ECONOMY

Maryland's economy has been influenced recently
by structural changes in the economy of the nation:
less national defense spending and defense subcon-
tract work, reductions in federal employment, and
corporate acquisition. Major Maryland employ-
ment sectors, such as finance, insurance, and pro-
fessional services, have restructured and
downsized. Partly due to defense downsizing and
international competition, realignments in manu-
facturing also have affected the State's economy.
Despite these setbacks, Maryland corporations
have streamlined operations and restructured debt
to remain competitive. State government also has
been fiscally responsible and retains its AAA bond
rating.

Since 1994, Maryland's international markets have
expanded through the North American Free Trade
Agreement (NAFTA) and trade agreements admin-
istered by the World Trade Organization (formerly
known as the General Agreement on Tariffs and
Trade or GATT) The agreements and lowering of
tariffs on Maryland goods help increase exports of
instruments, electronics, chemicals, transportation
equipment, and industrial machinery, as well as
high technology.

Maryland became a part of a federally designated
Consolidated Metropolitan Statistical Area
(CMSA) in 1992. Using commuting patterns, de-
velopment, and other criteria, the U.S. Office of
Management and Budget merged the Baltimore
and Washington areas, a region with 6.7 million
people, into a single economic market creating the
fourth largest economic market in the nation, after
New York, Los Angeles, and Chicago. The Area
stretches from the Eastern Shore to the Shenan-
doah Valley and from the Pennsylvania line to the
suburbs of Richmond.

Scientific and technological research leading to
product development plays an important role in the
State's economy. Federal agencies located in Mary-
land such as the National Institutes of Health,
National Institute of Standards and Technology,
the National Aeronautics and Space Admimstra-
tion, Goddard Space Flight Center, and Depart-
ment of Defense operations have been a catalyst for
the State's technology base. Advanced technology
enterprise is especially strong in telecommunica-
tions, computer sciences, and biotechnology. The
combination of State support and a highly educated
citizenry has made Maryland among the top four
states housing biotechnology companies.

New research parks facilitate joint research among
universities, State and federal government institu-
tions, and private industry. These parks include
The Johns Hopkins Bayview Campus in Baltimore
(life sciences research), and Shady Grove Life Sci-

ences Center in Montgomery County (biomedical
and life sciences research) which holds the Center
for Advanced Research in Biotechnology, part of
the University of Maryland Biotechnology Insti
tute. Other members of the Institute are the Center
of Marine Biotechnology, the Medical Biotechnol
ogy Center, the Center for Agricultural Biotechnol
ogy, and the Maryland Sea Grant College. Also
significant are the Applied Physics Laboratory in
Laurel and the Space Telescope Science Institute in
Baltimore, both affiliated with The Johns Hopkins
University. University of Maryland Baltimore
County Research Park (life sciences & high tech
nology research) on the Catonsville campus is ex-
pected to complete the first phase of construction
by 1997.

In 1994, the services sector, with 29.9% of the total,
was the largest employer in Maryland, followed by
retail trades (195%), government (19.1%), and
manufacturing (8.5%). The services sector consists
mainly of establishments, such as computer firms,
hotels, auto repair shops, janitorial services, and
hospitals. The largest concentration of service in-
dustries is found in Montgomery County, where,
in 1994, some 36.8% of the work force was em-
ployed in services. The largest concentration of
manufacturing is found in Dorchester County
where it employs 36.3% of the workforce and con-
stitutes 39.1% of the payroll.

Average Weekly Wage

..................... 1988 ........... 1994
Maryland ........ $432 .......... $546 (+26 4%)
US .................... $421 ............ $518(+23.0%)

................. 1988 .......... 1994
Maryland ......... $19,607 ....... $24,847 (+26.7%)
US ...................... $16,618 ....... $21,699 (+30.6%)

Maryland ranks fifth among the states in per capita
income for 1994

Per Capita Personal Income by County, 1992

Allegany $16,102 Harford $19,562
Anne Arundel $22,492 Howard $27,439
Baltimore City $19,682 Kent $20.216
Baltimore Co $24,794 Montgomery $33,614
Calvert $20,289 Prince George's $21,373
Caroline $14,942 Queen Anne's S21,690
Carroll $21,228 St Mary's $17,560
Cecil $17,910 Somerset $13,279
Charles $20,147 Talbot $26,779
Dorchester $16,945 Washington $16,846
Frederick $20.122 Wicomico $17,610
Garrett $14,183 Worcester $21,290