CONTENTS

President's Message 8

Morristown Grows Into Business Hub 12

Harnessing the Power of Artificial
Intelligence for Business Growth 16

Finding Strength In Diversity 22

Celebrating Life Sciences
In Morris County 26

Morris County Chamber of Commerce

325 Columbia Turnpike – Suite 101, Florham Park, NJ 07932

973.539.3882 | morrischamber.org

Not a member yet? Contact Kevin Murphy, VP of Membership,

at kmurphy@morrischamber.org.

Please send all of your “Around the Chamber” announcements

to Chris Reardon at chris@reardoncommunications.com for

consideration to be included in the “Around the Chamber” newsletter.

president's

MESSAGE

THE MORRIS CHAMBER PROVIDES THE PERFECT PLATFORM TO BUILD REWARDING RELATIONSHIPS IN 2024

As I reflect on 2023, I thank you for your involvement and support this year! By investing in the Morris Chamber, you committed to the growth and success of our business community. It’s you, our members, who demonstrate the power of connection year in and year out and make the Chamber have the impact that it does as an organization.

The Morris Chamber’s winter edition of Business Edge highlights the economic strength of Morris County and new initiatives businesses are taking to leverage technology and attract and retain talent in the competitive marketplace. Our cover story looks at how Morristown has become a business hub. With the opening of M-Station, the town welcomed Deloitte and Sanofi downtown while Valley Bank moved into its new headquarters on Speedwell Avenue. Morristown’s draw for businesses is being driven by the attraction of the town as a walkable place where young workers can live/work/play.

Our second feature article takes us into the ever-expanding world of Artificial Intelligence, with local experts – and Chamber members – sharing all that is happening in this burgeoning industry and what it means for businesses. The Chamber looks forward to continuing this series into 2024.

We also delve into Diversity/Equity/Inclusion, including why it is so important for business to have a committed DEI program and what local businesses – and the Chamber – are doing to achieve their DEI goals. Finally, you will find coverage of our annual Life Sciences Awards Luncheon, where we honored Zimmer Biomet as the Life Sciences Company of the Year and heard from keynote speaker Dr. Robert Hariri of Celularity, who spoke about leading-edge treatments in cell therapy, as well as a panel discussion about the reasons for the robust life sciences industry in New Jersey.

I wish you a wonderful holiday season. I look forward to seeing you “around the Chamber” in 2024!

Sincerely,

Meghan Hunscher

President

MORRISTOWN GROWS INTO BUSINESS HUB

By Christopher Reardon

“If you build it, he will come.” – Field of Dreams

A collective vision for development of underutilized property in Morristown, combined with a far-sighted mayor and town council, has led to creation of a vibrant business hub that benefits both large businesses and small retailers and eateries alike while serving as a boon to the local economy.

In the last year, Morristown has seen completion of the first building of M-Station, a 390,000-square-foot LEEDS-certified Class A office facility bursting with amenities that is the new home to Deloitte; construction of the second building that will serve as headquarters for pharmaceutical giant Sanofi; and erection of a new 125,000-square-foot office building on Speedwell Avenue for Valley Bank’s headquarters.

“It’s a great story and it tells us there are companies out there that recognize the benefits of a great building in a great location,” said Brian Decillis, managing director at commercial real estate services firm Cushman Wakefield. The Morristown-based leasing team of Robert Donnelly Sr., Robert Donnelly Jr. and Decillis handled the leasing for M-Station on behalf of SJP Properties and Scotto Properties. “These are three big corporations that have made long-term commitments to Morristown.”

There is a movement in commercial real estate throughout the nation called the flight to quality, companies abandoning older office buildings isolated in suburban settings for newer facilities filled with amenities and located in walkable, transit-oriented settings that are attractive to workers, particularly younger workers.

More than 10,000 baby boomers are retiring each day in the United States. That is outpacing younger workers entering the workforce and has led to a battle for talent and workers among businesses. In addition, while millennials account for 35% of the nation’s workforce today, that will rise to 75% by 2025, according to reports. And millennials want to work close to where they live and play.

Enter Morristown.

“Younger workers don’t want to be relegated to big office buildings where they’re either eating in the cafeteria or getting into their cars,” said Frank Vitolo, member of the law firm Sills Cummis & Grace and co-chair of the firm’s Land Use Group. Vitolo served as the land use attorney for both M-Station and the new Valley Bank headquarters. ”Morristown itself is the amenity. It’s safe. They have transit, restaurants and bars, green space, theater and performing arts.

“Morristown is allowing construction of office space that is loaded with amenities,” he added. “They have terraces. Some will have roof decks. There are exercise facilities and massive windows for lighting…You have the best of both worlds – office buildings that offer all the amenities and a walkable downtown filled with restaurants and retail.”

Yet businesses relocating to Morristown are not trying to please only millennials, according to Alex Erdos, senior vice president leasing at SJP Properties, which developed M-Station and Valley Bank’s headquarters along with Scotto Properties.

“We’re seeing people all the way up to the executive level lobbying for this environment,” he said. “Morristown has a full range of housing options. Executive management understands that a workplace in a walkable location is efficient…Morristown has been a leader in this new class of office product we’re seeing. And we are delivering exactly the type of environment that these companies are seeking.”

Morristown is home to more than 100 bars and restaurants. Retail stores selling a wide array of products fill the town’s streets. In addition, Morristown offers a plethora of arts, including live music, visual arts, dance, galleries and more. The town is home to the Mayo Performing Arts Center.

“A thriving community that everyone wants, including businesses, hospitality and street life that says open after 5 p.m., all of that is impacted by the arts,” said Tom Werder, executive director of Morris Arts. “When there is a show going on at the theater, the restaurants are packed. Workers want to leave the building at lunch and choose from a number of restaurants or maybe watch a live art performance on the Morris Green. They don’t want to leave town after work. They want to stick around. In Morristown, there are all kinds of things happening on any given night.”

The arts also contribute significantly to the local economy. The recent Arts and Economic Prosperity report for Morris County for 2022 showed the arts created 783 jobs, generated $43.6 million in income and $1.2 million in local taxes, and saw more than 528,000 people attend performances, spending an average of $27.33 per person or a total of $14.4 million.

Morristown benefits from this status as a business hub in a number of others way, as well, according to Vitolo, including the redeveloped properties generating more taxes than they were before, large businesses supporting nonprofits and “walking wallets, people who work in town during the day and support the local economy,” he said.

Decillis agreed. He noted local merchants supported the redevelopment during public hearings.

“The owner of the Artist Baker came to one of the meetings and said, ‘I need more customers during weekdays,’” Decillis said. “This development will benefit local businesses by bringing more daytime customers to town.”

The next question is, how much more redevelopment can Morristown handle? Decillis said there remain a few sites ripe for redevelopment but factors such as traffic have to be considered.

“You can only handle so much but it will benefit other towns, such as Madison and Chatham,” he said.

Added Erdos, “All I can tell you is there continues to be tenant demand for the type of product we are building.”

Harnessing the Power of Artificial Intelligence for Business Growth

The internal combustion engine. The assembly line. The cargo container. These inventions all made businesses drastically more efficient and changed the world for the better. Will ChatGPT be next?

ChatGPT (Generative Pre-trained Transformer) is the next generation of artificial intelligence (AI), introduced last November by OpenAI. AI itself is defined as the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making and translation between languages.

Previously AI was based on algorithms while generative AI such as ChatGPT is based on models, allowing it to be predictive.

“Now AI is creating something new,” said John Kullman, chief operating officer at IT services and solutions firm Macrosoft. “In less than a year ChatGPT has revolutionized the impact on people…Historically, the hardest thing people have had to face is the blank piece of paper. ‘How do I get started?’ AI helps you get started.”

“AI benefits business in efficiency, primarily,” said Nick Kraus, founder and CEO of digital marketing agency Kraus Marketing. “Tasks that a human can perform in minutes, AI can perform in seconds.”

For example, Robotic Process Automation looks at how people interact with information, then mimics and repeats the process. In addition, AI can work 24/7. This frees up people to do more creative work.

Macrosoft is using AI to create videos. For 20 years, the firm has generated marketing or informational videos that took two-to-three weeks to create. Using AI, they now produce a video in two-to-three hours. Kraus Marketing is placing Chatbots on clients’ websites to replicate the human interaction and route calls to the right person or even the answer. They also are testing ads, running one against another to measure effectiveness using AI.

Cal Thomas, a sales training expert and president of Sandler Training, Morristown, said AI can be a highly effective tool in sales. He noted that a recent study found 72% of B2B buyers prefer a sales representative-free experience and 68% do not engage with a rep until the last stage of the purchase.

“We have to up our games as sales professionals in face of that and ask more and better probing questions,” he said.

According to Thomas, AI can benefit the sales professional through speed and efficiency, consistency and objectivity, accuracy and scalability. A salesperson can use AI to record call summaries and follow-ups, for more accurate forecasting and reporting, and for lead management and data cleansing.

What AI does not offer is contextual understanding, emotional intelligence, creativity and consensus, intuition and instinct, and ethics and morality. Therefore, the sales person has to be truly present to provide that which AI cannot, Thomas said.

“When the buyer is at the self-educating phase, they may not be educating themselves about the right solution,” he said. “We may have to ask questions to figure out if that’s really the problem they need solved. The human connection will never go away.”

AI is not just for large companies.

“Large companies benefit through automation and greater efficiency,” Kullman said. “Smaller companies are using it to compete with larger companies…and go into markets they couldn’t in the past.”

The good news is AI tools for the most part are not expensive, Kraus points out. Many are available online for free or for as low as a few hundred dollars per year.

Some of the world’s IT leaders recently issued a warning that AI poses a significant threat to mankind. Kullman and Kraus are not too worried.

“AI as it exists today does not pose a threat to businesses,” Kullman said. “It’s not self-aware. It’s not poised to do anything it’s not asked to do.”

Kraus takes a different track.

“It poses a threat in the sense the way the competition harnesses it can make you obsolete,” he said. “AI can be a threat to your business if you’re not harnessing it properly….If you’re not thinking of how it can help you, there’s a good chance you’ll be left in the dust.”

Kullman cited the Will Rodgers quote: “Even if you’re on the right track, you’ll get run over if you just sit there.”

“If a business is just sitting there, you’ll get run over,” he added.

Finding Strength in Diversity

By Christopher Reardon

Gone are the days of making widgets, setting a price that competes with the competition and brings back a profit, and considering a week’s pay sufficient incentive for employees to work hard. Today’s business environment includes complex and evolving matters such as considering employee feelings about societal issues and consumers weighing much more than price when making purchasing decisions. In the process, DEI – Diversity, Equity and Inclusion – has become a matter of paramount importance to companies of all sizes.

“At Crum & Forster, we firmly believe our diversity is our strength and each individual’s unique background and perspective contributes to our collective success,” said Mari Marques-Thomas, vice president of inclusion and belonging at Crum & Forster (C&F). ”C&F’s DEIB (Belonging) efforts are a collective undertaking. Everyone at all levels has a part to play.”

C&F also champions inclusion and belonging through its Employee Resource Groups (ERGs) – company-sponsored, inclusive spaces led by employees who share a variety of common interests, backgrounds and experiences, serving as a platform for networking and learning through webinars, podcasts, guest speakers and other efforts.

The company’s DEIB strategy focuses on three pillars: (1) culture – engaging, attracting, developing, retaining and advancing people; (2) business – how C&F drives DEIB beyond HR policies and processes by integrating the employee lifecycle into the business in partnership with their Inclusivity Council (a group of diverse leaders and influencers within their respective divisions who also serve as executive sponsors of their ERGs); and (3) community – partnering with their social impact team to drive positive change through DEIB-oriented philanthropy, charitable giving, volunteering and more.

According to Xavia Mitchell, first vice president, senior human resources & diversity business partner at Provident Bank, Provident has implemented a variety of DEI initiatives, including the creation of a Diversity Council, raising awareness around diversity holidays and increasing education about unconscious bias, micro-behaviors, cross-cultural communication and micro-aggressions.

The bank has strengthened partnerships with local chambers of commerce to gain a better understanding of communities and how needs have changed and has implemented tools to track supplier diversity spend with minority-, women, LGBTQ+- or veteran-owned businesses. In addition, all employees are invited to join Employee Resource groups that support employees and promote a sense of belonging.

While DEI efforts help companies recruit and retain employees who are proven to care about such issues, research also shows they help improve company performances.

“When our team members are allowed to bring their authentic selves to work, it opens the door for them to focus on connecting with our customers and developing their professional skills on a deeper level,” Mitchel said. “When our team members are diverse, it allows us to produce better outcomes for our customers, particularly when diversity in background and thought are valued and supported.”

Marques-Thomas agreed.

“When employees feel valued and empowered, it fosters collaboration and productivity,” she said.

Then there is the customer to consider. According to Deloitte, “Consumer buying power is more diverse than ever and organizations that do not reflect the needs of their diverse customer base may lose increasing market share. Hence, incorporating Diversity, Equity and Inclusion has become a business and moral imperative for organizations today.”

Katherine O’Hara, president of The O’Hara Project, concurs and says many companies are failing to see the importance of embracing DEI as a business practice from top to bottom. For example, she notes the buying power of American Hispanics is $2.5 trillion and Hispanics comprise 20% of the U.S. population yet Hispanics account for only 4% of corporate board seats.

“It goes far beyond what organizations are saying to customers,” O’Hara said. “It’s how authentically they activate a meaningful DEI initiative. There’s a difference between doing it right and just checking boxes.”

O’Hara said a meaningful DEI effort entails internal communication, external communication and diverse suppliers.

“All too many companies do this – they check boxes,” she said. “Those who do it right are the ones who foster the philosophy starting from within their own leadership…To not practice genuine DEI means leaving potential productivity and revenue untapped.”

The Morris County Chamber of Commerce is listening. The chamber has created a DEI committee comprising diverse chamber members who are shaping the chamber’s DEI efforts, according to Marques-Thomas, a committee leader. The group is collaborating with PwC to develop defined achievable goals and incorporate accountability. This will include such efforts as ensuring the chamber’s committees and forums are considering DEI in their planning and activities and supporting smaller member organizations that may not have the resources to design and implement DEI programs.

Look for more about this chamber initiative in 2024.

CELEBRATING LIFE SCIENCES IN MORRIS COUNTY

By Christopher Reardon

New Jersey’s life sciences sector accounts for 21% of the state’s gross domestic production, 11% of jobs and $8 billion in goods and services purchased. In Morris County – with global leaders such as Novartis, Bayer, Pfizer and Ferring Pharmaceuticals – the sector accounts for nearly 10,500 jobs and $4.5 billion in sales. While New Jersey has long been known as the medicine chest of the nation, Morris County is the top shelf.

That is why the Morris County Chamber of Commerce each year celebrates this sector with its annual Life Sciences Awards Luncheon, held this year at the Park Avenue Club in Florham Park.

“This is a celebration of an industry that contributes to the Morris County economy in no small way, as well as the national and global economies,” said chamber president Meghan Hunscher. “This is an industry that transforms lives, improves the quality of lives and saves lives.”

An example of that is the work done by Celularity, a clinical and commercial stage biotechnology company developing off-the-shelf placental-derived allogeneic cell therapies and biomaterial products for medical needs. Robert Hariri, the company’s chairman and CEO, served as the keynote speaker at the luncheon.

“I’ve spent the last 30 years of my life working to change living cells into medicine,” he said.

While cell therapy has been taking place for decades, a breakthrough came with a focus on postpartum placentae, which are normally discarded and incinerated, according to Hariri. Research showed that women with diseases such as muscular dystrophy and Chrone’s went into remission while pregnant.

Hariri explained that one placenta produces five types of cells, including stem cells for therapy research.

“The placenta is nature’s universal donor,” he said.

Its work has allowed Celularity to develop cell-based treatment for neurological diseases, cancer and now an array of other illnesses. They are even looking at slowing the aging process.

“The placenta has proven to be the ideal source of cells for cancer treatment, neurological therapy and regenerative therapy,” Hariri said.

The luncheon also featured a panel discussion with Kathleen Coviello, chief economic transformation officer at the New Jersey Economic Development Authority; John Saraceno, founder and managing principal at Onyx Equities; Judith Sheft, executive director of the New Jersey Commission on Science, Innovation and Technology; and Michael Zwick, senior vice president for research at Rutgers University. John Oroho, president and general manager at RLDatrix Life Sciences, moderated the discussion, which focused on why New Jersey is the center of health care, life sciences and innovative technology, as well as how the state helps this sector.

Zwick noted the state’s abundance of talent as a factor.

“You need scientists seeking government funding for research that doesn’t necessarily have an economic impact (along) with engineers working on projects that do have an economic benefit,” he said.

Coviello noted that New Jersey is home to HELIX – the New Jersey Health and Life Sciences Exchange – that provides industries and universities an ecosystem for research, work and development.

“Not everything is going to be a success,” she said. “You have to take some risk…That’s an important value proposition.”

Sheft noted the New Jersey Commission on Science, Innovation and Technology offers a number of grant and voucher programs and an online clearance house to help life science companies and academic institutions locate talent.

“How to find a person who is working on a certain type of technology who can help me,” she explained.

Saraceno said New Jersey has made great strides in improving its attraction to perspective life science companies looking to open or relocate. His company specializes in redeveloping large corporate campuses for life science use, such as the former Celgene and Merck properties. Saraceno said the state’s public-private partnership in this area has made a world of difference.

“We used to be 50th on the list,” he said. “It’s nice to see we’re third now…We changed the story.”

The chamber also honored Zimmer Biomet with its 2023 Life Sciences Company of the Year award, accepted by Elizabeth Gauthier, manufacturing director/site leader. Zimmer Biomet is a leading medical device and medical technology company.