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Maryland Is at Inflection Point: 2026 Competitiveness Index Shows Why It Matters
Mar 3, 2026
The 2026 Competitiveness Index is here
Maryland is making real progress.
After two years of population decline, the state added more than 46,000 residents in 2026. GDP performance has strengthened. Maryland continues to lead the nation in academic R&D per capita and ranks among the top states in educational attainment and per capita income. These are not small things — and they deserve to be recognized.
But progress and pressure can coexist. And right now, they do.
The 2026 Maryland Competitiveness Index — measuring more than 150 indicators across economic performance, workforce, taxation and business climate — makes clear that Maryland is at a genuine inflection point. The gains are real. So are the structural challenges. And the policy decisions being made in Annapolis this session will shape which direction we go.
To understand what's actually at stake, it helps to start with the businesses that make Maryland's economy run.
Three Maryland Businesses. One Shared Reality.
Holmatro builds tools that save lives.
Inside its Anne Arundel County facility, nearly 300 precision components come together in a hydraulic rescue tool — assembled by machinists, engineers and quality technicians who understand that their work may determine whether someone survives a crash or emergency extraction. This is mission-driven manufacturing competing in a global market.
Holmatro stands out as a workplace where collaboration, voice, and shared purpose matter — a culture where employees feel valued and teamwork reflects the mission-driven spirit of the fire service community they serve. As President Shelly Elliott has emphasized, recruitment and retention are shaped not only by company culture but by broader realities — cost of living, labor availability and how Maryland compares to competing states. For a manufacturer operating at this level, those structural factors directly influence hiring, investment and long-term competitiveness.
Pohanka didn't wait for the workforce pipeline to recover. They built their own.
At the Pohanka Automotive Training Center in Salisbury, Marylanders earn while they learn — gaining college credit, hands-on training, and a pathway to six-figure careers without student loan debt. For a state that has struggled with domestic outmigration, employer-led investments like this directly strengthen long-term talent retention. That's not just workforce development. That's a reason for people to stay.
Boyd Cru Wines tells a different kind of story.
When Jon'll and Matthew Boyd opened their winery, they didn't stop there. They created a community hub — supporting 12 local small businesses through the Cru Collaborative — and in doing so, they bumped up against regulatory structures that haven't kept pace with modern entrepreneurship. Less than 1% of wineries are Black-owned. Boyd Cru didn't wait for opportunity. They created it. Their experience raises an essential question for competitiveness: Do our laws and systems fit today's business models — or yesterday's?
Three different industries. Three different challenges. One shared reality: Maryland's broader policy environment shapes what's possible for all of them.
What the Numbers Tell Us
The progress is real.
Maryland's population turnaround is one of the most significant data points in this year's Index. Population change shifted from a loss of 7,550 residents in 2023 to a gain of more than 46,000 in 2026 — moving Maryland's population growth ranking from 40th to 21st nationally. Combined with sustained strength in R&D investment, educational attainment, and per capita income, these are meaningful competitive assets.
But the structural pressures are just as real.
Despite overall population growth, net domestic migration remains negative — ranked 45th nationally. Maryland continues to lose more residents to other states than it gains. University of Maryland research found that Maryland experienced the 5th-largest net loss of recent graduates in the country, with more than 8,800 young workers leaving in a single year. STEM and education degree holders were among the most likely to go.
The cost environment compounds this. Maryland ranks 46th in overall business tax climate, 46th in cost of doing business, and carries a corporate income tax rate of 8.25% — 9th highest nationally. The state ranks 41st in economic performance and 42nd in economic outlook. These rankings shape perception — and they shape investment decisions.
On jobs, the headline and the reality tell two different stories.
Maryland reached its highest employment level in a decade in 2025 — roughly 2.84 million jobs — and added approximately 8,800 positions over the year. That's real. But job growth slowed sharply, from a 1.9% growth rate in 2024 to just 0.3% in 2025. Nationally, Maryland ranked 39th in private-sector job growth — behind Delaware, Pennsylvania, and North Carolina, all of which posted rates between 1.3% and 1.8%.
Federal job losses — nearly 25,000 in 2025 — were a significant drag. But the slowdown predates those cuts. Private-sector gains were real but not strong enough to generate meaningful momentum. An economy that adds jobs but barely grows is not positioned to compete.
Business formation compounds the picture. New business applications fell 6% in 2024, small business survival dropped from 19% to 12%, and net new employer businesses declined by 43% compared to 2023. The connection is direct: when it's harder to start and grow a business here, fewer jobs get created. When fewer jobs get created, families have less reason to stay.
The inverse is equally true — and it's the opportunity Maryland should be focused on. Make it easier for businesses to grow, and jobs follow. Make it easier to start a business here, and entrepreneurs come. Make Maryland a place where companies can invest and scale, and the tax base strengthens, wages rise, and families choose to stay. Competitiveness isn't just an economic metric. It's the foundation for opportunity — for everyone.
Maryland has real assets. The question is whether we're using them.
Why This Session Matters
Competitiveness is cumulative. Every tax decision, every labor debate, every regulatory change, every workforce or housing policy either strengthens Maryland's momentum or chips away at it. None of these decisions are made in isolation — and none of them are neutral.
Businesses like Holmatro, Pohanka and Boyd Cru aren't waiting for the environment to improve. They're investing, hiring, innovating and building anyway — because that's what Maryland businesses do. But they shouldn't have to fight against the current to do it. The question before Annapolis this session is whether our policies will work with them or against them.
That's why the Maryland Chamber publishes the Competitiveness Index. And that's why we need your voice right now.
You sign the leases. You make payroll on Fridays when it isn't guaranteed. You take the risk, carry the uncertainty and keep showing up anyway — because you believe in what you're building and in this state. We're here to fight for the policy environment you deserve. But we can't do it without you.
Legislators need to hear from the people who actually run businesses, hire workers and invest in Maryland communities. Not lobbyists. Not talking points. You. Your experience, your story, and your stake in getting this right.
Pay attention to what's happening in Annapolis this session. Speak up. Show up. That's how we turn these numbers around.
Here's What You Can Do
Explore the data. Read the full 2026 Maryland Competitiveness Index at mdchamber.org/Competitiveness — more than 150 indicators across economic performance, workforce, taxation and business climate, with deep-dive spotlights on the issues that matter most.
Get to know these businesses. Read the individual spotlights on Holmatro, Pohanka, Boyd Cru Wines and businesses across every region of Maryland. Their stories are Maryland's story.
Contact your legislators. Tell them what's at stake for your business and why Maryland's competitiveness matters to you personally.
Join the conversation. Share this post. Share the Index. Add your voice to the growing community of Maryland business leaders, entrepreneurs and advocates who are committed to making this state more competitive — for the businesses already here, and the ones we want to attract.
The needle is moving — because businesses like yours refused to accept the status quo. There is so much opportunity in front of Maryland if we meet this moment. The best chapter hasn't been written yet. Let's write it together.
