DBED chief reassures executives
Johansson says state needs to tap stimulus money, harness' federal presence
This story was corrected on March 13, 2009
Maryland is well-positioned to weather the recession better than most states, with its historical reliance on the federal government's presence plus the new federal stimulus plan, the state's new economic development chief told Prince George's business leaders this week.
Christian S. Johansson, about a month into his new job as secretary of the Department of Business and Economic Development, met with the Greater Prince George's Business Roundtable in Bowie on Wednesday to run down his list of priorities for business. That includes redirecting money that had gone toward attracting new businesses to spreading the word that Maryland is still in fair economic shape, despite the national recession and loss of 4 million U.S. jobs in the past year.
"The perception is that the sky is falling, but Maryland is still outperforming the rest of the country," Johansson said, noting that Maryland's unemployment rate of 6.4 percent in January was lower than the national average, which climbed to 8.1 percent in February.
"All of our core assets gained jobs in 2008," he said. "We need to tell this story to Maryland businesses."
Johansson also emphasized the state's strategy of focusing on those core assets — life sciences, federal facilities, international companies, homeland security and minority-owned business — and finding ways to help them expand and grow, rather than hold back until the market returns.
"We need to harness the power of our federal facilities," he said, emphasizing that the state hopes to increase procurement dollars going to Maryland businesses by 10 percent.
David Byrd, Prince George's County's deputy chief administrative officer for government operations, said the county is trying to increase the presence of the General Service Administration there and is still looking to attract offices of the U.S. Department of Health and Human Services, which delayed its relocation from Montgomery County because of reduced funding.
Maryland will also be conducting workshops and seminars to show businesses how to connect with agencies doling out the $787 billion in stimulus projects, Johansson said.
Some roundtable members such as A. Leigh Williams, president of Avania Group, worried about how soon the workshops can begin, saying stimulus projects are supposed to start as soon as possible. Johansson assured her the state would be ready within the month but would also need some business organizations and businesses that already attended the workshops to spread the word.
Williams also reminded Johansson to find ways of reaching small businesses that may not be able to afford to join business organizations. Johansson said larger businesses already have ways of connecting with agencies, so state programs will focus on small businesses.
Roger R. Blunt, another roundtable member and president of Essex Construction, said the state also needs to improve its support of businesses trying to obtain credit for projects. Business owners have stated numerous difficulties with credit, with some describing fluctuating rates among lenders that result in their disqualification.
"We need to form strategic alliances," Blunt said.
Arguing that more money is needed to move along projects including large developments in Laurel and Camp Springs, Byrd peppered Johansson with questions about the county's share of the $610 million in federal stimulus money Maryland received for roads. The state awarded Prince George's $1 million of the county's $400 million request.
Both Konterra Town Center, the 2,220-acre mixed-used development southwest of Laurel city and the Westphalia development near Andrews Air Force Base, which is to include 3 million square feet of new commercial space, require improvements to access roads.
"Basic road projects equal economic development," Byrd said.