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JULY 2004

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Call Centers May
Ring True in South

    Princeton, N.J.-based site consultant John Boyd believes parts of the state offer promise to specialized customer service centers. He believes the skills are in good supply in several counties. Citing call center development in the Las Vegas area, Boyd says the same possibilities are there for southern New Jersey, which has historically been an agricultural and tourism-dominated region. He says Atlantic, Ocean and Cape May counties offer potential.
Cadbury plans a research center in New Hanover Township to develop new gum, candy and mint products.

      "The area also has significantly lower operating costs," Boyd points out. "It's the fastest growing part of the state. The gaming community is mature and a number of workers are seeking more traditional employment on the mainland. Shift work is stressful in casinos and many workers are underemployed."
      Boyd says there are also certain call center operations requiring specific skill sets related to specific companies that have a need to be in the Northeast. These jobs are not transferable to offshore locations, he says. With the state sandwiched between the financial centers of New York City and Wilmington, Del., it's also a good place to put call centers serving that sector.
      "We see opportunities in that part of the state [southeast New Jersey] within the pharmaceutical industry," Boyd says. "The prescription drugs-by-mail industry has a need for call centers that support that process. Land costs are dramatically lower and we are currently looking at the area for a couple of clients."
      One of the largest recent distribution center projects in the state involves a short move by a fast-growing company. Home crafts superstore chain A.C. Moore's search took the company up and down New Jersey as well as into eastern Pennsylvania before it found a site to its liking in Winslow Township for its new headquarters and distribution center. Les Gordon, A.C. Moore's chief financial officer, tells Site Selection the company wanted a site close to its shipping lanes which serves 84 stores within an 800-mile (1,287-km.) ring ranging from Maine to Alabama.
      Currently based in Blackwood, N.J., the company needed larger quarters due to its rapid growth. After the extensive search, a site in Winslow Township, just 9.5 miles (15 km.) away, was chosen for the new 700,000 sq.-ft. (65,000-sq.-m) distribution center and 60,000-sq.-ft. (5,600-sq.-m.) corporate office.
      "We put together an analysis of the cost of real estate, manpower and trucking lane costs as well as the implications of possibly separating the distribution center from the corporate office," Gordon says. "After evaluating all those aspects, we determined South Jersey would be a location and looked at potential pieces of property and eventually chose the site in Winslow Township."
      Since the move is short, Gordon says the company will keep most of its employees. The transition should be complete by the end of July 2004.
      Minneapolis-based NRG Energy is one of the latest corporations to pick New Jersey for its headquarters. The wholesale power generation will be moving to West Windsor, near Princeton. The move will be gradual, beginning in September 2004 and continuing through early 2005.
      NRG, moving to be closer to its primary power facility, looked at five states during its site search. The company will receive a Business Employment Incentive grant that could total $7.5 million over 10 years.
      Since America's sweet tooth is rarely satisfied, Cadbury Adams plans a new Advanced Technology Scientific Research Center in Hanover Township, not far from its headquarters in Parsippany.
      The 148,000-sq.-ft. (13,750-sq.-m.) facility will house laboratories where the company will develop new gum, mint and candy products. It will also house a pilot plant for new technology assessment and process development. Construction began in June 2004, with completion set for the second half of 2005. Site Selection

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