Last month I wrote about change and opportunity in the midst of a major decline in stock market values and other key economic indicators. Since then, some businesses have closed while others have opened. A gallon of gas is now 50 cents less than a month ago (a bit of good news for drivers). We learned this week that the U.S. economy has officially been in a recession for a year now. Unemployment claims continue on the rise. Consumer confidence is at an all-time low. State budget cuts are anticipated in 2009. The federal deficit is staggering. I could go on, but wouldn’t be offering anything new.
On the other hand, we have a new President and at least a new outlook on things. We are now full swing into the holiday season and last weekend seemed to be a good one for retailers and shoppers alike. December is traditionally a time of universal giving. Despite hardships we have much to be thankful for.
One thing to be thankful for is to live in a state that is highly ranked in terms of its long-term economic structure. According to the 2008 State New Economy Index, published a few weeks ago by the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation, Maryland ranks 3rd in the nation in terms of “new economy” adoption. The New economy refers to one that is knowledge and information based, blended with entrepreneurial, innovative, and global elements. There are 29 different measures included in the overall ranking. Like most states, Maryland has a mix of scores in the various categories. Unlike Massachusetts and Washington (ranked 1st and 2nd respectively) and the next 5 top-ranked states following Maryland, our state does not rank #1 in any of the 29 categories, an interesting statistic in itself. But the concentration of top-5 or top-10 scores says Maryland is more balanced than other leading states in key measures.
I cite this report because I think it underscores the longer term economic trends we are witnessing in Southern Maryland, and particularly in St. Mary’s County. As the fastest growing region in the state, we are part of this transformation and no doubt having more influence on statewide performance.
The quality of our workforce is one of our greatest economic assets. Two report categories worth noting are Scientists and Engineers and Workforce Education. Maryland ranks a very close second (behind Massachusetts) in terms of scientists and engineers as a percentage of the workforce.
Maryland also ranks second (behind Massachusetts) in terms of educational attainment (i.e., advanced degrees, bachelor’s degrees, associate’s degrees, or some college coursework) of the workforce.
On these two measures alone I don’t think it’s too difficult to see evidence of this locally. The deliberate work being done in our local school systems, both public and private, and in our local institutions of higher education – at all levels – in close collaboration with our major employers, will only strengthen workforce preparedness. “Home-grown” is a strategic objective that applies to our workforce as much as it does to local agriculture. Another benchmark is the steady growth of our science & technology industry. We’ll be publishing the 2009 Technology Handbook shortly and the roster of tech companies has increased at least 5% over last year and is now well over 200. Considering this employment sector now represents the largest in our local economy, it’s little surprise that Maryland as a whole has benefited from our emphasis on developing and employing a highly-skilled and educated workforce.
So the current economy will continue to go through cycles as it has always done. 2009 will be a very challenging year, as will 2010 most likely. But our strong position in the new economy has enabled us to buffer much of the wider swings many states and region