Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Strong Talent Pool & Education: High ranking in Workforce and Education categories, supported by a highly educated population and proximity to federal research institutions (e.g., NIH, FDA). Fast-Growing Companies: High concentration of nationally recognized fastest-growing companies, particularly in IT, clean energy, and life sciences services.

High Business Costs: Ranks exceptionally poorly (46th nationally) for Cost of Doing Business and Cost of Living (43rd), significantly trailing regional competitors (VA, NC, PA, DE). Regulatory & Tax Burden: High corporate tax rate (8.25%) and low ranking for overall tax climate and business friendliness (37th) create friction for business expansion and startup survival.

Leverage Federal Proximity: Capitalize on the presence of federal agencies to grow high-value, government-contract-related industries and cybersecurity/tech services. Streamline Regulations: Implement policy changes (e.g., lower corporate tax, simplified regulations) to immediately improve its competitiveness ranking and stem the domestic migration loss.

Regional Competition: Aggressive policy moves by neighboring states (e.g., Virginia and North Carolina's surging rankings, Pennsylvania's corporate tax cuts) are pulling investment and talent away from Maryland. Domestic Migration: Significant negative net domestic migration (45th nationally) due to high costs, shrinking the local talent pool outside of federal-tied sectors.

Domestic Manufacturing

Biomanufacturing Foundation: Possesses a world-class infrastructure and talent base for biomanufacturing and life sciences (e.g., Syngene International investment). Niche/Advanced Manufacturing: Growing presence in advanced manufacturing (e.g., specialized steel, medical devices) and a push toward "smart manufacturing" and aerospace/defense supply chains.

R&D Shift: Major pharmaceutical companies are shifting their investment focus away from Maryland's traditional R&D hub toward large-scale manufacturing in other states, leading to industry layoffs. Loss of Marquee Anchors: The departure of some major Big Pharma R&D anchors signals a narrowing of career pathways for the highly educated scientific workforce.

Focus on Biologics: Position the state as a specialized Contract Manufacturing Organization (CMO) hub, leveraging its existing regulatory and biomanufacturing talent to produce complex biologics. Defense and Government Supply: Deepen ties to federal defense and government procurement to secure contracts for advanced goods manufacturing (e.g., parts, tech).

Talent Disconnect: Risk of a "talent drain" if the highly skilled R&D workforce cannot be successfully transitioned and connected to the new, smaller biomanufacturing footprint. Federal Workforce Headwinds: Reductions in federal government jobs create additional economic pressure and risk for related private-sector services.

Sustainability Initiatives

Ambitious Climate Targets: Established some of the most aggressive climate goals in the nation: 60% GHG reduction by 2031 and net-zero by 2045 (via Climate Solutions Now Act of 2022). Policy Roadmap: Has enacted and is pursuing multiple major policies, including a 100% Clean Power Standard by 2035 and a Zero-Emissions Heating Equipment Standard.

Implementation Hurdle: Achieving the ambitious 31% additional GHG reduction needed by 2031 requires a significant, rapid acceleration in policy implementation and adoption across all sectors. Transportation Emissions: The transportation sector remains the largest source of emissions, and reductions in this area have been slower (only 18% reduction since 2006).

Green Economy Growth: The climate plan is projected to generate billions in GDP, increased personal income, and ∼27,400 new jobs, particularly in clean energy and efficiency sectors. Climate Equity: New policies are being developed with Environmental Justice (EJ) community investment requirements to ensure equitable benefits from the transition.

Cost of Transition: The regulatory and capital costs associated with a rapid, economy-wide transition (e.g., to clean power and zero-emission vehicles/heating) may further increase the state's already-high cost of doing business.

Balance of Trade & Global Contribution

Global Market Access: Port of Baltimore serves as a critical trade gateway for the mid-Atlantic, handling diverse imports and exports. Strong SME Export Base: A significant 88% of the state's exporters are small and medium-sized enterprises (SMEs), which generate 30% of total goods exports. Foreign Investment: International companies provide over 122,800 jobs (5.5% of private-industry employment), highlighting strong Foreign Direct Investment (FDI) ties.

Trade Deficit Contributor (National Context): As a coastal state with a major port, it facilitates high volumes of imports, contributing to the broader U.S. trade deficit. Heavy Import Reliance: Its role as a major import facilitator means its economy is highly exposed to global trade friction, container shortages, and port disruptions.

Service Exports: Leverage its vast intellectual capital (federal labs, universities) to grow high-value service exports, such as research, regulatory consulting, and IT/cybersecurity services, to global partners. Infrastructure Investment: Capitalize on federal and state investments to modernize the Port of Baltimore and internal logistics networks to handle next-generation cargo and improve trade efficiency.

Global Economic Slowdown: A downturn in global demand or a significant shift in trade policy could disproportionately harm its extensive SME export base and the port's trade volume. Geopolitical Risk: Global political or economic instability could threaten FDI from key partners (UK, Netherlands, Canada), which is crucial for local job creation.