Showing posts with label economic development. Show all posts
Showing posts with label economic development. Show all posts

Friday, February 13, 2026

A tax-and-spend warning for Maryland as 2030 fiscal disaster looms

A warning about the fiscal ruin that results from aggressive and excessive taxation and spending is coming to Maryland - and its greatest offender, Montgomery County - from a state known for its coffee, grunge music, and Communist autonomous zones. The scariest part is that Maryland and MoCo are further down this road than Washington state. But due to a series of radical left turns, the Evergreen State appears determined to adopt Maryland tax-and-spend policies at an increasing clip. The saga doesn't just remind us that we can't keep going with tape over the Check Engine light on Maryland's fiscal dashboard, but of the proven economic development boost that comes from a competitive tax policy.

"For decades, Washington state's economic advantage was its lack of a personal income tax," Ryan Frost and Mark Harmsworth write in an op-ed in The Washington Post. "Washington built its economy by attracting companies such as Microsoft and Amazon with no income tax." Some elected officials in the state have apparently grown tired of winning, though. "Washington state Democrats, who have largely controlled the state government for 40 years, are now proposing an unconstitutional income tax." Unconstitutional? I like the sound of that. Give Washington's Supreme Court credit for reaffirming that income taxes are illegal and unconstitutional way back in 1933. Where's our William J. Millard?!

Taxes can not only be illegal, but ill-advised. "Seattle recently imposed new payroll taxes, and businesses responded by relocating to neighboring cities," Frost and Harmsworth explain. "An income tax would make that exodus statewide. High earners are already leaving Washington amid the recently enacted taxes, and those moving in earn substantially less than those departing."

Maryland has already seen this happen. Montgomery County dropped off the Forbes Richest Counties in America list many years ago, and watched its vaunted "Montgomery County's Rodeo Drive" in Friendship Heights devolve into vacant storefronts, aging apartments, and smashed-up bus shelters, as the ultra-wealthy fled to lower-tax jurisdictions in the region. Businesses have relocated to Northern Virginia. And, like Washington state, the residents moving into MoCo and Maryland are mostly low-income.

But Washington state isn't just aping our massive tax burden, which is the largest in the D.C. area. They've also got the same crack addiction to spending that our County Council and state legislators have had since 2002. Washington state has a multi-billion dollar budget deficit just one year after the largest tax increase in state history. "The pattern is predictable: increase taxes, allocate the revenue to permanent new obligations and then point to the resulting 'shortfall' as justification for the next tax hike," Frost and Harmsworth summarize in a nutshell. 

Sound familiar? Annapolis started with a "millionaire tax" in 2012. Only two years after that tax hike, there were 1000 less such "millionaires" filing tax returns in Maryland, tanking state revenue. Current Maryland Governor Wes Moore walloped Marylanders with IT taxes and massive fee hikes for vehicle registration last year. The Montgomery County Council kept a disastrous energy tax and absurdist tax on the rain(!!) in place, while adding annual property tax hikes and a gargantuan recordation tax to the burden of homeowners.

And like their fellow spending junkies on the West Coast, the appetite of our elected officials to burn through taxpayer cash has only increased alongside the taxes. The Montgomery County Council has more than doubled the County budget over a mere decade. Their counterparts in Annapolis found a "permanent new obligation" in a reckless waste of money known as the "Blueprint for Maryland's Future," which is really a blueprint for teacher's union endorsements for the legislators who voted for it with the full knowledge that it would bankrupt the state in the next decade.

As Frost and Harmsworth correctly diagnose the illness, "the problem isn't that citizens aren't paying enough. It's that the government has lost the ability to say no." Have voters in Montgomery County and Maryland also lost the ability to say no to our incompetent and corrupt elected officials? Election results so far this century would suggest they have. Is there a breaking point, a level of taxation that's too high, or a realization of impending fiscal doom that can provide a smelling salts moment?

To paraphrase the op-ed authors, "Maryland is no longer a shining example of how to build a prosperous economy. It is a case study of how to dismantle one."

Thursday, February 12, 2026

Maryland is 2nd-worst state to start a business, study finds


Maryland is the second-worst state in America in which to start a business, a study by WalletHub found. Rhode Island is rated the worst of all. The latest ignoble recognition for the Old Line State is compounded by other recent rankings showing Maryland is #46 out of 50 in tax competitiveness, according to the Tax Foundation, and is way down at #36 on the list of best states to retire in - also compiled by WalletHub.

Montgomery County has the highest overall tax and fee burden in the region. What else makes Maryland a terrible place to start a business? A poor business environment, WalletHub says. That includes measurements of current small business growth statistics, job growth, variety of industries, startups per capita, five-year business survival rate, share of fast-growing firms, and the entrepreneurship index. 

Another criteria examined was the cost of doing business. Beyond high County and State taxes, that takes into account the cost of living, the cost of office space, labor costs, employer-based health insurance costs, and the corporate tax rate. Not surprisingly, Maryland scores poorly across the board on business costs.

Also considered were access to capital and a skilled workforce. This includes the amount of venture capital being invested in Maryland businesses, rankings of colleges and universities in the state, and growth of the working age population.

Which states are the best to start a business in? According to WalletHub, Florida, Utah, Texas, Oklahoma, Idaho, Mississippi, Georgia, Indiana, Nevada, and California. Better start voting for better-qualified elected officials, or rent a moving truck for your business to relocate to greener pastures.

Imagine if they had factored in the exorbitant cost of energy in Maryland! We might have dropped to dead last. As it is, we're in real trouble, folks. How many more miles can Montgomery County and Maryland go down the road with tape over the Check Engine light on the economic development dashboard? Heckuva job, Brownie!

Thursday, February 5, 2026

Montgomery County property taxes now exceed mortgage payments for many


For many years, I have written about the fact that property taxes in Montgomery County have essentially become the equivalent of a second mortgage for many homeowners. If we believe we have honest elections in the County, suffering the highest overall tax and fee burden in the region has yet to spark revolt among County voters. Would property taxes higher than your annual mortgage payment be enough to get taxpayers reaching for their proverbial torches and pitchforks? That's why I was delighted to read Chevy Chase resident Glenn Easton's letter to the editor in the rapidly-shrinking Washington Post.

Easton reported that this shocking event - the Taxological Singularity, if you will - has now taken place. "My property taxes exceed my mortgage payment and threaten my ability - and the ability of many others - to age in place in this state." He noted that the latest tax increase on his property was 13% in 2025, and have been as high as 26%. Easton has challenged assessments of his property each time, and has lost each time. Like me, Easton is "not sure why more homeowners (and voters) are not outraged."

California voters, in a very, very different era in the Golden State, led perhaps the most famous tax revolt in America since 1776. Easton called for a similar revolt and reform to that storied uprising of 1978, which led to property tax increases being capped at 2% annually.

With all County offices on the ballot once again this November, are Montgomery County taxpayers finally ready to revolt?

The County's disastrous fiscal situation indicates that change must come sooner or later, the (somewhat) easy way, or the hard way. Our tax burden must be reduced, and our master plan highway system completed, to attract high-wage jobs and corporations to the County. Montgomery County hasn't attracted a single new major corporate headquarters in over a quarter century. The only growth is in residential housing, and our structural budget deficit confirms that the costs new housing generates far exceed the tax revenue they generate.

Speaking of revenue generation, Council members have delivered multiple tax cuts to their developer sugar daddies, even as they've raised yours every single year except FY-2015 (in which the average homeowner received a whopping $12 tax cut). Perhaps inspired by the $72 million tax cut the Council delivered to developers in White Flint back in 2010, Councilmember Andrew Friedson has successfully pushed through two major tax cuts for developers in recent years. These have created massive exemptions from property taxes for projects at Metro stations and for office-to-housing conversions. The latter law is so permissive, its 20-year full property tax exemption(!!) applies to so many projects that it will blow a massive hole in County tax revenues over the next two decades. Most offensive is that these projects were going forward anyway, with the tax elimination simply an act of profiteering.

When taxes get lighter for real estate developer Friends of the Council, guess who taxes get heavier for? Yep, you the home and business owner. We can't keep shifting the tax burden to homeowners and small businesses, and we can't keep forgoing all of the lost business and commercial revenue we are losing due to our non-competitive tax burden and moribund County economy.

We also can't keep spending the way we are. Where the Council and our equally-corrupt Apple Ballot School Board are satisfied with a generously-funded school system that performs poorly, we instead need an adequately-funded school system that performs exceptionally. And an in-depth reform of profligate spending on Council-connected "non-profits" is long overdue. Many of these have organizational directors and officers who make financial contributions to Councilmember campaigns. Taxpayer money effectively ends up in the pockets of Councilmembers, and provides lucrative careers for the donors. 

The tax policies of Montgomery County are eerily reminiscent of those in Bell, California. Elected officials there ultimately ended up in prison.

Taxation is theft, to begin with. Property taxes by their nature are insidious, particularly at the almost-comically-excessive level charged in Montgomery County. If you don't pay, the government takes your home. Which means that all "private property" is effectively owned by the government, and you are paying government a rent to live there.

Enough is enough. Beyond a stagnant economy, gross incompetence by elected officials, high violent crime, and failing transportation and school systems, is a property tax that exceeds your mortgage payment enough for you to act? We'll find out on Election Night 2026.

To the barricades!

Wednesday, January 21, 2026

Montgomery County Executive Marc Elrich to hold data center community forum Feb. 3


Montgomery County Executive Marc Elrich announced today that he will host a community forum on the hot button issue of data centers on Tuesday, February 3, 2026, from 7:00 PM to 9:00 PM at the Montgomery County Executive Office Building at 101 Monroe Street in Rockville. The forum will be held in the Auditorium of the building, and will also allow virtual participation online via Microsoft Teams

Input collected from the public at the forum will be considered as the County government formulates new legislation, policies, and regulations regarding data centers. The controversial facilities are considered essential, along with ample energy resources, to the development of artificial intelligence and related economic and job growth. But the lack of jobs provided by the facilities themselves, their heavy energy use and cooling needs, imposing size, and noise pollution have generated strong community opposition. Adding to the increasing focus on data centers has been a vigorous attempt by states to divert attention from the impact of their past moves to shutter power plants and force the purchase of wind and solar power, which along with government fees have jacked up energy bills in Maryland, Virginia, Pennsylvania, and elsewhere, by placing the blame on data centers.

"Data centers are part of the modern economy, and we need to have an honest conversation about what they mean for Montgomery County," Elrich said in a statement today. "Data centers can bring investment and jobs, but they also place real demands on our power grid, our water supply, and our land use. I want residents, businesses, and environmental advocates at the table, so we need to get this right. The decisions we make now will affect our climate goals, our neighborhoods, and energy costs for years to come. This forum is about listening first and making sure any policy we adopt reflects the values and priorities of the people who live here."

Montgomery County Council President Fani-González (D-Dist. 6) and Councilmembers Balcombe (D-Dist. 2) and Sayles (D-At-Large) have already proposed a zoning text amendment that would limit data center locations to industrially-zoned sections of the county. At-Large Councilmember Evan Glass (D) has introduced his own bill, which would establish a data center task force, if passed.

Chris Burnett, a Republican running for the 6th Congressional District in Maryland, which includes part of Montgomery County, warned against the Council pursuing a "piecemeal" approach to data center regulation. "Whatever the Councilmembers decide should be aligned to a part of a strategic plan. I offer real leadership strategies instead of knee-jerk reactions and band-aid solutions through my Innovation Corridor plan," Burnett, a retired Marine Corps officer and national security lawyer, said in a statement. "The piecemeal approach being proposed is what got Virginia into the mess it's in, and we appear to be wading into the exact same scenario without any long-term solutions. This shortsighted approach that doesn't align with national security strategies will inevitably lead to short-term gains at the expense of local residents without any opportunity for strategic growth."

Tuesday, December 30, 2025

Samsung Biologics acquires GSK manufacturing facility in Rockville


Some rare good news out of Annapolis about the rare bright spot in the moribund Montgomery County economy: biotech. Samsung Biologics has just acquired the GlaxoSmithKline manufacturing facility in Rockville, Maryland Governor Wes Moore announced yesterday. GSK had announced earlier this year that it would be moving its vaccine research and development operations from that Rockville facility to Massachusetts. Samsung's acquisition will keep more than 500 existing jobs at the site, and add an unspecified number of additional jobs as Samsung adds potential production lines for other local biotech firms in the future.

Moore was hands-on in recruiting the South Korean firm. He personally met with Samsung Biologics executives earlier this year during an international trade and investment mission to Japan and South Korea to promote economic growth and workforce development. 

“We are thrilled that Samsung Biologics has selected Maryland for their first U.S. manufacturing facility, a testament to our state’s leadership in life sciences, our highly-skilled workforce and the commitment of our private and public sector to advance patient health around the globe,” Moore said in a statement Monday. “During our Asia trade mission, we were excited to share with Samsung Biologics executives the many reasons why Maryland is an ideal foothold from which the company can execute its long-term strategy to expand in the U.S. market.”


Montgomery County Executive Marc Elrich, who has targeted life sciences in his efforts to attract high-wage jobs to the County, joined Moore in celebrating the win yesterday. “The acquisition of GSK’s Rockville manufacturing campus by Samsung Biologics represents a significant achievement for Montgomery County,” Elrich said in the statement released by Moore's office. “This $280 million investment brings the world's largest contract drug manufacturer to Montgomery County, ensuring U.S.-based manufacturing continues, safeguarding over 500 current jobs, and setting the stage for further growth as Samsung boosts production capacity. It serves as a robust endorsement of the ecosystem we have cultivated, which is founded on talent, diversity, and enduring partnerships. We proudly welcome Samsung Biologics to Montgomery County, Maryland, and anticipate their contribution in enhancing our economy, workforce, and status as a global life sciences hub.”

Thursday, December 18, 2025

Italian aerospace firm chooses Virginia for rocket motor manufacturing facility


Were Maryland and Montgomery County even courting global aerospace firm Avio S.p.A in its search for a site to build a $500 million solid rocket motor manufacturing facility? We may never know. But we do know that the Italian firm has selected Virginia as the winner for the high-tech factory. The 860,000-square-foot advanced manufacturing facility will produce solid rocket motors for defense tactical and strategic propulsion, as well as commercial space propulsion sectors. 

“I want to thank Avio USA for choosing Virginia,” Governor Glenn Youngkin said in a statement. “Today’s announcement marks another exciting milestone for our aerospace and defense industry. Avio USA’s decision to build a new rocket motor manufacturing facility here is both an important investment in America’s national security infrastructure and underscores Avio USA’s confidence in Virginia.”

“Avio looks forward to establishing on U.S. soil a solid rocket motor production facility to contribute in strengthening the U.S. industrial base by providing decades of experience in engineering and manufacturing,” Avio S.p.A. CEO Giulio Ranzo said. “In particular, we are thankful for the Commonwealth and local governments’ warm welcome for our project and count on their future support for effective execution.” 

Does Maryland and its counties extend a warm welcome to aerospace firms? Not in this century. The County Council tried to run the last remaining big aerospace firm - Lockheed Martin - out of the county not once, but twice, with radical legislation that made us look like idiots after the bills received national news coverage. "We don't need the Lockheed headquarters," former Councilmember Nancy Floreen declared in the summer of 2010. 

It's no surprise that the County has failed to attract a single major new corporate headquarters in over 25 years. Or that, thanks to the highest personal and corporate tax and fee burden in the Mid-Atlantic region, Montgomery County and Maryland have effectively been in a recession for much of this century. MoCo's crime rate has risen faster and higher than its business and job growth rates as a result. Once the economic engine of the region, Montgomery County is now at or near the bottom across every major economic benchmark tracked by the federal government. Heckuva job, Brownie!

Tuesday, October 7, 2025

Heven AeroTech chooses Virginia over Maryland for new corporate HQ


Montgomery County and Maryland have failed yet again to win another corporate headquarters competition. The winner in the contest is a familiar one: Northern Virginia. Heven AeroTech is moving its U.S. headquarters from Miami to Sterling, Virginia. The firm specializes in the design, manufacture, and deployment hydrogen-powered, runway-independent drones around the world. Needless to say, this is a booming field, as drones are the future of warfare, and are also being utilized in a growing number of non-military sectors of the economy.


A quick look at the map shows once again the critical importance of having direct access to Dulles International Airport for economic development. Heven AeroTech's new HQ address, 45240 Business Court, is 4 minutes from the airport. It's also right adjacent to VA 28, in which the state has invested greatly to bring it up to interstate highway standards, by constructing numerous interchanges. That's the same VA 28 that Montgomery County and Maryland could have made a direct highway connection to via a new Potomac River crossing many years ago, but have defiantly chosen not to.

The results continue to speak for themselves. We are falling further and further behind in the game, at an accelerating pace. According to Business Facilities magazine, in Fairfax County alone, 75 of that county's 125 aerospace firms have moved or expanded there in just the last three years. Montgomery County hasn't attracted a single major new corporate headquarters - of any type - in over 25 years

Our "leaders" have made the deliberate decision to not give ourselves the Dulles advantage, and to continue to follow a tax-and-spend blueprint that is not only not competitive with rival jurisdictions, but now represents the greatest tax and fee burden in the entire region. Heckuva job, Brownie!

Wednesday, October 1, 2025

Hunger increases in Montgomery County

An unhoused person sleeps in the 
doorway of the vacant former
Sir Walter Raleigh Inn in Bethesda

Poverty, homelessness, and hunger continue to increase in Montgomery County. A new report released by the Capital Area Food Bank indicates that food insecurity in Montgomery County has increased by 1% in the last year. In contrast, hunger levels dropped in Prince George's County, the City of Alexandria, Arlington County, and Fairfax County. Food insecurity in Washington, D.C. increased by 2%.

The report was based on a survey of Washington Metropolitan Area residents conducted this spring. Most of Montgomery County's population growth in recent years has been in the low-income range. Meanwhile, the County has failed to generate high-wage jobs, and has not attracted a single new major corporate headquarters in over 25 years. The moribund economy and inflated food prices have been a devastating combination for many. Those who once turned to dollar menus at fast food restaurants to get by can no longer do so, as inflation and imposition of high minimum wages in that industry have had the desired effect of those policies' architects, to force low-income and working class residents to turn to government and non-profits for sustenance. 

Thursday, September 11, 2025

Human BioSciences fleeing Montgomery County for West Virginia


The hits just keep on coming for Montgomery County. Its moribund economy took another cannonball to the gut yesterday. Human BioSciences announced it will be the latest company to move its corporate headquarters out of Montgomery County to a lower-tax jurisdiction in the region. It will move its current HQ from 940 Clopper Road in Gaithersburg to wild, wonderful West Virginia. 

The blow is an especially painful one for the County, as the biotech industry is the only bright spot in MoCo's private sector economy. According to the Maryland Department of Labor, all Human BioSciences employees are being offered positions at the new West Virginia facility, meaning that the taxable revenue of any MoCo residents leaving with the company will also be lost to the County's coffers.


It says quite a bit about the state of business in Montgomery County and Maryland that a biotech firm would leave. Remember, the County and State both provide financial incentives and tax breaks to the biotech sector, decisions made decades ago by smarter leaders that allowed for the creation of a strong life sciences presence in the I-270 corridor. In recent years, that strength has begun to weaken. It hasn't been helped when you have the state legislature and Governor Wes Moore wallop firms that are immersed in technology with a new 3% tech tax, as of July 1 this year. 


The tech tax is piled on top of the fact that Montgomery County already suffers from the highest tax and fee burden in the region. We've seen the results over this century, as companies like Discovery Communications have fled. Only a week ago, Rocket Money announced it was moving its HQ from Silver Spring to Washington, D.C. 

Meanwhile, Northern Virginia has been cleaning our clock, Hoovering up the corporate HQs of Northrop Grumman, Amazon HQ 2, Nestle, Corporate Executive Board, Hilton Hotels, Lidl, Gerber, Lego, Intelsat, CoStar, Volkswagen, Blackboard, and General Dynamics. This is the direct result of decisions made by failed leaders who have no clue about the world of international business circa 2025. Heckuva job, Brownie!


Thursday, September 4, 2025

Rocket Money to flee Montgomery County for Washington, D.C.


The latest economic development defeat for Montgomery County is coming to us from one of the hardest-hit places in MoCo's revenue exodus, downtown Silver Spring. Rocket Money, a fintech startup located at 8455 Colesville Road, is nearing a deal to relocate its headquarters to Washington, D.C., according to a report in the Washington Business Journal. The new Rocket Money HQ is expected to be located in a recently-constructed office building at 1701 Rhode Island Avenue NW. Last home to a WeWork location, the building boasts "a unique facade constructed of pre-aged copper shingles, individually hand treated by an artisan in Italy," in the words of its architectural design firm Hickok Cole.

Silver Spring already sustained one of the biggest body blows to the Montgomery County economy in history, when one of the County's few remaining Fortune 500 companies, Discovery Communications, moved its headquarters to dual facilities in New York City and Tennessee. Infamously, Discovery's suitors quietly closed the deal while the Montgomery County Council was debating a ban on circus animals. The ban passed, but so did the opportunity to retain Discovery.


Of course, Rocket Money is not a Fortune 500 company, and has far fewer employees than Discovery. But it is a prominent fintech in the region, with significant future potential. Its parent company, Rocket Companies, has made the Fortune 500 in the past, but is currently off the list at #619 as of June. Montgomery County hasn't attracted a single new major corporate HQ in over a quarter-century.

Once again, Montgomery County's highest-in-the-region tax and fee burden has bitten the County in the [pocketbook]. Another recent and devastating blow is the new Maryland "tech tax," a 3% levy on all IT services in the state that was championed to passage by Governor Wes Moore, before he left for an Italian vacation at the lake villa of George Clooney. Imagine what that tax would add up to annually for a tech firm like Rocket Money! And that's on top of that already biggest tax burden, courtesy of the County Council and Maryland General Assembly. What company in their right mind would not move if they could? Heckuva job, Brownie!



Thursday, August 21, 2025

French laser firm chooses Virginia over Maryland for U.S. headquarters


Say it isn't so! Montgomery County and Maryland have lost yet another economic development competition to Arlington County and Virginia. French laser firm Cailabs SAS wanted to move its U.S. headquarters out of Washington, D.C., but remain in the region. It announced yesterday that it had chosen the booming Rosslyn area of Arlington as the destination for the company's U.S. operations. Cailabs will move into 4,200-square-feet of office space at the gleaming Class A office building at 1530 Wilson Boulevard. The company will also add 16 new employees.


Many of Cailabs' employees hold PhDs, and the company has filed over 25 patents. It specializes in the design and manufacturing of advanced laser-light products for the defense, aerospace, telecommunications, and manufacturing industries. The Rosslyn location provides quick access to both Reagan National and Dulles International airports, as well as Metro and I-66. Montgomery County and Maryland could have had direct access to Dulles and I-66, but chose to cancel the new Potomac River crossing to Dulles, and the Northwest Freeway, which would have connected to I-66 in Rosslyn. Doh!


Virginia Governor Glenn Youngkin toasted his victory Wednesday, as Maryland Governor Wes Moore was declared America's "most-disappointing governor" by economist Anirban Basu, and Moore's chief-of-staff jumped ship as the state's fiscal crisis continues to slam up against its moribund economy and high crime. With plummeting poll numbers, Moore could only look on with envy, in the reflection of fellow White House aspirant Youngkin's stunning laser light show across the Potomac.


“Cailabs’ decision to relocate their U.S. headquarters to Virginia shows that the Commonwealth remains the premier location for global tech companies looking to expand their footprint in the Americas,” Youngkin said in a statement yesterday. “Virginia’s exceptional talent, reliable infrastructure, and proximity to key federal and defense partners gives companies like Cailabs a strategic advantage as they continue to innovate and expand. The Commonwealth is proud to support Cailabs’ mission of paving the way to a bright future with the power of lasers.” 

“When Cailabs first decided to open a U.S. office, they chose Washington. Two years later, when they decided to stay in the US, they chose Virginia. That decision speaks volumes,” said Secretary of Commerce and Trade Juan Pablo Segura. “Logistically, economically, and strategically, Virginia remains the ideal location for tech companies looking to push boundaries and build a thriving business.” 


“Arlington cordially says ‘Bienvenue’ to Cailabs
on their decision to establish their U.S. headquarters in Rosslyn, at the heart of our nation’s capital region,” Arlington County Board Chair Takis Karantonis said. “By choosing Arlington, Cailabs joins a community where the nation’s best-prepared, innovative and talented workforce meets exceptional quality of life in an open, welcoming and forward-thinking culture. We are excited to add a leading new technology business to the dense fabric of transatlantic partnerships that connect, strengthen and advance economies, people and values. We look forward to seeing Cailabs grow and succeed here in Arlington.” 


“I’m delighted that Cailabs has chosen to relocate its U.S. headquarters to Arlington County,” said Senator Barbara Favola. “Arlington has leveraged the investments made by the Commonwealth to create a 21st century workforce. In addition to proximity to major airports and our nation’s capital, Arlington offers a world class public education system, great transit options, and a park in every neighborhood. I am sure that Cailabs will feel ‘right at home’ in the diverse and caring Arlington community.” 

Wednesday, August 13, 2025

Rheinmetall chooses Virginia over Maryland for U.S. corporate HQ


Montgomery County and Maryland are experiencing another total humiliation on the economic development front. While both have failed to attract a major new corporate headquarters this century, Fairfax County and Virginia have just beaten them once again in the high-stakes contest for yet another major defense firm HQ. This time it is Rheinmetall, the German defense giant that is experiencing off-the-charts boom times, as it is arguably the biggest winner in Germany's push to rearm and create Europe's largest and strongest military. It is also one of the companies producing the most equipment for Ukraine in its war with Russia. Rheinmetall has just leased 10,000-square feet at Metro Place II at 2600 Park Tower Drive in Merrifield in Fairfax County, where it will not only locate its U.S. hub, but also one of its U.S. subsidiaries, American Rheinmetall Munitions, Inc.


Beyond the lighter tax and regulation burden of Northern Virginia, a look at the 2600 Park Tower Drive site itself tells much of the tale of Montgomery County's loss. Metro Place II sits directly beside the highway interchange of the Capital Beltway and Interstate 66, along both of which Virginia has invested enormously in tolled Express Lanes. The Dunn Loring-Merrifield Metro station is directly across the street from the new Rheinmetall HQ. Just south of the site are US 29 and US 50, as well as the enormously-successful Mosaic District with its retail, restaurants, and movie theater. 


A short drive southeast of the new Rheinmetall HQ in Fairfax is perhaps Montgomery County's biggest and most-humiliating economic development loss to Northern Virginia of this century, the Northrop Grumman headquarters. And zooming out on the map, we find one of the biggest factors that brought both defense firms to Fairfax County: direct access to Dulles International Airport. It's the only airport in the region to boast the variety of essential global business destinations - and the frequency of direct flights to them - demanded by international business executives.


One can only shake one's head, and wonder what could have been, had Montgomery County and Maryland had smarter and more-competent leadership this century. Imagine if we had built the new Potomac River crossing, to give all of our increasingly-empty office parks in the I-270 corridor the same kind of direct access to Dulles that Virginia has. Imagine if we had built the Rockville Freeway through North Bethesda, White Flint, Aspen Hill, and Layhill, connecting I-270 with MD 355 and the InterCounty Connector, and passing directly by the many Executive Boulevard area office parks and Pike & Rose. Imagine if we had made our tax and fee burden more competitive with our rivals in the region, and our leaders had used the time they spend opining on national politics on attracting business to our county and state.


Virginia doesn't have to imagine. It's where economic development dreams regularly come true, thanks to the humiliatingly-weak and bumbling efforts on our side of the river. Montgomery County? It's where business goes to die - or flee to nearby jurisdictions before it does.


"We are proud to welcome Rheinmetall to Merrifield in Fairfax County," Fairfax County Board of Supervisors Chairman Jeffrey C. McKay said in a statement. "Our community is a place where groundbreaking innovation, national security, and global collaboration intersect, and this investment represents a powerful statement about the future of defense and technology in our region. Rheinmetall brings a bold vision and cutting-edge capabilities that align with our community’s commitment to supporting mission-driven industries and advancing solutions that keep our nation secure. We are deeply honored that Rheinmetall has chosen Fairfax County as the hub for their continued growth, as this investment will not only strengthen the strategic national security partnerships that are so vital to global progress, but also the resiliency of our local and regional economies."


"Rheinmetall’s decision to establish significant presence in the Merrifield area of Fairfax County reinforces our position as a premier destination for global defense leaders seeking proximity to federal partners, a deep bench of tech talent, and a collaborative business environment," Fairfax County Economic Development Authority President and CEO Victor Hoskins said. "The opening of our new Washington, D.C., region office spaces underscores our rapid growth and committed investment in Rheinmetall’s U.S. operations," American Rheinmetall Defense CEO Stephen Hedger added.

Thursday, July 24, 2025

Virginia wins AstraZeneca megafactory over Maryland


"There's going to be so much losing, you'll get tired of losing." We're definitely tired of losing in Montgomery County and Maryland, but Virginia just handed us another big L. Pharmaceutical giant AstraZeneca has announced it plans to build its largest global drug manufacturing facility yet in Virginia. The loss is even harder to take when you consider that AstraZeneca already has a substantial presence here in Montgomery County. How did we lose this one?

AstraZeneca's announcement is the latest victory for President Donald Trump's trade strategy, which is in part designed to bring jobs back to America. GE Appliances recently announced it would relocate some of its China manufacturing footprint to the massive factory complex at Appliance Park in Louisville, Kentucky. AstraZeneca's move is to avoid high tariffs Trump proposed for drug imports. 

Montgomery County isn't a total loser in the $50 billion investment AstraZeneca plans to make in the U.S. over the next five years: the company said it also plans to expand its Gaithersburg manufacturing facility, and to add a cell therapy manufacturing facility in Rockville. But it's simply cheaper to do business in Virginia, and the Commonwealth is quickly catching up in the regional biotech race, which has been the sole bright spot in Montgomery County's otherwise-moribund economy.

“I want to thank AstraZeneca for choosing Virginia as the cornerstone for this transformational investment in the United States,” Virginia Governor Glenn Youngkin said in a statement. “This project will set the standard for the latest technological advancements in pharmaceutical manufacturing, creating hundreds of highly skilled jobs and helping further strengthen the nation's domestic supply chain. Advanced manufacturing is at the heart of Virginia's dynamic economy, so I am thrilled that AstraZeneca, one of the world's leading pharmaceutical companies, plans to make their largest global manufacturing investment here in the Commonwealth.”  

“Today’s announcement underpins our belief in America’s innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally,” AstraZeneca Chief Executive Officer Pascal Soriot said. “It will also support our ambition to reach $80 billion in revenue by 2030. I look forward to partnering with Governor Youngkin and his team to work on our largest single manufacturing investment ever. It reflects the Commonwealth of Virginia’s desire to create highly skilled jobs in science and technology, and will strengthen the country’s domestic supply chain for medicines.” 

Thursday, July 17, 2025

Loudoun County wins ORBCOMM HQ over Montgomery County


Another economic development loss for Montgomery County and Maryland is in the books. Not surprisingly, the winner in the latest contest for a corporate headquarters is once again Northern Virginia. ORBCOMM, Inc., currently headquartered in New Rochelle, New Jersey, has announced it will locate its global HQ in Sterling, Virginia, in Loudoun County - not Montgomery County, Maryland. The "internet of things" company is focused on products and services that track, monitor, and control industrial assets around the world. It operates its own network of 31 low-Earth-orbit (LEO) satellites. ORBCOMM's clients include Walmart, Caterpillar, Hitachi, Target, Tropicana, Tyson, and Canadian National Railways.

"Virginia is proud to welcome ORBCOMM’s global headquarters to Virginia," Virginia Governor Glenn Youngkin said in a statement. "This decision highlights our commitment to innovation, workforce development, and creating an environment where advanced industries can thrive. We look forward to the economic opportunities and technological leadership ORBCOMM will bring to the Commonwealth."

"As we welcome ORBCOMM's headquarters to Sterling, I wanted to express my sincere gratitude for the significant economic impact this expansion brings to Loudoun County and the Commonwealth," Virginia State Delegate Atoosa R. Reaser said. "The creation of new jobs is a welcome development and will undoubtedly contribute to the prosperity of our community," said Delegate Atoosa R. Reaser.

Montgomery County has failed to attract a single major corporate headquarters in over 25 years. The County, and Maryland as a whole, have forgone massive amounts of potential tax revenue rather than adopt more competitive, business-friendly policies and tax rates. They have also refused to construct a new Potomac River crossing to the Dulles area that has been on the books for decades, which would provide direct access to the only local airport with the frequency of flights and variety of international business destinations that corporate executives demand. Once an economic engine of the Washington, D.C. region, Montgomery County's economy today is moribund, and the County has become a bedroom community for booming job centers elsewhere in the region.

Thursday, June 19, 2025

BioNTech layoffs ahead at Montgomery County facility


BioNTech
announced it will lay off 63 employees at its manufacturing facility in Gaithersburg on August 9, 2025. The German pharmaceutical firm acquired the facility in 2021, riding the company's financial boom from COVID-19 vaccine profits at the time. But expectations that Americans would line up once or more per year for COVID booster shots for the rest of their lives proved a mirage. 

Contrary to government declarations, the vaccine did not prevent the recipient from contracting the virus. And reports of vaccine injuries, increasing vaccine skepticism, and the Biden administration's 2022 declaration that "COVID is over" proved to be the final nails in the vaccine coffin. 

The failure of one of BioNTech's new cancer treatments in testing earlier this year was apparently the last straw, as the company has now chosen to not pursue that product line any further. BioNTech's announcement was a body blow to Montgomery County and Maryland elected officials. Biotech is the only real bright spot in the otherwise-moribund Montgomery County economy, which has failed to attract a major corporate headquarters in over 25 years, and is at, or near, rock-bottom in the region by every relevant metric of job creation, new business starts, and business growth, according to the U.S. Bureau of Labor Statistics.

Wednesday, May 21, 2025

Montgomery County, Maryland leaders embrace their downscale future


The respective moribund economies of Montgomery County and Maryland have experienced the whiplash of rapid downscaling over the first quarter of this century. As Montgomery County fell behind even Prince George's and Culpeper Counties in job creation, dropped off the Forbes 10 Richest Counties list, and saw "Montgomery County's Rodeo Drive" fade into empty storefronts and smashed-out bus shelters, the same cartel candidates kept getting reelected. They've radically recalibrated their messaging for these bleak and desperate times by embracing the lowbrow lifestyles they once condemned. Last week, Maryland Gov. Wes Moore joined them by announcing the only economic development victory of his term so far: the addition of 4000 McDonald's fast food restaurant jobs.

At first, many thought Moore's press conference was a stunt by The Onion. Karine Jean-Pierre might have referred to the livestream video as a "cheapfake." But it was all humiliatingly real. There stood the governor whom the media assured us in 2022 was a Wall Street wizard, and who fundraises for his political campaigns among financial oligarchs in the Hamptons and on Martha's Vineyard, touting burger flipping jobs as if he had won Amazon's HQ2 contest.

One wonders who is advising the governor these days. The Golden Arches press event only underlined what a failure Moore has been so far in attracting high-wage jobs and major corporations to the state. Surely his Rolodex must be bursting with corporate titans. Are they that convinced that Moore is such a poor leader and salesman, that they are unwilling to invest in Maryland, even while they imagine what Moore will do for their investment portfolios and offshore accounts as President of the United States in 2029?

Public reaction to the McDonald's "partnership" was decidedly disastrous. Incredulous, mocking tweets and memes populated social media timelines. Serious observers wondered why a future President of the United States, and current executive of a state, would be holding a press event more suggestive of a small town mayor rolling out a summer jobs program for disadvantaged youth. Mayor McCheese, perhaps.

Moore, who stresses his physical fitness at every Instagram opportunity, joined the Montgomery County Council in embracing a junk food future. As they have managed the decline that they themselves have brought about, the Councilmembers have done a 180 on health and fitness. A Council that once banned trans fats, forced fast food restaurants to post calorie counts, and even tried to adjudicate which products could be sold in vending machines in the county now has to promote a much different lifestyle.

Much like their flip-flop on natural gas - once calling it the clean fuel of the future, but more recently banning gas stoves and furnaces - the key for the Council is holding onto power, not ideological consistency. 

Montgomery County hasn't attracted a major corporate headquarters in over 25 years. It hasn't attracted many high-wage jobs at all, compared to Northern Virginia. Where the economic activity in Montgomery County is these days is a far cry from cutting the ribbon on Amazon HQ2 in Arlington or christening the new Northrop Grumman HQ in Falls Church. In the last few years, the Montgomery County Council has found itself holding giant pairs of shears outside of...mega gas stations and convenience stores.

Having warned voters of our leaders' incompetence for years, and now watching all of my predictions sadly come true...and being a huge fan of McDonald's...and watching the same Council that once raided a Wendy's and condemned the Baconator now spending the taxpayers' dime promoting Slurpees and Sizzli sandwiches, I have to say, "I'm lovin' it!"

A governor and County Council who should be asking questions like, "Where did we go wrong?" "Maybe we should cut taxes and spending instead of raising them?" or "Will you PLEASE move your Fortune 500 company to Montgomery County?" are instead asking, "Do you want fries with that?"


Tuesday, April 22, 2025

Virginia added more than twice as many jobs as Maryland in March


The economic development broken record played the same tune yet again in the Washington, D.C. region last month. Virginia destroyed Maryland in job creation once again, adding more than twice as many jobs in March 2025, according to the U.S. Bureau of Labor Statistics. Maryland added 2,300 jobs, while Virginia added 5,900 jobs. 


March's job creation numbers show Virginia's economy remained far stronger than moribund Maryland's in a month where both states were impacted by federal job cuts. The total number of actual federal positions lost remains murky, as legal injunctions or orders to rehire workers have followed many of the "DOGE" layoffs.


"This job growth reflects businesses hiring as Virginians continue to find opportunities," Virginia Governor Glenn Youngkin said in a statement. "Virginia has jobs, and we’re committed to strengthening the business environment so that everyone can find a path to success right here in the Commonwealth."

Wednesday, March 26, 2025

Watkins Cabinet Co. closes after 73 years in Montgomery County, property for sale


Watkins Cabinet Company
has closed at 18001 Sellman Road in Dickerson, after 73 years in business. Its 14,884-square-foot factory and warehouse facility has been put on the market for sale. This is a prime 1.43-acre property for an industrial/manufacturing use, as it is right on the CSX Metropolitan Subdivision tracks, part of a major freight and Amtrak route between Washington, D.C. and Chicago. That creates the opportunity for direct freight rail shipping across the nation, or to ports in Baltimore and Norfolk. 


I have suggested for many years that Montgomery County sit down with CSX and try to create attractive industrial sites alongside the railroad. This could be for the manufacture of anything from furniture to pharmaceuticals to drones. In exchange for the new freight business, CSX might then cooperate for the additional track that has been sought for use by MARC commuter rail on this line. According to the online sale listing, the asking price for the Watkins Cabinet property is $2,000,000. If Montgomery County is serious about getting the third track, these are the types of opportunities they should be investigating in partnership with CSX. Even without a third track, moribund Montgomery County needs the business and high-wage job growth.


Wilbur Watkins founded Watkins Cabinet Company in 1952. It remained family-owned for all 73 years. You might have a Watkins cabinet, vanity, bar, or bookcase in your home right now, if you live in the Washington, D.C. region.

Photos courtesy Brian Jamison Real Estate

Wednesday, March 19, 2025

Virginia beats Maryland in January job growth


Virginia hammered Maryland in job growth once again in January 2025. According to the U.S. Bureau of Labor Statistics, Virginia added 7,100 jobs in January, while Maryland only created 4,900. The BLS also revised Virginia's numbers from December upward, with the Old Dominion's jobs-added figure rising from 4,900 to 14,200. Maryland had infamously only gained a paltry 200 jobs in December.


“More Virginians are working than ever in the Commonwealth as jobs and opportunity continue to expand in Virginia,” Virginia Governor Glenn Youngkin said in a statement Tuesday. “In January, the Commonwealth added 7,100 nonfarm jobs, building on the upwardly revised job gains in December. This performance underscores the success of our pro-business policies and our ongoing focus on workforce development, which are providing Virginia companies the talent they need to grow and Virginians with the opportunities to succeed.” 

Tuesday, March 11, 2025

Argan moves corporate HQ from Rockville to Arlington, Virginia


Montgomery County has lost yet another corporate headquarters to Northern Virginia. Argan, Inc., announced yesterday that it has relocated its HQ from 1 Church Street in Rockville to Two Liberty Center in Arlington. The telecommunications and power industry service provider was founded in Rockville over two decades ago. Argan cited the new location's direct access to Dulles International Airport as one of the primary reasons for the move. The firm's stock price doubled, and surged 33% in two days at one point in 2024, and is up about $10 since then, to $104.05 as of this morning.

It's no surprise that Argan, like so many companies, is heading for greener pastures across the Potomac. Montgomery County and Maryland leaders have defiantly refused to construct the long-planned bridge across the river that would provide our own direct connection between the I-270 corridor and the Dulles area. Dulles is the only airport in the region that provides the frequency and variety of direct flights to global destinations demanded by international businesspeople. And let's fact it: Virginia's lower taxes, fewer regulations, and status as CNBC's "Top State for Business in America" certainly didn't hurt. 

Northern Virginia has other advantages for a firm that primarily deals with power plants and telecommunications infrastructure. Maryland leaders have forced the closure of 8 power plants since 2012 alone, and the state is now forced to import 40% of its electricity from out-of-state at higher prices to avoid rolling blackouts. 70% of internet traffic around the globe flows through data centers in Northern Virginia. And the Old Dominion has invested far more in highway, air transport, railroads, and ports than Maryland. It's no wonder Montgomery County has failed to attract a single new major corporate HQ in over 25 years.

"We are thrilled with the move to our new headquarters location in Arlington, Virginia," Argan CEO David Watson said in a statement. "We believe the location and layout will accommodate the Company’s continued growth, improve recruitment and retention of employees, and facilitate greater collaboration and a more productive overall work environment. The Washington metro area has a dynamic and robust economy with a quality workforce, and we look forward to leveraging our new location to enhance the experience of Argan’s current and future employees, partners and customers. The Company’s more than 22 years in Rockville, Maryland where Argan was founded, have been both meaningful and productive, and we look forward to continuing our success in our new home in Arlington."