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FY 2015 Defense Spending By State report now available for download.

Maryland Economic Diversification


Regional Background

Maryland ranks fifth in the nation’s defense spending and as such is one of the most susceptible states to diminishing defense budgets. A review of available data shows that Maryland as a whole has direct military and civilian employment levels of at least 1.5 times the national level of employment (1.4 percent and 2.1 percent respectively) as well as defense-related expenditures that comprise at least 1.5 times the defense percentage of GDP (4 percent and 6 percent, respectively). Some regions in Maryland exceed both of those levels.

Project Overview

To help Maryland understand and plan for defense spending reductions, the DoD Office of Economic Adjustment gave the Maryland Department of Business & Economic Development a Defense Industry Adjustment grant.

The overarching goal of the grant is to provide the state and its localities an understanding of the regions and industries that would be adversely affected by cuts in DoD spending so that diversification strategies can be put in place. The grant will:

  • Develop a database to map the defense supply chain throughout Maryland;
  • Provide communities an analysis of industry clusters to encourage the adoption of economic diversification strategies to advance local business and job growth;
  • Model economic impacts of DoD spending reductions;
  • Increase technology transfer and commercialization activity between defense labs and the business community to spur economic growth that would result from the technology development, manufacturing and commercial sale of products. This work has been targeted to one area of the state;
  • Develop small business assistance model to help spur more start up businesses.

Projected Outcomes

As a result of this grant, Maryland looks to spur regional collaboration to address the needs of the defense community and align state and local diversification strategies that will help plan an organized response to defense reductions. Additionally, Maryland hopes to help companies pursue commercialization for defense technologies and help defense companies plan for and implement changes necessary to expand into new markets.

Introducing the Maryland Defense Network! from Guy Timberlake on Vimeo.