Maryland’s alarming slide from 22nd to 31st place in CNBC’s 2024 Top States for Business rankings is more than a statistic — it’s a glaring warning sign about our state’s economic competitiveness. This significant drop demands immediate attention and decisive action from policymakers, business leaders and all stakeholders invested in Maryland’s economic future.

Gov. Wes Moore has consistently emphasized the importance of making Maryland more competitive, focusing on creating work, wages and wealth for all Marylanders. Our current ranking not only undermines these goals but also threatens our state’s economic future. To realize the governor’s vision of a thriving, inclusive economy, we must address the underlying issues that have led to this decline.

Our fall is particularly concerning in three key areas: business friendliness (from 24th to 37th), infrastructure (from 15th to 37th) and a stagnant workforce ranking (28th). Most alarmingly, Maryland ranks 47th for the cost of doing business, making it the fourth-most-expensive state for businesses to operate in. These rankings matter. They influence business decisions on where to locate, expand or invest. And the rankings aren’t just about business sentiment — they reflect tangible challenges affecting job creation, wage growth and overall quality of life.

To reverse this alarming trend and align with Gov. Wes Moore’s vision of promoting work, wages and wealth for all Marylanders, we propose the Moore-Miller administration and Maryland General Assembly take immediate action on four main priorities:

Improving business friendliness: We must reduce costs and bureaucratic burdens on businesses. This includes streamlining regulations, creating a more predictable regulatory environment and reviewing business-related fees for potential reductions. A more business-friendly Maryland will attract new companies and encourage existing ones to expand, leading to job growth and economic prosperity.

Enhancing infrastructure: Our dramatic fall in infrastructure rankings from 15th to 37th demands immediate attention. This category encompasses factors including roads, bridges, ports, airports, utilities, development sites and more. We must enhance infrastructure to support business growth by implementing permitting reform, easing construction regulations and prioritizing efficient systems across all sectors. The recent Key Bridge collapse highlights the dramatic impact our infrastructure has on our economy, business environment and lives. These improvements will not only attract businesses but also enhance quality of life for all Marylanders.

Adopting tax reforms: We must adopt tax reforms, including cuts to the corporate tax rate, to stimulate business growth and investment. Competitive tax rates are a proven catalyst for economic expansion, attracting new businesses and encouraging existing ones to grow. This approach doesn’t just benefit corporations — it expands the overall tax base through increased economic activity, added jobs and investment.

Enhancing our workforce: Despite our excellent educational institutions, our workforce ranking has stagnated. We must enhance our workforce through programs that attract and retain residents, like military retirement tax credits, that support workforce development to meet evolving industry needs and improve our state’s talent pipeline.

These recommendations represent a comprehensive approach to creating a thriving economy that benefits all Marylanders. A competitive business environment leads to more jobs, higher wages and increased tax revenue to fund critical programs — without leading to higher costs for businesses and residents.

As we consider these reforms, we must address our state’s fiscal challenges. While budget deficits loom, Maryland’s current financial struggles stem more from spending issues related to unfunded mandates than revenue shortfalls. Increasing taxes on businesses may seem like a quick fix, but it will backfire, driving away jobs and ultimately reducing tax revenue long term.

Instead, we urge our state to create policies that attract and retain businesses, naturally expanding the tax base and creating more high-quality jobs. By cultivating a more business-friendly climate, we can attract companies that contribute significantly to our communities through workforce development, philanthropy and volunteerism.

The path to improved competitiveness doesn’t mean sacrificing our values or quality of life. We need to build on Maryland’s strengths — our highly educated workforce, strategic location and excellent living standards — while addressing our weaknesses.

The time for action is now. We call on all stakeholders to come together and address this urgent issue. Say “yes” to improving our business friendliness, enhancing infrastructure and developing our workforce. Say “no” to higher costs, burdensome regulations and short-sighted tax increases that could drive businesses away.

Let’s work together to not only make Maryland more competitive but to create a state where businesses and their communities can thrive. Our state’s economic future depends on the choices we make today.

Mary D. Kane (mkane@mdchamber.org) is president and CEO of the Maryland Chamber of Commerce, an organization that serves as the leading voice for business in Maryland and represents more than 7,000 member businesses in every industry across the state.