The region suffered a net loss of nearly 300 businesses during the height of the recession, the bulk of which were in suburban Maryland, new census data released Thursday show. The figures reveal that, without the federal government increasing its spending, Virginia’s suburban economy is better adapted for growth than Maryland’s. And that holds true for the post-recession as federal and state governments continue to watch their wallets, experts said.
“Until Maryland invests in economic development we’re going to continue to lag [behind] Virginia and continue to have lower levels of job growth because our engine of economic growth is idling right now,” said Richard Clinch, a University of Baltimore economist.
| Suburbs lost most businesses during recession | ||||||
| Montgomery lost most non-government employees in 2009. | ||||||
| Paid | Annual | Total | Annual | Total | Annual | |
| employees* | change | payroll | change | businesses | change | |
| District | 466,550 | 0.1% | $30.3b | -0.2% | 21,210 | 0.6% |
| Montgomery | 411,814 | -6.2% | $22.7b | -7.6% | 26,480 | -1.1% |
| Prince George’s | 247,211 | -4.7% | $10.3b | -1.9% | 14,387 | -1.8% |
| Arlington | 122,173 | 3.9% | $8.5b | 11.7% | 5,856 | 2.5% |
| Fairfax | 564,426 | -2.4% | $37.3b | -1.0% | 28,736 | 0.3% |
| Loudoun | 114,986 | 0.2% | $6.1b | 3.1% | 7,861 | -0.9% |
| Prince William | 81,776 | -4.0% | $3.0b | -1.0% | 6,876 | -0.4% |
| *Does not include government employees | ||||||
| Source: U.S. Census Bureau | ||||||
Punctuating that statement was the announcement Thursday by Rockville-based Hadpro that it was relocating its headquarters from Montgomery County to Alexandria and creating 53 new jobs for the city. Chief Operating Officer Brian Vahaly said the company, which provides kitchen exhaust cleaning services, is impressed with Virginia’s business community and saw the state as the best location for future growth.
During the height of the recession, Montgomery County’s businesses took the hardest hit between 2008 and 2009 and lost 281 establishments and more than 27,000 employees, according to the data. Prince George’s County followed, losing 267 businesses in a single year and more than 12,000 employees.
But the District and Arlington County saw their nongovernmental economies grow during 2009, the most recent year for which data is available. The two jurisdictions combined for an increase in more than 200 businesses and more than 5,000 new jobs.
Results from Northern Virginia’s outer suburbs were mixed as the number of businesses in Fairfax County increased but more than 14,000 employees lost their jobs. Loudoun County’s jobs stayed relatively steady but the number of businesses fell. Prince William County saw small declines in both categories.
Clinch said the Maryland suburbs’ private-sector growth is hampered by its tighter geography and regulatory culture when compared with Northern Virginia. Prince George’s suffers from a reputation of being difficult to develop in and Montgomery is reaching its development limit. Meanwhile, Northern Virginia — the future home of the Dulles Rail project — has room to spare.
Maryland also has historically taxed wealth “to solve social problems” and has cut economic development funding during the recession, a “policy that has disadvantaged it compared to other states,” Clinch said.
