Tomorrow's editorials: Maryland loses Black & Decker headquarters
Here's a preview of an editorial we're working on. Let us know what you think. The best comments will appear alongside it in the print edition.
The news that Black & Decker's merger with Stanley Works will result in the loss of yet another of the Baltimore area's Fortune 500 corporate headquarters is sure to set off another round of civic tooth-gnashing about why the city always seems to be on the losing end of these transactions. But this deal is no occasion to bemoan Maryland's business climate or to compare ourselves to such supposed corporate havens as Dallas.
For starters, this deal had nothing to do with Maryland and everything to do with what looks like a natural marriage between two big players in the same industry. Stanley effectively brought more money to the table, so it gets to keep its home turf.
For another thing, the question shouldn't be whether Maryland is hanging on to these established companies but whether it is incubating the next generation of corporate giants. With the state's stellar educational system and burgeoning high-tech industries, particularly centered around the biosciences, we have the opportunity to develop the titans of tomorrow -- provided we keep our focus on nurturing our intellectual capital.
Certainly, the loss of jobs and philanthropy that goes with Black & Decker will be a blow, but if there's something to get upset about for the long term, it's not this merger but the news last week that the Department of Energy had awarded grants to 37 efforts to produce breakthroughs in renewable energy production -- none of them in Maryland. If there's news to be excited about, it's that Maryland researchers were awarded more than 400 National Institutes of Health grants to pursue their work under the federal stimulus program. Those are the kinds of developments that will determine how prosperous we are in the future.
Comments
Andy staying properous could also mean cutting business taxes. Maryland's high taxes
4th in the country
and unhealthy business climate
45th in the country
drives out more businesses and
keeps more businesses out than anything us. And let's not forget Maryland's shoddy reputation as a state to do business in.
I know this is a buyout/consolidation but once again you are making excuses for the Liberals running this state who quite frankly don't know a dam thing on how to run a business. There is a fine line between taxing properly and driving away business and Annapolis certainly is doing its part to drive away business from the Free State.
Posted by: jay | November 3, 2009 12:52 PM
Andy,
You raise a valid point. " we have the opportunity to develop the titans of tomorrow -- provided we keep our focus on nurturing our intellectual capital. "
However, in keeping with the agricultural motiff, what is MD doing to maintain a fertile business feild to plant our intellectual seedings or prevent other states (by interstate recruiment) from harveting our talent?
Has any Fortune 500 or Fortune 1000 companies have moved their headquarters to MD because of our bumper crop of intellectual talent? My guess is no. When was the last MD start up that caught fire that didn't move out of state to a friendlier business climate (watching Under Armor and wating for them to make the jump)?
Not everyone wants to work for the government which is MD only growing employer.
Posted by: Waiting for the Sun to Set | November 3, 2009 12:58 PM
Black and Decker is leaving but EDF is going to pitch its tent here. I can't say if one cancels out the other because the two are apple and orange. It is not entirely true that Maryland has a stellar educational system. You just reported that Maryland's school assessment test did not measure up to national standards and students are not being prepared here to compete internationally. High tech, centered around the biosciences has little chance of leading to the creation of corporate giants like Black and Decker and other manufacturing industries. Progress is slow in the biosciences. The process of discovering, testing and getting FDA approval for drugs and diagnostic tests emerging from biotech labs is laborious. The manufacturing plants that would produce these drugs and biologicals may operate outside Maryland and not benefit our state one bit. I wouldn't place my bet on the future. Considering the here and now, the loss of Black and Decker is a tragedy. I personally know people who work for this Maryland corporation. They will be out of jobs. Those who worked for Provident Bank are still scrambling because of the M&T Provident Bank merger. Now this. The long term consequences for Maryland are dwarfed by the immediate human toll exacted by these cold and calculated corporate moves. I wonder what happens to the human casualties, especially the middle aged ones who sacrifice their entire lives for a company and then are let go with a sudden blow to their careers and aspirations. Where do they go, how do they survive?
Caravan
Posted by: Caravan | November 3, 2009 4:15 PM
Jay -
Clearly Black & Decker and Stanley merged as a rebuke towards Liberals running this state (which had nothing to do with their 518 million profit from 2008). Therefore, business taxes should be lowered.
That of course would mean it would be individual taxpayer would have to make up the differnce in tax revenue to the state.
Step right up, Jay.
Posted by: Paul_D | November 3, 2009 4:58 PM
Jay is spot on--
Over taxed, Unfriendly to business, and anyone that even remotely makes themselves a success...Not mentioned is the loss of 33 miliionaires this year in MD and the negative effect that has on the projected revenue stream--
I work with big businesses and I can tell you that if it made any sense to keep B & D in MD they would have done albeit with perhaps some reductions....that said, the more likely scenario is that the accountants and lawyers looked at MD and said--Heck no.
Posted by: carlhk1 | November 4, 2009 8:03 AM