Understanding Maryland’s Economic Competitiveness: Spotlight on Manufacturing

Maryland outpaces the region in manufacturing wages.

• The data: In Maryland, production workers in manufacturing make an average of $27.91, ranking the state 11th in the nation in this area.

• Why it matters: A robust manufacturing sector provides quality jobs that support families, drive economic growth and promote innovation. The data indicates that Maryland's manufacturing sector is relatively strong compared to neighboring states and the nation overall. Higher wages reflect a more skilled, productive workforce, as well as stronger labor demand — but the above-average wages come with a tradeoff - they can deter manufacturers from locating in Maryland vs. other states with lower labor costs and wages.

Maryland’s manufacturing sector is highly productive and efficient.

• The data: Maryland ranks in the top five states in the nation for the value added per hour in manufacturing, with an estimated value added per hour of $199.24.

• Why it matters: Maryland's top 5 ranking for value added per manufacturing hour shows its advanced manufacturing sector is highly productive and efficient. This translates to several economic advantages for the state, including the creation of investment and job opportunities. In addition, this signals that Maryland can produce quality goods at lower costs and that manufacturing firms have more resources to invest in research, development and innovation.

Maryland manufacturers invest significantly in workforce and equipment.

• The data: Maryland ranks 17th when it comes to the annual average investment made per employee in manufacturing, with an average investment per employee of $11,560 and expenditures of more than $1.1 billion for machinery and equipment.

• Why it matters: This level of investment suggests that companies in Maryland are committed to enhancing their operations through investments in training, technology, and processes. Such investments can lead to improved productivity, increased competitiveness, and the creation of more jobs. It demonstrates a forward-looking approach by businesses to stay innovative and efficient, which ultimately contributes to the overall growth and success of Maryland's economy.