By: Nicholas Sohr
Maryland slid two places this year in the Forbes ranking of the “Best States for Businesses and Careers.”
The ol’ line state is still in the top 15 nationwide, however, sitting in the 14th spot after holding No. 12 last year.
This year, however, the schadenfreude can flow both ways across the Potomac, as Virginia, long Maryland’s foil in discussions of business climate and friendliness, was knocked from its perch atop the rankings by Utah.
Virginia, which held the top spot for the four previous years, had to settle for No. 2 in 2010.
Much of the governor’s race has revolved around business issues, and the topic of business regulation has actually bubbled up in the debates between former Gov. Robert L. Ehrlich Jr. and Gov. Martin O’Malley. (Ehrlich, in an interview with The Daily Record this week, said he would take a “power house” to the Department of Labor Licensing and Regulation.)
Like all the business rankings that have come before it, the Forbes list has some statistics for everyone. The study looked at regulatory environment, labor supply, economic climate, business costs, quality of life and growth prospects in all 50 states.
Maryland fared well in the labor supply (8th nationally), quality of life (8), and, perhaps surprisingly, regulatory environment (9). Those first two categories play into the strengths of O’Malley, who never shies away from talking about the quality of the public schools and universities in the state and, more generally, the quality of life here.
The regulatory environment ranking could give O’Malley an easy retort to Ehrlich’s claims about regulators treating businesses like piggy banks, rather than partners in economic development. Of course, Virginia had the second-best regulatory environment.
Maryland was in the middle of the pack for economic climate (19) and growth prospects (29) but got killed in the business costs category, finishing 49th in the country. That category includes things like labor, energy and taxes, and was weighted most heavily in determining the overall ranking, according to Forbes. Only Massachusetts did worse in business costs, and finished 16th overall.
I wouldn’t be surprised to hear about those last three rankings from Ehrlich, especially the issue of business costs. Along with the regulatory environment criticisms, Ehrlich has said the tax burden on businesses is oppressive.
Virginia’s strongest attributes, according to Forbes, are its regulatory environment (No. 2 in the country), labor supply (3), economic climate (4) and quality of life (6). Prospects for growth there ranked 14th, and business costs, 24th.
So what does it all really mean? Well, one thing it doesn’t mean is that Maryland is definitely the 14th most business-friendly state. Depending on who you ask, Maryland ranges anywhere from 3 to 45 on lists gauging business friendliness in some form or fashion.