The combined Greater Washington /Baltimore region possesses a sustainable competitive advantage. With strong industry growth in Life Sciences, IT/Defense, Healthcare Services, and Financial Services sectors, coupled with a strong federal government presence, Greater Washington/Baltimore offers a unique combination of workforce and infrastructure that enables the region to support significant growth in jobs and capital investment.
Our economic outlook is strong. For the past four years, this combined region has outpaced the national average on job growth.
Greater Washington has become one of the fastest growing regions in the nation. This growth is having a major impact on Greater Baltimore, as residents and businesses move to the area in search of homes and office space that provide easy access to the Washington market. A recent report conducted for the Greater Washington Initiative (GWI), Information Technology, Communications and New Media, clarifies the power of the Washington region and what is driving its success. While other high-technology regions, such as Boston (-149,400) and San Francisco/San Jose (-362,400) realized huge employment losses from 2000 to 2004, after the dot.com bust and 9-11, Greater Washington actually realized a gain of 112,300. Job growth has driven demand and prices for housing that is among the highest in the nation, with the median home price in 2004 at $350,000.
The presence of the federal government and the development of Greater Washington as a
Technology hub is driving the region’s growth. The region has technology industry
employment of over 330,000, driven by billions of dollars in new federal spending for homeland security, defense and enhanced government performance. Much of this money will be paid to private-sector IT contractors for systems integration. Washington is also one of the nation’s top regions for telecommunications and internet service providers. These firms need to be near Washington to build relationships with thousands of potential federal government clients and to have access to key industry regulators.
Washington (and by association, Baltimore) has also become one of the nation’s top
Bio technology hubs. A 2002 report by the Brookings Institute determined that while 80 percent of states and regions are pursuing biotech firms as key attraction targets, only 9 metro areas have potential to be major players in the industry. The Washington-Baltimore metro area is among those markets.
Established and Growing sectors
Defense/Information Technology
The Greater Washington/Baltimore region is a hub of the nation's IT/Defense industry. The region has long been home to federal assets such as the National Security Agency and Johns Hopkins' Applied Physics Laboratory, and soon the Defense Information Systems Agency www.disa.mil/brac This area has historically housed large portions of the American defense industry. The federal government is guaranteeing the Baltimore region a more important role by transferring a greater number of the nation's key technology defense assets to both Fort Meade and Aberdeen Proving Grounds.
Federal spending on research and development in information technology is projected to continue for the foreseeable future. According to a recent study by the Greater Washington Initiative ( www.greaterwashington.org) federal information technology spending nationwide is expected to increase from $58 billion in fiscal year 2005 to $74 billion in 2009. On top of that is another $10 billion in estimated classified technology programs, most of which is done in this region.
The proximity of these important federal agencies and facilities and major contractors has helped foster exceptional technology programs at local universities. The University of Maryland, Baltimore County has close working relationships with the NSA and defense contractors, which provides their students with unparalleled training and expertise. Similarly, the United States Naval Academy in Annapolis, Maryland is training the officers who will one day lead the nation's defense.
Home to the nation’s first homeland security incubator (http://www.cic-tech.org/), Anne Arundel County is leading the charge of the federal government to identify new advances in technology to aid in our nation’s homeland defense.
Listing of Major IT/Defense Corporations
Boeing
Computer Sciences Corporation
General Dynamics
Lockheed Martin
Science Application International Corporation (SAIC)
Raytheon
AAI
Top Defense-Related Agencies
Aberdeen Proving Ground
Fort Meade
National Security Agency
Johns Hopkins Applied Physics Laboratory
Links to Local Associations
AFCEA http://www.afcea.org
IEEE www.ieee.org
Health Care Services
The Greater Baltimore region holds a unique combination of factors that help companies succeed in the Healthcare Services industry. The Medicare Modernization Act has given the Centers for Medicare and Medicaid Services (CMS), located in Greater Baltimore, a more central role in the delivery of medical care. A Greater Baltimore location becomes more important because it puts companies in close proximity to CMS, as well as the Department of Health and Human Services, located in our nation's capital. Additionally, the Baltimore region offers an educated workforce, a high ratio of nurses to the general population, and an affordable cost of living.
Bio-technology/Life Sciences
Our competitive advantage in this sector is clear. The Greater Washington/ Baltimore region, with the National Institutes of Health, hundreds of life science companies, and major academic research centers at Johns Hopkins and the University of Maryland, is the home to as much medical discovery brainpower as any place on the planet. Johns Hopkins is the largest recipient of federal research grants in the country. Three new bio-technology/research parks are well underway in the Greater Baltimore region to capitalize on this growing industry, including: The Science and Technology Park at Johns Hopkins, the University of Maryland Bio Park and the BWTECH@UMBC. For more information on the three initiatives, please access: www.biosciencebaltimore.com.
Listing of Major Corporations
Battelle
Guilford Pharmaceuticals
BD Diagnostic Systems
Cambrex Bioscience
Osiris Therapeutics
Greater Washington: www.greaterwashington.org/business/biotech/largest_bio_companies.htm
In Greater Baltimore:
www.biosciencebaltimore.com
Links to Local Associations and Information
www.mdbio.org
Greater Baltimore Committee’s Bioscience Connector at www.biosciencebaltimore.com
Financial Services
Greater Baltimore has a long history in financial services and investment banking, and today is a leader in asset management. In recent years, the financial services industry in the United States has looked more aggressively at decentralization options, and the Baltimore region offers a strong value proposition to those firms looking for a center to house high end back office operations. Due to the region's diverse investment community, Greater Baltimore has a deep base of professionals. Furthermore, its ideally suited location allows for greater ease of access to other cities on the East Coast.
Listing of Major Corporations
Baltimore City is home to the highest concentration of financial services companies in the region. This includes:
Citigroup
Legg Mason
Duestche Bank
T. Rowe Price
Ferris Baker Watts
