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  • Business Expansions and Contractions, Long Island Region

    Business Expansions and Openings

    New Items

    With the help of a group of local farmers and a $500,000 grant from the Empire State Development Corp., J. Kings, a Holtsville (Suffolk County) - based food distributor plans to build an agricultural terminal, to be called the Agriculture Enterprise Park in Baiting Hollow (Suffolk County) on the former site of Blackman Plumbing Supply Company.  The facility will cool and package vegetables, store wine and distribute products to grocery stores, farmers' markets and other retailers.  Kings expects to add 60 people to its payroll for the new facility. (Newsday - July 27, 2012)

    (Update) Hauppauge (Suffolk County)-based GSE Dynamics Inc., a manufacturer of components for submarines and military aircraft, is opening a new factory on Oser Avenue in Hauppauge.  The new plant will take over the work performed at GSE's existing factories in Hauppauge and Georgia.  The company cited the skills of the local workforce and the strength of training programs offered at Suffolk County Community College, as well as a deal from the Suffolk Industrial Development Agency to cut its property tax by $706,000 over 15 years as reasons for staying on the island.  GSE expects to add seven people to its local workforce of 48 by 2014.  Newsday reports the average annual salary at the company as $66,667. (Newsday - July 27, 2012)

    With the aid of a 15-year extension in property tax relief granted by the Suffolk Industrial Development Agency (IDA), Hauppauge (Suffolk County) - based manufacturer of promotional advertising products Positive Promotions will keep its factory, which employs about 500, in Islip (also Suffolk).  The company will also receive $1,370,000 in assistance from the Empire State Development Corporation to help secure the jobs. (Newsday - July 26, 2012)

    NY Governor Cuomo signed a bill into law tripling tax credits for companies specializing in movie post production (film editing, visual effects, color correction and sound editing and mixing).  727 movies and TV projects, which have created more than 522,000 (temporary) jobs, have committed to shooting in the state since 2004, but companies typically did post production elsewhere.  By increasing the tax credit for post-production work from 10 to 30% (35% upstate), the governor hopes to attact a larger share of this lucrative business to New York . (Newsday - July 26, 2012)

    A new biotech venture company called Coferon Inc. has received $12 million in venture capital funding to start its work of creating stronger drugs for cancer and other diseases.  The company is currently based at the high-tech incubator at SUNY Stony Brook (Suffolk County) and headed by Colin Goddard, the former director of OSI Pharmaceuticals. (Newsday - July 26, 2012)

    Litigation Settlement Administration Corp., a service provider to law firms, hopes to nearly double its workforce with its move from Mineola to Hicksville (both Nassau County).  The company, which currently employs seven and plans to add six more, received nearly $100,000 in tax breaks from Nassau County's Industrial Development Agency in support of its move. (Newsday - July 25, 2012)

    High-end department store Bloomingdale's held a job fair on July 28 and 29 aimed at filling 35 sales and managerial positions at the Bloomingdale's Outlet store slated to open this fall in the new Gallery at Westbury Plaza (Nassau County). (Newsday - July 25, 2012)

    Hauppauge (Suffolk County) - based defense firm Globecomm won a contract worth $85 million from the U.S. Department of Navy to supply satellite equipment for the Space and Naval Warfare Systems Center. (Newsday - July 25, 2012)

    Uniondale (Nassau County)-based Frequency Electronics has received contracts totaling $10 million from the U.S. government to produce precision timing devices and low phase noise frequency sources for the government's satellite communications systems.  Most of the work will be completed within the next year and a half. (Newsday - July 24, 2012)

    South Oaks Hospital and the Broadlawn Manor Nursing and Rehabilitation Center in Amityville (Suffolk County) are joining the North Shore - Long Island Jewish (LIJ) Health System.  Together the two facilities employ 1,153, which brings LIJ's total to 44,000.  It is the largest employer on the Island, according to Newsday. (Newsday - July 24, 2012)

    Previously Reported

    In a partnership with two other credit unions Bethpage (Nassau County) Federal Credit Union is consolidating back-office positions - including collections, call center, lending, deposits and mortgage jobs- to Maryland over the next 18 months as part of a move that it says will save it $8 million a year.  However, the credit union says all 91 employees affected will be offered one of the 158 jobs Bethpage plans to create over the next three years, including many at the 12 new branches in Nassau and Suffolk Counties that the credit union plans to open. (libn.com - July 19, 2012)

    Thanks in part to recently approved tax breaks for small-scale breweries, the Great South Bay Brewery is moving from its current site in downtown Bay Shore (Suffolk County) to a new larger facility in an office park on the city's northern fringe.  The move will allow for a larger operation that will include an expanded product line as well as the canning and bottling of its project.  The site will also have a tasting room.  The company has brewed 25 beers and its products can be purchased in 250 Long Island locations. (Newsday - July 18, 2012)

    The Smithtown Fire Department plans to use a $122,000 grant from the federal Department of Homeland Security to add firefighters to the department's emergency medical division.  Smithtown fire commissioner Tom Buffa did not say how many firefighters would be hired. (Newsday.com/July 16, 2012)

    The Miller Place (Suffolk County) School District announced the conclusion of contract negotiations with the Miller Place Teachers Association, which represents teachers in the district's schools.  The agreement includes a freeze of all salaries, including those of club advisors, tutors and coaches, for the first two years of the agreement, and avoids teacher layoffs.  The deal also includes two new salary steps for new hires, meaning they will be paid less than existing teachers, and also calls for the district and the teachers union to work "collaboratively" for additional health care savings. (Miller Place - Rocky Point Patch.com/July 11, 2012)

    (Update) Hempstead Village (Nassau County) adopted has adopted new zoning rules as part of it ongoing $2 billion revitalization plan for the village's Main Street which would allow mixed-use development, such as apartments above commercial space.  Developers and village officials had pushed for the zoning code changes aimed at facilitating the plan, but community activists demanded that any agreement incorporate jobs, business and housing for local residents, including a demand that 35% of the project's apartments be "affordable" housing. (Newsday - July 9, 2012)

    Brooklyn-based Arrow Linen Supply's recent expansion will soon bring jobs to Long Island.  The company has purchased an industrial building on South Street in Garden City (Nassau County), the former home of WAC Lighting, which will enable it to expand its business in Queens and Long Island.  The company's new facility, which should be in operation by next summer, will employ 170 people within two years. (Long Island Business News.com/July 5, 2012)

    Taking a page out of its competitor Apple's playbook, software giant Microsoft is opening a retail store and training shop in the Walt Whitman Shops (formerly the Walt Whitman Mall) in Huntington Station (Suffolk County) as a way to "showcase its products and market the company's image".  Microsoft has so far opened just 20 such stores in the US.  (Newsday -July 5, 2012)

    The Town of Islip (Suffolk County) has scheduled a public forum on July 17th to discuss its proposed expansion of LI MacArthur Airport, part of a routine, decennial update of the airport's plan.  The expansion calls for extending the airport's second longest runway - currently 5,500 feet long - to match the longest - 7,000 feet long.  According to the plan, the runway extension would mean quieter landings and safer all-weather flying conditions.  The town has hired Ohio-based aviation planning firm Landrum and Brown to present the plan at the public forum.  The company will submit a draft plan to the town in the fall, and the FAA will grant final approval by the end of the year.  (Newsday - July 5, 2012)

    The Peconic Bay Medical Health System, community care arm of Peconic Bay Medical Center in Riverhead, plans to a "Campus for Advanced Ambulatory and Preventive Care "in Manorville (both Suffolk County) early next year.  The new facility will employ 100 people and specialize in urgent care, pediatrics, obstetrics and gynecology and general surgery.  The health system currently has a payroll of 800 and pays an average annual wage of $68,750.  (Newsday - July 2, 2012)


    Business Contractions and Closings

    New Items

    East Farmingdale (Suffolk County) restaurant 56th Fighter Group, a fixture at Republic Airport for 30 years, will close August 12 for economic reasons.  Thirty people will lose their jobs. (Newsday - July 27, 2012)

    (Update) Nassau County and the union representing its professional and clerical workforce reached an agreement that makes approximately 5,000 full-time employees eligible to take up to 60 days of voluntary, unpaid "furlough."  (A maximum of 20 days may be taken consecutively.)  The Civil Service Employees Association sees the move as a way to avoid future layoffs.  Nassau County Executive Edward Mangano touts it as another step towards closing the 2012 budget gap.  The county had offered a retirement incentive to CSEA members earlier this month that will pay those leaving $1,000 for every year of service.  61 CSEA employees accepted the offer and 40 law enforcement positions (non-CSEA) were lost to attrition. (Newsday - July 27, 2012)

    Holtsville (Suffolk County) - based aircraft component maker, B/E Aerospace Inc. - known formerly as Aerospace Lighting Corp. - will lay off 55 employees this fall.  The company filed a WARN notice announcing that 55 layoffs will begin this October and run through December 2013.  B/E, which makes aircraft cabin seats, distributes spare parts for planes and outfits jets with espresso coffeemakers, among other things, cited economic reasons in its WARN filing. (WARN Notice - July 26, 2012)

    German pharmaceutical giant Sandoz has bought Melville (Suffolk County) - based Fougera Pharmaceuticals (formerly known as Nycomed US) for $1.5 billion.  The purchase makes Sandoz the world's largest manufacturer of generic medicines for dermatology.  According to Newsday, Fougera employs 700 people nationwide, including about 500 at facilities in Melville and Hicksville (Nassau County).  A spokesman for Sandoz said it was too early to say how, or if, the move would impact jobs here. (Newsday - July 25, 2012)

    (Update) As part of its continuing quest to achieve the $150 million in recurring savings called for by its state-imposed financial control board, Nassau County announced a plan to cut the county's workforce by another 200 jobs and cancel $19 million in public works projects.  The county expects to achieve half the job cuts through attrition -police, correction officers and civilian employees who have accepted retirement incentives - and the other half through layoffs.  Nassau has laid off about 400 employees since last December.  The county's plan also calls on canceling $3.8 million in discretionary contracts -- including those for youth social service agencies.  The county workforce now stands at about 7,300 employees, according to Newsday. (Newsday - July 24, 2012)

    (Update) A State Supreme Court justice lifted a temporary restraining order that blocked the layoff of 30 security guards employed by Suffolk County, part of a layoff of 230 announced by the county in June.  However, the guards may still not lose their jobs immediately, provided their union, the Association of Municipal Employees, agrees to "expedited binding arbitration."  The guards' case hinges on whether the county is breaking the union contract by improperly giving the work of laid-off guards to a private contractor, or whether the union filed its appeal to a state arbitrator too late. (Newsday - July 24, 2012)

    Previously Reported

    Clothing retailer Daffy's Inc., which sells national fashion brands at up to 80 percent off, is going out of business.  The company has 19 stores, including one in Manhasset (Nassau County), which employs about 50, and eight in Manhattan.  Daffy's said that all associates will remain employed and receive pay and benefits for at least 60 days. (Newsday - July 17, 2012)

    As a result a $7.3 million cut in funding in Nassau County on July 3, dozens of summer day camps and after school tutoring and mental health counseling programs for at-risk youth have closed.  Affected agencies have closed eight summer programs that serve over 500 youths and laid off 72 agency employees, mostly tutors and counselors.  The groups, unsure if their funding will be salvaged by fall, have started notifying school districts that their after-school centers, rehabilitation programs and gang prevention initiatives may not be around for the upcoming school year. (Newsday - July 16, 2012)

    New York State stands to be one of the hardest hit when the majority of $900 billion in federal budget cuts takes effect in 2013.  A new report to be released tomorrow says that New York could lose 29,000 defense jobs next year, and more than 41,000 other non-defense jobs, as part of anticipated budget cuts from the Budget Control Act of 2011.  Many sectors that rely on government spending, such as defense, could be in trouble in 2013.  The report, commissioned by the Aerospace Industries Association notes that New York was in the top 10 for states hardest hit by the coming cuts.   Considering most cuts will not take effect until after the 2012 election, there is still a chance the new Congress could either lessen or deepen the cuts. (Long Island Business News.com/July 16, 2012)

    The Islip Town board is to vote July 17 on the first round of layoffs resulting from a cost-cutting plan to dissolve its human services department.  Board approval would cut all four positions from Islip's Teen Age Services Act (TASA), a program for pregnant and parenting teens that employs 113 full- and part-time employees.  If approved, the job cuts would take effect Aug. 20.  Another resolution would abolish all positions in the department, effective Nov. 1.   Human Services acting Commissioner Carol Charchalis said she doesn't know how many jobs will be lost, and is meeting with town departments to find vacancies.   The town also plans to return control of Access/Acceso, a popular bilingual drug and alcohol counseling program, to the county. (Newsday.com/July 15, 2012)

    Helen Keller Services for the Blind is closing its three senior citizen centers, in Hempstead (Nassau County), Huntington, (Suffolk County) and Brooklyn, by the second week in August due to a lack of funding.  The organization will continue to operate its other services, including its rehabilitation, employment and student services at the three sites.  145 seniors use the two Long Island sites.  It was not clear how many jobs are at stake. (Newsday.com/July 13, 2012)

    Minnesota -based Land O'Lakes Corporation is buying pudding and dessert manufacturer Kozy Shack Enterprises Inc. of Hicksville (Nassau County).  The new owner intends to continue operations and keep workers.  Kozy Shack is still operating under a 2008 agreement with Nassau County under which it promised to retain some 200 jobs in return for tax breaks to help the company expand. (Newsday - June 12, 2012)

    (Update) Suffolk County's unionized security guards will remain on the job for at least another week after a judge kept the temporary order barring their replacement with a private firm and continued the case to July 18 to allow further negotiations between the county and the guards' union, the Association of Municipal EmployeesSuffolk County Executive Steve Bellone is seeking to lay off nearly 30 guards -- most of them assigned to Department of Social Services centers -- and replace them with cheaper contractors. The guards were to be cut June 30, but the AME sued, arguing that privatizing union jobs violated its contract.  Suffolk has sought bids from private security companies and will award a contract if the court allows layoffs. (Newsday.com/July 11, 2012)

    Best Buy Co., the largest electronics retailer in the U.S., announced plans to lay off a total of 2,400 people nationwide, about 1.4% of its total workforce of 167,000.  About 600 of the jobs cut will be from its 20,000-person Geek Squad tech-support unit, with the other 1,800 coming from store staff.  The company notified employees about the job cuts this week.  Best Buy has 12 stores on Long Island.  (Marketwatch.com/July 6, 2012)

    Suffolk County-based car parts dealer Aid Auto Stores, announced on July 5 that it is going out of business and closing its five remaining stores, in Lake Ronkonkoma, Medford, Riverhead, Rocky Point and Shirley (all Suffolk).  Aid Auto president Anthony Pirrera said that most of the company's 80 employees can expect to be paid through August.  (Newsday.com/July 5, 2012)

    Nassau County Executive Edward Mangano announced an incentive of $1,000 per year of service for Civil Service Employee Association workers who retire by July 20.  This will be the county's third round of job cuts over the past year.   CSEA president Jerry Laricchiuta said: "Although we believe the layoffs of any CSEA members to not be feasible, the recurring savings produced by this incentive will be used to offset the county's budget deficit and mitigate any future layoffs."  (Newsday.com/July 2, 2012)

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