Western Maryland charts new course for economic growth

For decades, Western Maryland seemed to be following the path of many other Rust Belt communities with a manufacturing sector that was slowly shrinking. But now, thoughtful planning and pandemic-driven opportunities are creating a new economic landscape. In Cumberland, once Maryland’s second-largest city behind Baltimore, the evolution is especially visible.

“The past five years have really been fun to watch,” said Matt Miller, executive director of the Cumberland Economic Development Corporation. “Being able to see that trend reverse in real time, right in front of our eyes, it’s a breath of fresh air.”

The seeds of this transformation were planted well before the pandemic. In 2015, Cumberland began planning an ambitious $17 million downtown renovation project, completed in November 2023. The project didn’t just modernize streets and sidewalks – it reimagined how a historic downtown could serve modern businesses and residents, beyond cosmetic improvements.

“We incorporated all new infrastructure to buildings in the historic downtown district,” Miller explained, noting that older water systems did not support modern fire suppression regulations, an expensive fix for building owners. “We took on the burden of those improvements through this project, which incentivized investment into the upper floors. Now, there are over 100 new residential units either in production or in the pipeline.”

Additional upgrades, like fiber optic broadband, unlocked the potential of Cumberland’s historic buildings. “We’re starting to see a significant amount of private investment that’s been leveraged by that project directly, more than what we’ve seen since probably buildings were built.”

Then, the COVID-19 pandemic and the rise of remote work suddenly created a new avenue for economic growth. Cumberland was especially well positioned to take advantage of these opportunities, having already laid the groundwork for business and residential development.

“Pre-COVID, no one ever thought of remote working as an economic development boost,” Miller reflected. “But when you have two or three hundred employees, who could be working anywhere in the world, but their paychecks are coming into this community – that’s exactly what economic development is.”

Western Maryland’s combination of affordable living and outdoor recreation is highly attractive to a new demographic that shares many of the same values as the tourists the region had been courting.

“These are folks who will enjoy a lot of the amenities that we offer like the bike trail and outdoor recreation. We have some pretty high-class music festivals that take place here as well,” Miller noted.

This influx of new residents, while welcome, has intensified the region’s housing challenges. Cumberland’s available housing stock largely predates 1939, with about 66% of homes built before that year, which means that new residents likely need to invest in significant modern upgrades or renovations.

This has become more than just a housing issue – it’s affecting business growth. While the job openings exist, housing that meets the expectations of the talent does not, Miller explains. In an effort to attract workers, the City of Cumberland recently piloted a relocation package offering up to $20,000 to help fund home improvement projects. The program was so popular that the City received more applications than funds available, and are hoping for additional funding to continue the program.

Across Western Maryland, different communities are finding their own paths to growth, with a lot of variation in the region. Miller points to Hagerstown, situated at the crossroads of I-70 and I-81, which has emerged as a transportation hub.

“From Hagerstown, you can reach almost a third of the country within four hours,” he explained, noting the city’s success in attracting warehousing and manufacturing operations.

Cumberland, meanwhile, is focusing on healthcare, light manufacturing, and tourism. “We’re becoming more of a tourist destination,” Miller said, “and we’ve realigned our local demographics and economics with much more appropriate targeted industries.”

Despite the housing challenges, Western Maryland’s economic future looks promising. The region’s strategic location, natural amenities, and growing remote workforce are creating new opportunities for sustainable growth.

“Economic development is really about creating a community that is sustainable for business and growth, where job creation and private investment happen organically,” said Miller. “That’s what we created with the downtown and we see that as the nucleus of what the city will become.”