Joe Molineaux, Economic Development Manager, Cape May County

In an interview with Invest:, Joe Molineaux, economic development manager of Cape May County, discussed finding suitable businesses that could take advantage of the county’s unique situation. He mentioned, “Technology companies are good for us, as they complement and supplement our tourism economy.”

How have recent changes impacted Cape May County’s economic development program?

Tariffs could have some effects on our tourism economy, but the backfill of people wanting to visit has alleviated that fear. We might see some impact during the low season, but that still looks fine from a financial standpoint. There’s a lot of retail business happening in the summer, and the cost might have been a concern. But we’ll wait and see since the tariff policy discussion is still ongoing. Also, with airfare being more costly, the supply and demand for international travel will be affected. That may help us. 

We can only develop 11% of our properties in this county because of the marshes and protected areas. That requires us to do a lot more redevelopment and make the best out of what we have. We do that by attracting companies that don’t require 500 employees. Technology companies are good for us, as they complement and supplement our tourism economy. We also focus on building up the shoulder seasons by providing testing grounds. In the aviation industry, for example, there is a lot of testing on unmanned aircraft systems and unmanned aerial vehicles. A team coming to test new, proprietary drone technology for a week will probably have about a $10,000 impact on our economy. 

What is your current overview of the business landscape in the region?

The main focus is on tourism, incorporating hospitality, leisure, retail, and sales, serving a population that could swell from under 100,000 to millions during the high season. In the last several years, we have been focusing heavily on bringing technology and aviation businesses here. We have established the Cape-Atlantic UAS Test Range, the first in the country. Unlike a test site, the test range coordinates testing in the area. Of course, we have normal entrepreneurial endeavors. People come and grow their businesses here all year round. 

How does Cape May County’s economic development program support the small and mid-sized entrepreneurs?

Our BizHub program was started with congressional funding and a lot of local investment. It is based in our local community college and is similar to small business development centers all over the country. The program covers not only entrepreneurial training but also consulting and working with individual communities and various economic development groups. We also partner with multiple chambers of commerce throughout the region to help train existing businesses in areas like social media marketing and understanding lending for startups. 

What strategies is the county employing to attract opportunities from emerging industries?

We have found success by going to events focusing on UAS technology. With our geographic location, the first thing people see is the opportunity to fly their technology in a safe environment. Plus, being hospitality-driven, we have many things to offer while they’re here. We have world-class dining and great beaches all around, alongside comfortable hotels and other pleasant amenities. The lack of large commerce and the dormancy in the low season mean people from all over can bring their equipment, and even establish their business in the area, if they choose to set up their testing site here. 

What projects are significantly improving the local infrastructure and boosting the local economy?

We received several investments for infrastructure from the U.S. Economic Development Authority. They went to improve our airport and construct a few buildings. One of them is specifically designed to house technology and aviation companies. There were also congressional investments, part of which helped establish BizHub. We’re always looking to invest in our infrastructure, such as bridge construction. With the number of people coming here, we need to make sure that the infrastructure is well-maintained, and the bridges are a crucial part of the infrastructure for our island communities. 

Which subsector of the tourism industry is bringing investment into the county?

In the last decade or so, there’s been a sizable investment in craft breweries. We also have some great wineries, which have won multiple awards. That said, the key investment is in building the shoulder seasons and having the visitors at a higher frequency. In addition, the investment also goes into creating a better experience for them, including educating them on what they can do, where they can go, how they can come, and where they can stay. 

Through the frequency with which people come, and the positive responses on our surveys, it proves that people want to be here. Our angle is that they could have their business where they already have a personal affinity. But it has to be the right fit. We can’t, for example, put a large manufacturing facility here. What we can have are smaller offices doing technology with a limited number of people.

Is there a significant collaboration that has strengthened your efforts on economic development?

It has been a good partnership with the U.S. EDA, and we always have opportunities to help businesses get funding through the New Jersey EDA. On the county level, we are fortunate to have the South Jersey Economic Development District, a partnership of four counties. We work together on all initiatives, from transportation needs to film-ready designation. 

We offer a lot of tax incentives to film here; they are some of the best incentives in the country, just behind New York and California. That’s why we’re getting a lot of productions, and an impact of around $500 million last year. Netflix just built a studio in central New Jersey. The investments are real, and they’re happening with higher frequency. 

How is the county addressing the main challenges to economic development?

One of the main challenges is the amount of land to develop; we are almost hitting the limit. The other challenge is, of course, housing. We live in a highly desirable place, and we receive a lot of external investment from people owning a second home here. But we want the housing stock to stay available for working families. Sometimes, a dual-income family unit can’t afford a home here because of the scarcity and strong competition. 

We’re also working on the workforce challenges with a few other counties. Besides providing training and education, we have to prevent brain drain. One of our biggest exports in New Jersey is the young people going to college in another state and staying there. We need to create more opportunities, and there lies the importance of having technology companies here. People want to work in tech. There are a large number of Philadelphia residents who work in the tech industry, and they sponsor the healthcare, education, real estate, and finance industries. 

What are the upcoming projects for the county and its economic development?

The construction of Tech Hangar II at the airport is almost finished, and it has already been marketed to many potential businesses. We also look forward to growth in aviation and UAS, the film-ready status as we work more closely with the New Jersey Motion Picture & Television Commission, and the redevelopment projects solving the housing challenges.