Even in the case of Panasonic, which received a well-documented $102.4 million tax credit in 2011 to relocate its North American headquarters to Newark from Secaucus, incentives aren't always enough to keep a company in New Jersey.
And this is from a company that stayed.
Last year, Panasonic settled into its downtown location at Two Riverfront Plaza, a short walk from Newark Penn Station.
The convenience of having direct access to New York City and its talent pool was a selling point in itself, says Mike Riccio, chief financial officer and treasurer for Panasonic Corp. of North America.
“I couldn’t think of a better location,” Riccio says.
With roughly 1,000 employees in Secaucus at the time of the move, the company would have really needed a good reason to leave the state, Riccio said, because a move of great distance could have been proven to be “disruptive.”
In addition to that, Riccio said the Garden State has just always felt like home for the company.
“We’ve been in New Jersey for quite a long time and we’ve developed a lot of roots here, so to speak,” Riccio said.
Being a part of Newark’s revitalization and reducing the company’s carbon footprint were also factors in the decision, Riccio said.
New Jersey certainly is a high-cost state and carries the stigma that it “may not be as pro-business as others,” but when all factors are put into perspective, Riccio said it “does offer a lot.”
“It depends what you’re looking for,” Riccio said. “If you’re looking for a low-cost operation and you don’t need specific types of talent, maybe then New Jersey isn’t the place for you. But (with) the type of talent pool that you want, I think New Jersey … you really have to give it a second look.”
And then there were those incentives, again.
“That was kind of the icing on the cake,” Riccio said.
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