Mayor Ras J. Baraka joined Invest Newark yesterday for the ribbon cutting ceremony of the new warehouse of Newark Paper Company. Newark Paper Company, an office supplies and janitorial supplies distribution company, represents the City’s first employee ownership program (E.O.) business. Employee Ownership is a key component of the Mayor’s Equitable Economic Growth Strategy. Newark Paper Company will operate as an employee-owned operation and become an economic development driver in the greater Newark and northern New Jersey region.
The Newark Paper Company is important in many ways for our city,” Mayor Baraka said. “First, it demonstrates our resilience in the face of the negative impacts of COVID-19, our determination to bring prosperity and economic growth to all corners of Newark, and our efforts to empower our residents by creating worker-owned cooperatives where the employees not only have a voice in the company, but actually own it. This project is a win-win for our residents and our city.”
“In a time of slowed economic development, we are excited to celebrate a definitive step towards equitable economic growth. Newark Paper Company will function as an important reminder that Newarkers are both resilient and innovative in times of crisis,” said Bernel Hall, President & Chief Executive Officer of Invest Newark. “The company is an investment in our local economy, and will be owned and operated by Newark residents who are invested in their community and cognizant of the day-to-day happenings in our city.”
“I am thrilled to be able to make a real impact in my hometown,” said Lloyd Wilson, Warehouse Supervisor, Newark Paper Company. “The opportunity to own my own business in my community is a dream come true, and I am beyond excited to be part of this new initiative for Newark.”
Invest Newark is being assisted in the development of its Employee Ownership program by ICA Group, a 35 year-old non-profit advisory firm. ICA’s John Schwarten said, “Programs to support worker cooperatives and ESOPs are critical steps in the fight to end income and wealth inequality.”
The ribbon cutting marks the next step of growth for the company, which was founded in 2018, to distribute paper and paper products around New Jersey and beyond. Each employee had to undergo a series of trainings to learn the ins and outs of supplying, running and managing their own company. Through this effort, the Newark Paper Company, which is currently a subsidiary of Invest Newark, will soon be an independently operated company. Once it turns a profitable margin, Invest Newark will separate from the Paper Cooperative and the employees will take over as full owners.
The three current employees — all residents of the greater Newark region — underwent training on how to run the warehouse, keep inventory, financial records, and have an ownership stake in the company. The training will be completed in stages, first focusing on creating internal engagement and processes via a steering committee to manage employees and hold owners accountable; financial training on statements, analyzing the company’s financial performance and projections, and additional dashboard management; training on government engagement; asserting stakeholder rights and responsibilities; and finally establishing a desired ownership culture and workplace values.
Before the pandemic, Newark Paper Company was set to open its warehouse and begin distribution to its clients, including major venues and event companies throughout New Jersey. In a show of resilience, after the regional shutdown at the height of the pandemic, the company reset its focus and shifted its supply in order to support local, independent grocers and bodegas with paper products at the height of the shortage.
Originally intended to provide mass paper products for large venues like NJ PAC, the company is now in a position to provide a more diverse array of options including paper towels, toilet paper, masks and hand sanitizer.
Also, as a result of the pandemic, Newark Paper Company redoubled its efforts to identify a new slate of clients and has successfully been able to sign major New Jersey institutions leading to more confidence and ability to maintain its operations in case of economic volatility.
