The Baltimore-Washington region ranks second in the country for total information technology employment, with nearly 270,000 employed in the industry.
The Baltimore region, historically a manufacturing and distribution hub, is transitioning to one of the healthiest U.S. tech markets, according to the Economic Alliance of Greater Baltimore’s IT Report.
“This report really tells a story about the region,” said Brad McDearman, executive vice president of EAGB and manager of the report.
“Our economy is completely rebuilding.”
Since 2000, the Baltimore-Washington region has added about 111,000 jobs in the IT industry, ranking first in the country in growth.
With federal government agencies like Ft. Meade, the National Security Agency and Aberdeen Proving Ground and IT/defense contractors like Northrop Grumman and Lockheed Martin based in Greater Baltimore and the Washington suburbs, the region has outpaced IT hubs like Silicon Valley and Boston.
“The message we heard from the region’s IT professionals over and over was, ‘We have to be here to serve the market,’” McDearman said. “They can’t do it from Silicon Valley or Boston.”
Scientific research and development services and computer systems design and related services are the two fastest growing industries in the region, outpacing educational services and hospitals, according to the report.
The transition to a tech market is evident in incomes, as well. Since 2000, the Baltimore region’s per capita personal income has increased nearly 36 percent to $45,200, according to the Bureau of Economic Analysis. By comparison, Boston and San Jose’s per capita personal incomes have increased by 30 percent and 10 percent, respectively.
The average salary for IT professionals in the Baltimore-Washington region is more than $81,000 a year, according to the Dice Report, a career Web site for technology and engineering professionals.
“None of this report includes the future impact of [Base Realignment and Closure],” McDearman said, “so these numbers are only going to go up.”
The report was researched earlier this year as the state’s IT community rallied for the repeal of the 6 percent tax on computer services. The tax was ultimately repealed, and many think the process educated elected officials on the importance of the IT industry to Maryland’s economy.
“We firmly believe that the tax would have been very damaging in the long run to new business development for Maryland, and for existing businesses in Maryland,” said John Eckenrode, president of Baltimore-based CPSI. “Many of us in computer services are now committed to keeping good relationships with the lawmakers in Annapolis.”
Tech Employment
Region Employment
1. New York 333,280
2. Baltimore-Washington 269,770
3. San Francisco-San Jose 193,140
4. Los Angeles 169,870
5. Boston 149,542
6. Chicago 136,320
7. Dallas-Fort Worth 116,620
8. Seattle 98,260
9. Philadelphia 92,400
10. Atlanta 84,462
Source: Economic Alliance of Greater Baltimore
Annual meeting
The Economic Alliance of Greater Baltimore will release its Information Technology Industry Report on Tuesday night at its annual meeting at the Hyatt Regency Baltimore. Registration for the event is still open at www.greaterbaltimore.org.
