Creating Opportunity in GREATER BALTIMORE's Next Economy
Total Page:16
File Type:pdf, Size:1020Kb
Building from Strength Creating opportunity in greater Baltimore’s next economy Jennifer S. Vey fellow The Brookings i nsTiTuTion | Metropolitan p olicy p rograM | 2012 acknowledgments the Brookings institution Metropolitan policy program would like to thank the annie e. casey foundation for their generous support of this report. the author is particularly grateful to patrice cromwell (Director of economic Development and integration initiatives, center for community and economic opportunity), whose knowledge of and passion for the issues discussed in these pages have been critical to the project. the Metro program also thanks the rockefeller foundation, John D. and catherine t. Macarthur foundation, Heinz endowments, ford foundation, george gund foundation, f.B. Heron foundation, and the Metropolitan leadership council for their ongoing support of the program. the author also wishes to express her thanks and gratitude to the many people who provided important information, guidance, and advice that helped build and improve the report. first, she wants to thank all those who provided personal or small group interviews, or otherwise provided feedback on the project, including (in alphabetical order): tim armbruster (goldseker foundation); Bill Barnes (university of Maryland, Manufacturing assistance program); Diane Bell-Mckoy (associated Black charities); avonette Blanding (Maritime applied physics corporation); paul Brophy (Brophy and reilly, llc); Bill Burwell, Martin Herbst, paul Matino, Janee pierre-louis, and Jeanne townsend (u.S. export assistance center); richard clinch (university of Baltimore Jacob france institute); Martha connolly (Maryland industrial partnerships program); neil Davis (emerging technology centers); Dennis faber (tiMe center at the community college of Baltimore county); Stuart fitzgibbon (Domino Sugar); kirby fowler (Downtown partnership of Baltimore); andy frank (Johns Hopkins university); Mike galiazzo (the regional Manufacturing institute of Maryland); Susan ganz (lion Brothers inc.); Bob giloth (annie e. casey foundation); elizabeth Hines (Baltimore Development corporation); Seema iyer (university of Baltimore Jacob france institute); Bill king (roadmap); tom loveland (Mind over Machines); Brad McDearman (Brookings institution); aris Melissaratos (Johns Hopkins university); tom Murphy (urban land institute); katherine newman (Johns Hopkins university); Mary Jane norris (Maryland port authority); Brian o’Malley (central Maryland transportation alliance); Jason perkins-cohen (Job opportunities task force); Mark rice (Maritime applied physics corporation); Michael rosenbaum (catalyst it Services); larysa Salamacha (Baltimore Development corporation); Jane Schaab (uMB Biopark); gloria Sandstrom and kipp Snow (anne arundel community college); Marsha Schachtel (Johns Hopkins institute for policy Studies); eric Seleznow (national Skills coalition); karen Sitnick and Mary Sloat (Baltimore city Mayors office of employment Development); Melanie Styles (abell foundation); Michael thomas (Baltimore city public Schools); David troy (410labs); ken ulman, ira levy, laura neuman, and David nitkin (Howard county); robert wallace (BitHgroup technologies); and Sharon webb (formerly of the greater Baltimore technology council). She’d also like to thank alan Berube (Brookings institution); neil Davis (emerging technology centers); elizabeth kneebone (Brookings institution); amy liu (Brookings institution); Jason perkins-cohen (Job opportunities task force); and Mark rice (Maritime applied physics corporation) for their very helpful feedback on earlier drafts of this report. finally, the author wishes to thank emilia istrate, Jonathan rothwell, and adie tomer at the Brookings institution for providing advice, suggestions, and critical data and analysis, and David Jackson, John fairbanks, rachel Harvey, and rahsheeda ali for polishing and disseminating the final report. She especially wants to express her deep appreciation to alan Berube for his always sage guidance, and to carey nadeau for her tireless data collection, rigorous analysis, keen suggestions, and overall good spirit throughout the duration of this project. About the author: Jennifer S. Vey is a fellow with the Brookings institution Metropolitan policy program and a Baltimore resident. contact her at [email protected]. 2 BrookingS inStitution Metropolitan p olicy prograM contents Acknowledgments ....................................................................................................................................................................................2 executive summary .................................................................................................................................................................................4 i. introduction..........................................................................................................................................................................................11 ii. greater Baltimore’s opportunity Challenge....................................................................................................................................15 a wide opportunity gap.............................................................................................................................................................................................17 a faulty opportunity Structure................................................................................................................................................................................18 a new economic order...............................................................................................................................................................................................20 iii. greater Baltimore’s next economy ................................................................................................................................................23 greater Baltimore’s next economy today..............................................................................................................................................................24 opportunity in the next economy............................................................................................................................................................................25 Manufacturing...............................................................................................................................................................................................................28 information technology .............................................................................................................................................................................................32 Bioscience......................................................................................................................................................................................................................36 the clean economy .....................................................................................................................................................................................................40 transportation and logistics.....................................................................................................................................................................................44 iV. Barriers to opportunity....................................................................................................................................................................50 Barriers to growing the next economy ..................................................................................................................................................................51 Barriers to accessing the next economy ...............................................................................................................................................................52 V. A new framework for Change ...........................................................................................................................................................57 Vi. Conclusion .........................................................................................................................................................................................63 endnotes ..................................................................................................................................................................................................65 Building from sTrengTh: creating opportunity in g reater Baltimore’s n ext economy | Contents 3 executive Summary ccording to many broad economic indicators, the Balti- more metropolitan area is doing better than fine. in 2010, the median household income for the region was nearly a$15,000 higher than for the country at large, and over the 10 years prior, real incomes rose in the metro, if slowly, even while incomes nationally shrank by more than 7 percent. employment grew from 2000 to 2010 while declining nationwide, and during the economic downturn, the area’s unemployment rate was consistently lower than the majority of its metropolitan peers. 4 BrookingS inStitution Metropolitan p olicy prograM yet anyone who lives and works in greater Bal- income workers are employed in just a few indus- timore knows the region is also home to many tries, including healthcare,