Economy of Maryland - Economy

Economy

See also: Business in Maryland, List of federal installations in Maryland, List of shopping malls in Maryland, and Maryland locations by per capita income

The Bureau of Economic Analysis estimates that Maryland's gross state product in 2006 was US$257 billion. However, Maryland has been using Genuine Progress Indicator, an indicator of well-being, to guide the state's development, rather than relying only on growth indicators like GDP. According to the U.S. Census Bureau, Maryland households are currently the wealthiest in the country, with a 2009 median household income of $69,272 which puts it ahead of New Jersey and Connecticut, which are second and third respectively. Two of Maryland's counties, Howard and Montgomery, are the third and tenth wealthiest counties in the nation respectively. Also, the state's poverty rate of 7.8% is the lowest in the country. Per capita personal income in 2006 was US$43,500, 5th in the nation.

As of March 2012, the state's unemployment rate was 6.6%.

Maryland's economic activity is strongly concentrated in the tertiary service sector, and this sector, in turn, is strongly influenced by location. One major service activity is transportation, centered on the Port of Baltimore and its related rail and trucking access. The port ranked 17th in the U.S. by tonnage in 2008. Although the port handles a wide variety of products, the most typical imports are raw materials and bulk commodities, such as iron ore, petroleum, sugar, and fertilizers, often distributed to the relatively close manufacturing centers of the inland Midwest via good overland transportation. The port also receives several different brands of imported motor vehicles and is the number two auto port in the U.S.

A second service activity takes advantage of the close location of the center of government in Washington, D.C. and emphasizes technical and administrative tasks for the defense/aerospace industry and bio-research laboratories, as well as staffing of satellite government headquarters in the suburban or exurban Baltimore/Washington area. In addition, many educational and medical research institutions are located in the state. In fact, the various components of The Johns Hopkins University and its medical research facilities are now the largest single employer in the Baltimore area. Altogether, white collar technical and administrative workers comprise 25% of Maryland's labor force, attributable in part to nearby Maryland being a part of the Washington Metro Area where the federal government office employment is relatively high.

Maryland has a large food-production sector. A large component of this is commercial fishing, centered in the Chesapeake Bay, but also including activity off the short Atlantic seacoast. The largest catches by species are the blue crab, oysters, striped bass, and menhaden. The Bay also has uncounted millions of overwintering waterfowl in its many wildlife refuges. While not, strictly speaking, a commercial food resource, the waterfowl support a tourism sector of sportsmen.

Maryland has large areas of fertile agricultural land in its coastal and Piedmont zones, though this land use is being encroached upon by urbanization. Agriculture is oriented to dairy farming (especially in foothill and piedmont areas) for nearby large city milksheads plus specialty perishable horticulture crops, such as cucumbers, watermelons, sweet corn, tomatoes, muskmelons, squash, and peas (Source:USDA Crop Profiles). In addition, the southern counties of the western shoreline of Chesapeake Bay are warm enough to support a tobacco cash crop zone, which has existed since early Colonial times but declined greatly after a state government buyout in the 1990s. There is also a large automated chicken-farming sector in the state's southeastern part; Salisbury is home to Perdue Farms. Maryland's food-processing plants are the most significant type of manufacturing by value in the state.

Manufacturing, while large in dollar value, is highly diversified with no sub-sector contributing over 20% of the total. Typical forms of manufacturing include electronics, computer equipment, and chemicals. The once mighty primary metals sub-sector, which at one time included what was then the largest steel factory in the world at Sparrows Point, still exists, but is pressed with foreign competition, bankruptcies, and company mergers. During World War II the Glenn L. Martin Company (now part of Lockheed Martin) airplane factory near Essex, MD employed some 40,000 people.

Mining other than construction materials is virtually limited to coal, which is located in the mountainous western part of the state. The brownstone quarries in the east, which gave Baltimore and Washington much of their characteristic architecture in the mid-19th century, were once a predominant natural resource. Historically, there used to be small gold-mining operations in Maryland, some surprisingly near Washington, but these no longer exist.

Baltimore City is the eighth largest port in the nation, and was at the center of the February 2006 controversy over the Dubai Ports World deal because it was considered to be of such strategic importance. The state as a whole is heavily industrialized, with a booming economy and influential technology centers. Its computer industries are some of the most sophisticated in the United States, and the federal government has invested heavily in the area. Maryland is home to several large military bases and scores of high level government jobs.