OPINION: Tipping the scale

For the first time all year, construction input prices decreased nearly 1% in May compared to the previous month. Falling materials prices, in combination with the prospect of lower interest rates in 2024, are welcome developments for the construction industry that relies on them. As many in the industry will know, due to the compound problems of high inflation on essential materials, increasing skilled labor costs, supply chain shortages and other skyrocketing costs, profit margins have been historically low. So, at a time when many businesses are struggling, we must make sure our state is doing everything in its power to stay pro-business.

At Associated Builders and Contractors of New Jersey , we pride ourselves in being a leading voice that champions commercial prosperity and business competition for the betterment of our communities. But unfortunately, our state has two frivolous lawsuits moving through its courts that go against our mission and risk our state’s pro-business culture.

The city of Hoboken filed its legal complaint first in 2020 , alleging energy producers misled the public about climate-related impacts. Then, in 2022 the State of New Jersey also filed a suit involving essentially identical defendants and arguments. This litigation is wasteful, ineffective for advancing climate solutions and, worst of all, potentially damaging to business in New Jersey.

These types of lawsuits go against our state’s values and could be damaging to ABC members.

I’m certain most constituents would much rather their money be going toward issues that truly affect them. A Rutgers study from November 2023 showed taxes and the economy were top of mind for New Jersey voters. But instead of focusing and passing legislation that lessens the burden of everyday necessities like groceries which are still up 30% since 2019 our state leaders are wasting dollars on lawsuits that nobody is asking for.

Worse yet, for my members these lawsuits could actually harm the industry. Understandably, the construction industry relies heavily on equipment that requires oil and gas-derived fuel products. This means that our tax dollars are going toward lawsuits that, if successful, would penalize these lawful products our members rely on every day. How is that fair?

ABC members would much rather our elected officials focus on project labor agreements which are anti-competitive and end fair and competitive bidding on contracts to build taxpayer-funded construction projects. New Jersey as a whole would be better off focusing on PLAs than harming lawful energy production that every single New Jersey resident still depends on.

Energy producers the defendants exclusively targeted in this litigation are very much necessary in our daily lives. Without getting into the merits on the absurdity of blaming a handful of companies for global climate change, I’ll simply note that all conventional plastic is made from petroleum products, primarily oil. Individuals would likely find it impossible to live without plastic.

Even with these lawsuits, our state still has two active oil refineries and a big pipeline network with coastal locations that make it a major center for petroleum products throughout the Northeast. Those refineries employ hundreds of thousands of our neighbors with good-paying jobs. If these lawsuits are successful, the loss of jobs would be significant for a sizeable portion of the state.

We should know by now that we cannot litigate our way to climate change solutions. It’s not even an effective way to bring tangible solutions to Hoboken and other coastal areas that experience weather-related damage. Already there are more than $40 billion in funds on the table from the Infrastructure Investment and Jobs Act to take care of damaged infrastructure and other climate-related issues. Given this fact, this litigation broadcasts that the Garden State has not even taken advantage of federal resources available to them.

Fundamentally, this litigation is hostile to business which creates a problem for the entire New Jersey economy since essentially half (49.2%) of the state is employed by a small business. Today, 99.6% of businesses in the state are small businesses and these businesses contribute a substantial portion of taxes that finance the state. New Jersey is suing legal and essential energy producers now, but tomorrow it could be ABC members builders and contractors.

Litigation like this in our state is tilting the scale against one specific industry and risking our pro-business culture. We cannot accept this. Our elected officials should be listening to the state’s business community, focusing on what matters to them, and move away from this type of frivolous litigation.

Samantha DeAlmeida Roman is president of Associated Builders and Contractors New Jersey Chapter.

Copyright © 2024 BridgeTower Media. All Rights Reserved.