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Where Maryland’s Business Friendliness Stands in 2025
Sep 23, 2025
Key Takeaways: Maryland’s Competitiveness in 2025
- Falling Behind: Maryland dropped to 32nd overall in CNBC’s 2025 “Top States for Business,” down 10 spots in two years.
- High Costs & Low Confidence: Ranked 46th in cost of doing business and 43rd in cost of living.
- Challenging Climate: Taxes, regulations, and policy uncertainty push companies to expand elsewhere.
- Public Safety & Quality of Life: Crime and safety perceptions make it harder to attract and retain talent.
- Regional Competition: Virginia (#4) and North Carolina (#1) are surging; Delaware continues to outpace Maryland in business friendliness.
Is Maryland Losing Its Edge? Here’s How We Can Win It Back
While other states are gaining ground, Maryland is falling behind. Here's what we can do to reverse course.
Picture This: A company plans its next big expansion. They compare states — costs, regulations, infrastructure, workforce. Maryland is on the list, but so are Virginia, North Carolina, and Delaware. Every ranking, every data point matters. Whether jobs and investment land here depends on how competitive our state is.
The Reality: Maryland is slipping. CNBC’s rankings show a 10-spot drop in two years, with low scores in cost of doing business (46th), business friendliness (37th) and cost of living (43rd). Even expensive states like California (#22) and New York (#23) rank higher, while pro-growth states like Texas (#2) and Florida (#3) pull ahead.
These numbers tell a clear story: we are not viewed as a top-tier place to grow, invest, or hire. And that perception has real consequences for jobs, communities and families across our state.
Table 1: Maryland’s Decline in Business Competitiveness
Compared to Regional Peers and Top States, 2023–2025 (CNBC Rankings)
| Md '22 | Md '23 | Md '24 | Md '25 | Va '25 | Pa '25 | De '25 | WV '25 | Best | |
| Overall | 27 | 22 | 31 | ↓ 32 | 4 | 17 | 29 | 40 | N. Carolina |
| Business Friendliness | 29 | 24 | 37 | ≡ 37 | 47 | 40 | 43 | 15 | N. Dakota |
| Infrastructure | 22 | 15 | 32 | ↑ 23 | 2 | 17 | 31 | 43 | Ohio |
| Workforce | 10 | 28 | 28 | ↑ 21 | 14 | 37 | 11 | 43 | Texas |
| Cost of Doing Business | 44 | 47 | 47 | ↑ 46 | 31 | 25 | 41 | 24 | Oklahoma |
| Economy | 31 | 31 | 30 | ↑ 26 | 14 | 16 | 4 | 42 | Florida |
| Quality of Life | 18 | 11 | 16 | ↓ 27 | 8 | 23 | 27 | 25 | Vermont |
| Tech & Innovation | 14 | 7 | 8 | ↓ 9 | 8 | 9 | 30 | 44 | California |
| Education | 18 | 21 | 14 | ↑ 11 | 1 | 12 | 45 | 18 | Virginia |
| Cost of Living | 44 | 27 | 24 | ↓ 43 | 21 | 12 | 9 | 1 | W. Virginia |
| Access to Capital | 13 | 13 | 16 | ↑ 14 | 10 | 9 | 19 | 41 | California |
Takeaway: Even expensive states like California (#22) and New York (#23) rank higher than Maryland. Meanwhile, business-friendly states like Texas (#2), Florida (#3) and Ohio (#5) are pulling even further ahead.
Why This Is Happening:
- High operating costs
- Complex regulations
- Affordability crisis making it harder to attract and retain talent
- Policy uncertainty slowing investment
Meanwhile, neighboring states are holding steady or pulling ahead with aggressive competitiveness strategies.
How Maryland Can Win
- Reduce the cost of doing business through targeted tax and regulatory reforms
- Streamline regulations to eliminate growth barriers
- Address the affordability crisis driving away talent and families
- Create policy predictability so businesses can plan confidently
- Stop harmful legislation before it undermines competitiveness
The proof point: Other states are making these changes and seeing results. Maryland can too.
Why This Matters to Maryland Families
With every company that chooses or moves to another state, Maryland loses more than just investment — we lose opportunities for jobs, stronger communities and economic growth that benefits everyone. This isn't just about corporate profits. It's about:
- Good-paying jobs for Maryland residents
- Tax revenue that funds schools and infrastructure
- Economic momentum that keeps our best and brightest here
- Community vitality that makes Maryland a great place to live and work
Don’t Sit on the Sidelines: Your Voice Is Needed
Maryland’s economic future depends on the choices we make now. We need to send a clear message: businesses and workers have options, and we want Maryland to be the place they choose.
Here’s how you can help make that happen:
- Join the Maryland Chamber – Stand with 7,000+ businesses who stopped millions in new taxes in 2025. Get connected to lawmakers, receive early warnings on costly legislation, and benefit from proven advocacy that protects your bottom line.
- Contribute to the Maryland Chamber PAC – Fuel the fight against harmful legislation and ensure business voices are heard when it matters most.
- Sign Up to be a Maryland Business Advocate – Get alerts when action is needed and contact lawmakers to tell them how proposed policies will impact real businesses and jobs.
Sources
- CNBC Top States for Business (2025): Referenced for competitiveness context and state rankings.
Why It Matters
Jobs Lost: Fewer businesses mean fewer good-paying jobs.
Impact on Families & Communities: High costs and slower growth push residents out.
Revenue Decline: Lower investment reduces funds for schools, roads and services.
Momentum at Risk: Falling behind now makes it harder to compete tomorrow.
Bottom Line
Businesses and workers have choices — and too often, they’re choosing elsewhere.
