2025 Competitiveness REDBOOK
The Maryland Chamber of Commerce, representing over 7,000 members, serves as the leading advocate for business in our state. Through collaborative partnerships with businesses, policymakers and stakeholders, we work to shape strong public policies that drive economic growth to benefit people, businesses and communities.
The 2025 Redbook is published with support from the following organizations:
• Presenting Sponsor: Comcast
• Touchstone Sponsor: T. Rowe Price
• Advocate Sponsors:
Edwards Performance Solutions
Giant Food
Johns Hopkins University
McCormick & Company
Salisbury Area Chamber of Commerce
W. L. Gore & Associates
• Supporting Sponsor: Maryland Tourism
Learn more at mdchamber.org/competitiveness.
Our Mission
The mission of the Maryland Chamber of Commerce is to advance inclusive partnerships for a Maryland where all businesses and their communities thrive.
Forward
Charting Maryland’s Economic Potential:
A Story of Innovation, Resilience and Collaborations
As Board Chair of the Maryland Chamber of Commerce and presenting sponsor of the 2025 Competitiveness Redbook, I write with deep passion for Maryland’s potential and unwavering commitment to our state’s economic strength.
In every business, there’s a narrative of ambition, challenge and possibility. A family bakery in Dundalk adapting to changing markets. A biotech startup in Frederick pushing the boundaries of innovation. A multi-generational farm on the Eastern Shore navigating economic shifts. These stories are the heartbeat of Maryland’s economy — each unique, yet interconnected.
Behind every data point is a human story — of entrepreneurs, workers, families and communities striving to build, grow and thrive. When we look beyond the numbers, we see the real engine of our economy: the innovative spirit that transforms challenges into opportunities. This Redbook is more than a collection of tables and rankings. It’s a comprehensive portrait of Maryland’s economic landscape, illuminating both our current realities and our extraordinary potential.
Maryland is more than a location — it’s a living, breathing economic ecosystem. Home to world-class
research institutions, a strategic Mid-Atlantic location, and an incredibly talented workforce, we possess the fundamental building blocks of collective success.
Representing over 7,000 businesses across our state, the Maryland Chamber is committed to a clear mission: advocating for pro-business policies and creating inclusive partnerships that enable Maryland’s businesses and communities to thrive. We believe that by understanding our current position, we can chart a more promising course forward.
This Redbook invites policymakers, business leaders, community stakeholders and constituents to explore, reflect and engage. We believe that by understanding our current position, we can chart a more promising course forward.
Our greatest competitive advantage has always been our ability to innovate, adapt and work together. Maryland’s future is not written — it is being created, right now, by the bold and collaborative spirit of our business community. Together, we can write the next chapter of Maryland’s economic success.
Misty Allen Board Chair, Maryland Chamber of Commerce Vice President of Government & Regulatory Affairs, Community Impact, Comcast
Introduction
Charting Maryland’s Future: A
Call to Action for Growth and Business-Friendly Policies
As we reflect on Maryland’s economic landscape through the lens of the 2025 Competitiveness Redbook, I am both optimistic about the tremendous potential our state holds and deeply concerned about the trajectory we are on. For Maryland to remain competitive, attract investment, and foster growth, we must make bold decisions — decisions that prioritize business-friendly policies and create an environment that promotes opportunity, innovation and prosperity.
Growth is the only solution to the economic challenges our state is facing. Without it, we risk stagnation, the loss of businesses, and the continued out-migration of talented individuals seeking opportunity elsewhere. The trends in this Redbook serve as a wake-up call: Maryland’s competitiveness is slipping, and the time to act is now.
We cannot afford to make it more difficult or expensive to do business here. From rising costs to complex regulations, we are pushing businesses to the brink, making it more difficult to grow, hire and thrive. Maryland is already considered the 3rd most expensive state to do business in, and our state’s current position — ranked 31st for business in CNBC’s 2024 report — is a stark reminder that we must take immediate action to reverse these trends.
Increasing taxes, fees and regulations on businesses is not the answer. While some may view tax increases on businesses as a quick fix for Maryland’s budget deficits, the long-term impact would be devastating — eroding competitiveness, driving businesses away and harming communities that depend on them for jobs and local investment. Businesses fuel our economy and support our communities through innovation, job creation and funding local initiatives. To ensure Maryland’s success, we must reduce burdens and foster policies that enable growth — not short-sighted measures that increase costs, stifle progress and push businesses and residents to neighboring states.
We need growth-oriented policies that create a business climate where companies of all sizes can thrive. By simplifying regulations, removing unnecessary barriers, and fostering opportunities for businesses and workers, we can build a competitive, fair and sustainable tax structure and environment. These policies will benefit businesses, residents and communities alike.
This Redbook offers a comprehensive snapshot of Maryland’s economic strengths and challenges, underscoring the urgent need for change. Maryland’s future will be shaped by the policies we enact today. To realize our state’s potential, we must prioritize business-friendly, growth-oriented policies that reduce barriers, foster a competitive tax climate and encourage innovation and investment.
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The Maryland Chamber of Commerce stands ready to work alongside business leaders, policymakers and stakeholders to advocate for solutions that create a thriving, competitive Maryland. Together, we can make Maryland the business-friendly, dynamic state it deserves to be — a place where innovation, collaboration and community take root and grow.
Mary D. Kane President & CEO, Maryland Chamber of Commerce
At a Glance: Strengths
& Opportunities
Top insights and trends from this year’s data include:
Strong Innovation and R&D Performance:
Maryland continues to strengthen its innovation ecosystem, ranking 11th for total venture capital investment and 9th per capita in 2023, while leading nationally in academic R&D spending (1st) and maintaining a solid position in industrial R&D (18th), showcasing a robust commitment to both research and startup growth.
Eye on Competitiveness: Areas of Concern
Areas in need of considerable improvement include:
State Business Rankings: Maryland dropped significantly in CNBC’s 2024 ranking of the Top States for Business, falling from 22nd place in 2023 to 31st in 2024. The state also became the 3rd most costly state to do business in, signaling growing concerns among businesses. Additionally, Maryland ranked 37th for infrastructure, down from 15th in 2023, reflecting the state’s struggle to maintain and invest in critical infrastructure.
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State Business Tax Climate: In 2025, Maryland ranked 46th for overall State Business Tax Climate, marking a troubling decline in its competitiveness. The state also dropped in key tax categories, ranking 37th for corporate tax rate (a decline of 4 positions) and 39th for sales tax (a drop of 5), making it a less attractive environment for business investment.
Economic Freedom: Maryland’s economic freedom continues to face challenges. According to the Mercatus Center, the state ranked 45th in economic freedom (down from 44th in 2021), 47th in fiscal policy freedom (down from 24th in 2021), and 35th in regulatory freedom (down from 47th in 2021). These rankings highlight the growing barriers to economic growth and a more business-friendly climate.
Minimum Wage: As of 2025, Maryland ranks 7th in the nation for minimum wage, tied with Delaware, Illinois, Massachusetts and Rhode Island. While this may indicate a commitment to workers, it also increases the cost of doing business and could further discourage employers from expanding or relocating to the state.
Domestic vs. International Migration:
Between April 2020 and July 2023, Maryland saw a net domestic migration loss of 99,579 residents, ranking 44th in the nation. However, the state gained 66,062 residents through international migration, ranking 12th. While international migration is a positive trend, the net domestic loss signals a lack of attractiveness for residents, potentially limiting the state’s economic growth and talent pool.
Long-Term Job Growth:
Maryland’s nonagricultural employment growth ranked 30th from September 2014 to September 2024, adding 33,100 jobs. The state ranked 39th for percentage job growth over this period, reflecting a sluggish labor market and low job creation relative to other states.
Education Spending: In the 2021–2022 school year, Maryland ranked 14th in the nation for total public school spending per pupil, at $17,753 per student. The state ranked 10th for spending on instruction and 20th for spending on support services. While investment in education is strong, the quality of outcomes and the ability of the education system to align with workforce needs may need closer examination.
Commute Times: Maryland’s metro areas have some of the longest commute times in the nation, with the Washington Metro ranked 3rd, Baltimore Metro ranked 10th, and Philadelphia Metro ranked 13th in 2023. This issue is compounded by the recent collapse of the Francis Scott Key Bridge, which further exacerbates congestion and commute times for Maryland residents.
Road Investment: Maryland ranked 38th for total per capita investment in roadways, 39th for capital investment per capita, and 27th for maintenance investment per capita. These rankings suggest that the state is not investing enough in its road infrastructure, leading to poor road quality and longer commute times for businesses and residents alike.
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Homeownership: Maryland’s homeownership rate fell to 27th in 2024, down from 15th in 2023. From 2019 to 2023, homeownership declined by 2.8%, ranking Maryland 47th for the steepest decrease. This decline in homeownership rates could signal a lack of affordable housing and a decreasing ability for residents to settle down and build long-term roots in the state.
Be sure to explore in depth data-driven glimpses at topics spanning population, workforce, business friendliness, energy costs and resources, taxation, transportation, minimum wage, home ownership, manufacturing and technology online at mdchamber.org/competitiveness.
NOTES
Age Group by Percentage of Population (2023)
Net Migration by State (April
Non-Agricultural Employment Growth
(Sept. 2023 – Sept. 2024)
Non-Agricultural Employment Growth (10
year) (Sept. 2014 – Sept. 2024)
Per Capita Personal Income by State (2023)
Gross
Domestic Product by State in Current Dollars (2023)
Exports Per Capita (2023)
Opening and Closing Rates of Establishments
(Q2 2023 – Q1 2024)
Business Taxes as a Share of All Taxes and GSP (FY
Motor Fuel Taxes*
CNBC Top States for Business Rankings
State and Local Government Employment
State and Local FTE Average Annual Pay (March
State of the Tech Workforce (Cyberstates 2024)
Wages and Productivity of Production Workers
Annual Average Investment Per Employee in
Union Members as a Share of Employment
Source: Barry T. Hirsch and David A. Macpherson
Union Membership – Public vs. Private (2023)
Regular
Economic, Fiscal, and Regulatory Freedom (2022)
Ranking State Liability Systems (2019)
Venture Capital Investment (2023)
Overall R&D Spending (2021)
R&D Per Capita by Performing Sector (2022)
Educational
Attainment of Population 25 and Older (2023)
Higher Education Total Fall Enrollment as
Percentage of Population: Public vs. Private (Fall 2022)
Fall Enrollment as Percentage of Population: Public
Fall Enrollment as Percentage of Population: Private
(Fall 2021)
Import/Export
Ratio of College-Bound High School Graduates (Fall 2022)
National Assessment of Educational Progress
Estimated Public School Spending Per Pupil (SY
Average
Average Retail Price Per KwH for Residential Customers
Generation of Energy Resources (2023)
Generation of Energy Resources, cont. (2023)
Percentage of Workers Who Worked From
Home (2023)
Kansas City, MO-KS
Chicago-Naperville-Elgin, IL-IN
Pittsburgh, PA
Indianapolis-Carmel-Greenwood, IN
Los Angeles-Long Beach-Anaheim, CA
San Antonio-New Braunfels, TX
Miami-Fort Lauderdale-West Palm Beach, FL
Milwaukee-Waukesha, WI
St. Louis, MO-IL
Detroit-Warren-Dearborn, MI
New York-Newark-Jersey City, NY-NJ
Cincinnati, OH-KY-IN
Cleveland, OH
Houston-Pasadena-The Woodlands, TX
Louisville/Jefferson County, KY-IN
Grand Rapids-Wyoming-Kentwood, MI
Las Vegas-Henderson-North Las Vegas, NV 43 Virginia Beach-Chesapeake-Norfolk, VA-NC
Riverside-San Bernardino-Ontario, CA
Buffalo-Cheektowaga, NY
Providence-Warwick, RI-MA
Birmingham, AL 48 Oklahoma City, OK
Memphis, TN-MS-AR 50 Fresno, CA
Percentage of Workers Who Worked From Home, cont. (2023)
Airport On-Time Performance
State Expenditures on Roadways (2021)
Health Care Expenditures Per Capita (2023)
Percentage Without Health Insurance by
State by Age (2023)
Percent of Privately Insured Persons with Employment-Based Insurance (2023)
Occupational Injury and Illness Incidence
Partisan Composition of State Governments
Housing Price Appreciation (3rd
Quarter 2024)
From 2023 to 2024, Maryland’s 25-year annualized housing price appreciation slightly decreased from 4.90%-4.80%. Short-term (5-year) growth improved from 7.10%-7.50%, while 1-year growth slowed from 4.40%-3.70%, reflecting a shift in the immediate housing market dynamics.