Business Incentives Survey Yields Results

The St. Mary’s County Department of Economic Development conducted a survey with defense contractors whose companies are headquartered (Home Grown) in St. Mary’s and defense contractors who are headquartered elsewhere (Not Home Grown).

Both groups were asked the same questions about the role of business incentives to company location and expansion decisions, the frequency of solicitations companies receive from other locales, and the types of incentives offered.

The responses shed light on several matters pertaining to the use of incentives to fuel business growth and attraction. Following are some of the findings:

1. While both Home Grown and Not Home Grown defense companies thought incentives played a role in their location and expansion decisions, Not Home Grown companies ranked incentives as “very important” whereas Home Grown companies ranked incentives as “somewhat important” to their decision making process.
2. Both Home Grown and Not Home Grown defense companies routinely receive solicitations to relocate or expand in another community. Solicitations occur once or twice a year and come from communities both inside and outside of the State of Maryland.
3. When solicited, more Home Grown than Not Home Grown defense companies were offered incentives to relocate or expand into another community.
4. Both Home Grown and Not Home Grown defense companies were offered such things as tax breaks, loans, relocation assistance, and workforce development job training opportunities.
5. Home Grown defense firms stated that tax relief would be a valuable inducement whereas Not Home Grown companies sought a broader range of incentives including tax relief, salary/job sharing opportunities, and job training assistance.
6. When asked what St. Mary’s residents should expect if the County offers incentives, 100 percent of the responding Home Grown and Not Home Grown companies said the “creation or retention of jobs” is what the community should receive in return for providing incentives to a company.

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