Maryland Industry Focus: Manufacturing

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Overview
The manufacturing industry contracted at a rate of 3.3 percent between the fourth quarters of 2007 and 2008.  Since 1990, the sector has shed a significant number of jobs and has reduced Maryland’s share of manufacturing jobs to approximately 5.0 percent of total state employment – roughly half of its share in 1990. Unfortunately for the industry, RESI’s forecast anticipates the share of Maryland’s manufacturing jobs to continue its downward trend through the first quarter of 2011.

In Detail
All industry components contracted during the reporting period.  The Non-Durable Goods Manufacturing component shed 2,402 jobs, while Durable Goods Manufacturing shed 1,815 jobs – contracting at rates of 4.0 and 2.8 percent, respectively.  Smaller job losses were posted in the Miscellaneous Manufacturing sector, the smallest component of the industry, which shed approximately 135 jobs (rate of -2.5 percent).

Even as the industry continues to contract, the average weekly wages in the manufacturing sector remain above the state’s overall average.  During the fourth quarter of 2008, average weekly wages amounted to $1,229, higher than the average for the state’s overall employment base ($975).

A Look Ahead
According to the latest Manufacturing Business Survey by the Institute for Supply Management, nationwide economic activity in the manufacturing sector grew in October, making it the third consecutive month of growth and the highest rate of growth since April 2006.  It is important to note that the manufacturing rebound is not just a result of the Cash for Clunkers program, as components other than auto manufacturing also reported positive activity.  Industries such as petroleum and coal products, apparel and allied products and electric equipment were part of the 13 (out of 18) industries recording positive economic activity.
While overall activity in Maryland’s manufacturing industry has been negative, particularly in textile-related manufacturing, there are glimmers of hope for some components of the industry.  For example, bio-manufacturing is getting a vital boost in the Baltimore region as a result of company expansion. Emergent BioSolutions Inc., based in Rockville, recently announced the acquisition of a 55,000 square foot manufacturing facility from MdBio Foundation.  This expansion could mean the addition of a number of high-skilled, high-wage manufacturing jobs for the area.  It also bolsters the Maryland Department of Business and Economic Development’s mission to support the complete development life cycle of biotechnology products.
In the future, bio-manufacturing could provide a significant source of employment statewide.