Monthly Roundtable Discussion: Md. economic development experts share

To find out what's going on in economic development across the state, The Daily Record asked economic development experts from Western, Central and Southern Maryland to share their perspectives. Despite geographic and other differences, all points of the state seem to be performing well and looking ahead to even better times.

How many years have you been in business? During that time, how have things changed in the realm of economic development?

Iannucci: Approximately nine years in economic development. Public sector-based economic development is more professionalized, evidenced by the caliber and quality of the individuals who work in the Baltimore County Department of Economic Development.

It is also more strategic. For example, the jobs for jobs sake mentality has been largely abandoned, replaced by a focus on strategic industry sectors and job classifications that hold the greatest promise for higher wages and growth.

There is also a stronger recognition of the importance of regionalism, with greater cooperation among subdivisions.

Finally, the role of business incentives has changed dramatically. Non-conditional grants are non-existent. Today, you'll find loans, often in partnership with private sector financial institutions, strategic tax credits, work force assistance and sophisticated non- financial assistance.

Jenkins: I have been with the Tri-County Council for five years. Changes include the continuing pace of population growth and the resultant increase in development and the impact on the region's environment and infrastructure - schools, roads and the like.

In addition, Southern Maryland was the receiver of significant job growth, both military and civilian, resulting from the 1995 Base Realignment and Closing (BRAC). Southern Maryland remains the fastest growing region in Maryland. While this growth continues, funds for needed infrastructure has declined, so we need other sources or options to keep up with the growth. This is a similar issue for other regions in Maryland as well.

All these changes have galvanized both the region's elected officials and business leaders to work in a cooperative fashion to plan and implement needed infrastructure for this growth. This cooperative spirit also includes our respective county economic development directors and Chambers of Commerce. We are all part of Southern Maryland and are key players in our economic development system.

Troxell: I've worked in the economic development profession for the past 15 years, starting with an electric utility company, then moving on to a general contractor/development firm specializing in commercial and industrial construction. I joined the EDC in 1998.

During that time, the profession has certainly evolved. Web sites and the Internet are now a primary source for community information and data for expanding and relocating companies. Businesses are also utilizing the skills and expertise of site selection consultants more than in years past. Often times, we as economic developers have little contact with company representatives until they are well into their due diligence process. Incentives are taking on a more prominent role as well with businesses expecting more competitive packages.

What are the unique attributes and unique challenges that your region has when it comes to economic development?

Iannucci: Baltimore County is fortunate to enjoy a stable, diverse economy, highlighted by: a highly educated work force (31 percent with B.A. or higher) led by superb colleges and universities such as UMBC and Towson University, with others including UMB and Johns Hopkins nearby; income levels in excess of the state and regional averages; unemployment rates and cost of living well below the national average; a superb location, with strong transportation infrastructure; diverse and growing industry sectors such as pharmaceutical and medical manufacturing (Maryland's largest bioscience employer is BD Diagnostic Systems in Sparks), interactive technologies, (the East Coast's largest concentration of computer game developers is in Hunt Valley), and advanced information technology (many linked to headquarters for Social Security Administration and Centers for Medicare and Medicaid Services in Woodlawn); room for continued expansion and available business sites, including 600 development-ready acres along the new extension of Maryland Route 43, near I-95 in Middle River; a terrific quality of life.

Challenges include: Older areas of the county face classic issues of redevelopment, including higher vacancy rates, underutilization of land, environmental issues in industrial areas, and perceptions of public safety problems; lack of a comprehensive regional mass transportation system; mobilize the confidence, enthusiasm, and vision of citizens, business and elected officials to effect change.

Jenkins: Southern Maryland is unique due to geography, located within 45 minutes of the nation's capital and Annapolis, the state capital, and within 60 minutes from Baltimore. This geography however is a challenge as we are essentially a peninsula, with limited access to and from the region - U.S. 301, MD 210, MD 24. The quality of life is then attractive, given its rural nature, waterfront - the Chesapeake Bay, Potomac and Patuxent Rivers. Given this, one challenge is the protection these natural assets, while accommodating continued growth. This means having jobs where you live - minimizing the long commutes to jobs outside the region.

Another challenge, as mentioned earlier, is keeping pace with needed infrastructure and economic diversity. The more immediate focus is the 2005 BRAC process now under way. We also have a viable agricultural community going through a significant transition away from tobacco to other cash crops. There is then an aggressive program through the Southern Maryland Agricultural Development Commission, to diversify the region's vibrant agricultural resource economy. Finally, Southern Maryland, with a growing economy, still needs recognition that we have needs just as critical as other sections of Maryland.

Troxell: Washington County has an excellent transportation infrastructure that makes it an ideal location for commerce. We also offer a quality of life combination that is tough to beat. Amenities such as a low crime rate, little congestion, affordable housing, and a rural setting, plus easy access to the Baltimore-Washington, D.C. corridor make us a very attractive location for industrial and residential growth.

Because our community lies at the crossroads of the four-state region of Maryland, Pennsylvania, Virginia and West Virginia, the competition for business attraction/expansion projects is a challenge. Within a 40-mile radius of Washington County, a company can identify sites in four different states - making the playing field extremely competitive.

Where is the Maryland economy headed in the next 12 months? Where is your local economy headed during the same period? And why?

Iannucci: For four years beginning in 1999, Maryland outperformed both the nation and all of its neighbors in terms of job growth, adding jobs even in the midst of the recession, while more than 35 states and the nation were losing them.

Baltimore County shared in that success, despite having greater exposure in the hard-hit manufacturing sector. Both Maryland and Baltimore County continue to experience a significantly lower unemployment rate than the nation - the county gained over 46,400 net new jobs from 1993-2003.

I see Maryland's economy growing in the next 12 months, but perhaps slower relative to the rest of the nation than in the previous four or five years, because the nation as a whole is essentially catching up with this state.

And I see the same for Baltimore County - steady, but modest job growth, but an impressively lower unemployment rate than the nation and even the region. Businesses were burned badly during the recession, and are now more conservative in terms of major capital investments. Companies have taken advantage of technology to press productivity improvements, rather than hiring large numbers of new workers. Baltimore County is well suited to take advantage of the opportunities that are there, given its work force, location, available sites and pro-business environment.

Jenkins: Maryland's economy is on the mend, having done better than the rest of the country. Southern Maryland has done better than the state, with an unemployment rate less than 3 percent. There is hope that Maryland's economic recovery will continue and tax collections will also then increase. This then will provide needed revenues for the counties to build needed infrastructure.

The counties continue to take significant reductions from the state and fiscal year 2006 does not look any better. Tax collections then will be critical. However, Calvert, Charles and St. Mary's counties have done a terrific job in fiscal management and are in good shape, but still need infrastructure support as the region continues to grow.

Troxell: Maryland's economy is growing nicely. With the help of research and federal defense spending, Maryland has been able to weather the downturn in the national economy. There is a great deal of economic development activity across the state, plus Maryland's job growth has outpaced the U.S. for every month of this year, thus far. That's great news for us all.

Washington County continues to attract national and major regional corporations to the area. Even our local manufacturing firms are doing well and expanding. In addition, we are seeing more technology industries considering our community for their expansion plans. I foresee this trend continuing as our community becomes more and more recognized as an alternative to the capitol region as a business location. Corporations, employees, and residents have easy access to Baltimore and D.C., while, at the same time, enjoying a more rural, tranquil quality of life in Washington County.

What goals do you have for the 12 months ahead?

Iannucci: County Executive Jim Smith is committed to the revitalization, or renaissance, of Baltimore County's older business districts. Over the next year, we hope to see major redevelopment announcements in Towson, on Baltimore County's east side and waterfront areas, and along the Liberty Road corridor.

The 3.8-mile-long Route 43 extension will near completion, opening about 600 acres of development-ready land for high-quality projects in Middle River; look for both speculative buildings and commitments from new employers.

Opening in 2005 will be the new $35 million Hunt Valley Town Centre, anchored by the Baltimore region's first Wegmans, and new offices for some 700 employees of St. Paul Travelers.

Jenkins: Our top focus is to work in partnership with the Maryland Department of Business and Economic Development, the county economic development directors, the Chambers of Commerce and the two military base alliances to maintain our military facilities as BRAC 2005 proceeds. Closely related to this are our continuing efforts for economic diversity, infrastructure support and agricultural resource development.

Troxell: Our organization will continue to concentrate its efforts on serving the existing business community and recruiting new corporations to the area. We are and will continue to accomplish this goal through a proactive marketing approach that we launched about a year ago. This approach includes a significant amount of networking with site selection consultants and top-level business executives from our target industry list.

We have also just announced a new list of strategic priorities for our organization. They will be the focus of our board of directors for the next two years. In addition to business retention and recruitment, the priorities address work force development and future infrastructure needs for economic development projects in our community.

If you were Maryland governor for a day, what would you do to promote economic development? New law? Tax break? Regulatory relief? Other?

Iannucci: Work force availability and skills are now the central most important factor for business location decisions. Supporting Maryland's quality system of higher education will make the biggest difference in maintaining the state's ability to compete in the technology-driven economies of the future. Programs that maximize the synergies between the brain power of the university and business needs will help Maryland keep its competitive edge. Many other factors are important to economic development success, including a predictable regulatory climate, consistency in tax policies and infrastructure investment.

Jenkins: I would look at how to effectively fund needed infrastructure. This would include funding the Transportation Trust Fund to build the highway and transit projects needed in Southern Maryland. We are grateful that our top transportation project, the Hughesville Bypass, will start construction later this year, but the region has many other highway and transit needs, critical for BRAC 2005 and the region's continued economic growth. Also, we need to re- evaluate how the state plans and funds school construction. The current process has schools already overcrowded the day they open. We just need to think different on how to fund these critical facilities.

Troxell: Thanks but no thanks. I love what I'm doing right now. But, if I had to - I would continue the good work of the Maryland Department of Business and Economic Development of educating corporations around the world about the state and its attributes as a competitive business destination. More proactive marketing efforts towards key industry sectors, including corporate call missions and special events, would be encouraged to further the message that Maryland is open for business.

I would also make sure that the state's financial programs, used as incentives to secure new capital investment and new job creation by corporations expanding or relocating in Maryland, are fully funded. As states become more and more aggressive with their incentive packages, Maryland must make sure it has the resources to attract top-notch employers to its regions.

David S. Iannucci

Age: 52

Job title: Executive Director

Organization: Baltimore County Department of Economic Development

Family: Wife, Mary Ann Blotzer; daughter, Lucia

Residence: Bowie

Hobbies: Gardening, woodwork

Favorite book: Catch-22, by Joseph Heller

Dream job: Norm Abram's job (master carpenter on This Old House)

David M. Jenkins

Age: 55

Job title: Executive Director

Organization: Tri-County Council for Southern Maryland

Family: Wife, Diane; children, Jennifer, David, Beth

Residence: LaPlata

Hobbies: running, fly-fishing, skiing

Favorite book: Band of Brothers, by Stephen Ambrose

Dream job: Fly-fishing guide

Timothy R. Troxell

Age: 38

Job title: Executive Director

Organization: Hagerstown-Washington County Economic Development Commission

Family: Wife, Sue; son, Conner, 9; and daughter, Sarah, 7

Residence: Hagerstown

Hobbies: Off-road motorcycles, basketball, soccer, skiing

Favorite book: I read trade and sports periodicals.

Dream job: Test rider for a motorcycle manufacturer

Roundtable Schedule

To view past roundtable discussions, visit www.mddailyrecord.com. To participate in a future roundtable, contact Mark R. Cheshire at mark.cheshire@mddailyrecord.com.

January: Public Relations

February: Real Estate

March: Technology

April: Health Care

May: Investing

June: Small Business

July: The Arts

August: Economic Development

September: Biotechnology

October: Higher Education

November: Power Elite

Copyright 2004 Dolan Media Newswires
Provided by ProQuest Information and Learning Company. All rights Reserved.