Investing in Maryland is a safe bet, according to a recently released Maryland Economic Development Association study.
The January report, completed with the help of Salisbury University’s Business Economic and Community Outreach Network, found every dollar invested in county economic development operations in Maryland yielded an estimated $9.17 in return.
“This is a wonderful opportunity to showcase the impact of the economic development community in the state of Maryland,” said John Hickman, director of BEACON.
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The study was conducted to better quantify the impact of economic development efforts using empirical data to demonstrate the importance and value of economic development programs. The data, compiled by BEACON’s research team, focused on jobs added or retained, as reported by county economic development offices, and the funding invested by each county to support economic development operations.
Analysis of the 2022 and 2023 data supplied by participating county economic development offices, modeled with IMPLAN, a regional economic analysis software application, revealed varying returns on investment across communities. The estimated statewide average return for 2022 and 2023 demonstrated the generated state and local tax revenue for each dollar invested.
“As the trade association for professionals in the state at every level, it’s our partners that contribute to economic development. It includes housing and community (investment) and workforce development coming together to enhance an economy. We wanted to quantify it in terms of dollar amount on that return on investment,” said Lawrence Twele, president and founder of Eastport Partners and members of the association for over 20 years.
Forming an Eastern Shore economic forecast
Anticipating the economic needs of a growing Eastern Shore means taking stock of its assets. In Wicomico County, that starts with recognizing that much of its success boils down to location.
“This study gives a sense of investment on a broad basis that is relayed to the legislative bodies that need this data,” said David Ryan, executive director of Salisbury Wicomico Economic Development. “Our major assets are two highways intersecting in Salisbury, freight rail networks, and the Wicomico River that brings agricultural products and fuel and building aggregates. That moves the supply chain in the county, and we still have the regional airport.”
According to Ryan, the Salisbury Regional Airport accounts for an estimated $150 million in return on investment and economic impact.
Training programs like those for aviation maintenance technicians are key in addressing the shortage in labor for the next 20 years. The creation of high-paying job also draws a workforce that will need additional industries like housing, utilities and other infrastructure. More importantly, it adds to a healthy tax base.
“(This) is an opportunity to grow the aviation and aeronautics sector. Our region’s economy includes agriculture, healthcare, higher education and manufacturing. We can add other sectors to that, and not every community has an airport,” Ryan said.
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Post-pandemic, ‘an influx of interest in Somerset County’
Daniel Thompson, executive director of Somerset County Economic Development, echoed concerns over labor shortages and noted the pandemic came with its own economic challenges and surprises.
“As a rural area with a smaller population, our workforce tends to come from outside the county to sustain business growth,” Thompson said. “Before the pandemic, we were competing with the more metropolitan areas across the state, but during, we actually saw an influx of interest in Somerset County. Many people were stepping back from their business model and started looking into rural parts of Maryland.”
That coincided with aggressive market positioning to bring natural gas and its related infrastructure into the county. County commissioners also doubled down on their investment into broadband internet.
“We had incentives like enterprise and opportunity zones, and we marketed them. Things like quality of service and relationships with the contacts were important. It was more than just getting businesses there, it was getting them there for the long haul,” Thompson said.
Concerns over cyclical troubles in business were tempered by assurances the county would continue to support investors’ business goals.
Investments pay off with jobs, tax revenue and more
“The impacts of these investments is that for every project the county worked on, it retained jobs, it attracted new ones, and those jobs and the income taxes they create and taxes those businesses paid all come back as revenue. This was a way of telling the story of that return,” Twele said.
The association behind the study, in cooperation with BEACON, is a nonprofit organization of economic development professionals. Established in 1961, MEDA members promote the economic well-being of Maryland by working to improve the state’s business climate and the professionalism of those in the field of economic development.
MEDA’s membership includes economic development practitioners employed by the government, businesses, and chambers of commerce as well as other professionals with an interest in the economy of Maryland.
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