How Maryland Manufacturers Are Faring

Date: August 04, 2015

In 2015, the health of the Maryland manufacturing industry—which makes up 3.5 percent of the state’s economy—was rated at a “D” grade in the Manufacturing and Logistics National Report Card put together by the Center for Business and Economic Research at Ball State University and sponsored by Conexus Indiana. This annual report shows how each state ranks in several economic factors that are key to the success of manufacturing and logistics. For the past six years, Maryland’s manufacturing industry health has earned a “D” grade, up just slightly from its “D-” grade in 2009.

In addition to overall manufacturing industry health, CBER evaluates states based on the following categories: logistics industry health, human capital, worker benefit costs, tax climate, expected liability gap, global reach, sector diversification, and productivity and innovation. Here’s how Maryland stacks up in 2015:

Manufacturing Industry Health: D

Logistics Industry Health: D

Human Capital: C

Worker Benefit Costs: C-

Tax Climate: C

Expected Liability Gap: C

Global Reach: C

Sector Diversification: C-

Productivity and Innovation: C

Maryland’s poor to middling grades across the board are a reflection of the state’s overall poor business climate, thanks to factors like the minimum wage increase, unemployment insurance, and high rates for corporate taxes, individual income taxes, sales tax and property taxes. In fact, Maryland ranked 40th in the 2015 Tax Foundation State Business Tax Climate Index. Over the years, these factors have led to an erosion of the manufacturing industry, with firms closing and jobs transferred overseas.

The Washington Business Journal also reported that Gov. Larry Hogan has been unhappy with Maryland’s manufacturing record. As such, the state is helping fund the Maryland Manufacturing Extension Partnership, which is a non-profit organization focused on growing and strengthening the industry.

To learn more and read Maryland’s 2015 report card, visit http://conexus.cberdata.org/state/md.  

Related Content: Small Business News | Economy | Maryland

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