees neighborhood development and housing programs and projects. The Director’s office is responsible for preparation and submittal of grant applications and management of program funding.

The Freeholders Council of Economic Advisors provides insight and guidance to the Freeholders on key development issues. Its membership consists of representatives of many of the County’s economic and business organizations, and has been designated as the OEDP Committee reporting directly to the Board of Freeholders.

The Union County Alliance, active for five years, is a bi-partisan consortium of government, business and civic leaders whose principal missions are to position the County as a better place to live and work, and to advance the County’s interests on key development issues. The Alliance has been active in a number of strategic planning areas and studies. The Alliance has focused on examining transportation in particular, and Alliance efforts have been instrumental in determining the County’s current transportation initiatives.

The County has formed strategic partnerships with several key organizations:

The Elizabeth Development Company (EDC), the Union County Economic Development Corporation (UCEDC), the Linden Economic Development Corporation, and the Plainfield Business Development Corporation are private, nonprofit organizations that work with firms already operating within the County and assist those firms considering relocation to Union County. They work with State development agencies and banks to identify funding sources, package loans, make loans from their own revolving loan funds, and participate in development projects. EDC and UCEDC are also particularly active in programs that provide job placement and training services, entrepreneur training and microloans, procurement technical assistance, and publish a number of guides, directories and information services for the business community.

The Gateway Institute for Regional Development (at Kean University) is a nonprofit organization that provides significant research and clearinghouse services throughout the region, on matters or economics and trade. Gateway also acts as a liaison between Kean University faculty/staff/student resources and County communities on specific public policy issues and local projects.

The County also works closely with a number of Chambers of Commerce, particularly the Greater Elizabeth Chamber, the Suburban Chamber, and the Plainfield/North Plainfield/Somerset County Chamber. These are not-for-profit membership organizations that provide important information, referral and business networking functions, advise members on timely topics and pertinent legislation, and play a leadership role on local economic development matters.

Additionally, several communities have created special zones or districts to promote business and industry. Elizabeth, Plainfield and Hillside have obtained State of New Jersey designation as Urban Enterprise Zones, allowing them to offer advantages and incentives to businesses and to use certain sales tax revenues to support a variety of local development programs. Cranford, Elizabeth, Linden, Rahway, Summit, Union, and Westfield have created active Special Improvement Districts or Downtown Management Corporations to foster and enhance the growth and revitalization of their downtown commercial areas.

Economic Development efforts are supported by a number of other organizations and programs across the County. Chief among these are the Small Business Development Center located at Kean University, the Workforce Investment Board (which has replaced the former Private Industry Council), and the New Jersey Air Services Development Office.

Elizabethtown Gas (a subsidiary of NUI Corp.), Public Service Electric and Gas Company, and Jersey Central Power and Light each have active development programs and incentive rates, as well as offering substantial support to the ongoing development efforts of other economic development organizations.

Identified County Assets

Over the past five years various government and development organizations have undertaken studies and analyses of the economic situation of the County. Though the studies were independent, they each identified a set of core strengths that Union County has. Chief among these are:

1. Location – in the heart of the Northeast Corridor
2. The Port of Elizabeth and the Newark International Airport
3. Infrastructure, especially in the area of transportation
4. Solid and diverse core economic base
5. Economic strength – 6th wealthiest County in the State
6. Strong technology base
7. Diverse population

These strengths afford the County the opportunity to develop and execute programs that build from these strengths to continue the County’s prosperity and position.

Identified Concerns/Liabilities

These same studies also noted that Union County is not without problems and areas of concern. Key topics for consideration and action are:

1. Deterioration of the manufacturing base,
2. Lack of growth in service sector to offset manufacturing job losses,
3. Deterioration of the infrastructure,
4. Lack of developable land for industrial, commercial or residential uses, requiring assessment of Brownfields redevelopment, especially in the eastern portion of the County,
5. Compatibility of Port Authority aims and planning with County and local objectives and plans.