Western Maryland's economy making new headway

After years of watching the manufacturing base in Garrett, Allegany and Washington counties dry up, the Western Maryland economy finally seems to be making new headway.

There is unprecedented economic activity here, and people are more optimistic than they have been in 40 years, according to James E. Rzepkowski, assistant secretary for the rural Maryland region at the Department of Business and Economic Development. In addition, we are doing some regional economic development with the bordering counties in West Virginia and Pennsylvania.

That optimism is largely due to the fact that Volvo, which purchased the Mack Trucks manufacturing plant, has decided to invest $150 million in its Hagerstown plant and in a facility for researching and developing ways to make diesel fuel cleaner. Much of the allure for the company is the area's available work force, which has a reputation for employee loyalty and a strong work ethic, according to Rzepkowski.

With interstates 68, 70 and 81, Washington County has become a distribution hub for giants such as Staples, Tractor Supply, PetSmart, Lennox, RadioShack and Lowe's. Hence Hagerstown's moniker as the Hub City. CSX has a railroad line running through Western Maryland, and the Hagerstown Regional Airport is home to U.S. Airways and services Camp David in the nearby Catoctin Mountains.

A ribbon-cutting ceremony was held this fall to signal the beginning of a 250,000-square-foot manufacturing plant for American Woodmark, one of the largest cabinet companies in the country, which is expected to employ some 500 people. And there are some similar deals we're working on, but they are still confidential, said Rzepkowski.

Other important economic players in the area are the paper producer Mead Westvaco, which employs 1,200; City Bank with a staff of 2,500; and First Data Corp, which provides work for 2,200. Bayliner Boats is expanding, as is Hunter Douglas Window Fashions, which already has gone through two major expansions in the past five years. In Garrett County, Garrett Container Systems, which manufactures aluminum custom containers, employs 97.

As the Eastern Shore is seeking to diversify its economy, so is Western Maryland - largely as a means for luring its skilled college graduates to return home for employment. We're trying to stop the brain drain of our students by bringing biotech and R&D jobs here, said Rzepkowski. Frostburg State University attracts a lot of good students, and 78 percent said they would return to the area if they could find good jobs.

The university is building a technology park next to its campus, which it hopes - combined with the quality of life that Western Maryland offers - will pull some of the technology activity from the Montgomery County corridor. Garrett Community College is also available for job training to meet local employers' needs.

The largest employer in Allegany County is Western Maryland Health Systems with 2,320 jobs. Two hospitals are included in the system, and an expansion will add another 40 well-compensated health care positions.

Though there are some high-paying jobs, Western Maryland typically trails the rest of the state in terms of annual income. Our elected officials really want to see the pay level increase out here, Rzepkowski acknowledged.

Travel and tourism are doing well in Western Maryland. Civil War buffs follow heritage trails and visit Antietam Battlefield. In addition to the popularity of Deep Creek Lake, anglers come to fish for trout in the Savage and Youghiogheny rivers, while others take advantage of outdoor sports, such as whitewater rafting and kayaking.

Rocky Gap Lodge and Golf Resort is sinking $4.5 million into an expansion it expects will enable it to accommodate significantly larger conferences. Garrett County will begin this coming spring to develop an adventure sports facility, with the first phase beginning on top of the Wisp ski resort, which ultimately will expand to 75 acres and include rock climbing, rafting and other outdoor sports.

Allegany County

Allegany County has many recreation opportunities, modest home prices, a low crime rate and short commutes. It also has business- friendly labor legislation; effective incentive packages for existing and new companies; and a great network of interstate, state, county and local roads. Finally, education levels there show a high percentage of residents with high-school degrees and some post- secondary training.

Economic development goals for 2005

* Continue the economic upturn that has developed recently.

* Work to increase distribution centers.

* Continue to work with economic development councils in adjacent West Virginia and Pennsylvania.

* Increase pay levels for all residents.

Thomas E. Cooley, CEO, Director

Allegany County Department

of Economic Development

Garrett County

Garrett County offers an affordable work force with an excellent work ethic. On average, labor rates in Garrett County are about 40 percent less than the statewide average, and turnover/absentee rates are very low. The county also offers an outstanding quality of life, including abundant opportunities for outdoor recreation, great schools, low crime, little traffic, a small-town/rural lifestyle and a very pro-business environment. The county commissioners have elected to eliminate personal property taxes on businesses and have invested heavily in infrastructure to accommodate business growth.

Economic development goals for 2005

* Secure an anchor tenant for the proposed new Keyser's Ridge Business Park on Interstate 68 near Grantsville.

* Complete infrastructure development at the Keyser's Ridge Business Park.

* Implement additional work-force development initiatives to improve skills and education.

* Complete work on Phase I of the Adventure Sports Center Complex on Marsh Mountain adjacent to the Wisp ski resort.

* Improve access to affordable, high-speed broadband telecommunication services.

James C. Hinebaugh, Director

Garrett County Economic

Development Department

Washington County

Hagerstown-Washington County has received praise as a great place to live and do business because it provides a strategic commercial location along with lifestyle amenities for employees. Three interstates, two rail carriers, a regional airport and easy access to two ports make this a great place to do business. In addition, the community is a one-hour drive to the cultural amenities available in the Baltimore-Washington area. Hagerstown-Washington County has a robust economy, a productive work force, an affordable cost of living, and abundant opportunities for work and play.

Economic development goals for 2005

* Assist and retain existing businesses.

* Facilitate work-force development partnerships.

* Identify infrastructure needs and opportunities for economic development.

* Support government cooperation to achieve economic development objectives.

* Attract new businesses to Washington County with an emphasis on the target industry list.

Hagerstown-Washington County

Economic Development Commission

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