Doing Business in Montgomery County
Doing Business in Montgomery County - Business Center - Montgomery County, Maryland (montgomerycountymd.gov)
Water:
Tina Benjamin - Development Ombudsman, WSSC Water. 301-404-3344.
MEC.Economic.Report.10.1.2024.pdf (maryland.gov) The Maryland Economic Council (MEC) identified several key factors hindering Maryland's economic development in its October 2024 report:
Fragmented Economic Development Structure: Maryland's economic development efforts are spread across numerous state agencies, private corporations, and boards and commissions. This fragmentation leads to inefficiencies, conflicting goals, and competition for resources, hindering the state's ability to develop and execute a cohesive economic strategy. The lack of a unified "front door" makes it difficult for businesses to navigate the system and access resources. For example, the report notes that at least 12 state agencies, 6 private corporations, and 14 boards and commissions are involved in economic policy, each with its own agenda and budget. This complexity makes it difficult for businesses, especially startups and those from historically disadvantaged communities, to find the help they need.
Absence of an Integrated Economic Plan: Maryland lacks a comprehensive, updated economic strategy that aligns state and local governments and the private sector toward shared goals. The most recent plan was published in 2016, leaving the state without a clear roadmap for achieving economic growth. The
absence of a unified plan results in counties pursuing independent strategies, sometimes in conflict with state-level initiatives, leading to missed opportunities, especially in high-growth sectors like technology and life sciences.
Uncompetitive Corporate Tax Environment: Maryland's corporate tax rate of 8.25% is among the highest in the nation, creating a significant disadvantage compared to neighboring states that have lower rates. This high tax burden discourages businesses from locating or expanding in Maryland, hindering job
creation and economic growth. The report acknowledges that lowering taxes presents budget challenges and needs a graduated approach to avoid shortfalls.
Inadequate Startup Support: Despite Maryland’s assets like leading research institutions, the state's startup ecosystem is not effectively leveraging these resources. The report finds that Maryland lags behind other states in offering robust support for entrepreneurs, particularly regarding access to capital,
mentorship, and structured acceleration programs. This lack of support prevents Maryland from fully capitalizing on its potential in key sectors like cybersecurity, quantum computing, and life sciences. For example, Maryland lacks successful cohort-based accelerator programs that have proven beneficial in states like
Tennessee, Texas, and California.
Workforce Gaps and Mismatches: The report recognizes the importance of a skilled workforce for a knowledge-based economy like Maryland’s, which relies heavily on high-tech industries and government labs. However, the report finds a disconnect between the state's workforce training programs and the needs of
these high-growth sectors. This mismatch, combined with challenges in attracting and retaining top talent, limits the state's ability to meet the demands of its key industries. The report highlights the cybersecurity industry, which faces a shortage of skilled professionals with over 25,000 open positions.
The MEC report stresses that addressing these fundamental issues is crucial for Maryland to improve its economic competitiveness, attract and retain businesses, and create a more prosperous future for all its residents.
Permit Issuance turn around time report, DPS, Montgomery County, MD (montgomerycountymd.gov)
