Suffolk IDA

Fostering Economic Growth and Efficiency: Why Long Island’s Largest B2B Trade Show on May 23 is More Than Just an Event

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I am extremely proud of the role HIA-LI plays in bolstering Long Island’s $200 billion economy through our annual Business-to-Business Trade Show and Conference. This event isn’t just a gathering; it’s a dynamic forum for vital economic discussions and a catalyst for business collaboration. Each year, we witness how this trade show has evolved into an influential platform where businesses come together not only to showcase their offerings but to engage in meaningful dialogues about innovation, efficiency, and profitability.

It’s about more than just networking — it’s about empowering businesses to reimagine their branding, streamline their operations, and enhance their market presence. This year, as we host our 36th annual trade show on Thursday, May 23, at the Suffolk Credit Union Arena at Suffolk County Community College in Brentwood, we continue our commitment to advancing these critical conversations.

With over 250 exhibitors from diverse sectors such as technology, manufacturing, and healthcare, we are setting the stage for over 4,000 business professionals, including decision-makers, upper management, and industry leaders, to discover new products and services, forge strategic partnerships, and uncover new avenues for growth. Our collaboration with Sands New York, returning as the Title Sponsor, underscores our dedication to integrating local businesses into the broader economic framework, facilitating a shared journey towards sustainable regional development.

Connecting Businesses and Creating Opportunities

As we move forward with preparations for this major event, our focus remains on creating a vibrant gathering that provides all participants with unparalleled opportunities to engage, learn, and succeed. It’s a platform for businesses to forge valuable connections, share insights, and work together to advance the region’s economy.

Our break-out sessions include two Sands New York procurement workshops that aim to connect local businesses with Sands staff, integrating local suppliers into their procurement process. It’s an incredible opportunity for regional businesses to access new opportunities and build lasting relationships.

Celebrating Innovation at the Executive Luncheon

I’m particularly excited about our Executive Luncheon, “Economic Development Projects Changing Long Island’s Landscape,” from 11:30 am to 1:00 pm. Moderated by Marc Herbst, Executive Director of the Long Island Contractors’ Association, this session will feature opening remarks by Suffolk County Executive Ed Romaine and Sands New York Senior Vice President Tracey Edwards.

Our distinguished panelists include:

We’ll discuss transformative projects like Shoregate in Bay Shore, Station Yards in Ronkonkoma, and Midway Crossing, also in Ronkonkoma. These initiatives, collectively, promise to reshape our region’s economic future by creating jobs, fostering growth, and enhancing Long Island’s appeal for young professionals.

Engaging Sessions and Networking

In addition to the luncheon, attendees can look forward to a full schedule of complimentary break-out sessions, including:

  • “From Retail to Revitalization: A Seminar on the Transformation of Smith Haven Mall”
  • “Expanding Your Network”
  • “From Clicks to Conversations, Strategies for Direct Response Marketing Success”

Plus, our morning and afternoon “Speed Networking” sessions will help participants make rapid-fire connections with other business professionals.

Industry Pavilions and More

Our special industry sector pavilions offer an added focus into key industry sectors:

We also encourage attendees to bring non-perishable food items for Long Island Cares, helping us combat food insecurity in Nassau and Suffolk counties.

Pre-Registration and Sponsorships

Pre-register for the event at www.HIA-LI.org to avoid the $10 same-day walk-in fee. For exhibitor and sponsorship opportunities, contact Anthony Forgione at aforgione@hia-li.org or 631-543-5355.

Let’s celebrate Long Island’s vibrant business community, make valuable connections, and explore new opportunities. I look forward to seeing you there!

Innovating the Talent Pipeline: A New Dawn for Long Island’s Workforce Development

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Rich Humann, President & CEO at H2M architects + engineers, and an HIA-LI board member, moderated the panel.

The much-anticipated report, “Innovating the Talent Pipeline: Strategies for Workforce Development in the Long Island Innovation Park at Hauppauge,” was unveiled at HIA-LI’s “Workforce Development Conference and Scholarship Awards” event on October 13, 2023, at Farmingdale State College. This report is a testament to our commitment, as outlined in my June 5, 2023 blog post, to address the skills gap on Long Island.

The Long Island Innovation Park at Hauppauge (LI-IPH), the Northeast’s largest industrial park, is a beacon of regional economic strength, with over 1,300 companies and employing more than 55,000 workers. However, the challenge of a skilled workforce shortage looms large. This report, a collaborative effort between HIA-LI, the Suffolk County Industrial Development Agency (IDA), and the Workforce Development Institute (WDI), provides a roadmap to ensure the long-term resilience and competitiveness of the Long Island business sector.

James Lima Planning + Development, a renowned a New York City-based planning, real estate, and economic advisory firm, undertook the strategic analysis. Their comprehensive study, based on surveys from 34 Long Island employers, sheds light on the skills and talent needs of businesses, with a special focus on the LI-IPH.

The report’s findings are both insightful and actionable. It emphasizes the importance of:

  1. Access and Awareness: An island-wide campaign to promote resources such as adult English classes, career support, and job fairs.
  2. Strengthening Industry-Academia Partnerships: Encouraging project-based learning, AI tools, and best practices in the manufacturing sector.
  3. Promoting Intra- and Cross-Sector Collaborations: Highlighting best practices, foreign language support, and software training.
  4. Fostering a Learning and Advancement Culture: Championing mentorship initiatives and branded learning programs.
  5. Building Affordable and Attractive Communities: Advocating for workforce housing and transit-oriented development.

I’d like to extend my gratitude to the panelists and contributors who made this event and report possible. Their insights and expertise have been invaluable.

And of course, a special thanks to our partners in this effort: Kelly Murphy, Acting Executive Director of the Suffolk County IDA, and Robyn Fellrath, Long Island Regional Director at the Workforce Development Institute. We couldn’t have done this without their steadfast support.

Another highlight of the morning was the Scholarship Awards ceremony. This initiative is more than just financial assistance; it’s a commitment to the future of Long Island. By providing scholarships to high school graduates who choose to pursue their college studies here on Long Island, we’re not only investing in their education but also fostering a sense of community and continuity. It’s a clear message: we believe in the potential of our young minds and the promise they hold for our region’s future.

It’s also a testament to our dedication to keeping local talent local. By incentivizing our youth to study and subsequently work in the Nassau-Suffolk region, we’re ensuring a steady stream of skilled professionals who are familiar with the unique challenges and opportunities here on Long Island. These young individuals, equipped with local knowledge and a world-class education, will be the driving force behind Long Island’s continued economic growth and innovation.

In conclusion, as the President and CEO of HIA-LI, I am proud of this monumental step towards bridging the skills gap on Long Island. The recommendations in this report are not just words on paper; they are a call to action. Together, we can ensure a vibrant, resilient, and future-ready regional economy.

Steering the Future: HIA-LI’s New Workforce Development Task Force

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As President and CEO of HIA-LI, one of Long Island’s foremost business advocacy organizations, I’m excited to share that we are launching a new Workforce Development Task Force. This initiative underscores our ongoing commitment to supporting businesses and strengthening the economic framework of the Long Island Innovation Park at Hauppauge (LI-IPH).

The LI-IPH is a significant player in our region’s economy, serving as the largest business park in the Northeast. With around 1,400 companies that employ approximately 55,000 workers, it forms a critical part of Long Island’s economic pulse. However, like many regions across the country, Long Island faces a significant challenge: a shortage of skilled workers. This issue is not just immediate; it also has implications for our region’s future growth and resilience.

To address this challenge, we’ve assembled a task force with two specific goals: align resources to meet business needs and spearhead efforts to recruit and develop talent for in-demand careers. Our task force is led by two respected individuals, Rich Humann, President and CEO of H2M Architects & Engineers, and Dr. Edward Bonahue, President of Suffolk County Community College. They will leverage their expertise to foster meaningful collaborations between businesses, educational institutions, and workforce development organizations.

We draw inspiration from successful ventures like Suffolk County Community College’s Solar Installer Certificate Program, a perfect example of mutually beneficial academia-business partnerships. By facilitating similar collaborations, we aim to ensure students are equipped with hands-on experience and businesses have access to a well-trained talent pool.

In the evolving post-Covid landscape, it’s crucial to forecast the skills businesses will need. To this end, the task force will commission an extensive “LI-IPH In-Demand Skills Assessment” in partnership with the Suffolk County Industrial Development Agency (Suffolk IDA) and executed by James Lima Planning, a renowned New York City-based consulting firm. This project is made possible by a grant from the Workforce Development Institute, with additional funding from HIA-LI and the Suffolk IDA. The results will guide academia in reshaping curricula to align better with the future needs of the region’s economy.

Our task force’s initiative resonates with a larger statewide initiative – a $350-million initiative announced last year by Governor Kathy Hochul – to improve workers’ skills to meet job demands. This wider program forms a crucial element of a strategic approach to workforce development in the region.

Given the rapid pace of technological advancements, anticipating the shape of future work is a priority. The task force is committed to helping local businesses understand and prepare for these changes. By creating synergies between businesses, academia, and governmental organizations, we aim to foster a more resilient economy, attuned to both immediate and future needs of Long Island’s workforce.

Smaller businesses often find predicting future skill requirements a daunting task. Thus, we’re tailoring our efforts to help these firms, providing assistance to navigate and prepare for future demands. We are aiming to equip these businesses with customized programs that meet their ever-evolving workforce needs.

In conclusion, the Workforce Development Task Force reflects our dedication to continually fostering the growth and development of Long Island’s workforce. We view this initiative as a strategic response to current challenges, ensuring a more vibrant, resilient, and future-ready regional economy.

Stay tuned for information about our fall Workforce Development Conference where the results of the “LI-IPH In-Demand Skills Assessment” will be presented and discussed.

Government Offers Immediate Funding to Promote Business Success

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From left: Rosalie Drago, Commissioner, Suffolk County Department of Labor; Kelly Murphy, Deputy Executive Director, Suffolk County IDA, and; Cara Longworth, Regional Director, Empire State Development.

The public sector stands ready to provide immediate financial assistance to help Long Island companies achieve their goals and fulfill their workforce needs.

HIA-LI works closely with officials at all levels of government to bring these resources to the attention of our members and to help members take advantage of a wide range of public-sector assistance programs.

Recently, I had the pleasure of speaking with three government officials whose agencies have an outstanding track record of success in providing financial support to local businesses. They are:

These three entities are true partners of Long Island business. Let’s take a quick look at what each has to offer:

Empire State Development isthe state’s main arm for economic development. It encourages business growth and investment, job growth, and a diversified economy through loans, grants, tax credits, marketing, minority/women-owned business support, workforce development, technical support, export assistance, COVID support, and other business-friendly tools.

Long Island’s Regional Economic Development Council channels State resources pursuant to a regional strategic plan. And to make the process highly efficient, Cara’s office uses a “Consolidated Funding Application.” It enables businesses to tap into multiple sources of funds through a single application

The Suffolk County Department of Labor supports business growth through recruitment services and hiring incentives, and also with economic and labor market data. The department serves workers directly through job training, job development, placement, and supportive services.

While Empire State Development can provide funding for businesses to create jobs, the County Labor Department’s key role is to draw talent to companies and to get them ready for work.

Rosalie wants to hear from business about gaps in the workforce. Her agency’s funds are then used to train the talent pool. She works with local training providers – including local colleges and trade schools – to train existing workers and the emerging workforce for available jobs.

The Suffolk County Industrial Development Agency serves the entire county except the towns of Brookhaven, Islip, Riverhead, and Babylon, which have their own IDAs. Suffolk IDA promotes and attracts job and recreational opportunities. It targets companies wishing to remain or expand in Suffolk, or to move into the county. The types of industries the IDA generally helps are in manufacturing, distribution, R&D, and warehousing in addition to energy projects and multifamily housing.

Kelly’s agency, which often enhances its aid packages with incentives from PSEG and National Grid, offers three main forms of assistance: reductions in the mortgage recording tax, sales tax exemptions, and property tax exemptions.

For a link to the video of my conversation with these three remarkable women, click here. You can also listen to the conversation on my podcast, “Business Steps Up,” by clicking here.

And here’s their contact information:

Empire State Development (ESD)
Cara Longworth, Regional Director
LIREDC@esd.ny.gov
631-435-0717

Suffolk County Department of Labor (DOL)
Rosalie Drago, Commissioner
rosalie.drago@suffolkcountyny.gov
diane.lachapelle@suffolkcountyny.gov
631-853-6600

Suffolk County Industrial Development Agency (IDA)
Kelly Murphy, Deputy Executive Director
kelly.murphy@suffolkcountyny.gov
631-853-4802

I urge HIA-LI members and all local businesses to learn about the financing and services these agencies offer and to contact them. They really want you to hear from you!

Folks, this is “money on the table” that will help your business succeed. Take advantage of it!

Action By HIA-LI Members Helps Secure Long Island’s Future

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Amid the doldrums of the COVID-19 pandemic, HIA-LI members have good reason to pat themselves on the back this year.

Why? Because our organization’s members played a central role in advocating for a public policy victory that will serve, according to Newsday, as a “building block for our region’s future.”

That victory occurred in August, when the Smithtown Town Board voted unanimously to greenlight a “zoning overlay” allowing mixed-used development at the 1,650-acre Long Island Innovation Park in Hauppauge (LI-IPH), formerly known as Hauppauge Industrial Park. The idea for a “zoning overlay” had arisen from a 160-page strategic analysis issued in April 2019. The analysis, commissioned by HIA-LI in cooperation with the Suffolk IDA and others, had enumerated ways to strengthen the Park’s future.

The Town’s decision came in the aftermath of an organized campaign – undertaken by HIA-LI members and many others – to help educate Board members regarding the merits of the change.

Thanks to new development opportunities made possible through the revised zoning rules­­­, one of Long Island’s most respected real estate developers, TRITEC of East Setauket, stepped forward in November and proposed to build a $125-million, mixed-use building with 335 apartments in the Park. The venue would be a development parcel at 49 Wireless Boulevard that TRITEC owns through a subsidiary. The “zoning overlay” opens the door for similar mixed-use projects at twelve other Park sites.

Long Island municipalities like the Town of Smithtown are recognizing the need to take bold steps to promote regional economic development and to help stem the hemorrhaging of young workers from Nassau and Suffolk. 

The Town – under the leadership of Supervisor Ed Wehrheim – understands that mixed-use development like this represents a “building block” for creating a better tomorrow for our area. Such measures boost our economic competitiveness by supporting workforce attraction and retention. In July 2019, a Rauch Foundation survey conducted for Newsday found that 67 percent of Long Islanders aged 18 to 34 years planned to leave the region within five years.

Can you imagine? Such an exodus would seriously disable the Long Island economy and make it highly difficult for Park employers to hire and keep a skilled workforce.

In a November 29 editorial, Newsday called the new Smithtown policy “a prime example of what’s possible” when Long Island municipalities act creatively to re-envision our region’s future.

So, bravo to the members of HIA-LI for helping to create a new model for fortifying Long Island’s long-term competitiveness.  And a special thanks to our LI-IPH Task Force, headed by HIA-LI Board Chair Joe Campolo, Managing Partner at Campolo, Middleton & McCormick, LLP.

Read the complete Newsday editorial here.

Mixed Use is the Best Use

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I hope everyone is staying safe and healthy.

This blog post is an “Action Alert” to members and friends of HIA-LI. There is something very simple that you can do to help secure the long-term future of the Long Island Innovation Park at Hauppauge.

Between now and June 11, the Town of Smithtown is seeking comments on a proposal to create “overlay zoning” that would permit mixed-use development in a portion of the Park. Approval of this plan is essential to the success of our Park. But it has encountered resistance from some local residents.

So we’re calling upon businesses and citizens to send an email to members of the Smithtown Town Council favoring the change. While messages from Town residents and businesses are best, anyone can comment.

You must send your email by June 11 to be made a part of the public record. Council members’ email addresses appear below.

You can mention all or some of these points:

  • The change would provide young professionals with the opportunity to enjoy the Park for living, working, and recreation.
  • A study by Suffolk County IDA and the Regional Plan Association found an urgent need on Long Island for housing for young professionals. It’s key to attracting and retaining a talented and competitive workforce.
  • A survey of the Park’s business owners found that a number-one concern is attracting and retaining a skilled workforce.
  • A survey showed that 68 percent of our area’s young people are contemplating leaving this area within the next five years. They’d leave behind an aging population incapable of filling local jobs.
  • Rental units are sorely needed on Long Island. The Nassau-Suffolk rental housing market represents just 21 percent of households, compared to nearby suburban regions such as Westchester (35 percent) and Northern New Jersey (37 percent).
  • In the Town of Smithtown, the situation is further exacerbated – only 6.7 percent of households are renter-occupied.
  • The Park’s success is vital to the community’s future. The Park delivers $19.6 million in assessed value to the Town, and provides more than $44 million to the Hauppauge School District. New tax revenue would fully offset any added demands for local services.
  • Some claim the development would burden local schools. That’s inaccurate: it would generate no more than 90 students over a decade. Yet the district lost 110 students within this past year alone.
  • That’s because the apartments would mostly be studio and one-bedroom units geared to singles or couples without children.
  • Added traffic would be sustainable, with only a moderate increase on weekends
  • We urge you to approve an overlay district to allow creation of mixed-use development within the Innovation Park

To help us keep track of support for this zone change, it would be very helpful if you would send a copy of any emails to me at talessi@hia-li.org.

This is important initiative, so please take action today. Thank you!

Please send messages to:
Hon. Ed Wehrheim, Smithtown Supervisor, supervisor@smithtownny.gov
Hon. Tom McCarthy, Smithtown Deputy Supervisor, tmccarthy@smithtownny.gov
Hon. Lynne Nowick, Smithtown Councilperson, lnowick@smithtownny.gov
Hon. Lisa Inzerillo, Smithtown Councilperson, linzerillo@smithtownny.gov
Hon. Tom Lohmann, Snithtown Councilperson, twlohmann@smithtownny.gov

Our Task Force Has Begun Building the Park’s New Future

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We’ve got the vision – and we’ve got the strategy.

And now, we’ve got a blue-ribbon Task Force in place to implement the strategy.

Our goal? The HIA-LI is spearheading a bold expansion of the Long Island Innovation Park at Hauppauge (LI-IPH), formerly known as the Hauppauge Industrial Park.

While our 55,000-employee workforce already delivers $13 billion in annual output, we’ve now identified powerful opportunities for new growth.

With support from the Suffolk County IDA and the Regional Plan Association, HIA-LI commissioned a full-blown “Opportunity Analysis” by James Lima of James Lima Planning + Development, a nationally respected economic development consulting firm.

It found that the Park stood as Long Island’s top source of new, incoming wealth – thanks to our unsurpassed ratio of “tradable” businesses. These are companies whose exports and services attract new dollars into the region.

Tradable industries constitute only 23 percent of the regional economy, well below the 36 percent national average.

But our Park’s ratio is super-high: 58 percent of our workforce represents jobs in tradable industries.

The 160-page Lima assessment pinpointed five expansion strategies: facilitate business growth, attract and retain key knowledge workers, strengthen workforce development, promote innovation, and bolster connections among businesses, government, and institutions.

Happily, our new LI-IPH Task Force has already begun implementing these strategies.

In addition to myself and Joe Campolo, HIA-LI board chairman and managing partner of Campolo, Middleton & McCormick, LLP, its members include:

I applaud our Task Force members for their commitment to the LI-IPH – and to our region’s future.

Let’s enthusiastically support their efforts to usher in a new era of economic vibrancy for Long Island.

It Ain’t Just Exhibit Booths!

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Top photo: The trade show floor. Bottom photo: The executive luncheon panel.

Every May, HIA-LI’s Annual Trade Show and Conference infuses our year-round programming  with a healthy jolt of momentum.

This year’s event, our 31st, was the most successful ever. The May 30 exposition – held at Suffolk County Community College in Brentwood – attracted 375 exhibitors and more than 3,000 attendees. It was a joy to see attendees reinforce valuable business relationships on the trade show floor.

One high point was Executive Breakfast keynoter Carl Banks, the former NFL linebacker who earned two Super Bowl championship rings as a New York Giant.

Carl is president of GIII Sports, an apparel company ranking among the top three sportswear licensees in professional sports. He shared lessons for success he had carried from the football field into the business world.

Later, a stellar Executive Luncheon panel was moderated by Mitch Pally, CEO of the Long Island Builders Institute and a huge HIA-LI booster.

Panelist Bob Coughlan, principal with TRITEC Real Estate, updated attendees on the 50-acre Ronkonkoma Hub. His company is master developer of a project Bob calls “one of the East Coast’s best transit-oriented sites.”

In a presentation by David Wolkoff, a principal at Heartland Business Center, guests were briefed on Heartland Town Square, a walkable, 450-acre “smart growth” community unfolding on Brentwood’s former Pilgrim State grounds.

David Pennetta, executive director of Cushman & Wakefield, discussed such novel development strategies as a recent proposal to permit multi-family development within an aging Melville business park.

Village of Patchogue Mayor Paul Pontieri drew praise from fellow panelists for his community’s precedent-setting, redevelopment makeover, including TRITEC’s $112 million, multi-use “New Village” community.

Panelist Joe Campolo — the Managing Partner at Campolo, Middleton & McCormick, LLP and our HIA-LI board chair — reinforced the upbeat spirit by focusing on the action plan spelled out in the recent “Opportunity Analysis” completed for the Long Island Innovation Park at Hauppauge, the new name of the Hauppauge Industrial Park.

The analysis was sponsored by Suffolk County IDA and the Regional Plan Association – and a Task Force is poised to turn the plan into a reality.

While every panelist acknowledged the urgent need for Long Island to retain the youngest stratum of our workforce, Joe said that the strategic re-creation of our business park would play an instrumental role in keeping young people here.

The energy of a successful trade show – combined with the anticipation we’re all feeling as the Park launches its expansion plans – made for an exciting day!

The Largest Industrial Park in the Northeast Has a New Name – and a Strategy for Long-Term Growth

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HIP press conference 4 24 2019 group shot
From left: Jack Kulka, Lifetime Board Member, HIA-LI; Joe Campolo, Board Chair, HIA-LI; Hon. Ed Wehrheim, Smithtown Supervisor; Hon. Steve Bellone, Suffolk County Executive; Hon. Angie Carpenter, Islip Town Supervisor; Terri Alessi-Miceli, President & CEO, HIA-LI; Kelly Morris, Deputy Executive Director, Suffolk IDA; and, James Lima, President, James Lima Planning + Development.

It’s hard enough figuring out how to grow our businesses and organizations over the next, say, six months . . . or year . . . or even two years.

So, how do we chart a course for growth over the next decade? Or two decades?

Well, we now have clear and specific answers.

First, based on feedback from park occupants, our government partners and our future workforce, we are changing the name of the Hauppauge Industrial Park.

Its new name is the Long Island Innovation Park at Hauppauge with the tagline: “Where Business Meets Innovation.”

As the largest business park in the Northeast, we’re already the unrivaled cornerstone of the Suffolk County economy. This Park is home to 55,000 employees – and our $13 billion of annual output accounts for eight percent of Long Island’s Gross Domestic Product.

Our proven capacity for innovation will be the key to decades of new growth, so innovation is now our middle name.

And what is our blueprint for decades of expansion?

Last year, we assembled the talents of Stony Brook University, the Suffolk County Industrial Development Agency, and the Regional Plan Association to compile a comprehensive inventory of the park’s assets.

The Suffolk IDA then brought in James Lima Planning + Development to match up our assets against the anticipated demands of tomorrow’s regional and national economy.

The result: a 167-page report that Suffolk County Executive Steve Bellone called a “comprehensive roadmap” that spells out “the building blocks needed to strengthen, expand and attract key industry clusters that will push our innovative economy to the next level.”

The analysis found that we held a big advantage over the rest of Long Island through our powerful contingent of “tradeable” business. “Tradeable” commerce involves goods and services exportable to other locations — and not consumed solely by local markets.

This is a hard-core metric of regional economic development value because it measures an asset’s capacity to serve, in essence, as a “dollar magnet” – and to attract outside wealth into the area.

The Island-wide ratio of “tradeable” business runs only 23 percent, contrasted with a national rate of 36 percent.

But the figure for Long Island Innovation Park at Hauppauge stands at an impressive 58 percent, over 20 percent higher than the national average.

That’s a platform worth building upon, and one that is destined to elevate the Park’s status as a regional business driver.

The report pinpointed five essential, high-level economic development strategies for the Park to grow and influence the entire Long Island economy:

First, facilitate business growth. Second, strengthen training and workforce development. Third, attract and retain knowledge workers. Fourth, promote innovation and technology transfer. And fifth, fortify connections among business, government and institutions.

“This reimagining of the Park,” says Suffolk IDA chair Theresa Ward, “gets everyone involved in economic development in this region excited because the potential is so real and obtainable.”

With this insightful, five-part game plan in hand, Long Island Innovation Park at Hauppauge is today equipped to fulfill a growth scenario that will redouble its contributions to our regional economy.

Ambitious? Yes.

And do we have the assets – and the will – to pull it off?

Absolutely!

Prevailing Wage Bill Would Deliver Devastating Blow to LI Economy

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prevaling wage blog imageA bill has passed the New York State Assembly and is now sitting in the State Senate (A1261/S1947) that would require all Industrial Development Agency (IDA) funded projects to pay “prevailing wage.”  The bill is co-sponsored by State Senators James Gaughran and Monica Martinez.

While we appreciate the good intentions of the bill’s supporters, it must not pass. The bill’s adoption would deliver a devastating blow to future economic growth in Suffolk County. In addition to inhibiting the creation of new manufacturing enterprises, this radical change in IDA guidelines would also suppress the introduction of new housing into our region, including affordable housing.

Over the course of 41 years, HIA-LI has grown to represent tens of thousands of Long Island business professionals. We serve as a widely recognized advocate for regional development. It is our core mission.

A centerpoint of our constituency is the Hauppauge Industrial Park, which ranks second in size only to Silicon Valley among America’s industrial parks. This 1,400-acre Park houses more than 1,350 businesses employing some 55,000 people. These workers collectively represent a post-tax payroll accounting for more than $2 billion in local spending. Many of our projects have benefited from IDA support.

More broadly, the Suffolk IDA plays an essential role in Long Island’s economy. It has been a vital economic development resource with an excellent record of success helping local companies expand or renovate, build or add new facilities, or relocate to Suffolk County.

In the Town of Smithtown alone, the Suffolk IDA has been instrumental in the delivery of 34 projects – 13 ground-up developments among them. Most of these IDA projects have been situated in the Hauppauge Industrial Park. Townwide, they are helping to create 4,624 jobs and leverage more than $322 million in private capital.

A new prevailing wage provision is expected to shoot average IDA projects skyward by as much as 40 percent. Such a surge will instantly transform this new requirement into nothing short of a deal-killer for vast numbers of new developments. Contrary to the feelings of some lawmakers this bill will not increase the salary of construction jobs but will decrease the availability of jobs. This would not only stymie the creation of tens of thousands of permanent jobs and construction jobs but would also suppress creation of the kind of workforce housing that allows Long Island to allure and retain skilled personnel including millennials.

Over recent years, New York State witnessed the way that a new prevailing wage requirement had choked off the pipeline of IDA projects in Ulster County and the City of Yonkers. That same harmful scenario would surely play out here, too.

Our analysis is clear: imposing these onerous new costs on future IDA projects would severely diminish Long Island’s competitive status – and badly dampen our hopes for the future.

We urge our State lawmakers to reject this unsustainable new burden on our region’s economy.