The Death Of A Large Company’s Presence….the aftermath

To continue the discussion about 2 million sqare feet of a plant being vacated — and the end of 14M worth of tax ratables being paid into the coffers of 2 very middle class towns…and 2 towns that are not huge and not rich, by any means.

I have said it before and said it again: when a big company moves out of a town, it kills the town’s spirit.

And as I also said, “what type of employment culture exists?” That is something you ask when you plan on moving — in addition to knowing about the school system, the crime rate, what ammenities are available to residents, etc — you also want to know Where Is There To Work Around Here?

This is all a sign of the times: Phamcos have been moving out of the area, or closing down, or growing much smaller — and the jobs in general are moving out of the area.

We have too many commercial office buildings that are empty — now plants that once employed 5000 people or more can  sit, vacant and fallow.

Shulton and ITT, 2 more blockbuster companies located in Clifton, ceased business years ago. In place of the buildings, there are now townhouses, shopping centers and stores.

There was also Givudan — that building was razed and in its place, a commercial office building was built. Nowhere near the ratables that Givudan’s campus generated.

14M gone from a tax role?

That could break the back of a town like Nutley. Population perhaps 25K and mostly middle class and upper middle class.

And we all know it’s a trickle down effect — there are dozens of restaurants and stores nearby that are vastly popular with the employees and lunch and dinner crews of the facility. And most of them are mom and pop businesses.

14M of taxes?

Even if they build homes there, you’d have to build about 3,000 homes to break even — and even then, it’s a sucky solution. YOu will “profit” from that not — this will now mean a boom in the school population! You’ll need more school spalce, more teachers, possibly another grammar school to hold the new student influx.

And you’ll have to add to the sewer system and other utilities to handle what — a potential TEN THOUSAND new residents? And that 10,000 person figure is only a mild estimation.

And if these are upscale townhomes — and they probably will be — don’t count on these people to send their kids to the public schools. You’ll see them send their kids to the private schools that are up the road. NO benefit to the public school system at all.

And the chances of getting another pharmco to move into that campus?

Anybody here hear squealing and see something porcine soar through the air on wings? Let me know if you DO.

Pearl River NY will be getting the same “deal”: The Pfizer plant is ceasing operations, also.

This is no win situation for everyone involved.

Another job fair with hundreds of attendees

http://www.nj.com/jjournal-news/index.ssf/2012/06/jersey_city_job_fair_draws_hun.html

 And most of them with advanced degrees.

Young people are now competing with people 45, 50 and 60 years old who will take a job just to survive, to paraphrase a line from the article.

One gent ran his own tax buisness but ended operation due to a severe slowdown. Now he’s looking to get back into the corporate world.

His comment about being out of work:

“I worked in the industry for 25 years. I’m not discouraged. I’m not complaining. At my age, it’s not that bad for the time being,” said Merritt.