Salisbury Area Chamber of Commerce Presents the 37th Southern Delmarva Economic Forecast

The Salisbury Area Chamber of Commerce presented the 37th Annual Southern Delmarva Economic Forecast on December 6th at Salisbury University, hosted by the Frankin D. Perdue School of Business and the Business Economic and Community Outreach Network at Salisbury University.

The Forecast centered on why Maryland is losing its competitive edge in attracting and retaining businesses. Four panels of leading business and economic professionals, Chamber of Commerce Executives, legislative leaders, and the Federal Reserve presented various statistics, strategies, and fiscal challenges facing Maryland and possible solutions to reverse the course of stagnant business growth.

The panel of Economic Development Directors from Delaware, Maryland, and Virginia spoke to issues facing their respective jurisdictions and collectively optimistic that the changes in the Federal Administration would be beneficial in terms of Federal programs and grants to assist in moving their county economies forward the next four years.

A panel of Chamber Executives from Delaware, Maryland, and Pennsylvania addresses what their states are doing to attract and retain businesses.

Silas Chamberlin, Chief Strategy Officer and Vice-President of Economic and Community Development at York Pennsylvania Economic Alliance, spoke about what Pennsylvania is doing.” We put a 10-year strategic plan in front of the Pennsylvania legislature, so those legislators know far in advance what state resources the business community needs to grow.” Maryland Chamber of Commerce President Mary Kane lamented the unfunded programs Maryland enacts that are put on the backs of businesses, “Our General Assembly passed education reform programs and climate change mandates without any funding sources. Meanwhile, Maryland is among the lowest in the United States in labor participation and affordable childcare.”

Delaware Chamber President Mike Quaranta added, “We are having deep discussions in Delaware on workforce solutions, childcare, and engaging our members in legislative decisions.”

Andy Bauer, Vice President and Regional Executive of the Federal Reserve Bank of Richmond, joined a panel with the Salisbury University College Fed Challenge Team on peeling back on what our neighboring states are doing when competing with Maryland. The panelist also touched on tax policy, housing, the regulatory environment, and other issues.

The panel of legislative leaders took on what is happening on the ground in their state and what needs to be done to move forward. Maryland Senate President Bill Ferguson, Delaware Senate Majority Leader Bryan Townsend, and Maryland House of Delegates member Wayne Hartman shared the realities of Maryland’s challenges to compete.

Senator Townsend from Delaware shared, “I am glad to know Maryland thinks Delaware is competition; I know we are but didn’t know Maryland knew that!” He added, “We leverage Delaware’s strengths and our favorable tax environment towards businesses.”

Senator Ferguson spoke to the reality of Maryland’s fiscal strengths and how precarious this may be moving forward,” This upcoming year will be a tough budget year. Additionally, 11% of Maryland’s workforce are federal employees living in Maryland, and we are hopeful that this will not change in the next few years.”

Delegate Hartman spoke to the aggressive and expensive climate goals Maryland has set and placed on the backs of businesses, “We need to look down the road and reintroduce nuclear power options for Maryland for cleaner, relatively inexpensive power. We need to look at the fact that our neighboring states outspend us when it comes to investment in tourism, which is another avenue to economic growth and new tax dollars.”

This year’s forecast agenda featured Dr. Makenzie Lystrup, Director of Goddard Space Flight Center, who spoke on the Space Economy in Maryland. Dr. Lystrup directs all of NASA’s facilities across the United States and overseas.

NASA’s impact in the MD Space Ecosystem is robust, placing Maryland among the top five leading states with a NASA-wide economic output of $8,266,465,000 and 33,890 employees.

“Wallops is undergoing a transformation in these past few years, now working with the Virginia Spaceport to really enhance the commercial nature of what they do. In February 2022, Rocket Lab announced Wallops Island as the location for its launch site and extensive manufacturing and operations facilities. This is on top of our great relationship with Northrup Grumman and their commercial cargo resupply program. The entire economy of Maryland’s lower eastern shore has and will continue to witness the economic benefits of the NASA Wallops facilities.”

The 37th Forecast concluded with the annual Maryland General Assembly 2025 Session Preview with the Lower Shore Legislative Delegation members. A long list of issues was discussed, ranging from the new taxes that will potentially be enacted in 2025 to address Maryland’s $2.7 billion structural budget deficit, reforms to the state Unemployment Insurance fund, how to generate funding to backfill the state Transportation Trust Fund, will the Kirwan education reforms be extended given that price tag, and overall state fiscal responsibility.

The entire Forecast will be rebroadcast on PAC14.org in the coming weeks.

The SACC will host the Legislative Wrap-Up Luncheon on April 17, 2025, at the Wicomico Civic Center in Salisbury Maryland. For tickets, visit www.salisburyarea.com.