MARCH 2004
MARYLAND SPOTLIGHT
Homeland Security
Projects Propel Maryland
Projects Propel Maryland
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artly due to its proximity to the nation's capital and partly due to its abundance of highly educated residents, Maryland is off to a quick start as a center of investment in the budding homeland security industry.
The state's status in this sector is being further buoyed with the opening of the nation's first homeland security technology incubator, the Chesapeake Innovation Center (CIC) in Annapolis.
Real User, an information assurance company with applications in homeland security, is one of the CIC's first occupants. The firm has developed patented authentication technology to reinforce or replace passwords. Not a labor-intensive endeavor, Real User's operation currently employs just eight, but it figures to grow its payroll to about 100 within five years.
Jim Melonas, Real User's chief of operations, says the state recruited the young firm because it had operations nearby in Washington, D.C., and northern Virginia. The CIC was a big advantage, he says.
"The state has a real strategy for development of information assurance companies," Melonas says. "It just made a lot of sense to locate here. We have a very appealing and practical solution to an information security problem that affects every business and government agency."
Maryland outlasted Virginia to snare a homeland security plum
in September 2003 as Computer Sciences Corp. chose Anne Arundel County as home for its new homeland security division. The company is consolidating operations and will add a net 400 jobs after it moves into a 109,000-sq.-ft. (10,126-sq.-m.) facility in Hanover.
"In an era in which the federal government continues to expand, Mar yland companies are well positioned to serve one of the economy's leading engines of growth," says Anirban Basu, CEO of Baltimore-based Optimal Solutions Group and a leading state economist. "People talk about big headquarters projects, but there is no entity like the federal government, and it sits in the state's backyard. The typical federal job pays extraordinarily high wages and benefits."
Maryland ranks first among states in the percentage of population 25 or older that has completed at least a bachelor's degree (37.6 percent), according to latest Census Bureau figures. In addition, the state has the second highest concentration of doctoral scientists and engineers.
"By various measures, Maryland is the most highly educated state in the nation and therefore able to supply technical and scientific talent to an extent not possible in other states," Basu says, noting that regional competition has also forced the state to look hard at taxes and work force development issues.
"Maryland has become a much better state at attracting business over the last 15 years," Basu says. "Both Maryland and Virginia have industrial bases that can quickly transition to federal contracts. Many tech companies have successfully made that transition."
"Whether it's homeland security, life sciences, information technology or the space industry, we have many federal assets in our state," Ehrlich tells Site Selection.
In recent months, Ehrlich has demonstrated a willingness to travel far and wide for saves of existing industry and wins of new companies. In early December 2003, the governor led a delegation to General Motors' technology center in Warren, Mich., to lobby for the future of two Maryland GM plants, the Broening Highway van plant in Baltimore and the Allison transmission plant. A recent union deal allows GM to close the Broening plant after the summer of 2005.
"We made the pitch and we understand the economics, but GM has always had a large footprint in Maryland," he says.
Ehrlich's trip to Israel precipitated the announcements of small expansions by two Israeli companies in Germantown. Oblicore, a software developer, will double the size of its office staff with 12 new employees. And Medispec, which develops, manufactures and markets high-tech medical equipment, will expand its corporate offices.
During the first quarter of 2004, Baltimore-based Under Armour will move into a facility built by defunct Internet grocery firm Webvan and will occupy about 150,000 sq. ft. (13,935 sq. m.), with room to expand to 346,000 sq. ft. (32,143 sq. m.). Webvan built the $30-million facility, but went bankrupt before it could move in. Under Armour, founded by former University of Maryland football player Kevin Plank, will move its operations from Baltimore County, but will retain its headquarters in Baltimore.
The state's status in this sector is being further buoyed with the opening of the nation's first homeland security technology incubator, the Chesapeake Innovation Center (CIC) in Annapolis.
Real User, an information assurance company with applications in homeland security, is one of the CIC's first occupants. The firm has developed patented authentication technology to reinforce or replace passwords. Not a labor-intensive endeavor, Real User's operation currently employs just eight, but it figures to grow its payroll to about 100 within five years.
Jim Melonas, Real User's chief of operations, says the state recruited the young firm because it had operations nearby in Washington, D.C., and northern Virginia. The CIC was a big advantage, he says.
"The state has a real strategy for development of information assurance companies," Melonas says. "It just made a lot of sense to locate here. We have a very appealing and practical solution to an information security problem that affects every business and government agency."
Maryland outlasted Virginia to snare a homeland security plum
See the SITES Maryland Dept. of Business & Economic Development www.choosemaryland.org
Anne Arundel County
Chesapeake Innovation Center |
Federal Contracts a Boon
Being a neighbor to the nation's capital gives Maryland a leg up on a lot of projects involving contractors to the federal government, like the recently founded Chesapeake Plastics Manufacturing, opening in Lusby. That isn't likely to change soon."In an era in which the federal government continues to expand, Mar yland companies are well positioned to serve one of the economy's leading engines of growth," says Anirban Basu, CEO of Baltimore-based Optimal Solutions Group and a leading state economist. "People talk about big headquarters projects, but there is no entity like the federal government, and it sits in the state's backyard. The typical federal job pays extraordinarily high wages and benefits."
Maryland ranks first among states in the percentage of population 25 or older that has completed at least a bachelor's degree (37.6 percent), according to latest Census Bureau figures. In addition, the state has the second highest concentration of doctoral scientists and engineers.
"By various measures, Maryland is the most highly educated state in the nation and therefore able to supply technical and scientific talent to an extent not possible in other states," Basu says, noting that regional competition has also forced the state to look hard at taxes and work force development issues.
"Maryland has become a much better state at attracting business over the last 15 years," Basu says. "Both Maryland and Virginia have industrial bases that can quickly transition to federal contracts. Many tech companies have successfully made that transition."
Ehrlich Gets Involved
Gov. Robert L. Ehrlich Jr. describes himself as "unapologetically pro-business" and is asking business leaders to look closer at the state."Whether it's homeland security, life sciences, information technology or the space industry, we have many federal assets in our state," Ehrlich tells Site Selection.
In recent months, Ehrlich has demonstrated a willingness to travel far and wide for saves of existing industry and wins of new companies. In early December 2003, the governor led a delegation to General Motors' technology center in Warren, Mich., to lobby for the future of two Maryland GM plants, the Broening Highway van plant in Baltimore and the Allison transmission plant. A recent union deal allows GM to close the Broening plant after the summer of 2005.
"We made the pitch and we understand the economics, but GM has always had a large footprint in Maryland," he says.
Ehrlich's trip to Israel precipitated the announcements of small expansions by two Israeli companies in Germantown. Oblicore, a software developer, will double the size of its office staff with 12 new employees. And Medispec, which develops, manufactures and markets high-tech medical equipment, will expand its corporate offices.
Location, Infrastructure Draw DCs
Two major logistics projects were among the state's 2003 highlights. FedEx Ground is building a 335,000-sq.-ft. (31,121-sq.-m.) facility in Hagerstown, part of the company's $1.8-billion plan to build 10 facilities with automated package sortation technology over the next six years. FedEx picked Hagerstown for its proximity to customers' distribution and access to major highways. The facility will employ about 400 when it opens in 2006.
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During the first quarter of 2004, Baltimore-based Under Armour will move into a facility built by defunct Internet grocery firm Webvan and will occupy about 150,000 sq. ft. (13,935 sq. m.), with room to expand to 346,000 sq. ft. (32,143 sq. m.). Webvan built the $30-million facility, but went bankrupt before it could move in. Under Armour, founded by former University of Maryland football player Kevin Plank, will move its operations from Baltimore County, but will retain its headquarters in Baltimore.