economic impact of the william j. hughes technical center ...contractor, robert d. niehaus, inc.,...

Economic Impact of the William J. Hughes Technical Center on Southern New Jersey: Update 2020 Robert D. Niehaus, Inc. 140 East Carrillo Street Santa Barbara, CA 93101 October 2020 DOT/FAA/TCTN-21/5 This document is available to the U.S. public through the National Technical Information Services (NTIS), Springfield, Virginia 22161. This document is also available from the Federal Aviation Administration William J. Hughes Technical Center at actlibrary.tc.faa.gov.

U.S. Department of Transportation Federal Aviation Administration

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NOTICE

This document is disseminated under the sponsorship of the U.S. Department of Transportation in the interest of information exchange. The United States Government assumes no liability for the contents or use thereof. The United States Government does not endorse products or manufacturers. Trade or manufacturer's names appear herein solely because they are considered essential to the objective of this report. The findings and conclusions in this report are those of the author(s) and do not necessarily represent the views of the funding agency. This document does not constitute FAA policy. Consult the FAA sponsoring organization listed on the Technical Documentation page as to its use. This report is available at the Federal Aviation Administration William J. Hughes Technical Center’s Full-Text Technical Reports page: actlibrary.tc.faa.gov in Adobe Acrobat portable document format (PDF).

B-3

Technical Report Documentation Page 1. Report No. DOT/FAA/TCTN-21/5

2. Government Accession No. 3. Recipient's Catalog No.

4. Title and Subtitle Economic Impact of the William J. Hughes Technical Center on Southern New Jersey: Update 2020

5. Report Date October 2020

6. Performing Organization Code

7. Author(s) Robert D. Niehaus, Inc.

8. Performing Organization Report No.

9. Performing Organization Name and Address Robert D. Niehaus, Inc. 140 East Carrillo Street Santa Barbara, CA 93101

10. Work Unit No. (TRAIS)

11. Contract, Order or Grant No. 692M15-20-R-00019

12. Sponsoring Agency Name and Address U.S. Department of Transportation (DOT) Federal Aviation Administration (FAA) William J. Hughes Technical Center Atlantic City International Airport, NJ 08405

13. Type of Report and Period Covered Economic Impact Study 2019-2020

14. Sponsoring Agency Code

15. Supplementary Notes FAA Representatives: Jon Schleifer, Manager, Research & Development Management Division, ANG-E4 Michael Greco, Manager, Enterprise Services Test & Evaluation Division, ANG-E6 Colleen McGuire, FAA Contracting Officer (CO), Acquisitions and Grants Division, AAQ-600 Gayle Martin-Taylor, FAA Contracting Officer Representative (COR), Customer Relationship Management Section, ANG-E321 John Kayes, Enterprise Portfolio Management Team (EPMT), ANG-E002 16. Abstract The FAA William J. Hughes Technical Center (Technical Center) continues to be a major contributor to the economy of Southern New Jersey. This was clearly demonstrated by earlier analyses of the economic contributions of the Technical Center (in this study the Technical Center includes the major tenant organizations and departments on the property; the FAA refers to only the William J. Hughes Technical Center itself) to the economy of Southern New Jersey. This report provides a reassessment of the economic significance of the William J. Hughes Technical Center, in adherence with best business practices for federal agencies. The U.S. Department of Transportation, Federal Aviation Administration (FAA) contracted with the independent contractor, Robert D. Niehaus, Inc., which specializes in economic analysis to assess the economic impact of the Technical Center, referencing the studies undertaken in 1996 (ACT-500 Research Group, 1997), updated in 1999 (ACT-500 Research Group, 2002), and in 2015. Technical Center’s economic impact in Fiscal Year 2019 accounts for changes at the Technical Center and in the local economy since the last study. The results indicate that the Technical Center contributes over $1,489.3 million dollars and is responsible for approximately 9,140 full time jobs to the Southern New Jersey Economy. 17. Key Words Economic contributions, economic impacts, demographic characteristics, competitive market share, direct and indirect effects.

18. Distribution Statement This document is available to the U.S. public through the National Technical Information Service (NTIS), Springfield, Virginia 22161. This document is also available from the Federal Aviation Administration William J. Hughes Technical Center at actlibrary.tc.faa.gov.

19. Security Classif. (of this report) Unclassified

20. Security Classif. (of this page) Unclassified

21. No. of Pages 42

22. Price

Form DOT F 1700.7 (8-72) Reproduction of completed page authorized

Economic Impact of the William J. Hughes Technical Center

on Southern New Jersey: Update 2020

FINAL REPORT

Prepared for:

U.S. Department of Transportation

Federal Aviation Administration

Acquisition Grants, Building 300, AAQ-600

Atlantic City International Airport

Atlantic City, NJ 08405

(609) 485-4000

Prepared by:

Robert D. Niehaus, Inc.

140 East Carrillo Street

Santa Barbara, CA 93101

(805) 962-0611

Requisition Number: CT-20-00383-A2

Order Number: 692M15-20-P-00055

RDN Project Number 291

October 2020

Economic Impact of the William J. Hughes Technical Center on Southern New Jersey: Update 2020 October 2020

Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration i

ACKNOWLEDGEMENTS

This report provides a reassessment of the economic significance of the William J. Hughes Technical

Center (Technical Center), in adherence with best business practices for federal agencies. The U.S.

Department of Transportation, Federal Aviation Administration (FAA) employed independent contractors

specializing in economic analysis to assess the economic impact of the Technical Center, publishing these

studies in 1999, 2002, and 2015. This report updates those studies by providing an assessment of the

Technical Center’s economic impact in Fiscal Year 2019, which accounts for changes at the Technical

Center and in the local economy since the last study.

The FAA selected Robert D. Niehaus, Inc. (RDN) to perform the economic impact study. With support

from FAA personnel, RDN collected data for modeling and analyzing the economic impact of the

Technical Center. Miguel Delgado Helleseter and Bronwyn Bradbury conducted the model simulation

activities and generated the results included in this study. The technical personnel who contributed to this

study include:

Team Members with the FAA:

1. Gayle Martin-Taylor Business Account Manager

2. Colleen McGuire Contracting Officer

3. Jon Schleifer Manager, Outreach & Partnerships

4. John Kayes Information Technology Specialist

5. Mike Greco Manager, Enterprise Services Test & Evaluation Division

Team Members with RDN:

6. Ian Monsma Program Director/ Quality Assurance

7. Bronwyn Bradbury Economist/ Project Manager

8. Miguel Delgado Helleseter, PhD Senior Economist/ Technical Lead

9. Bjorn Kallerud Economist


Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration ii

EXECUTIVE SUMMARY

This study evaluates the economic impacts of the William J. Hughes Technical Center (Technical Center),

including financial and employment effects, on the surrounding areas. The primary study area for this

analysis is Southern New Jersey, defined as the area comprising Atlantic, Burlington, Camden, Cape May,

Cumberland, Gloucester, Ocean, and Salem counties. This study also summarizes the economic impacts

to two secondary study areas—Atlantic County, which is located within Southern New Jersey, and the

areas of the state of New Jersey that are located outside Southern New Jersey—to provide greater context

regarding the distribution of these impacts. This study provides an update to previous economic analyses

of the Technical Center, completed in 1999, 2002, and 2015. For the purpose of this study, Technical

Center operations are defined as U.S. Department of Transportation, Federal Aviation Administration

(FAA) operations and operations of all other major tenant organizations located on the Technical Center’s

campus. The period of analysis for this study is the FAA’s 2019 fiscal year (FY 2019), from October 1,

2018 to September 30, 2019.

Operation of the Technical Center results in direct, indirect, and induced economic impacts to the

surrounding region and the state. Direct effects include jobs, income, and output directly supported by

Technical Center expenditures on payroll, operations, and construction. The indirect and induced effects

include the additional jobs and expenditures created by local businesses that sell goods and services to the

Technical Center and by the Technical Center’s employees that spend a portion of their earnings in the

local area. These activities result in a multiplier effect for each dollar spent by the Technical Center. The

total effects are the sum of all direct, indirect, and induced effects.

This study finds that the Technical Center contributed substantially to the economy of Southern New

Jersey, with a large portion of these impacts occurring in Atlantic County (Table ES-1). In Southern New

Jersey the direct impacts of these operations include 5,240 jobs and $903.8 million of economic activity,

or output, and the total impacts amounts to 9,140 jobs and $1,489.3 million in economic activity.

Approximately 69.6 percent of these impacts occurred within Atlantic County, where these activities

generated a total of 6,440 jobs and $1,036.3 million in economic activity.

Table ES-1: Economic Impacts of Technical Center Operations - FY 2019

Location Factor Direct Indirect Induced Total

Primary Study Area

Southern New Jersey Employment 5,240 1,287 2,613 9,140

Output (in millions) $903.8 $185.1 $400.4 $1,489.3

Secondary Study Areas

Atlantic County, a Subset Employment 4,104 880 1,456 6,440

of Southern New Jersey Output (in millions) $696.3 $121.4 $218.6 $1,036.3

Areas of New Jersey Outside Employment 50 211 281 542

the Primary Study Area Output (in millions) $42.0 $53.3 $103.6 $198.9

Source: IMPLAN model results from RDN.

Although the majority of the economic impacts of the Technical Center occur in Southern New Jersey,

some impacts also occur in the remaining portions of the state of New Jersey that are located outside this

region (Table ES-1). In the areas of the state outside Southern New Jersey, Technical Center operations

generated 542 jobs, and $198.9 million in economic activity.


Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration iii

The Technical Center provides economic impacts that are large and disproportionate to its overall share

of total employment in Southern New Jersey. These impacts include direct, indirect, and induced jobs that

improve employment and earning opportunities in the region. Due to the technical nature of the work

performed by the Technical Center and the associated need for highly skilled employees, the wages of

these employees are significantly higher than the average wage in Southern New Jersey. These higher

wages help provide a stable foundation for the regional economy, especially in the current climate of

uncertainty and decline in the casino gaming sector, which employs far more workers than the Technical

Center.

Technical Center employees also have positive impacts in their local communities. These residents

actively take part in their communities through activities like volunteer work and participation in school

boards. Additionally, they contribute to the local school systems through property tax payments as well

as involvement in science fairs and other school activities.

Given that most jobs and operational spending at the Technical Center are supported by federal budgets,

the presence of this facility allows Southern New Jersey to draw federal dollars from outside the region,

which makes the Technical Center a primary economic driver in the region. This spending circulates in

the local economy, providing additional benefits to the region. As these jobs are ultimately supported by

federal funding, they help provide economic stability to the region.

The Technical Center also helps define Southern New Jersey as the home to one of the leading research

and development clusters in the aviation field. It serves as a long-standing core of the aviation industry,

motivating associated companies to locate near the Technical Center and other nearby organizations in

the aviation industry. This industry cluster results in additional indirect economic impacts as more

companies move to the area to become part of the supply chain for that cluster, further befitting the region.

Given the stable and broad set of benefits the Technical Center provides to Southern New Jersey, ongoing

operation of the facility provides the best opportunity for continued success and growth of Southern New

Jersey into the future.


Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration iv

TABLE OF CONTENTS

Section........................................................................................................................................ Page

Acknowledgements............................................................................................................................ i

Executive Summary ........................................................................................................................... ii

1. Introduction ................................................................................................................................ 1

1.1 Purpose ............................................................................................................................................1

1.2 Technical Center Background ............................................................................................................3

1.3 Technical Center Tenants ..................................................................................................................4

2. Economic Overview of Southern New Jersey ................................................................................ 6

2.1 Background ......................................................................................................................................6

2.2 Employment and Income ..................................................................................................................6

2.3 Demographic Characteristics .............................................................................................................9

2.4 Impacts of the 2020 Coronavirus Pandemic ..................................................................................... 12

3. Analytical Approach .................................................................................................................. 14

3.1 Methodology .................................................................................................................................. 14

3.2 Data Collection ............................................................................................................................... 16

4. Economic Activity of the Technical Center .................................................................................. 18

4.1 Wages and Employment ................................................................................................................. 18

4.2 Operational, Construction, and Travel Expenditures ........................................................................ 20

5. Economic Impacts of the Technical Center ................................................................................. 22

5.1 Economic Impacts to Southern New Jersey ...................................................................................... 22

5.2 Economic Impacts to Atlantic County and the State of New Jersey ................................................... 23

5.3 Summary of Results ........................................................................................................................ 23

6. Community Impacts of the Technical Center .............................................................................. 25

6.1 Employment and Income ................................................................................................................ 25

6.2 Educational Attainment .................................................................................................................. 26

6.3 Contribution to the Education System ............................................................................................. 27

6.4 Foregone Property Tax Receipts ...................................................................................................... 27

6.5 Environmental Remediation ............................................................................................................ 30

6.6 Summary of Impacts on Southern New Jersey ................................................................................. 30

7. References ................................................................................................................................ 31


Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration v

LIST OF ACRONYMS

Acronym Definition

ACY Atlantic City International Airport

Air Station Air Station Atlantic City

USACE U.S. Army Corps of Engineers

EPA U.S. Environmental Protection Agency

FAA Federal Aviation Administration

FAMS Federal Air Marshal Service

FY 2019 Fiscal year 2019, from October 1, 2018 to September 30, 2019

MRIO Multi-Region Input-Output

NAFEC National Aviation Facilities Experimental Center

NAICS North American Industry Classification System

NARTP National Aviation Research and Technology Park

NJANG New Jersey Air National Guard

PANYNJ Port Authority of New York and New Jersey

SJTA South Jersey Transportation Authority

Southern New Jersey The region comprising Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem counties

STEM Science, Technology, Engineering, and Mathematics

Technical Center William J. Hughes Technical Center

TSA Transportation Security Administration

TSL Transportation Security Laboratory

USCG U.S. Coast Guard

ZHVI Zillow Home Value Index


Prepared by Robert D. Niehaus, Inc. | Prepared for the Federal Aviation Administration 1

1. INTRODUCTION

This study evaluates the economic impacts of the William J. Hughes Technical Center (Technical Center),

including financial and employment effects, on the surrounding area. The primary study area for this

analysis is Southern New Jersey, defined as the area comprising Atlantic, Burlington, Camden, Cape May,

Cumberland, Gloucester, Ocean, and Salem counties (Figure 1-1). This study also summarizes the

economic impacts to two secondary study areas—Atlantic County, which is located within Southern New

Jersey, and the areas of the state of New Jersey that are located outside Southern New Jersey—to provide

greater context regarding the geographic concentration of these impacts. This study provides an update to

previous economic analyses of the Technical Center, completed in 1999, 2002, and 2015. For the purpose

of this study, Technical Center operations are defined as U.S. Department of Transportation, Federal

Aviation Administration (FAA) operations and operations of all other major tenant organizations located

on the Technical Center’s campus. The period of analysis for this study is the FAA’s 2019 fiscal year (FY

2019), from October 1, 2018 to September 30, 2019.

This analysis evaluates the direct, indirect, induced, and total economic impacts of the Technical Center

in terms of employment and output. Direct effects include jobs, income, and output directly supported by

Technical Center expenditures on payroll, operations, and construction. The indirect and induced effects

include the additional jobs and expenditures created by local businesses that sell goods and services to the

Technical Center and by the Technical Center’s employees that spend a portion of their earnings in the

local area. These activities result in a multiplier effect for each dollar spent by the Technical Center. The

total effects are the sum of all direct, indirect, and induced effects. Section 3.1, Methodology, includes a

detailed description of direct, indirect, induced, and total economic impacts.

The scope of this study is limited to the economic impacts on the surrounding area and does not fully

account for the overall benefits of the Technical Center’s activities. The FAA’s primary mission and

associated benefits are related to aviation safety, which benefits all Americans.

1.1 Purpose

The purpose of this analysis is to understand the economic impacts of the Technical Center on Southern

New Jersey, as well as Atlantic County and the state of New Jersey. The FAA aims to effectively identify

and serve all stakeholders including direct customers, employees, taxpayers, local businesses, and

individuals affected by Technical Center activities. As part of this effort, the FAA regularly examines its

management plans to determine the impacts of its operation, which includes this assessment.

This study updates the previous studies evaluating the Technical Center’s economic impacts that were

completed in 1999, 2002, and 2015. The studies performed to date include:

• The Economic Impact of the Federal Aviation Administration William J. Hughes Technical Center

on Southern New Jersey (ACT-500 Research Group, 1999)

• Re-Assessment of the Economic Impact of the William J. Hughes Technical Center on Southern

New Jersey (ACT-500 Research Group, 2002)

• Economic Impact of the William J. Hughes Technical Center on Southern New Jersey: Update

2015 (Center for Regional and Business Research, 2015)



Figure 1-1: Map of the Technical Center Campus and Study Areas



This update evaluates the Technical Center’s economic impacts in FY 2019, taking into consideration

current economic conditions and major changes that have occurred at the Technical Center since the last

study, including:

1) Transfer of Atlantic City International Airport (ACY) operations from the Port Authority of New

York and New Jersey (PANYNJ) to its former operator, the South Jersey Transportation Authority

(SJTA)

2) Decrease and subsequent increase of Federal Air Marshal Service (FAMS) training activities on

and near the Technical Center campus

3) Establishment of the National Aviation Research and Technology Park (NARTP)

The study evaluates the direct expenditures of all major tenant organizations located on the Technical

Center campus, including employee wages and operational expenses, to determine the cumulative

economic effect of this spending and all flow-through effects that occur in Southern New Jersey, as well

as Atlantic County and the state of New Jersey.

1.2 Technical Center Background

The Technical Center is the nation's premier aviation research, development, test and evaluation facility.

Its world-class laboratories and engineering place it at the forefront of the FAA's efforts to modernize the

U.S. air transportation system. The Technical Center is the FAA’s National Laboratory providing a

national scientific test base for research and development, test and evaluation, and verification and

validation in air traffic control, communications, navigation, airports, aircraft safety, and security. The

Technical Center is the primary facility supporting the nation's Next Generation Air Transportation

System, called NextGen, as well as the integration of Unmanned Aircraft Systems into the national air

space. With more than 60 years of achievement and excellence, the Technical Center serves as the

cornerstone for aviation innovation across the globe.

Located in Atlantic County, New Jersey, 10 miles northwest of Atlantic City, and covering over 5,000

acres, the Technical Center consists of state-of-the art laboratories, test facilities, support facilities, ACY,

and a non-commercial aircraft hangar. The National Aviation Facilities Experimental Center (NAFEC)

was established as the foremost aviation research and development facility by the Airways Modernization

Board on July 1, 1958. A former naval station, this facility was selected for its broad range of flying

conditions and its proximity to both the northeast high-density corridor and open airspace above the

Atlantic Ocean. The Federal Aviation Act of 1958 dissolved the Airways Modernization Board and

created the FAA as an independent government agency. The NAFEC became the FAA Technical Center

on May 29, 1980, coinciding with the dedication of the $50 million, 516,000-square-foot Technical

Building. It was renamed the William J. Hughes Technical Center in May of 1996.

ACY is located on a combination of land owned by the FAA and SJTA and is operated by the SJTA.

When the federal government purchased the Technical Center property in 1958, Atlantic City retained the

84 acres where the airport terminal and support facilities are now located. In 1992 the SJTA acquired the

civil terminal area from the City. At that time the FAA operated ACY. However, in 1998 the FAA

transferred operational control of the airport to the SJTA and entered into a fifty-year lease with the SJTA

for approximately 2,200 acres of the Technical Center. The lease includes all runways, taxiways, and

commercial airport aprons, as well as development and environmental mitigation areas. Between 2008



and 2013, the SJTA made several upgrades at ACY, including a 1,400-space parking garage, a 75,000-

square-foot terminal expansion, and a 40,700-square-foot Airport Rescue and Fire Fighting station that

provides service to the Technical Center and surrounding communities. Operation of ACY was transferred

to the PANYNJ in 2013, and back to SJTA in 2014.

1.3 Technical Center Tenants

The Technical Center is home to the FAA and seven other major tenant organizations. The role and

mission of each of these organizations is summarized below:

1) U.S. Department of Transportation, Federal Aviation Administration (FAA): The Technical

Center serves as the FAA national scientific test base for research and development, test and

evaluation, and verification and validation in air traffic control, communications, navigation, airports,

aircraft safety, and security. It is the primary facility supporting the nation's Next Generation Air

Transportation System, called NextGen. The Center consists of laboratories, test facilities, and support

facilities which include a heating and air conditioning plant, industrial shops, maintenance facilities,

and a security department.

2) U.S. Department of Homeland Security, Transportation Security Laboratory (TSL): TSL helps

protect our nation’s civilian air transportation systems. By virtue of its accomplished experts, cutting-

edge facilities, and partnerships, TSL offers the homeland security community and transportation

security partners the ability to advance detection technology from conception to deployment through

applied research, test and evaluation, assessment, certification, and qualification testing. TSL’s staff

of over 100 employees includes physicists, chemists, engineers, and mathematicians who are leaders

in explosives detection and mitigation. TSL’s 12-acre secure campus includes specialized explosive

storage and handling areas and a multi-laboratory infrastructure designed for applied research and test

and evaluation.

3) U.S. Department of Homeland Security, Transportation Security Administration (TSA): The

training program for the FAMS provides effective learning environments and opportunities, utilizing

current and relevant curricula and training methodologies, to enable and challenge Federal Air

Marshals and other designated transportation security professionals to perform their duties and

responsibilities in a highly effective manner. Training takes place in two stages: the initial FAMS 35-

day basic training program, conducted at the Federal Law Enforcement Training Center in Artesia,

New Mexico, and the advanced 43-day training program conducted at the FAMS Training Center in

Atlantic City, New Jersey.

4) U.S. Department of Homeland Security, Coast Guard (USCG), Air Station Atlantic City (Air

Station): The Air Station supports the wide range of USCG operations, such as search and rescue, law

enforcement, port security, and marine environmental protection for both District One and District

Five, encompassing the coastlines of Connecticut, New York, New Jersey, Pennsylvania, Delaware,

Maryland, and Virginia, including interior bays and rivers such as the Chesapeake, Delaware, Hudson

and Long Island Sound. The Air Station went into operation 18 May, 1998, when the USCG merged

Air Station Brooklyn, NY and Group/Air Station Cape May, NJ into one unit to form this Air Station.

The 69,200 square foot facility is the newest and largest single airframe unit of the USCG’s air stations.

The Air Station is comprised of 10 MH-65D Dolphin Helicopters. Several tenant commands also have

components located at the Air Station, including Sector Field Office and Electronics Systems Support

Detachment Atlantic City.



5) U.S. Department of Defense, New Jersey Air National Guard (NJANG), The 177th Fighter

Wing: The NJANG provides highly qualified, combat-ready citizen airmen and mission-capable

aircraft and equipment to supply national and state objectives. They have been located at ACY since

1958, and their mission aircraft is the single seat F-16C Fighting Falcon. The 177th Fighter Wing

comprises the following units:

• 177th Headquarters Group

• 177th Mission Support Group

• 177th Maintenance Group

• 177th Operations Group

• 177th Medical Group

The 177th Fire Department, in conjunction with the SJTA, is responsible for 24-hour crash, fire, and

rescue services for the airport and its tenants.

6) U.S. Department of Defense, Army Corps of Engineers (USACE), Philadelphia District: The

USACE Philadelphia District manages water resources of the Delaware River basin, builds facilities

for the Army and Air Force, and provides engineering and environmental services for other agencies.

They serve more than nine million people across portions of Delaware, Maryland, New Jersey, New

York, and Pennsylvania, and their reach extends around the world with their support to Overseas

Contingency Operations. The USACE maintains a presence on the Technical Center campus, from

which they stage their beach nourishment activities.

7) Atlantic City International Airport (ACY): The SJTA manages and operates ACY with the mission

of providing the traveling public with safe and efficient transportation through the acquisition,

construction, maintenance, operation, and support of the expressway, airport, transit, parking, and

other transportation projects and services. The airport is open to private, commercial, and military

aircraft, and includes four operating runways. The main instrument runway is 10,000 feet long and

180 feet wide. ACY provides service to Atlantic City and the Southern New Jersey shore region, and

outbound travel to a host of destinations. It is also the designated airport for visitors to Atlantic City,

the region’s premiere entertainment destination. Additionally, several experimental approach and

guidance systems are tested at the airport.

8) National Aviation Research & Technology Park (NARTP): The NARTP is a 501(c)(3) non-profit

auxiliary organization of Stockton University dedicated to facilitating research and development,

innovation, and commercialization of emerging aviation technologies. Their mission is to enhance the

evolution of aviation sciences by creating an ecosystem of industrial, academic, and governmental

partnerships that foster innovation and collaboration and promote sustained economic growth and job

creation throughout New Jersey. The NARTP is responsible for the construction, maintenance, and

operation of an aviation research and technology park on the 58 acres they lease from the FAA. Their

development plan includes construction of seven multi-story buildings with more than 400,000 square

feet of research and development space. In 2019 the NARTP completed construction of the first

building, and they will be responsible for recruiting and managing all potential tenants of the aviation

research and technology park. Given the facility is new, economic activity was minimal in 2019, but

is expected to grow significantly.



2. ECONOMIC OVERVIEW OF SOUTHERN NEW JERSEY

This section presents an overview of the general economic conditions in Southern New Jersey, which

provides context for evaluating impacts of the Technical Center on this region. It includes a discussion of

historic and current economic conditions.

2.1 Background

Economic growth in any region depends on the performance of the primary industries that drive the

economy by exporting goods and/or services to customers outside of the region. A portion of the dollars

received for those goods and services are circulated in the region first as wages to workers in the primary

industries, and then to secondary and tertiary industries—the induced and indirect effects—as the primary

industries buy supplies and the employees purchase goods and services with their earnings.

The primary industries in Southern New Jersey have historically been based on natural resources, such as

agricultural products, sand for glassmaking, and bog iron for metal products and shipbuilding.

Additionally, the Jersey Shore has long been a tourism and recreation area, but grew substantially after

the 1978 legalization of gaming in Atlantic City. Between 1978 and 1995, the local casino gaming industry

added over 50,000 jobs (Perniciaro, 1982, 1995). However, the industry has been in decline since the mid-

2000s. Reasons for the decline include the opening of competing casinos in Pennsylvania in 2006

(Stockton University, 2019) and the economic fallout of the 2007-2009 US recession (Center for Regional

and Business Research, 2015).

Southern New Jersey borders Philadelphia, Pennsylvania’s largest city. The Philadelphia economy has

long supported the education and development of science and technology-related industries, especially

life science. The local labor market could thus be broadly characterized as a mix of relatively low-skill

jobs in the tourism and hospitality industries and some high-skilled jobs in the technology and scientific

industries. In that mix, the Technical Center and its supply chain have played an important role in

diversifying the economy (Cooke, 2014).

2.2 Employment and Income

The U.S. Bureau of Economic Analysis publishes key economic indicators for the study areas of Atlantic

County, Southern New Jersey, and the state of New Jersey (Table 2-1). In 2018, the most recent year for

which this comprehensive measure is available, total jobs (including civilian, military, wage and salary,

and self-employed persons in all sectors) stood at 169,240 in Atlantic County and 1,316,848 in Southern

New Jersey. Southern New Jersey accounts for approximately 23.7 percent of the state’s total jobs.

Total jobs in Southern New Jersey grew by an annual average 1.5 percent between 2014 and 2018, which

is approximately double its annualized growth rate between 2010 and 2014. However, the region is

growing at a slightly slower pace than the state overall, which grew 1.6 percent between 2014 and 2018.

In contrast, total jobs in the area immediately surrounding the Technical Center, i.e., Atlantic County, has

remained virtually flat since at least 2010, shrinking by an average annual rate of 0.4 percent between

2010 and 2014 and increasing only 0.1 percent per year between 2014 and 2018. Atlantic County suffered

a sharp decline in jobs during the 2007-2009 recession that has yet to recover, especially in the casino

hotel industry. According to the U.S. Bureau of Labor Statistics, total employment in Atlantic County’s

casino hotel industry has fallen from approximately 44,000 in the early 2000s to less than 25,000 as of

2019 (U.S. Bureau of Labor Statistics, 2020).



Table 2-1: Economic Indicators, County, Region, and State, 2010, 2014, and 2018

2010 2014 2018

Total Jobs [1] 171,005 168,471 169,240

Average Annual Change (%) -0.4% 0.1%

Earnings per Job $55,225 $56,257 $56,467

Average Annual Change (%) 0.5% 0.1%

Per Capita Personal Income [2] $44,999 $46,657 $49,951


Total Jobs 1,198,936 1,239,516 1,316,848


Earnings per Job $57,235 $56,709 $58,448

Average Annual Change (%) -0.2% 0.8%

Per Capita Personal Income $48,319 $50,016 $55,208


Total Jobs 4,960,621 5,206,784 5,557,626


Earnings per Job $71,412 $71,331 $73,104


Per Capita Personal Income $59,346 $62,781 $70,034


Notes: [1] Total Jobs are average annual full- and part-time jobs, by place of work. [2]

Average Annual Change in the 2014 column is for 2010-2014; in the 2018 column, for

2014-2018. [3] Average Earnings per Job and Per Capita Income were converted to

constant 2020 dollars using the implicit price defaltor for personal consumption

expenditures.

Source: U.S. Bureau of Economic Analysis, 2019 and 2020.

Jurisdiction/Indicator

Atlantic County

Southern New Jersey

New Jersey

Average earnings per job in Atlantic County and Southern New Jersey are lower than the statewide

average (Table 2-1). As of 2018, earnings per job averaged $56,467 in Atlantic County and $58,448 in

Southern New Jersey, compared to $73,104 in the state of New Jersey. Per capita incomes exhibit a similar

relationship. As of 2018, per capita income was lower in Atlantic County ($49,951) and Southern New

Jersey ($55,208) than in the state as a whole ($70,034). Real per capita incomes have risen modestly since

the previous study. On average, real per capita income in Southern New Jersey grew 2.5 percent between

2014 and 2018, compared to 1.7 percent in Atlantic County and 2.8 percent in New Jersey.



Industry-level employment data for Atlantic County, Southern New Jersey, and the state of New Jersey

show which sectors account for more or less of the area’s economy relative to the other areas (Table 2-2).

The largest sector of employment in each area is shown in bold. The healthcare industry is the largest

sector of employment in Southern New Jersey (13.8 percent) and the state overall (12.0 percent), and the

third-largest employer in Atlantic County (13.0 percent). The next largest industries in the region are

Government (13.0 percent; includes state and local, federal civilian, and military) and retail trade (11.7

percent). In contrast, by far the largest sector of employment in Atlantic County is accommodation and

food services (23.4 percent), i.e., hospitality.

Table 2-2: Shares of Non-Farm Employment by Sector, County, Region, and State, 2018

Health care and social assistance 13.0% 13.8% 12.0%Government and government enterprises 13.8% 13.0% 11.0% State and local 11.7% 11.0% 9.7%

Federal, civilian 1.5% 1.1% 0.9% Military 0.5% 0.9% 0.4% Retail Trade 11.0% 11.7% 9.8% Accommodation and food services 23.4% 9.0% 6.4% Real estate and rental and leasing 4.9% 6.1% 6.2% Professional and technical services 4.5% 6.0% 8.4% Administrative and waste services 4.1% 5.6% 6.4% Construction 5.2% 5.4% 4.6% Other services, except public administration 4.7% 5.0% 5.3% Manufacturing 1.6% 4.8% 4.8% Finance and insurance 3.2% 4.6% 6.2% Transportation and warehousing 3.4% 4.2% 6.0% Wholesale trade 2.0% 3.5% 4.3% Arts, entertainment, and recreation 2.2% 2.5% 2.3% Educational services 0.9% 2.0% 2.5% Information 0.7% 1.1% 1.6% Management of companies and enterprises 0.7% 0.9% 1.7% Utilities 0.5% 0.3% 0.3% Forestry, fishing, and related activities 0.3% 0.3% 0.1% Mining 0.1% 0.1% 0.1%

Note: The largest sector by employment for each area is shown in bold.Source: U.S. Bureau of Economic Analysis, 2019.

Atlantic

County

Southern

New Jersey

New

JerseySector of Employment

Jobs in the retail and hospitality sectors generally have lower wages as compared to industries such as

professional and technical services or finance and insurance, which comprise a larger share of employment

at the state level. These dynamics explain why Atlantic County and Southern New Jersey have lower

earnings per job and per capita incomes than New Jersey as a whole.



Another common measure of economic activity is the unemployment rate (Figure 2-1). Like most areas

of the U.S., the 2007-2009 recession caused a sharp rise in state, regional, and local unemployment levels.

The unemployment rate then declined steadily over the next decade during the longest, but also lowest-

growth U.S. expansion since World War II. The statewide unemployment rate in New Jersey declined

from 9.5 percent in 2010 to 3.6 percent in 2019. The unemployment rate in Southern New Jersey similarly

declined from a peak of 10.8 percent in 2012 to 4.1 percent in 2019, while the unemployment rate in

Atlantic County decreased from a peak of 12.7 percent in 2012 to 5.1 percent in 2019. Throughout the

period from 2010 to 2019, the regional unemployment rate was consistently higher than the statewide

unemployment rate, and the local unemployment rate (Atlantic County) over this period was consistently

higher than the statewide and regional unemployment rates.

Figure 2-1: Annual Average Unemployment Rates by Area, 2010-2019

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Un

em

plo

yme

nt R

ate

Atlantic County Southern New Jersey State of New Jersey

Source: U.S. Bureau of Labor Statistics, 2020.

2.3 Demographic Characteristics

Population growth rates over the last decade in Atlantic County, Southern New Jersey, and the state of

New Jersey vary greatly from each other (Figure 2-2). New Jersey’s statewide population has remained

essentially the same over this period, growing a total of 0.9 percent between 2010 and 2019, equivalent to

an average rate of 0.1 percent per year. By comparison, Southern New Jersey’s population has declined

0.2 percent since 2010, led by decreases in its southernmost counties. Atlantic County shrank

approximately 4.0 percent between 2010 and 2019. However, some of the counties in Southern New Jersey

are growing (Table 2-3). The region’s largest county, Ocean County, grew 1.2 percent between 2010 and

2014, then another 3.9 percent between 2014 and 2019, for a total increase of 5.1 percent between 2010

and 2019.



Part of the reason for New Jersey’s low population growth is its negative rate of domestic migration. For

every 1,000 residents, approximately 5.5 more people moved away from New Jersey in 2019 than moved

to New Jersey. This emigration is partially offset by New Jersey’s net increase in international migration,

but the overall immigration rate remains negative (U.S. Census Bureau, 2020). The primary reasons

emigrants cite for moving away from New Jersey include job opportunities, lifestyle preference, family

considerations, and tax burden. New Jersey is the ninth most tax burdened state in the country and is

among the ten most expensive states in country after factoring in cost of living (Carter, 2019).

Figure 2-2: Trend in Population Growth by Area, 2010-2019

93.0

94.0

95.0

96.0

97.0

98.0

99.0

100.0

101.0

102.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Po

pu

lati

on

(In

dex

, 201

0=10

0)


Source: U.S. Census Bureau, 2020.

Table 2-3: Total Population by Area, 2010, 2014, and 2019

County/ Region/ State 2010 2014 2019

Change from

2010 to 2014

Change from

2014 to 2019

Atlantic 274,648 272,578 263,670 -0.8% -3.3%

Burlington 449,129 448,168 445,349 -0.2% -0.6%

Camden 513,275 508,316 506,471 -1.0% -0.4%

Cape May 97,212 94,907 92,039 -2.4% -3.0%

Cumberland 156,699 156,009 149,527 -0.4% -4.2%

Gloucester 289,150 290,680 291,636 0.5% 0.3%

Ocean 577,564 584,447 607,186 1.2% 3.9%

Salem 65,980 64,323 62,385 -2.5% -3.0%

Southern New Jersey 2,423,657 2,419,428 2,418,263 -0.2% 0.0%

State of New Jersey 8,799,624 8,866,780 8,882,190 0.8% 0.2%Source: U.S. Census Bureau, 2020.



Though New Jersey generally has a high cost of living, Southern New Jersey tends to be more affordable,

consistent with its overall lower levels of wages and income compared to the rest of the state. This is

evident in one of the principal components of cost of living—housing costs. A common measure of

housing costs is the Zillow Home Value Index (ZHVI), a smoothed three-month moving average of the

estimated value of all homes in an area (including single-family homes, condos, and co-ops). The county-

level ZHVI for Southern New Jersey indicates that, with the exception of Cape May, homes located in the

region are typically more affordable compared to the rest of the state (Figure 2-3). For instance, the ZHVI

in Atlantic County in 2019 was approximately $199,000. The statewide ZHVI in 2019 was approximately

$339,000, or 70.4 percent higher.

Figure 2-3: Zillow Home Value Index (ZHVI), Average of January to December 2019

$0K $50K $100K $150K $200K $250K $300K $350K $400K $450K

Salem County

Cumberland County

Camden County

Atlantic County

Gloucester County

Burlington County

Ocean County

New Jersey

Cape May County

Source: Zillow.com, 2020.

The share of residents aged 18 and over that have a college degree is below the state average in every

county of Southern New Jersey (Table 2-4). Lower levels of educational attainment are associated with

lower workforce mobility, lower earnings, and lower life expectancy. Approximately 38.3 percent of New

Jersey residents have completed a bachelor’s degree, while in Southern New Jersey that percentage ranges

from 15.1 percent in Cumberland County to 35.8 percent in Burlington County. Overall, 29.6 of the

population 18 and over in Southern New Jersey has a bachelor’s degree or higher.



Over 10 percent of the population lives in poverty in four of the eight counties in Southern New Jersey,

including Atlantic, Camden, Cumberland, and Salem counties (Table 2-4). Cumberland County has the

highest percent of people below the poverty line, 14.6 percent. The overall regional poverty level in

Sothern New Jersey is 10.2 percent. For comparison, the overall share of New Jersey’s population below

the poverty level is 9.5.

Table 2-4: Educational Attainment and Poverty, County, Region, and State, 2018

State/County Population 18+ With a B.A. or Higher Population Below Poverty Level

Atlantic 26.7% 12.9%

Burlington 35.8% 5.8%

Camden 30.0% 13.3%

Cape May 33.2% 9.4%

Cumberland 15.1% 14.6%

Gloucester 31.0% 7.8%

Ocean 29.0% 9.8%

Salem 21.1% 11.6%

Southern New Jersey 29.6% 10.2%

State of New Jersey 38.3% 9.5%


2.4 Impacts of the 2020 Coronavirus Pandemic

Although this study was performed based on FY 2019 data, it was completed in 2020 during the

coronavirus pandemic, which has and continues to have substantial impacts on the economy worldwide.

To bring this review to the present day, this section concludes with a brief overview of the impacts of the

2019 novel coronavirus (COVID-19) on the local economy.

The coronavirus pandemic and resulting shutdowns devastated most service-based economic sectors.

Southern New Jersey, like the rest of the country, experienced overall economic declines in the first two

quarters of 2020 (South Jersey Business Review, 2020). Southern New Jersey shopping malls were shut

down for 86 days resulting in a $29.5 million quarterly loss (Walsh, 2020). New Jersey’s nearly 19,500

restaurants employ about 350,000 people. At the onset of the crisis, 85 percent of these employees were

laid off or furloughed. As of early August 2020, only 23 percent of those restaurant employees are back

to work (Davidowitz, 2020). Some statewide estimates predict that 30 percent of New Jersey restaurants

will permanently close as a direct result of the pandemic (Whittaker, 2020).

Another industry that has been adversely impacted by the pandemic is Atlantic City’s casino hotels. July

was the first month since March that casinos were permitted to reopen. Even so, the industry reported a

23 percent ($76.4 million) drop in income in July 2020 compared to July 2019 (Danzis, 2020A). Overall,

national gaming revenues were down 78 percent nationally in the second quarter (Danzis, 2020B). While

those revenue numbers look bleak for the present, it appears that online gambling has increased throughout

the crisis, which may impact employment in the region. Higher tax rates on online gambling has also

increased public revenues.



Unemployment rates increased dramatically across the state of New Jersey in the second quarter of 2020,

particularly in Atlantic County (Figure 2-4). Unemployment rates peaked in June 2020 at 34.4 percent in

Atlantic County, 18.0 percent in Southern New Jersey, and 16.6 percent in the state. Preliminary figures

for July 2020 indicate unemployment rates are starting to decline in these areas.

Figure 2-4: Monthly Unemployment Rates by Area in 2020

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Jan Feb Mar Apr May Jun Jul

Un

em

plo

yme

nt R

ate


Notes: Figures not seasonally adjusted; July figures are preliminary for Atlantic County and Southern New Jersey. Source: U.S. Bureau of Labor Statistics, 2020.



3. ANALYTICAL APPROACH

This section outlines the methodology and data collection process for the economic impact analysis, and

includes discussion of the similarities and differences between this study and the 2015 study, Economic

Impact of the William J. Hughes Technical Center on Southern New Jersey: Update 2015 (Center for

Regional and Business Research, 2015).

3.1 Methodology

RDN analyzed the direct, indirect, induced, and total economic impacts in terms of employment and output

from operation of the Technical Center, including all major tenant organizations located on the Technical

Center’s campus, on Southern New Jersey, as well as Atlantic County and the state of New Jersey. These

impacts include:

• Direct Impacts: These impacts represent jobs, income, and output directly supported by Technical

Center expenditures. These expenditures include payroll, operating, and construction expenses for

the FAA and all other major tenant organizations at the Technical Center.

• Indirect Impacts: These impacts occur in supplying industries responding to demand from the

sectors where initial expenditures of the FAA and other major tenant organizations at the Technical

Center occurred. An example of an indirect impact is a local contractor hiring more workers to

provide services to the FAA.

• Induced Impacts: Employees at the Technical Center and at firms directly and indirectly impacted

by Technical Center expenditures spend a portion of their income within the study areas. The local

spending by these employees is referred to as the induced impacts. Examples of induced impacts

include employees’ expenditures on items such as housing, transportation, and food.

• Total Impact: The total impact is the sum of all direct, indirect, and induced impacts.

Economic impacts of the Technical Center are driven by four components:

1. Payroll spending by the Technical Center. The Technical Center employs thousands of workers

at its facility, and these employees spend a significant share of their earnings in the study areas,

thereby supporting local businesses.

2. Operational expenditures of the Technical Center. The Technical Center supports local and

regional businesses by spending hundreds of millions of dollars for the procurement of supplies

and services necessary to support their daily operations.

3. Construction expenditures of the Technical Center. The Technical Center is continually

growing and investing in new infrastructure to support its operations. This work is performed on

the Technical Center campus and results in additional spending in the study areas.

4. Travel expenditures by visitors of the Technical Center. The Technical Center brings visitors

to Southern New Jersey who spend money on lodging, meals, and local transportation. These

expenditures contribute economic impacts to the study areas.



Although operation of ACY includes additional activities that contribute to the Southern New Jersey

economy, only the four activities discussed above are included in this analysis. Sales activity by the

concessioners operating in the airport, such as restaurants, gift shops, and car rental agencies, contribute

indirect and induced impacts to the local economy by employing local residents and purchasing goods and

services from local businesses. Although this activity was included in the 2015 report, the concessioners’

sales volumes were not available for this update, and therefore were not included in this analysis.

Operation of ACY also contributes to Southern New Jersey’s economy by facilitating travel to the area,

bringing visitors that spend money in local hotels, restaurants, shops, casinos, and other attractions. These

additional impacts are difficult to quantify and are not included in this or the 2015 analysis.

This economic analysis uses IMPLAN Pro 2018 modeling software, an input-output model first developed

for use in land use planning and resource management. The IMPLAN model is well-suited for determining

the impacts of an existing federal institution, and was used for both this update and the 2015 study. Input-

output models are accounting tables that trace the linkages of interindustry purchases and sales in a specific

study area. They are used to calculate the localized effects on jobs, income, and expenditures per dollar of

spending. These models produce estimates of spending impacts using these inter-industry linkages (U.S.

Department of Agriculture, Natural Resources Conservation Service, 2020).

To perform this analysis, RDN used the Multi-Region Input-Output (MRIO) methodology codified in the

2018 version of the IMPLAN Pro software platform, which is the latest version available. This approach

captures spillover effects from expenditures in neighboring areas. For example, employment and

expenditures in Southern New Jersey impacts the rest of New Jersey, and employment and expenditures

in the areas of the state outside Southern New Jersey similarly have spillover effects into this region. These

spillover effects between study areas were not quantified in the 2015 study. All else equal, this means the

total economic impacts assessed in this study will be larger.

The economic impact analysis considers direct procurements and expenditures, contractor services, and

salaries at the Technical Center, which were provided by the FAA. The MRIO analysis accounts for spatial

effects of the place of performance of contracts executed by the FAA and all other major tenant

organizations located at the Technical Center and the place of residency of Technical Center employees.

The industry-level effects of the Technical Centers’ contract spending are based on the major industry

codes of each contract as defined by the North American Industry Classification System (NAICS).

Many of the direct, indirect, and induced expenditures occurring as a result of Technical Center operation

also generate federal, state, and local tax payments. These tax payments are also considered in this

analysis. RDN specifically evaluated tax effects as they relate to the education system, providing an

estimate of the total amount of tax dollars contributed to school districts by South New Jersey residents

whose earnings are supported by operation of the Technical Center.

Given the Technical Center is exempt from paying property tax, RDN evaluated the Center’s contribution

to the local economy relative to foregone tax earnings by local jurisdictions. This analysis considers

potential tax receipts if the developable land on the Technical Center’s campus were developed with

similar uses to the surrounding areas, subject to the constraints related to the site’s designation as a

Superfund site.



3.2 Data Collection

The FAA Economic Impact Study Team members gathered the employment, payroll, and expenditure

data for the FAA and participating tenant organizations and provided them to RDN for analysis. All data

are for FY 2019, the most recent year of budget information available. For each major tenant organization,

the FAA Team provided:

1) Employee and Wage Data: The total number of Technical Center employees by place of

residence (state/city/ZIP code), employee wages, and employee educational attainment.

2) Operational Expenditures: A list of all purchase orders from FY 2019 for vendor services,

supplies, utilities, equipment, etc. purchased within the state of New Jersey, including obligation

amount, vendor name and location (state/city/ZIP code), and vendor industry code per the NAICS.

3) Construction Expenditures: List of projects funded in FY 2019, including contractor information

and costs incurred, and a statement as to whether or not the level of construction expenditures was

typical relative to other years.1

4) Travel Expenditures: Local expenditures by Technical Center visitors, including a breakdown

by category (e.g., lodging versus meals).

Where data was not available from one or more tenant organizations, it was excluded and not estimated.

This approach ensures that the analysis is based on actual data and the results are a conservative estimate

of the Technical Center’s economic impacts.

This analysis considers wages for employees that reside in the study areas and operational purchases and

expenditures made in the study areas. RDN evaluated the locations for all FAA and participating tenant

organization employees, vendors, and contractors, attributing wages to the residential location of each

employee and operational purchases and expenditures to the place of performance for the work. For most

expenditures, the place of performance was assumed to be the location of the vendor or contractor.

The FAA Economic Impact Study Team evaluated expenditures to non-local vendors and contractors to

determine if the place of performance for the work was within the study areas. In these cases, this spending

was attributed to Atlantic County instead of the location of the vendor or contractor since the majority of

this spending occurs locally. These expenditures represent a large portion of the FAA’s direct spending

and were not accounted for in the 2015 study. Therefore, all else equal, the economic impacts of the

Technical Center, particularly the direct impacts, assessed in this study will be larger than that assessed in

the 2015 study.

Construction spending and travel expenditures by visitors of the Technical Center were also adjusted to

account for the location of this spending. Most construction expenditures are treated as local spending

since the place of performance for this work is onsite at the Technical Center campus. Additionally, all

1 While the impacts of construction projects are not long-term contributors to the economic impacts of a region, they do endure

in two respects. First, construction projects for the expansion of facilities result in on-going operational expenses. Second,

while construction expenditures fluctuate from year to year, for a facility as large and diverse as the Technical Center there are

projects that occur and will continue to occur over time. The FAA Team indicated that there was nothing extraordinary about

the projects funded in FY 2019, so for the purposes of this analysis, those expenditures are assumed to be normal.



travel expenditures for visitors of the Technical Center qualify as local spending since these expenditures

occur at hotels, restaurants, and other establishments near the Technical Center.

The FAA’s operational expenditure data include a breakdown by vendor and NAICS code, which allowed

for analysis of these expenditures by location and industry. However, the operational expenditures for the

tenant organizations are not as detailed. In cases where the locations and industries of tenant organization

spending are unknown, this study uses the percentage breakdowns by location and industry for FAA

spending and applies them to the tenant organizations’ spending.



4. ECONOMIC ACTIVITY OF THE TECHNICAL CENTER

This section provides and overview of the Technical Center’s payroll and associated employment, and

operational and construction expenditures; as well as an estimate of local spending on lodging, meals, and

local transportation by visitors of the Technical Center. The discussion of wages and employment focuses

on employees that are directly employed by the Technical Center. It excludes contract employees that

work on the Technical Center campus. The Technical Center’s expenditures on contract employees are

captured in the operational expenditures. As discussed in Section 3.2, Data Collection, expenditures to

non-local vendors that perform the work locally were attributed to Atlantic County. These expenditures

represent a large portion of the FAA’s direct spending and were not included in the 2015 study. Therefore,

this study captures substantially more of the Technical Center’s total operational expenditures.

4.1 Wages and Employment

The primary driver of the Technical Center’s induced economic impacts is its employees’ local spending.

The FAA and major tenant organizations depend on a skilled and highly educated workforce that

commands higher than average wages. When considering the residency location of Technical Center

employees, these wages total $256.0 million in the state of New Jersey, including $252.4 million in

Southern New Jersey and $166.0 million in Atlantic County in FY 2019 (Table 4-1). The average annual

wage for full-time FAA employees is $133,000. The average annual wage for all Technical Center

employees, including major tenant organizations, is $115,000. These wages do not account for wages paid

to contract employees that work on the Technical Center campus, which are captured in the operational

expenditures discussed in Section 4.2, Operational, Construction, and Travel Expenditures.

Table 4-1: Total Wages by Organization and Area of Residence, FY 2019

Source: Data provided by the FAA and participating tenants.

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

FAA TSL TSA USCG ANG USACE ACY NARTP

Tota

l Wag

es (

in m

illio

ns)

Atlantic County

Southern New Jersey

State of New Jersey



The Technical Center provides 2,377 direct fulltime equivalent jobs, with the majority of personnel

residing close to the campus (Table 4-2). Approximately 95.8 percent of employees live in Southern New

Jersey, most of whom reside in Atlantic County (64.2 percent). Camden County has the second highest

concentration of Technical Center employees at 7.4 percent. Employees residing in the study areas provide

a stable base of well-paid residents that are valuable contributors to the Atlantic County and wider

Southern New Jersey economies. Only 1.5 percent of employees live in the state of New Jersey, but outside

the region. Less than three percent of Technical Center employees live outside New Jersey.

Table 4-2: Technical Center Employment by Area of Residence, FY 2019

County/ Region/ State FAA Employees Technical Center Employees

Number Percentage Number Percentage

Atlantic 905 64.7% 1,526 64.2%

Burlington 55 3.9% 88 3.7%

Camden 103 7.4% 180 7.6%

Cape May 84 6.0% 129 5.4%

Cumberland 38 2.7% 88 3.7%

Gloucester 74 5.3% 119 5.0%

Ocean 90 6.4% 139 5.8%

Salem 6 0.4% 8 0.3%

Southern New Jersey 1,355 96.8% 2,277 95.7%

State of New Jersey 1,373 98.2% 2,312 97.3%

Total U.S. Employees 1,398 100.0% 2,377 100.0%

Note: For tenants that were only able to provide the residency locations of a portion of their employees, the remaining employees were distributed among areas assuming the same proportions as those with residency data.

Source: Data provided by the FAA and participating tenant organizations.

The FAA is the largest employer at the Technical Center, accounting for approximately 58.8 percent of

all Technical Center jobs (Table 4-3). The NJANG is the second largest tenant organization with

approximately 20.5 percent of jobs.

Table 4-3: Technical Center Employment by Organization and Area, FY 2019

Tenant Atlantic County Southern New Jersey State of New Jersey Total U.S. Percent of Total

FAA 905 1,355 1,371 1,398 58.8%

TSL 33 56 58 61 2.6%

TSA 39 60 61 64 2.7%

USCG 182 218 221 242 10.2%

NJANG 260 464 477 488 20.5%

USACE 1 7 7 7 0.3%

ACY 103 115 115 115 4.8%

NARTP 2 2 2 2 0.1%

Total 1,525 2,277 2,312 2,377 100.0%

Note: For tenants that were only able to provide the residency locations of a portion of their employees, the remaining employees were distributed among areas assuming the same proportions as those with residency data.

Source: Data provided by the FAA and participating tenant organizations.



These employment figures do not account for jobs held by contract employees that work on the Technical

Center campus. The FAA alone provides approximately 2,041 fulltime equivalent jobs to onsite contract

employees. Some of the other major tenant organizations also employ contractors that work onsite. When

accounting for all employees that work at the Technical Center, including both direct and contract

employees for the major tenant organizations, the Technical Center campus supports over 4,418 fulltime

equivalent jobs.

4.2 Operational, Construction, and Travel Expenditures

Direct and indirect economic impacts occur when the Technical Center purchases goods and services from

local suppliers. In FY 2019, the Technical Center spent $441.8 million on goods and services, including

contract employees that work on the Technical Center campus, and $80.9 million on construction in

Southern New Jersey (Figure 4-1). Of that, $391.8 million in goods and services and $57.7 million in

construction were spent in Atlantic County. Only a small portion of spending occurred in areas of the state

outside Southern New Jersey, amounting to $2.3 million in goods and services. Note that expenditures for

contract employees that are located at the Technical Center are attributed to Atlantic County since most

of this spending occurs locally and affects the local economy. Similarly, most construction spending is

attributed to Atlantic County since construction activities occurred on the campus, and none of this

spending occurred in the areas of the state outside Southern New Jersey.

Figure 4-1: Operational and Construction Expenditures by Organization, Southern New Jersey, FY 2019

Source: Data provided by the FAA and participating tenants.

The FAA accounted for almost all the Technical Center’s operational expenditures (91.9 percent).

However, the FAA only accounted for 43.4 percent of total construction expenditures. ACY and the

NARTP also had high construction expenditures, making up 31.8 percent and 14.4 percent of total

construction spending, respectively. In FY 2019, the largest construction projects included the completion

of the new NARTP facility and ongoing projects at ACY to accommodate airport operations.

91.9%

5.2%2.0%0.5%

Operational ExpendituresTotal = $441.8 million

FAA

TSL

TSA

USCG

ANG

USACE

ACY

NARTP43.4%

5.7%

3.7%

1.0%

31.8%

14.4%

Construction ExpendituresTotal = $80.9 million



The Technical Center draws visitors to Southern New Jersey who spend money on lodging, meals, and

local transportation. Most of this spending is from students attending the TSL’s FAMS training school.

Although these expenditures are made by visitors rather than Technical Center tenants, they are the direct

result of the Technical Center’s location. The FAA and major tenant organizations provided estimates of

the number of visitors and associated local travel spending in FY 2019, which amounted to $2.4 million.

All travel spending is attributed to Atlantic County since students and visitors likely stayed in the local

area surrounding the Technical Center.



5. ECONOMIC IMPACTS OF THE TECHNICAL CENTER

This section presents the economic impacts of the Technical Center to the primary study area, Southern

New Jersey, and each of the secondary study areas. The secondary study areas include Atlantic County,

which is located within Southern New Jersey, and the areas of the state of New Jersey that are located

outside Southern New Jersey. As discussed in Section 3.2, Data Collection, this analysis accounts for

expenditures to non-local vendors that perform work locally. Because these expenditures represent a large

portion of the FAA’s direct spending and were not included in the 2015 study, the impacts assessed in this

study are considerably higher. Effectively, this study captures more of the Technical Center’s total

economic impacts to the study areas.

5.1 Economic Impacts to Southern New Jersey

In order to support its operations, the Technical Center spent a total of $775.1 million in Southern New

Jersey in FY 2019, including $252.4 million on wages for local employees, $441.8 million on goods and

services, and $80.9 million on construction. The Technical Center employed 2,277 full time equivalent

workers that reside in this area. The largest category for procurement spending was “Other computer

related services, including facilities management,” and the next largest was “Architectural, engineering,

and related services.”

The Technical Center contributed a total economic impact, which includes direct, indirect, and induced

impacts, of $1,489.3 million (i.e., nearly $1.5 billion) in FY 2019 and supported 9,140 jobs in Southern

New Jersey (Table 5-1). The direct employment impacts of Technical Center spending was 5,240 jobs in

Southern New Jersey—2,277 jobs working directly for the Technical Center and 2,963 direct jobs

generated by operational spending, including jobs held by Technical Center contractors. The Technical

Center also generated indirect impacts of $185.1 million in economic output and 1,287 additional jobs in

FY 2019, benefitting businesses supported by Technical Center procurement and employment spending

that are based in Southern New Jersey. The induced impacts were $400.4 million and 2,613 jobs in

Southern New Jersey.

Table 5-1: Economic Impacts of the Technical Center to Southern New Jersey, FY 2019

Type of Impact Employment Labor Income Value Added Output

Direct 5,240 $480.3 $677.8 $903.8

Indirect 1,287 $69.7 $98.7 $185.1

Induced 2,613 $131.4 $234.4 $400.4

Total 9,140 $681.4 $1,010.9 $1,489.3

Source: IMPLAN analysis performed by RDN.



5.2 Economic Impacts to Atlantic County and the State of New Jersey

A large portion of the employment and economic activity in Southern New Jersey occurs in Atlantic

County, where the Technical Center is located (Table 5-2). In this county the Technical Center generated

a total of $1,036.3 million in economic output and 6,440 jobs in 2019, of which $696.3 million and 4,104

jobs were direct impacts. The indirect and induced impacts amount to an additional $340.0 million in

economic output and 2,336 jobs. The total impact of the Technical Center in Atlantic County represents

69.6 percent of the employment and economic impact that occurred across Southern New Jersey.

Table 5-2: Economic Impacts of the Technical Center to Atlantic County, FY 2019


Direct 4,104 $346.9 $494.7 $696.3

Indirect 880 $45.6 $63.3 $121.4

Induced 1,456 $70.6 $129.7 $218.6

Total 6,440 $463.1 $687.7 $1,036.3


Although the majority of the Technical Center’s economic impacts occur in Southern New Jersey, some

impacts also occur in the remaining portions of the state (Table 5-3). In the areas of the state outside

Southern New Jersey, the direct impacts of the Technical Center amount to an additional $42.0 million in

economic output and 50 jobs. Accounting for the indirect and induced impacts, the total impacts amount

to $198.9 million and 542 jobs. These impacts are in addition to those experienced in Southern New

Jersey.

Table 5-3: Economic Impacts of the Technical Center to the Rest of New Jersey, FY 2019


Direct 50 $18.5 $27.0 $42.0

Indirect 211 $20.0 $33.0 $53.3

Induced 281 $43.4 $67.4 $103.6

Total 542 $81.9 $127.4 $198.9


5.3 Summary of Results

The results of the economic impact analysis show the substantial impacts that the Technical Center has on

Southern New Jersey, and particularly Atlantic County. These impacts include high-paid jobs for highly

educated residents, attraction of some of the nation’s most prominent technology firms, such as Computer

Science Corporation, Lockheed Martin, and General Dynamics, and a large contribution to the regional

economy that serves as a stabilizing and consistent driver of economic activity that is non-seasonal and

enduring.

Of the 5,240 direct jobs in Southern New Jersey, 2,277 were held by direct employees of the Technical

Center and the remainder were generated by Technical Center operational spending and construction

activity in 2019. These jobs form a significant cluster of aviation-related activity that helps define the



region. The indirect and induced employment of 3,900 jobs also adds to the diversity of the economy as

the many contractors and suppliers specialize in areas not in demand in the general economy.

Provision of high-paying jobs is the distinguishing factor of the Technical Center’s role in diversifying

the regional economy. The large payroll spending in relationship to other expenditures reflects the high

level of wages, which serves as a strong foundation for the economy. In Southern New Jersey, the total

wage expenditures of the Technical Center are $252.4 million, and the total wages the Technical Center’s

activity generates in other organizations are $681.4 million. Employees of the Technical Center and

supporting industries bring these wages back to the communities in which they live, work, shop, and

recreate. They spend a portion of their earning in local restaurants and home repair stores, while the taxes

from their income support local schools and municipal governments.

The Technical Center’s employment of 2,277 people and spending of $441.8 million on goods and

services and $80.9 million on construction in Southern New Jersey in 2019 generated substantial economic

activity, measured as output in this analysis. This activity created $903.8 million of direct economic output

and $585.5 million of indirect and induced economic output, for a total of $1,489.3 million. As shown in

this analysis the Technical Center’s spending moves through the economy creating additional jobs and

economic activity, which results in a substantial contribution to the overall economy of Southern New

Jersey.

Unlike the previous economic impact studies for the Technical Center, this study included individual

analysis of Atlantic County, where the Technical Center is located, to understand how much of the

Technical Center’s regional impact occurs in this county. The results of the analysis indicate that most of

the regional impacts, approximately 69.6 percent, occur in Atlantic County, making it the primary

beneficiary of these operations.

This study also included analysis of the areas of New Jersey outside of Southern New Jersey to better

understand the reach of the facility’s impacts on the rest of the state. Operation of the Technical Center

resulted in 542 jobs and $198.9 million of economic output in this area. These impacts are in addition to

the 9,140 jobs and $1,489.3 million of economic output generated in Southern New Jersey.

In addition to measurable economic impacts, the Technical Center contributes to the Southern New Jersey

economy by defining the region as the home to one of the leading research and development clusters in

the aviation field. The presence of the Technical Center supports an industry cluster as associated

companies choose to locate near the Technical Center and other nearby organizations in the aviation

industry. This industry cluster results in additional indirect economic impacts as more companies move to

the area to become part of the supply chain for that cluster, further befitting the region.

Given that most jobs and operational spending at the Technical Center are supported by federal budgets,

the presence of this facility allows Southern New Jersey to draw federal dollars from outside the region,

which makes the Technical Center a primary economic driver in the region. In addition, it provides an

economic diversity that is very much needed in the region. Without the Technical Center, the Southern

New Jersey economy would likely rely even more heavily on the leisure and hospitality industry, which

is seasonal and under formidable regional competition. Jobs at the Technical Center and supporting

businesses, therefore, help provide economic stability to the region.



6. COMMUNITY IMPACTS OF THE TECHNICAL CENTER

While much of the impact of the Technical Center on the communities in Southern New Jersey can be

traced to purchases of goods and services, a large portion can be attributed to the contributions of

employees to the communities in which they live. Additionally, the Technical Center performs functions

outside of its standard operations that provide non-monetary benefits to the surrounding communities.

However, there are also trade-offs required to attain the economic benefits that any industry creates that

are generally not made explicit in economic impact studies, such as the nuisance of airplane noise in the

areas surrounding ACY. These costs are difficult to measure, but they are generally outweighed by the

economic benefits.

This section provides an examination of some of these benefits and costs, giving a sense of some of the

impacts outside of employment and spending. Although this analysis is not comprehensive nor complete

it helps provide some information on the wider benefits and costs of the Technology Center.

6.1 Employment and Income

The Technical Center employs 2,277 people that reside in Southern New Jersey, thereby providing jobs

in this economically distressed area. Almost two-third of these employees live in Atlantic County, where

the population is declining, unemployment rates are high, and median household incomes are 25.1 percent

lower than in the state as a whole (Table 6-1). Additionally, the many contractors and supporting

businesses for the Technical Center also employ people in Southern New Jersey, providing additional jobs

in the region. The combination of direct jobs at the Technical Center, indirect jobs at organizations that

support Technical Center operations, and induced jobs at organizations that support these employees help

counter-balance the impacts of rising unemployment in other sectors, such as casino gaming.

Table 6-1: Median and Average Household Income by County and City, 2018

County/ City Median Average

Atlantic County $61,212 $84,780

Egg Harbor $78,772 $94,411

Galloway $68,628 $87,297

Hamilton $68,750 $84,308

Burlington County $84,889 $112,755

Camden County $67,523 $91,076

Cape May County $67,007 $97,909

Cumberland County $52,795 $68,355

Gloucester County $81,849 $101,668

Ocean County $68,551 $94,143

Salem County $65,733 $81,113

State of New Jersey $81,740 $114,853


Because jobs at the Technical Center have an average salary of $115,000, the household incomes for these

employees is much higher than the median and average household incomes in Southern New Jersey (Table

6-1). While the average wage reflects the earnings of only one member of a Technical Center employee’s



household, it is still higher than the average total household income in each of the Southern New Jersey

counties and in the three townships closest to the Technical Center: Egg Harbor, Galloway, and Hamilton.

These higher wages create an economic benefit to local communities by stabilizing housing prices,

reducing foreclosures, supporting the tax base, and providing a firm base for the finances and civic lives

of these communities.

6.2 Educational Attainment

The Technical Center employs a high percentage of professionals with college degrees, which contributes

to its unique role in Southern New Jersey as the main source of industry, skills, and income diversity

(Table 6-2). By virtue of the Technical Center research and development activities, its employees tend to

be scientists, engineers, and other degreed technical professionals, many of whom have post-graduate

degrees. Based on information provided by the FAA and participating tenant organizations, the percentage

of employees with a bachelor’s degree or higher at the Technical Center is 55.7 percent. This percentage

at the FAA, the primary employer at the Technical Center with 1,355 employees, is 72.4 percent. In

addition, the Technical Center’s vendors and contractors also employ well-educated residents in Southern

New Jersey.

Table 6-2: Educational Attainment of Technical Center Employees by Tenant Organization

Tenant No College

Degree Bachelor

Degree Masters Degree

Doctoral Degree

Total with Bachelor or Higher Degree

Percentage with Bachelor or Higher Degree

FAA 386 732 239 41 1,012 72.4%

TSL 11 18 21 11 50 82.0%

TSA 11 42 11 0 53 82.8%

USCG 177 47 17 1 65 26.9%

NJANG 412 42 30 4 76 15.6%

USACE 2 4 1 0 5 71.4%

ACY 55 56 4 0 60 52.2%

NARTP 0 2 0 0 2 100.0%

Total 1,054 943 323 57 1,323 55.7%

Note: For tenants that were only able to provide educational attainment for a portion of their employees, the remaining employees were distributed at the same proportions. Source: Data provided by the FAA and participating tenants.

In contrast, a much smaller percentage of all residents have college degrees in the eight counties in

Southern New Jersey and in the state as a whole. As discussed in Section 2.3, Demographic

Characteristics, the percentage of the population with a bachelor’s degree or higher in Southern New

Jersey ranges from 15.1 percent in Cumberland County to 35.8 percent in Burlington County, while it is

38.3 percent in the state. Given that the dynamics of the local population relative to the employment

opportunities at the Technical Center, the Technical Center draws educated professionals to the area while

also providing employment opportunities for residents with college degrees.

The Technical Center and its employees also contribute to a variety of educational activities across

Southern New Jersey that benefit local communities. The Technical Center sponsors summer and intern

programs, which help educate youth and prepare young professionals for work in technical fields. Many

Technical Center employees are highly established in their communities and contribute to educational

activities in the area through actions such as serving as adjunct professors at Stockton University or hosting



Science, Technology, Engineering, and Mathematics (STEM) activities for high school students. In

addition, advisory committees and science fairs at local schools and colleges draw from the pool of talent

available at the Technical Center.

6.3 Contribution to the Education System

Property taxes paid by local residents and businesses fund municipal budgets, which support a variety of

functions, including local school systems. Although the Technical Center is exempt from paying property

tax, operation of this facility results in property tax payments by the many employees and businesses it

supports in Southern New Jersey. Given the higher earnings of Technical Center employees, they likely

have housing expenditures and associated property tax contributions that are higher than the regional

average, either as homeowners or renters. As homeowners, they contribute directly to municipal budgets

through property tax payments, while as renters they contribute indirectly by making payments to live in

rental properties while the owners make property tax payments. Other employees supported by the

Technical Center’s direct, indirect, and induced effects also contribute toward municipal budgets in this

way. Additionally, businesses supported by Technical Center operations pay property taxes, either directly

or indirectly, on the properties where they are located.

The IMPLAN analysis includes an estimate of total property tax contributions that result from operation

of the Technical Center. For Southern New Jersey, the estimated total property tax receipts by local

jurisdictions total $29.3 million. Most municipalities in New Jersey, including the local townships, spend

approximately 60 percent of their budgets on local school systems (Mansion Global 2020, State of New

Jersey 2019, 2020A, and 2020B). Applying this percentage to total property tax receipts, operation of the

Technical Center provides approximately $17.6 million dollars of local school funding each year. Given

that the budgets for local schools in the three municipalities with the most Technical Center employee

residents—Egg Harbor, Galloway, and Hamilton townships—total $250 million, the Technical Center’s

operations help to provide a substantial portion of this funding.

6.4 Foregone Property Tax Receipts

In addition to positive economic benefits of the Technical Center, this facility also results in opportunity

costs, with are the forgone benefits that would have been derived if the Technical Center did not exist.

Because the FAA is exempt from paying property tax, a significant opportunity cost of the Technical

Center is the foregone fiscal revenue from property taxes that municipalities would collect if the Technical

Center campus were developed for other uses, including Egg Harbor, Galloway, and Hamilton townships.

This analysis evaluates the opportunity cost by estimating the amount of property tax that would be

received by each township in which the Technical Center is located if the campus were developed in the

same way as the rest of the township (i.e., with the same percentage of each land use [residential,

commercial, industrial, open space, etc.] and assuming the same average property value).



The analysis was performed by multiplying the estimated amount of developable land on the Technical

Center campus in each township by the estimated property tax receipts that could be collected for that land

if it were developed in the same way as the remaining portions of that township, and then adding the

impacts to each township. To estimate the amount of developable area on the Technical Center campus

by township we begin with the boundaries of FFA-owned land, omitting the Laurel Memorial Cemetery

and Atlantic City Upper Reservoir Areas. We exclude all wetland areas with a 150 foot buffer, as well as

all habitat for federally endangered species, to obtain the total developable area within FAA-owned land

by township (Figure 6-1).

Figure 6-1: Developed and Developable Area on the Technical Center Campus by Township

To calculate the average property tax receipts per developed or developable acre in the townships, we

collected property tax revenues from each township’s 2020 municipal budget and divided them by the

developed and developable area in the township. We estimated the developed and developable area by

subtracting out FAA-owned land, submerged areas (e.g., lakes), wetland areas and their respective buffers,

and federally endangered species habitat (Figure 6-2). Dividing the total amount of property tax receipts

by developed and developable land yields the estimated property tax receipts per acre for each township.



Figure 6-2: Developed and Developable Area by Township

The opportunity cost of the Technical Center in terms of foregone property taxes by Egg Harbor,

Galloway, and Hamilton townships amounts to approximately $17.2 million (Table 6-3). Roughly two-

thirds of these foregone tax receipts are attributed to Technical Center land in Egg Harbor Township,

which has the largest amount of developable FAA-owned land and the highest tax receipts per acre.

Table 6-3: Opportunity Cost of the Technical Center

Township Tax Receipts per Acre

in the Township Developed and Developable Acres

on the Technical Center Campus Opportunity Cost

Egg Harbor $6,701 1,938 $13.0

Galloway $1,962 522 $1.0

Hamilton $9,008 350 $3.2

Total $5,232 2,810 $17.2

Sources: State of New Jersey, 2019, 2020A, and 2020B; New Jersey Department of Environmental Protection, Division of Fish & Wildlife, 2020; U.S. Fish & Wildlife Service, 2020.

These opportunity costs, like many costs and benefits associated with the Technical Center, are not

captured in the economic impact analysis. They need to be balanced against the positive economic benefits

when estimating the impacts of the Technical Center to each township, the region, and the state.

Additionally, as discussed in Section 6.2, Educational Attainment, the Technical Center supports



employees and businesses that contribute an estimated $29.3 million in property taxes to local

jurisdictions, which outweighs the forgone property tax receipts associated with the Technical Center

campus itself.

6.5 Environmental Remediation

One of the benefits of the Technical Center that is not captured in by the economic impact model is the

environmental clean-up being performed on the campus (U.S. Environmental Protection Agency, 2019).

The FAA continually works to remediate contamination on the FAA Superfund Site, which currently

includes 19 areas of concern, as defined by the U.S. Environmental Protection Agency (EPA). Of these

areas of concern, 16 were evaluated in the EPA’s 2019 Five-Year Review of the Superfund site and three

are still being evaluated. The 2019 report indicates that five previous areas of concern require no further

action and are suitable for unlimited use and unrestricted exposure. These environmental cleanup efforts

protect the local public reservoir used by the Atlantic County Utilities Authority to furnish potable water

by reducing potential for contamination.

6.6 Summary of Impacts on Southern New Jersey

This study refreshes the findings of the past impact studies, confirming that the Technical Center continues

to provide economic impacts that are large and disproportionate to its overall share of employment in

Southern New Jersey. These impacts include direct, indirect, and induced jobs that improve employment

and earning opportunities in the region. Due to the technical nature of the work performed by the Technical

Center and the associated need for highly skilled employees, the wages of these employees far surpass

average wages in Southern New Jersey. These higher wages help provide a stable foundation for the

regional economy, especially in the current climate of uncertainty and decline in the casino gaming sector,

which employs far more workers than the Technical Center.

Technical Center employees also have positive impacts in their local communities. These residents

actively take part in their communities through activities like volunteer work and participation in school

boards. Additionally, they contribute to the local school systems through property tax payments as well

as involvement in science fairs and other school activities.

The Technical Center acts as an established and consistent driver of economic activity for Southern New

Jersey, bring federal dollars into the region. This spending then circulates in the local economy, providing

additional benefits to the region. The Technical Center also helps define the region as the home to one of

the leading research and development clusters in the aviation field. It serves as a long-standing core of the

aviation industry in Southern New Jersey, promoting an industry cluster of related businesses and

organizations that in turn generate additional jobs and economic activity. Given the stable and broad set

of benefits the Technical Center provides to Southern New Jersey, ongoing operation of the facility

provides the best opportunity for continued success and growth of Southern New Jersey into the future.



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