SJ Biz 120 Economic Forecast - FINAL_Layout 1 1 / 20 / 20 4 : 01 PM Page 3 tingencies should the market begin to shift or if unexpected obstacles should present themselves this year . “ South Jersey has always been lagging behind the general market in whichever way it’s moving . But right now , we seem to be experiencing some momentum that we haven’t had in the recent past , ” Molotsky adds . “ The overlook may be pretty positive right now , but you still have need to make sure that you always me sort of plan and adjust it as you so go along . I always tell clients to do their planning yesterday , not tomorrow . ” Though the outlook for 2020 may mean plen - ty of opportuni - 2020 ties for growth this year , there BUSINESS are some factors that could neg - FORECAST atively impact local businesses in the coming months — one of which , not surprisingly , is a sense of uncertainty as we approach g this year’s presidential election . “ Lookin ahead , I’m personally very optimistic about what’s going on in South Jersey — and as long as we can get through all of to either cut back on hiring or go out of 2020 will continue to see banks either the political chaos , our region should business altogether , ” he explains . “ Larger merging or being acquired . do very well this year , ” Molotsky says . businesses are better equipped to absorb “ We can only become so efficient . If Other factors are more specific to these increases — but it will still drive you’re strong enough and have the capital , New Jersey , and revolve around what’s down margins and affect profits across a merger of equals allows you to preserve going on within our state government — the state . ” your name , your management and your including new legislation like the gover - The financial industry itself has also board . If not , you’ll be a candidate for ac - nor’s planned millionaire’s tax or other ignificant changes in not necessarily might been undergoing s quisition , ” he adds . “ It’s a very difficult regulations that recent years , and the region’s businesses enact positive change for all businesses . time to remain as a small , independent have had to continually adapt . “ In the fi - “ Both [ these new regulations and the community bank — unless you have sig - capital and profitability . ” nancial industry , continued consolidation , upcoming presidential election ] will likely nificant Like businesses across all sectors , acquisitions and perhaps mergers of result in most businesses exercising at uth Jersey’s banks will also continue So equals have been combined with a con - least some caution so that they aren’t to be impacted by the proliferation of tinued increasing use of technology as over - extended if one or the other results technology - driven changes . “ Apps are the financials try to generate new cus - in new policies that are not business - everywhere , and they aren’t going away . tomers and wring every last bit of effi - friendly , ” Herring adds . FinTech is becoming more important ciency that they can out of their opera - Cicalese notes that legislation like cts that predi across all industries , ” Cicalese says . He tions , ” Herring says . He the minimum wage and sick pay bill are likely going to impact a lot of smaller also businesses within the South Jersey econ - “ SOUTH JERSEY CONTINUES TO BE ONE OF omy . Early last year , New Jersey legislators THE BEST KEPT SECRETS IN THE WORLD . ll that would increase the passed a bi minimum wage to $ 15 by 2024 , while FROM OUR PROXIMITY TO CITIES LIKE NEW October’s Paid Sick Leave Act now re - YORK , PHILADELPHIA AND WASHINGTON , quires New Jersey employers of all sizes D.C . , TO THE SHORE AREAS TO OUR ACCESS to provide employees with up to 40 hours of paid sick leave per year to care TO AIRPORTS AND TRANSPORTATION , OUR for themselves or family members . COMPANIES ARE SITUATED IN AN IDEAL t’s good to raise “ While I agree that i the minimum wage , I do feel that smaller PLACE TO DO BUSINESS . ” businesses with employees will be hurt — STAN MOLOTSKY , president and CEO of SHM Financial Group by these bills . Some may even be forced 36 | SOUTH JERSEY BIZ | VOLUME 10 ISSUE 1 | SouthJerseyBiz.net