Business is pretty good in the Free State.
At least that’s what Maryland businesses reported in the recently released quarterly report called the Maryland Business Climate Survey.
Each quarter, the University of Baltimore’s Jacob France Institute surveys 250 businesses to get a handle on revenue, employment and income trends at companies.
They also survey the companies for their business outlook and ideas on how to improve Maryland’s business climate.
This year companies reported Maryland is a great state to do business, according to Matthew Kachura, economic development research manager of the Jacob France Institute.
The results marked the first time in the survey?s six-year history that more than 70 percent of Maryland business tagged the state pro-business.
“The percentage of firms rating the business climate in Maryland as being pro-business or business friendly climbed to a record high in the third quarter of 2006,” the report stated.
“Nearly three of every four firms surveyed in the third quarter rated Maryland as bring pro-business or business friendly,” the report stated.
Kachura said the positive attitude of businesses are linked to overall positive economic trends.
Developments such as interest rates being relatively low, fuel prices dropping and the potential for work related to an influx of military jobs and contracts fuels business optimism, Kachura said.
“When you see that sort of optimism from firms, it creates positive trends.”
Despite the optimism, 72 percent of Maryland companies reported that they expect revenue growth in the coming year, that’s down from 75 percent in the second quarter of 2006.
And 60 percent of Maryland companies expect employment growth in the coming year. That?s down from 70 percent in the second quarter of 2006.
Kachura said the drop could be tied to cautious optimism.
“It is a sort of realism that things are going very well now but we may need to reduce our expansion.”
Baltimore City businesses tend to be less optimistic about the business climate.
Only 62 percent of firms in Baltimore City have a positive view of the business climate in 2006, compared to 70 percent of firms in the Baltimore Metro Area, 69 percent of firms in the Washington suburbs and 64 percent of firms in the rest of the state.
