ECONOMY OVERVIEW
Global Factors New Jersey, including its southern region, is a globallyconnected state. New Jersey has five foreign trade zones, a world-class logistics infrastructure, including access to the Newark, New York and Philadelphia airport systems, almost 3,000 miles of highways, the country’s highest railroad density and the second-largest seaport. International trade in the state supports more than 1 million New Jersey jobs, which have a higher growth rate than total employment. The state exports all around the world, aided by the U.S.’ range of free trade agreements. The state also welcomes many international companies and is home to more than 1,100 multinationals and 225 foreign company headquarters. Just under 300,000 jobs are directly supported by foreign-owned companies, with a focus on pharmaceuticals, software and IT, business services, industrial equipment and chemicals. Of the 322 announced greenfield projects in 2020, the UK is the biggest source of FDI in New Jersey at 14%,
followed by Japan with 10%, Germany with 9% and India with 7%. Several recent successful attempts to attract foreign companies to New Jersey include the Ocean Wind offshore wind project committed by the Danish energy company Ørsted and Italian charcuterie firm Rovagnati’s decision to establish a 64,000-square-foot production and distribution facility in Vineland. The company intends to expand the facility to about 500,000 square feet, creating 25 to 150 jobs. An agreement was also reached with UK gaming firm Gamesys to feature the company’s content on Atlantic City gaming sites. The Producers Guild of India reached an MoU with New Jersey officials to facilitate the shooting of Bollywood films at New Jersey locations. The COVID-19 pandemic had many implications and one of those was the disruption of the global supply chain. The prolonged blockage of the Suez Canal — one of the world’s primary trade channels — at the ( )
Cornerstones: Emerging Film Industry New Jersey was the birthplace of American cinema, but it lost its status as the center of the U.S. motion picture industry to the West Coast by the 1930s. After nearly a century, the state is striving to reclaim its crown, and South Jersey is poised to play a major role moving forward with a wide range of unique settings, one of the most attractive tax credit structures in the country and an abundance of industry-related talent. Leading the rebirth of this industry is the South Jersey Film Office Cooperative, which serves as a onestop-shop for producers who are considering the South Jersey region for their production or studio. “The Film Office will be the front porch of this region,” said John Burzichelli, managing partner of Hill Studio and Scenic. “We’re on the verge of something special that, if we get it right, will pay dividends for decades and give birth to an industry that has called New Jersey its home since its beginnings in Fort Lee.” From world-renowned beaches to dense urban cores to rural farmlands and everything in between, South Jersey’s geography and history make it one of the most versatile filming locations in the United States. Countless unique locations, businesses and architectural styles are found throughout the region. South Jersey’s versatility combined with one of the most competitive tax credit structures in the nation have garnered a great deal of attention. In South Jersey, 24
| Invest: South Jersey 2021 | ECONOMY
a tax credit equal to 35% of film production expenses is available in addition to a 2% Diversity Tax Credit. Since the passage of the NJ Tax Credit Program for Filmmakers in 2018, over 200 film and television projects have been made in South Jersey. A great deal of talent is necessary to meet the growing number of productions in South Jersey, and that talent continues to be readily available. In fact, South Jersey has historically been an exporter of talent to the entertainment industry. Local higher education institutions, such as Rowan University, Rowan College of South Jersey and Camden County College offer successful film and arts programs, and these programs continue to expand. The economic impact of the film industry to South Jersey has been significant. In 2019, film production pre-tax credit levels reached a historic high of over $420 million, much more than the $67 million annually that the state was accustomed to. Given the growing demand for productions, calendar year 2021 is expected to reach new highs. Of course, this industry is just beginning to reemerge in New Jersey, and the anticipated relocation or expansion of studios themselves to the South Jersey region would result in even more economic activity. “The potential of the film industry in South Jersey is unlimited,” said Burzichelli. “We don’t know what the ceiling is.”
