FRANKLIN TOWNSHIP
ECONOMIC DEVELOPMENT STUDY
PHASE 1 REPORT
EXECUTIVE SUMMARY
JANUARY 2003
CENTER FOR URBAN POLICY RESEARCH (CUPR)
RUTGERS UNIVERSITY
33 LIVINGSTON AVENUE, SUITE 400
NEW BRUNSWICK, NJ 08901-1982
Principal Investigators
Sean DiGiovanna
Nancy Mantell
EXECUTIVE
SUMMARY
The Center for
Urban Policy Research has prepared this report in anticipation of the
completion of an economic development study for
Franklin Township.
This analysis was conducted through CUPR’s Rutgers Economic Advisory
Service (R/ECON) under the direction of Sean DiGiovanna and Nancy Mantell.
In this first phase, CUPR used industrial and occupational data to analyze
Franklin Township’s economic characteristics and to forecast future
trends. The second phase will consist of an analysis of Franklin Township’s
economic development options and provide recommendations for implementing
the most promising strategies.
The following report presents a series of economic analyses and forecasts
on aspects of Franklin Township’s industrial and occupational characteristics.
The primary data source is the fully-disclosed New Jersey covered employment
(ES202) data for all employers in the Township. In addition, we used
data from the US Census Bureau and other state and regional agencies.
(A complete copy
of The Phase I Economic Development Report can be obtained through the
Franklin Township Office of Economic
Development)
Also Available on (PDF 130KB)
General Findings
Although not in itself intended to draw conclusions about Franklin
Township’s
economic development milieu, this data analysis has enabled us to make
some important observations about the Township’s economy that
will likely hold true under further investigation.
-
Franklin Township’s economic base is strong and diverse. Employment
in Franklin Township has grown at a rate that surpasses the state and
regional average. Further, the Township’s economy has demonstrated
a high degree of diversity, providing a wide range of employment opportunities
for both white-collar and blue-collar workers.
-
The local economy has large employment concentrations in industries that
are projected to grow. Given the agglomerative nature of many of the “new
economy” or “high-tech” industries, locations that
have captured investment in these sectors in the past are likely to remain
competitive in the future. In particular, the Township’s strong
concentration in Business Services and Engineering and Management Services
should serve it well as those industries are forecast to be the growth
leaders through 2012.
- Franklin Township’s
employment base is a good match for the skills and talents of its
residents. The comparison of jobs offered
by employers
and jobs held by residents indicates that industries
likely to locate in Franklin are able to find the workers they
need and residents have
the potential to find jobs locally.
Questions
for Phase 2 of the Study
This analysis raised several interesting questions that
might have import for future economic development
planning within
the Township
and that
should be considered during the completion of the
second phase of the economic development study.
-
What are the impacts of the loss of large employers in the
Township’s historically competitive industries? The loss of employment
at Merrill Lynch and AT&T significantly reduced the competitiveness
of Security and Commodity Brokers and Communications, respectively. Given
these losses, the question arises as to how much effort the Township
should put into recruiting in these particular industries.
-
What is the future of manufacturing in Franklin Township? Although the
manufacturing sector has been on the decline both statewide and nationally,
Franklin Township posted impressive gains over the study period. Thus,
the question arises as to whether, despite the forecast of manufacturing
decline, the Township should still pursue growth in the manufacturing
sector. On the one hand, it is not advisable for a location to be concentrated
in declining industries. On the other hand, Franklin Township has demonstrated
its competitiveness in this sector and manufacturing does tend to provide
better jobs for low-skilled workers and has a greater impact on the local
economy through the multiplier effect
-
Why is Franklin Township so underrepresented in retail activity? Retail
is underrepresented in Franklin Township and the industry generally performed
poorly during a period when the Township’s population—and,
hence, demand for consumer goods and services—grew rapidly. Thus,
it is important to understand why the retail sector has not done as well
as it might have.
-
What are the prospects for an emerging agglomeration in the health sector?
Although Health Services is not currently a strong component of Franklin
Township’s economy, certain related industry sectors have been
or are becoming competitive in the Township. Given the state’s
strength in the health field, what are the prospects for developing health
related industries into a new competitive agglomeration?
Industries Targeted for Case Studies
Based upon the data analysis and the questions raised above, the following
industry groups are likely candidates for more detailed case studies
in Phase II.
Services
These two industry groups
were the strongest performers in the study period and are projected
to grow at a high rate over
the next decade.
It is important to understand the
characteristics and locational requirements of the strong performers
within
these two industries in order to help
the Township keep its competitive
edge.
Given
the possibility of an emerging health sector agglomeration within
Franklin Township, this large industry group needs
to be studied in more detail. In particular,
links need
to be drawn to related industry groups
in Manufacturing, FIRE, and Services.
-
Electronics
-
Chemicals
-
Instruments
These industries were overall
strong performers for the Township and bucked the trend of
decline within manufacturing.
Phase II should identify the characteristics and locational
requirements of firms within these
industries, particularly among
the more competitive and high-tech sectors within
them.
Phase II can help shed some light on whether the strong recent
performance of Printing and Publishing can result
in further agglomeration or will remain the province a few
medium-sized firms.
Given the significant under-representation of retail
within Franklin Township and its recent weak
performance, a detailed case study of the
various sectors within the retail industry
is called for.
Conclusion
While this data analysis has potentially
raised as many questions as it has answered,
it provides an excellent jumping-off
point for the continuation
of the economic development study in
Phase II. The data have shown that Franklin Township
enjoys a strong local economy that appears
to serve
the needs of both its residents and its
employers well. The Township is concentrated in sectors
that are forecast for strong growth and
has significant presence in industries that are
at the forefront of the new
economy and high technology.
This study also exposed a few potential
weaknesses that will be the object of
further study.
In particular, the implications of the
closure of large
firms on the competitiveness of traditionally
strong industries (such as Security and
Commodity Brokers and Communications)
might indicate
that the Township needs to give thought
to encouraging the agglomerative
tendencies within its competitive industries.
In addition, more study needs to be made
of the retail sector to determine its
appropriate place
within future development strategy.
The data also suggest some intriguing,
but by no means certain, opportunities
for future
growth. The surprisingly strong performance
of manufacturing
indicates that, despite forecasts of
declining employment, it may yet be an
important component
of the local economy in years to come.
Finally, the data provide evidence for
an emerging
agglomeration in health-related
industrial activity that should be investigated
further.
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