Eastern Shore business leaders show growing optimism

Maryland’s Eastern Shore is experiencing a notable surge in business optimism, according to a recent survey conducted by Salisbury University’s Business Economic and Community Outreach Network (BEACON). Business leaders across the nine-county region are expressing increased confidence in both short-term and long-term economic prospects, despite economic challenges.

“I was surprised at how much sentiment jumped,” said John Hickman, director of BEACON. “We conducted a similar survey in December 2023, and at the time, I was surprised at just how low sentiment was. But by July, we saw a significant improvement in outlook.”

The survey, which has been tracking Eastern Shore business sentiment since June 2021, reveals that 68% of business leaders expect conditions in their county to improve over the next 12 months, a dramatic increase from 28% in December 2023. This optimism extends to the broader region, with 64% of respondents expecting better business conditions across Maryland’s Eastern Shore.

Hickman attributes this improved outlook to several factors. “In July, there was stabilization in a lot of things,” he explained. “Interest rates were starting to moderate, inflation certainly had stabilized. Prices didn’t necessarily come down, but you didn’t have this unpredictability of what it’s going to cost for supplies and wages.”

The Eastern Shore’s economic resilience stems largely from its diverse economic base, which ranges from tourism to agriculture and manufacturing.

“Throughout the area, we’re not a single industry region,” Hickman noted. “While hospitality is a big component, that’s not the only game in town. We’ve got a large food industry, both from the producer side and the processing side. The Eastern Shore is probably heavier on manufacturing than a lot of other areas.”

The region’s higher education sector is also robust, with three universities – Salisbury University, University of Maryland Eastern Shore, and Washington College – plus three community colleges serving the area. Health care is also a major employer, with hospitals ranking among the top employers in their counties, according to Hickman.

The rise of remote work has brought new opportunities to the region. According to the survey, 70% of firms now have remote workers, with 92% reporting that remote work has helped with employee retention and recruitment. This shift has particularly benefited the real estate industry, as workers from major metropolitan areas discover the Shore’s appeal.

“In almost every area of the Eastern Shore, you’ll find people who are completing remote work,” Hickman said. “All of our counties are a short drive to Washington, D.C., Philadelphia, and not necessarily short, but not a really long drive to the New York metropolitan area.”

However, this influx of remote workers has created new challenges, particularly in housing affordability. “There’s pressure on regular working families with real estate prices here just like other places in the country,” Hickman explained. “People that are working in the service industry, particularly in attractive areas like St. Michaels, Easton and Ocean City, are finding it more difficult to live close to these locations.”

Despite these challenges, business leaders are showing increased confidence in their own operations. The survey found that 83% believe their firm will be operating locally in the next five years, with 49% expecting to expand – up from just 27% in December.

Looking ahead, the region faces both opportunities and challenges. While 64% of business leaders believe America’s economy is growing, concerns about inflation, labor force issues, and financing remain significant barriers to business expansion. Insurance costs, rent/real estate prices, and payroll/benefits were cited as having the greatest impact on businesses over the past six months.

Yet the overall trajectory appears positive. The survey found that 55% of respondents believe the standard of living on the Eastern Shore will rise over the next five years. This economic strength comes from its diverse employment base – from the NASA Wallops workforce on the lower shore to manufacturing, health care and education institutions spread throughout the region.

“We’ve gone from that lack of stability to some expectation of stability. That’s what’s driving optimism in our region,” Hickman said.