Policy Positions
By focusing policy on several areas of interest to manufacturers, policymakers will promote a climate that encourages manufacturers to retain and increase their Maryland presence, Maryland employment, and Maryland purchasing.  Necessary actions must:  

Provide a competitive and stable business and regulatory environment  

Maryland must have a stable and competitive business climate, especially in relation to neighboring states.  Investment decisions take into account both current business climate issues such as a competitive tax and regulatory climate and the stability of that climate.  Therefore, it is important for Maryland to maintain both an attractive and stable business climate to continue to attract capital investment, thereby fueling high–wage and medium–wage job creation.  

To the extent that state government can assist manufacturers by providing them with access to competitive tax rates, reliable and competitively priced energy, assistance with healthcare costs and with a regulatory environment that does not overly burden producers vis–à–vis their competitors in neighboring states, it should do so.   

Adopt a manufacturer-friendly energy policy  

Of central importance is the cost and availability of electricity.  Experts predict possible electricity shortages (brownouts and blackouts) by 2011.  Even if additional transmission lines are installed in time to alleviate the projected shortages, issues of long–term energy cost competitiveness remain.  Local manufacturers are concerned by a host of legislative initiatives, including the Renewable Portfolio Standard (RPS) the Healthy Air Act and the Regional Greenhouse Gas Initiative (RGGI) compact, all of which may result in higher electricity costs.    

Voluntary improvement in energy efficiency and energy conservation in all consuming segments is essential and should be constantly encouraged. Concurrently, policies that facilitate and enhance the production and use of traditional resources, as well as those that support development of market-based alternative energy sources and technologies should be continued.  

MAM opposes any state government actions regarding climate change that could adversely affect the international competitiveness of Maryland’s manufacturers.  

Increase funding for Maryland Research & Development Tax Credit  

Although resources are limited, the Governor and the General Assembly should consider increasing the funding for the state’s Research and Development Tax Credit Program, which remains under–funded at its initial funding level in 2000 of $6 million per year.   

Market Maryland’s interest in manufacturing to the world

Policymakers need to make it clear that Maryland remains committed to establishing itself on the cutting edge of a variety of 21st century industries, including aerospace, defense electronics, pharmaceuticals/life sciences, information technology and machinery.  The goal should be to promote both foreign direct investment in Maryland and to position Maryland’s manufacturers to gain domestic and export market share.