The document summarizes Maryland's performance in various economic categories in 2013 based on rankings. Maryland received a "D" grade for manufacturing and logistics industries, scoring in the bottom 10-20% for related metrics. Its human capital grade dropped to a "C+" although it ranked top 20% for educational attainment. Maryland slightly dropped in worker benefit costs and tax climate rankings. Its expected fiscal liability gap and productivity/innovation grades remained steady at "C" and "B" respectively.

1. 2013 Manufacturing + Logistics
Reports for the Maryland and Nation
October, 2013
B R O U G H T T O Y O U
B Y :

2. Manufacturing Industry Health
To measure manufacturing we include
three variables:
• Share of total income earned by
manufacturing employees in each state
• Wage premium paid to manufacturing
workers relative to the other states’
employees
• Share of manufacturing employment
per capita
2013 ranking:
• Maryland scored a “D” grade in the
manufacturing industry category.
• Maryland is in bottom 10 states in the
highest share of manufacturing
employment per capita and highest
manufacturing sector income share of
the total income.

3. Logistics Industry Health
To measure the logistics industry we include:
• Share of total logistics industry income as
a share of total state income
• Logistics employment per capita
• Commodity flows data by both rail and
road
• Infrastructure spending as the per capita
expenditure on highway construction
2013 ranking:
• Maryland continued to hold an “D” grade
in logistics industry category.
• Maryland’s logistics employment per
capita, commodity flow value by road per
capita and logistics share of economy is in
the bottom 20% of all states.

4. Human Capital
Our human capital measurements include
these rankings:
• Educational attainment at the high school
and collegiate level
• First-year retention rate of adults in
community and technical colleges
• Number of associates degrees awarded
annually on a per capita basis
• Share of adults enrolled in adult basic
education
2013 ranking:
• Maryland’s human capital grade dropped
from “B-” to a “C+”.
• Maryland is one among top 20% states
with higher percentage of population with
bachelors degree and first year retention
rate in community and technical colleges.

5. Worker Benefit Costs
To measure worker benefit costs, we
include:
• Health care premiums
• Long-term health care costs
• Workers’ compensation costs per
worker
• Fringe benefits of all kinds as a share of
worker costs
2013 ranking:
• Maryland slightly dropped its worker
benefit rankings from “B” to “C+”.
• Maryland also experienced a marginal
increase in long-term health care and
workers’ compensation rate.

6. Tax Climate
To measure the tax climate we use data on:
• Corporate taxes
• Income taxes
• Sales and use taxes
• Property taxes
• Unemployment insurance tax
2013 ranking:
• Maryland slightly dropped its rankings
from “D+” to “D” grade in tax climate
category.
• Maryland is among the bottom
20%, relative to other states, for
individual income tax, unemployment
insurance tax and property tax indexes in
fiscal year 2013.
• Does not include 2013 legislative changes

7. Expected Fiscal Liability Gap
To measure the expected fiscal liability
gap, we include:
• Data on unfunded liability per capita
• Percentage of GDP, average
benefits, and bond rankings
2013 ranking:
• Maryland saw a steady “C” grade in
expected fiscal liability gap category.
• Maryland holds on to a first place in
bond ratings.
• Maryland’s average benefits and
unfunded liability as a percentage of
GDP increased relatively.
• This does not yet capture payments to
our pension funds since 2011.

8. Global Reach
To measure global reach we include:
• Export-related measures of per capita
exported manufacturing goods.
• The growth of manufacturing exports
• Foreign-direct investment measures of
the amount of manufacturing income
received annually from foreign-owned
firms
• The reach of foreign-direct investment
2013 ranking:
• Maryland continued to remain weak
with an “D” grade in global reach
category.
• Maryland’s per capita manufacturing
exports is in the bottom 10% of all
states.

9. Sector Diversification
In this section, we measure the
diversification of manufacturing activity
in each state using the Herfindahl-
Hirschman Index
2013 ranking:
• Maryland grades stood at “C-” in
this category.
• Maryland experienced a marginal
change in diversification index.

10. Productivity + Innovation
To measure productivity and innovation
we use:
• Manufacturing productivity growth
• Industry research and development
expenditures on a per capita basis
• The per-capita number of patents
issued annually
2013 ranking:
• Maryland’s grade continued to remain
steady with “B” in this category.
• Maryland saw a relative growth in
manufacturing value added (a measure
of the contribution of the production
process in an individual state) and
average manufacturing productivity.

11. Maryland’s Scorecard
Category Maryland DE NJ PA VA WV
Manufacturing D D C- C D C-
Logistics D F C+ A C- C
Human Capital C+ C- C+ C C F
Benefit Costs C+ F D D+ C D-
Tax Climate D B F D C C
Expected Fiscal
Liability Gap
C A D C C F
Global Reach D B B C C B
Diversification C- C D- B A C-
Productivity &
Innovation
B C B- C B D