recruitment and retention in transportation and warehousingparticularl - PDF document

1 recruitment and retention in transportat
recruitment and retention in transportation and warehousing,particularly given the high cost of living in the state. Othersectors of the economy provide higher paying alternatives,such as professional and business services ($64,401),$83,672$83,672eys have shownthat non-competitive pay levels hinder the attraction ofentry-level logistical employees, and that logistical firms findit difficult to attract employees with appropriate math, Competitive Position competitiveness to other transportation/distribution centers.Between 2003 and 2007, New Jersey lost 4,700 jobs (-1.2percent) in logistics (rounded off); 2,000 jobs were lost in-0.9 percent-0.9 percentere lost intransportation and w-1.6 percent-1.6 percento put thisin context, logistics employment nationally grew by 7.9percent during the same time frame. Thus, New JerseyÕs losseswere not due to efficiency and productivity gains, but toeductions in activity.In contrast to New JerseyÕs decline, logistics employmentPennsylvania, a key competitor, grew by 33,800 jobsbetween 2003 and 2007, an inc

2 rease of 8.0 percent. ThisEmployment in
rease of 8.0 percent. ThisEmployment in wholesale trade grew by 14,800 jobs (6.5percent) in Pennsylvania while employment in transporta-tionand warehousing increased b9.6 percent9.6 percentLogistical companies in Pennsylvania are growing despiteaverage annual pay levels considerably below those of NewJersey. These lower pay levels are most likely linked tower living costs. Housing costs in New Jerseyare more than 552 percent52 percentthe nation while housing costs in Pennsylvania are nearly 109.3 percent9.3 percentwer than those of the nation.In an even more ominous trend, logistics employmentin the Allentown-Bethlehem-Easton, PA-NJ metropolitanstatistical area, which straddles the Delaware River andInterstate Route 78, grew by 22.8 percent between 2003 and2007, nearly triple the growth rate for Pennsylvania as aNorthampton, and Carbon counties in Pennsylvania andlogistical growth in the metropolitan area took place in thethree Pennsylvania counties. This stands as a stark warningof the stagnation of New JerseyÕs competitive logisticalposi

3 tion, and the western migration of logis
tion, and the western migration of logistical activity andworkforce across the Delaware River. Port of NY and NJ ꔀWill invest $2 billion over the next ten years. Projects includeupgrading marine facilities, dredging harbor to 50 feet andconstructing express rail system to handle 1.3 million shippingcontainers per year which equals 500,000 truck trips.2007 Value of cargo moved through port - $166 billionꔀ2007 Volume Ð 5,299,105 T.E.U.s in 5,445 ship callsPort related jobs Ð 36,000ꔀVehicles handled Ð 852,297ꔀTop 5 imports Ð furniture, women & infant wear, beer,ꔀTop 5 exports Ð paper, automobiles, metal scrap, auto partsꔀTop 5 importers Ð China, India, Italy, Germany and BrazilꔀTop 5 export partners Ð China, India, Netherlands, UnitedKingdom and Germany Jersey consumers are facing the heretofore unknown (at leastin the 21st century) problem of having to live within theirexpansion in world trade and the subsequent effects on thelogistics industry in our state. However, internal competitiveforces have recently reduced employme

4 nt in this sector, andnow, changing nati
nt in this sector, andnow, changing national and international economicconditions are likely to dampen trade volumes for some timeto come. Accordingly, ensuring the competitiveness of thestateÕs logistics industry is critical to the ability of thisimportant sector to continue to provide jobs, income, andeconomic security for New Jersey. or more information: www.locationnj.com/portfields.aspConsumer Retrenchment: significant element in the growth of the importance oftional trade in this decade. Imports into the United Statestotaled $2.1 trillion in 2007 and were up by 47 percent since2000. However, the consumer spending binge that buoyedthe U.S. economy, and its logistical sector, for so long in thisdecade is over. The first pillar of this spending Ð low interestre-emerge for some time. The subprime mortgage debacleDuring the housing boom years (2000-2005) over $1 trilliondollars of home equity loans were made, mostly to financehas now disappeared. Consequently, significant consumerhigh energy costs, slowing employment and income growth