Maryland is one of the top five states in the country in defense spending. It is home to 20 military facilities, including 12 major installations. Combined, these support over 409,000 jobs and generate over $57 billion in total output and $25.6 billion in wages.
While military installations are vital to Maryland’s economy, stable military funding is not a guarantee. The Department of Defense (DoD) budget has been cut over the last five years and there is no way to know if this trend will continue. This project will help to mitigate potential risks and problems and protect the economic livelihood of Maryland businesses.
In response to this threat, the Department of Defense Office of Economic Adjustment offered the Maryland Department of Commerce a Defense Industry Adjustment grant. It will be executed in conjunction with the Towson University’s Regional Economic Studies Institute (RESI).
This project will examine the extent of the impact of defense dependency throughout the State and will find strategies to minimize that impact on regional Maryland economies in the event of DoD budget reductions.
The goals are to understand the depth of the DoD budget impacts on Maryland's industry sector and how they may affect regional economies, identify defense dependent businesses within the defense supply chain, and provide assistance in diversifying company portfolios in order to sustain in a competitive environment.
The statewide diversification effort will consist of the following three project activities: