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H_1975_EconomicBaseStudy
ECONOM, -Al rn IC BASE,.STUDY r" sr • �' _ � _ � tom, t, ,-": lk kol WASHINGTON' OUNTY • 41 sr PLANNING NINE CO MISSION k WASHINGTON COUNTY Comp-telteivsive Paan - EC;ment6 - Comp•tehensive Han A synopsis ob Goats and Objectives, Pnobtems and Oppontun.ities, Potici.eb, Action Ptans and Composite Han Maps Nan Etements Land Use Water and TtanepoAtation Housing Community Facitities Pa,%ks and Open Sotid Waste PPstn Sewerage Ptan PPltn and Serviceb Pian Space Phut Plan PCan 1 Sackr,, vcwtd Studies 1 H.i.Us.i.de H.i.3ton,ica.0 rhe NaturaY Popufatien Hottsirtg Tnanbpontation Parks and The Use o6 Community Devetopment Pevspeetives Envixonmeni Open Space Lcutd Facit ties EnvZt-weyttae and SeAv.iceA AncZj.sis ECONOMIC BASE STUDY WASHINGTON COUNTY PLANNING COMMISSION } PENNSYLVANIA z> s; WASHINGTON COUNTY PLANNING COMMISSION J 0 J V + w++J- COURT HOUSE ANNEX, 24 SUMMIT AVENUE TELEPHONE v u HAGERSTOWN, MARYLAND 21740 791-3065 f E Honorable Martin L. Snook Washington County Board of County Commissioners Court House Annex Hagerstown, Maryland 21740 Dear Commissioner Snook, The Washington County Planning Commission is pleased to submit this report entitled, Economic Base Study, to the Washington County Board of County Commis- sioners as a preliminary phase of the revision of the Comprehensive Plan. The purpose of this document is to recognize the economics of Washington County, as required to update The Plan For The Count . This report, in conjunction with subsequent reports, is designed -to be used as a guide for suture development and will provide a sound basis for the Com- prehensive Plan. DRF:dac Sincerely, Donald R. Frush Chairman I ACKNOWLEDGEMENTS THE WASHINGTON COUNTY BOARD OF COUNTY COMMISSIONERS Martin L. Snook, President W. Keller Nigh, III, Vice President R. Lee Downey William J. Dwyer Burton R. Hoffman Contributors THE WASHINGTON COUNTY PLANNING COMMISSION Donald R. Frush, Chairman William E. Dorsey, Vice Chairman John C. Herbst Paul W. Hoffman David W. Sowers Barbara B. Whitcomb W. Keller Nigh, III, Ex -Officio Robert B. Garver, Project Planner Alan R. Musselman, Planning Director Thomas E. Van Dyke, Assistant Planner, Photography Bonnie V. Lewis, Draftsperson Jeanette Kauffman, Draftsperson Denise A. Coley, Secretary, Organization, Clerical The preparation of this report was financed in part through a Comprehensive Planning grant from the Department of Housing and Urban Development as administered by the Maryland Department of State Planning. TABLE OF CONTENTS Transmittal Letter ............................. I Table of Contents .............................. III List of Tables ................................. V List of Charts ................................. IX List of Maps ................................... g Introduction - Economic History ............•''•• 1 Geography, Economics, Land Use ........ 9 Washington County Economic Indicators .......... 17 Migration... oo-o ... o .............. 19 Land Values and Transfers ................. 21 Per Capita Assessable Base ................ 24 Standard of Living ........................ 26 Financial Institutions .................... 29 Labor Force ............................... 30 Unemployment.............................. 38 Employment................................ 42 Industrial Sectors .....•.....o••••••• 42 III Occupational Sectors 51 Sector Employment ............................. 60 Income........................................ 62 EconomicSectors .............................. 72 Development Indicators ............................. 113 Economic Base Analysis .,,,,..,.....,.......•••.•••• 133 Gap Analysis ....................................... 151 Income Multiplier .................................. 157 Local Government - Fiscal Health ................... 163 Geographic Trends in Economic Development .......... 183 Economic Development Action ........................ 199 Bibliography ....................................... 211 IV LIST OF TABLES 1. Socio-economic Statistical Profile .................... 14 2. Migratory Pattern for WashingtonCounty............... 20 3. Real Estate Basis ..................................... 21 4. Land Transfers ........................................ 22 5. Per Capita Assessable Base ............................ 23 6. Comparison Standard of Living Data (1970) ............. 27 7. Financial Institutions ................................ 29 8. Labor Force Characteristics vs. Employment Characteristics by Election District .................. 31 9. Labor Force Participation ............................. 34 10. Percent Change in Labor Force ......................... 34 11. Female Labor Force .................................... 36 12. Average Annual Unemployment Rates (1960-1974) ......... 38 13. Unemployment Washington County ........................ 39 14. Employment and Employment Change by Components, 1940-1970 ................................. 44 15. Occupation Groups ..................................... 52 16. Occupation/Comparative Areas .......................... 58 V LIST OF TABLES (CONTINUED) 17. Female Occupation Composition ............................ 59 18. Trends in Estimated Sector Employment, 1964-1973 ......... 61 19. Per Capita Income ........................................ 63 20. Family Income Characteristics ............................ 66 21. Family Income ............................................ 70 22. Median Earnings of Individuals of Selected Income Groups................................................... 71 23. Farms, Land Area, Size, Value Per Farm, Value Per Acre...................................................... 76 24. Value of Agricultural Products Sold ...................... 77 25. Development in Washington County ......................... 81 26. Selected Measures of Manufacturing ....................... 83 27. Value Added by Manufacture ............................... 84 28. Distribution of Manufacturing Establishments ............. 86 29. List of Major Industries - Washington County ............. 88 30. Wholesale Trade .......................................... 100 31. Retail Trade ............................................. 102 32. Retail Trade Establishments .... ........................ 104 33. Selected Services, 1948-1972 ............................. 108 34. Selected Services ......................................... 109 VI LIST OF TABLES (CONTINUED) 35. Area Designation Characteristics, 1970 .................. 117 36. Industrial and Employment Structure Indicators, 1970 .................................................... 119 37. Socio-economic Status Indicators, 1970 .................. 121 38. Indicators of Social Overhead Capital Supply, 1970 .................................................... 122 39. Indicators of Local Effort, 1970 ........................ 124 40. Indicators of Distress for Washington County, 1970-1972 ............................................... 127 41. Environmental Quality Indicators, 1970 .................. 128 42. Growth Indicators, 1970 ................................. 130 43. Summary of Development Indicators, 1970 ................. 131 44. Economic Base Analysis of Washington County ............. 137 45. Shift -Share Analysis of Washington County's Major Industrial Sectors, 1960-1970 ..................... 142 46. Shift -Share Analysis of Washington County's Manufacturing Sector, 1960-1970 ......................... 144 47. Shift -Share Analysis of Washington County's Manufacturing Sector, 1970-1972 ......................... 147 48. Shift -Share Analysis of Washington County's Major Industrial Sectors, 1970-1972 ..................... 148 49. Income Gap Analysis ..................................... 154 VII LIST OF TABLES (CONTINUED) 50. Sources of Personal Income ............................. 160 51. Historical Tax Rates ................................... 166 52. Maryland Tax Rates (Fiscal 1976) ....................... 167 53. Tax Rate (Municipalities) .............................. 168 54. 1974 Fiscal Revenues ................................... 169 55. Washington County Disbursements (Fiscal 1974) .......... 173 56. Expenditures of County Government (Per Capita) Fiscal 1974 ..................................96.0..0... 176 57. Employment Growth - County Government .................. 181 58. Economic Development Reference Index ................... 207 VIII LIST OF CHARTS 1. Distribution of Employment (1970) by Percent Composition ........... 47 2. Occupational Distribution (1970) by Percent Composition ............ 54 3. Value Per Acre Farm Land, 1959-1969 ........... ..................... 73 4. Average Value Per Acre Farm Land, 1965-1974 ........................ 74 5. Value Per Farm, 1959-1969 .......................................... 75 6. Wholesale Trade for Selected Years ................................. 101 7. Retail Trade ....................................................... 105 8. Distribution of Retail Trade, 1970 ................................. 107 9. Washington County Receipts, Fiscal 1974 ............................ 170 10. Washington County Disbursements, Fiscal 1974 ....................... 172 11. Washington County - Revenues and Expenditures, 1966-1967 - 1974-1975.......................................................... 174 IX LIST OF MAPS 1. The Region......................................................... 12 2. Per Capita Assessable Base ......................................... 24 3. Units Lacking Critical Requirements ................................ 28 4. Dependency Ratio ................................................... 32 5. Median Family Income..................0............................ 65 6. Percent Families Below Poverty Level ............................... 67 7. Percent Change in Median Family Income ............................. 69 8. Washington County Transportation Network ........................... 97 9. Washington County Election Districts and Planning Sectors .......... 186 10. Washington County Industrial Site Index ............................ 188 V C L C e L L L L L L L Introduction— Economic History Introduction - Economic History Most economically viable communities exist because they offer, in varying degrees of advantageous geographic settings, the effective inter- relationships of the economic factors of land, labor, capital, and entreprenurial effort. The most prosperous areas are those that offer the most favorable climate for the production, consumption, exchange, and distribution of goods and services. Many favorable economic environments are due to well endowed natural features, such as location, unique resources, and unique opportunities. Whether or not a geographic area has any or a number of such advantages, its overall economy can be strengthened by intelligent planning. Planning therefore, requires as a foundation an analysis of the economy of the area. "Thus it is possible to understand the forces which have created and sustained the locality so that positive and effective plans can be installed to insure a sound and prosperous socioeconomic future." Economically, Washington County was an agrarian society as the first white settlers located in the area. As the population migrated westward, local- ities within the County established themselves as trade centers. 3 Commerce in the region was further enhanced, when the federal government in 1806 started construction of the Cumberland Road, from Hagerstown to the Ohio Valley. This important link of the Baltimore Pike or National Pike connected Hagerstown and Washington County to markets to both the east and west, and increased trade and prosperity in the area. Hagerstown became the principal trade center in the County. Concurrently the first mail carrying stage coaches began to operate, and in 1822 the first industrial activity began in the County with establishment of the Antietam Iron Works near Sharpsburg. Two additional significant factors that influenced Washington County were the development of the Baltimore and Ohio Railroad and the Chesapeake and Ohio Canal. These forms of transportation increased Washington County's role as an important trade center. Population growth between 1830 and 1840 was approximately 15 percent, a percentage increase that was greater than both the State and nation. The middle years of the nineteenth century saw Washington County's economy continue to its ascendency and to flourish until the post -Civil War era. 4 The national depression of the early 1870's reflected in Washington County in the diminution of industrial activity. Migration from the area was induced as persons reeked employment elsewhere. Railroad development continued, and by 1870, population and vitality again were increasing in Washington County. The Baltimore and Ohio Railroad expanded its services to the County, and in 1872 the Western Maryland Railway began its operations in the -County. This expansion encouraged the establishment of other businesses, industries and manufacturing firms including lumber yards, feed mills, furniture manufactures, machinery shops, brick manufacture, and an organ manufacture. In the early 1900's the prosperity continued, with the development of iron works, shoe factories, industrial machinery, and chemical factories. The trend continued into the following decade when additional firms where established producing ribbons, leather products, lumber, apparel, furniture, and publishing. The depression of the 1930's was also, as expected, reflected in the local economy, with a decline in industrial activity. Aircraft manufacturing was introduced to the community in this era, and was soon to dominate manufac- turing activity in the County. As aircraft manufacturing expanded, dependence ur)on the facilties increased. Supplemental firms originated, and soon the area was 0 predominately dependent upon aircraft manufacturing. After the Korean War, demand for aircraft was reduced, and consequently aircraft production in Washington County diminished. Unemployment was high due to 50 percent of the manufacturing employment was related to aircraft production. The fifties continued with unemployment being of a prime concern locally. The sixties displayed prosperity due to an influx of new industry including a large truck manufacture. In addition, the formation of the Washington County Economic Development Commission encouraged the establishment of industrial parks throughout the County. New industry began to locate, and of significance is the diversification of employment, thus reducing the dominance of the transporta- tion manufacturing. Continued expansion of local industry and location of new industry has continued since 1970 to the present. New industry includes transportation, ware- housing, paint and plaster manufactures, and a utility building manufacture. Local industrial activity should continue to expand with local and State government providing encouragement and incentives for new industry to locate within the County. 0 In the development of the Comprehensive Plan,.a thorough knowledge of the economics of Washington County is imperative. The analysis of the economic characteristics, historical and current trends, will play an important role in defining the community and provide a basis on which to establish community economic goals and objectives. The methodology of this report has made use of numerous sources as to achieve a microscopic and macroscopic spectrum of Washington County's economy. The most current available information has been used in the analysis and it is suggested that in order to'maximize the usefulness of this text, that it be kept current through periodic updating by including new data as it becomes available. 7 t L L Geography,- Economics, Land Use L L L L L L L u L L Geogra hy, Economics, Land Use Washington County is located in the west -central part of the State of Maryland, and together with Allegany and Garrett Counties is regionally referred to as "Western Maryland." Physiographically, Washington County is situated in the Blue Ridge, and Ridge and Valley Provinces. As the titles of these provinces imply, the topography of the County is quite varied. The easternmost Appalachian range is the Blue Ridge, which forms the eastern boundary of the "Great Valley". The "Hagerstown Valley" as it is referred to locally, consists of nearly half the land area in the County and is predominately level and moderately sloping. The Valley "is bounded on the west by steep mountainous and narrow valleys which characterize the Ridge and Valley Provinence. A significant factor is that approximately 30 percent of Washington County has a greater slope than 15 percent, which is generally accepted as a practical limitation for moderate density development. Land with greater slope than 25 percent is normally considered as unbuildable, as is usually reserved as open space. In Washington County there are approximately 8,000 acres that have a greater slope than 25 percent. 11 THE REGION Politically, Washington County is bounded by three states, and/or nine counties, which include Franklin and Fulton of Pennsylvania; Jefferson, Berkley, and Morgan of West Virginia; and Loudon County of Virginia. Within Maryland, Allegany County borders Washington County on the west, and Frederick County to the east. Washington County regional location can be further defined in the approximate distances to the major metropolitan areas: Baltimore, Maryland ............. 70 Boston, Massachusetts........... 474 Cleveland, Ohio ................. 290 New York City:., ................ 240 Norfolk, Virginia ............... 260 Philadelphia, Pennsylvania...... 150 Pittsburg, Pennsylvania......... 165 Raleigh, North Carolina......... 310 Roanoke, Virginia ............... 220 Washington, D.C. 70 The geography and the County's proximity to eastern markets, has shaped the socio-economic history of Washington County. Review of the following table, Socio-economic Statistical Profile of Washington County, identifies and compares the County to Statewide County statistics. The comparative value column gives Washington County's rank in each of the eleven indicators as it compares among Maryland's 24 counties. In 13 comparison to other Maryland counties, Washington County compares favorably in almost all categories, except in unemployment rates and average growth rate in median family incomes. Washington County's economic development, therefore is progressing favorably in comparison with other counties in the State of Maryland. Socio-economic Stastical Profile Washington County Population Per Square Mile Median Age Percentage Urban Population Labor Force Participation Rate Unemployment Rate Percentage White Collar Employment Per Capita Income Percentage Households Below Poverty Level Net Migration Rate Average Annual Employment Growth Rate Average Growth Rate in Median Family Income Comparative Statistic Value 226.0 8th 29.2 11th 40.4% 8th 37.8% 14th 4.3% 7th* 40.6% 13th $2,795 13th 12.5% 14th 4.1% 12th 1.9% 12th 5.5% 20th * 7th highest in the State Source: Economic Development in Western Maryland. Washington County consists of 462 square miles, and is the eighth largest County in the State of Maryland. Approximately 65 percent of the 462 square miles are devoted to agricultural production. Despite the trend of 14 decreasing agrarian land use and increasing urban land, Washington County is primarily agriculture in character. However, dile to migration and development, areas once considered agricultural are now becoming urbanized. Commercial and industrial land use consist of 1.1 percent and .5 percent respectively. Resi- dential, both low density and high density comprise 8.4 percent, while institutional consists of .7 percent, governmental 3.9 percent, recreation 5.7 percent, and vacant represents 12.5 percent of the land use in Washington County. Existing and planned land use will significantly influence community growth and development. This may be accomplished through adequate reservation and diversity of land use, functional safe design and distribution of land use, effec- tive use and development of land sites, adequate employment to meet demands, and adequately programmed public facilities. 15 Economic Indicators Migration Migration is a major source of population growth, in addition to natural increases. Migration affects not only the total number of people in a geographic area, but has the effect of changing the composition of the population as well. As substantial population changes occur, migration will -be a signifi- cant portion of those changes. As demand for employment increases in a certain geographic area, migration will be the result of persons seeking new employment. Migration is an indicator, and reflects the economic health of a community, due to its attractions in the quality and quantity of employment Since 194-1 there has been a net total migration of 12,450 persons to Washington County. This figure accounts for 36.7 percent of population growth in the County since 1941. Between 1940 and 1949 the net migration rate was 2.6, 1950-1959 it was 2.9, and 1960 to 1970 it was 5.1. Since migratory patterns determine local growth factors, the ramifica- tions of economic development must be considered in programming new development and housing trends. 19 Migratory Pattern for Washington Count Source: Technical Report, Housing -Urban Research and Development Corporation 20 Migration Miqration Rate Growth Rate Po2tlation Growth (No. of Persons) (Net) (Net) (No. of Persons) 1941 284 4.3 13.9 69,809 1942 636 9.2 21.1 71,287 1943 166 2.3 12.6 72,192 1944 148 2.1 11.9 73,055 1945 414 5.7 14.9 74,150 1946 288 4.0 16.6 75,384 1947 - 613 - 8.0 8.1 76,000 1948 - 127 - 1.5 11.2 76,857 1949 62 1.18 13.5 77,900 1950 360 4.8 15.8 79,134 1951 348 4.5 16.0 80,408 1952 594 7.5 19.3 81,960 1953 - 325 - 3.9 6.8 82,523 1954 831 10.2 22.9 84,421 1955 - 521 - 6.0 6.8 85,000 1956 391 4.0 17.2 86,464 1957 - 129 - 1.3 11.0 87,422 1958 612 7.1 19.1 89,100 1959 518 5.9 16.7 90,588 1960 - 4 - 0.0 10.1 91,509 1961 628 6.9 17.7 93,137 1962 295 3.2 14.5 94,489 1963 - 141 - 1.5 8.8 95,327 1964 - 212 - 2.0 9.0 96,185 1965 969 10.1 18.4 97,961 1966 351 3.7 11.8 99,117 1967 281 2.9 10.9 100,204 1968 832 8.3 15.2 101,734 1969 265 2.6 9.8 102,736 1970 249 2.5 9.8 103,763 Source: Technical Report, Housing -Urban Research and Development Corporation 20 L f1 Land Values and Transfers Land value is an indicator of the net worth of local real estate. A progressive increase in land values identifies an increase in new and existing development, and is a illustrater of the health of the local economy. The fol- lowing table identifies the total real estate basis for Washington County from 1962 thru 1974. 1974 - $706,361,480 1973 - 586;798;117 1972 - 550,187,725 1971 - 521,187,725 1970 - 499,175,725 1969 - 470,440,400 1968 - 442,507,692 1967 - 402,146,008 1966 - 380,942,592 1965 - 366,276,767 1964 - 353,099,125 1963 - 322,795,917 1962 - 302,489,683 Source: Assessment Office Washington County's total land value has increased 133.5 percent or more than double in the last twelve years. Land transfers indicate the extent of local real estate activity. The 21 following chart gives the total land transfers for 1963 thru 1974. 1974 - 2,765 1973 - 3,037 1972 - 2,931 1971 - 2,730 1970 - 2,334 1969 - 2,440 1968 - 2,498 1967 - 2,431 1966 - 2,567 1965 - 2,727 1964 - 2,427 1963 - 2,474 Source: Assessment Office Total land transfers have generally been within 2,400 to 2,800,. although 1972 and 1973 were exceptions in which the number of transfers was in the 3,000'x. There seems to be a correlation between the number of transfers and the total land value. This is indicative of subdivision and transfers of land for development or improvement, which in essence increase the land value, thus a proportional increase l in total land value. 7 7 22 Per Capita Assessable Base The per capita assessable base is an objective, composite, economic, indicator of the value of housing, commerce, industry, and the value of land of a given area, at a per capita ratio. Per capita assessable base is com- piled by taking the total assessed value of a given area of land, including all improvements, and dividing by the total populous of the same given area. The per capita assessable base for Washington County is $6,540.02. Using this figure as a norm, and in review of the table Per Capita Assessable Base, it is readily apparent that only one municipality and eleven election districts exceed the $6,540.02 figure. The map titled Per Capita Assessable Base visu- ally shows by screening those election districts having low and high per capita assessable base. Per Capita Assessible Base E.D. Est. Pop. Assessable Base Per Capita 1 Sharpsburg 2095 $12,434,010 $ 5935,09 2 Williamsport 4212 28,701,950 6814.33 3 Hagerstown 9676 37,392,300 3864.44 4 Clear Spring 2111 12,523,000 5932.26 5 Hancock 3683 20,468,590 5557.59 6 Boonsboro 3524 21,207,160 6017.92 7 Cavetown 3574 23,210,500 6494.26 8 Rohrersville 1614 7,851,900 4864.87 9 Leitersburg 2425 24,388,100 10056.95 23 $ 2,000 3,999 S 4000 - 5999 $ 6000 7999 $ 8000 9999 $ 10,000 13,999 $ 14,000 15,999 WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS PER CAPITA ASSESSABLE BASE SOURCE : ASSESSMENT OFFICE 24 ........... 0 ) 1 2 3 4 6-m SCALE Towns Boonsboro E. D. Est. Pop. Assessable Base Per Capita 499 10 Funkstown 5079 $48,604,510 $ 9569.70 11 Sandy Hook 1440 6,592,300 4577.99 *12 Tilghmanton 3689 10,516,300 2850.72 13 Conococheague 4505 30,018,300 6663.33 *14 Ringgold 4951 12,015,200 2426.82 15 Indian Springs 1643 6,729,300 4095.74 16 Beaver Creek 2365 13,667,400 5779.03 17 Hagerstown 5906 39,285,500 6651.79 18 Chewsville 5714 43,444,100 7603.10 19. Keedysville 1044 6,840,500 6552.20 20 Downsville 1471 8,583,000 5834.81 21 Hagerstown 6530 50,405,330 7719.04 22 Hagerstown 6107 25,248,600 4134.07 23 Wilson 2819 15,827,690 5614.65 24 Cedar Lawn 900 7,091,090 7878.99 25 Hagerstown 9738 38,961,200 4000.94 26 Halfway 8276 64,640,950 7810.65 27 Fountain Head 5875 89,712,700 15270.25 County 110546 706,361,480 6389.75 Less Person in Group Quarters 108006 706,361,480 6540.02 Towns Boonsboro 1410 11,646,800 8260.14 Clear Spring 499 1,984,400 3976.75 Funkstown 1051 4,916,050 4677.50 Hancock 1832 11,537,800 6297.93 Keedsyville 431 2,631,250 6104.99 Sharpsburg 833 3,477,400 4174.55 Smithsburg 671 4,069,000 6064.08 Williamsport 2270 13,646,880 6011.84 Hagerstown 37357 191,292,930 5120.67 * Adjusted Figures 12 Tilghmanton 1820 10,516,300 5778.19 14 Ringgold 4280 12,015,200 2807.29 Source: Assessment Office 25 Standard of Living The data presented in the chart titled, Comparison Standard of Living Data, identifies selected criteria which generally exemplify those standards which depict a high quality of living. This quality of standard of living is generally associated with employment types of the community, and portion of salary, that may be disposed for those products. The comparisons have been developed so that an association may be made between Washington County and other counties within the State of Maryland. In review of the components it may be noted that Washington County compares favorably with Allegany and Frederick, although there is some disparity between Washington County and Montgomery County. An additional standard of living index is delineated on the map titled The Percentage of Those Housing Units Lacking Critical Re uirements. Critical requirements is defined by the Census of Housing as "units lacking complete plumbing or units lacking built-in heating systems" or those standards which determine the adequacy of a housing unit. The following map identifies by MCD* the percentages of housing units lacking those critical requirements. *Minor Civil Divisions 26 Comparison Standard of Living Data (1970) (Percent Dwellings having Products) *Note : Inclusion of Montgomery due to nationally accepted high r1-ty standard of living. Source: U.S. Census of Housing, 1970. 27 Alle2any Frederick Mont omery* Washington All Plumbing Facilities 92.8`'' 89.2 98.9 90.2 Complete Kitchen 95.6 94.8 99.3 94.2 Complete Bathroom 91.6 88.1 98.7 88.8 Air Conditioned 18.1 34.6 79.8 29.3 Central Heat 85.3 78.6 97.3 86.8 Telephone Available 87.5 86.5 97.3 85.8 Automobile Available A) 1 53.2 50.1 40.2 50.4 B) 2 or more 26.1 37.0 53.3 32.5 Clothes Washing Machine 84.9 80.0 74.9 76.0 Clothes Dryer 54.6 45.3 60.5 41.8 Dishwasher 9.6 19.8 59.5 11.2 Home Food Freezer 23.2 47.9 31.5 33.2 Television 95.4 96.9 97.9 94.9 Owned Second Home 4.7 4.6 6.0 3.9 *Note : Inclusion of Montgomery due to nationally accepted high r1-ty standard of living. Source: U.S. Census of Housing, 1970. 27 WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS UNITS LACKING CRITICAL REQUIREMENTS BY PROPORTION OF TOTAL HOUSING UNITS 12.0 12.1 -25.0 251 -37.0 37.1- 49.0 49.1 SOURCE U.S. CENSUS qqw 0 1 2 3 4 F/FTH COUNT SUMMARY TAPES SCALE 28 C L L C F Financial Institutions An indicator of the fiscal health of a local economy is the assets of the banking and lending institutions conterminous to the areas. The capabilities of the financial institutions are representative of an areas economy. The following diagram reproduced from the Statement of Condition of the respective institutions gives their total liabilities, reserves, and capital funds. L First National Bank of Maryland Maryland National Bank First Federal Savings and Loan Association Home Federal Savings and Loan Association Farmers and Merchants Bank Hagerstown Trust Company Washington County National Savings Bank Antietam Bank Company Boonsboro Bank Hancock Bank Citizens Bank of Keedysville People's National Bank Sharpsburg Bank Total Liabilities, Reserves and Capital Funds i ' 29 $1,122,460,000.00 2,209,092,382.00 70,936,639.84 52,043,307.28 47,532,572.35 59,315,044.84 13,802,808.33 2,303,318.90 7,830,208.15 9,384,376.32 3,733,050.06 8,863,214.39 4,973,295.18 $3,612,270,217.64 Labor Force The labor force, by definition, is the portion of the population of working age (18-64) that is employed or unemployed and is seeking or capable of employment. The size of the labor force is proportioned to the age distribution of the population of a given geographical area. Other factors in determining labor force are the dependency ratio within the labor force, and the proportioned sex ratio of the entire population. The review and analysis of labor force trends can give an indication of the availability of personnel to participate within the labor force. This partici- pation within the labor force is referred to as employment, and the disparity between the labor force and employment is unemployment. The following chart titled Labor Force Characteristics vs. Employment Characteristics identifies labor force and employment by election district, and in addition gives the male-female ratios. The accompanying map displays dependency ratios by MCD's, or the number of persons under 18 and over 64 per 1,000 persons between the ages of 18 and 64, or those ages normally considered productive. Age dependency ratios are useful 30 E. D. LABOR FORCE CHARACTERISTICS VS. EMPLOYMENT CHARACTERISTICS L.F. MALES FEMALE EMPLOYMENT MALE FEMALE # 1 Sharpsburg 830 567 263 785 527 258 # 2 Williamsport 1494 1005 489 1435 965 470 # 3 Hagerstown 3748 2311 1437 3515 2204 1311 # 4 Clear Spring 791 525 266 774 513 261 # 5 Hancock 1487 897 590 1357 834 523 # 6 Boonsboro 1531 956 575 1506 962 544 # 7 Smithsburg 1437 975 462 1386 935 451 # 8 Rohrersvil1e 517 379 138 511 373 138 # 9 Leitersburg 851 574 277 803 549 254 #10 Funkstown 2123 1354 769 2062 1311 751 #11 Sandy Hook 502 340 162 475 313 162 #12 Fairplay 749 526 223 715 512 203 #13 Maugansville 1666 1051 615 1587 1039 548 #14 Ringgold 1992 1490 502 907 #15 Indian Springs 937 419 158 541 481 130 #16 Beaver Creek 913 568 345 895 560 335 #17 Hagerstown 2312 1350 962 2225 1318 907 #18 Chewsville 2199 1455 744 2131 1403 728 #19 Keedysville 356 254 102 342 245 97 #20 Downsville 446 300 146 454 300 154 #21 Hagerstown 2503 1620 883 2434 1572 862 #22 Hagerstown 2480 1534 946 2347 1480 867 #23 Wilson 1002 722 280 974 708 266 #24 Cedar Lawn 364 207 157 364 212 152 #25 Hagerstown 3867 2408 1459 3663 2290 1373 #26 Halfway 3270 2097 1173 3218 2067 1151 #27 Fountain Head 2148 1526 622 2125 1512 613 Washington County 42,155 27,410 14,745 39,531* 25,699 13,882 Hagerstown 14,910 9,223 5,687 14,184 8,864 5,320 State of Maryland 1.655,695 1,035,924 619,771 1,552,747 956,645 5.96,102 *includes ages 14 and 15 SOURCE: Income & Employment Characteristics, Maryland Department State Planning 31 WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS DEPENDENCY RATIO Under 50 50.0 - 59.9 60.0 - 69.9 70.0 - 79.9 80.0 - 99.9 SOURCE: ACE B MOBILITY CHARACTER/ST/CS IN MARYLAND DEPARTMENT STATE PLANNING 32 0 1 2 3 4 SCALE for approximating the size of the dependent population relative to the popula- tion in the productive age groups. In the determination of the adequacy or inadequacy of the existing labor supply, these factors will be significant indicators for economic development. In addition, by using the aforementioned criteria, one may determine the labor force participation ratio for a geograph- ic area. As previously stated, the labor force participation is between 18 and 64 years of age, although higher participation rates may be expected for those ages associated with family support (i.e. 25 to 50 years of age). The follow- ing chart, (Labor Force Participation) identifies labor force characteristics for Washington County and comparisons between state and national criteria for 1960 and 1970. 33 LABOR FORCE PARTICIPATION 1960 PARTICIPATION LABOR FORCE 18-64 AGE GROUP RATIO Washington County 35,386 51,326 68:9 Maryland 1,190,791 1,742,588 68:3 United States 68,144,079 99,464,000 68:5 1970 Washington County 43,185 59,260 72:9 Maryland 1,468,109 2,114,000 69:4 United States 80,733,000 112,987,000 71:4 PERCENT CHANGE IN LABOR FORCE & AGE GROUP Washington County Maryland United States 1960-1970 Labor Force 18-64 Age Group 22.0% 13.6% 23. 3% 21.3% 18.50 15.4% Source: Appalachian Maryland Development Plan 34 L L L f L In review of this information it is to be noted that Washington County's labor force growth rates exceeded the national rates and are only slightly below state levels. From the comparison of the labor force growth rates to the increases in the populous in the labor force age group (18-64) it can be concluded that the labor force in Washington County has expanded at a more accelerated rate than the popu- lation in the labor force age group, thus increasing the participation ratio. This occurance may be indicative of the increasing participation of females -in the labor force. These participation rates for women, in general, reflect birth propensities,(i.e. as females choose employment in increasing numbers during the 25 to 34 age bracket, the time when most births are concentrated) there will be a reduction in birth rates. Furthermore, women are remaining in or returning to the labor market. The labor force participation rates for women have been increasing generally, but not as rapidly for single, divorced, or widowed women as for mar- ried women. Females with a husband present, and having children over the age of six have the greatest participation rate. In 1970, almost two thirds of the female labor force was composed of married women with husbands present in the family. 35 FEMALE LABOR FORCE I I I � I I *Regional Growth Area Source: Appalachian Maryland Development Plan In review of female labor force statistics, it is apparent that there is an increasing percentage of females in the labor force, although the proportion of the local labor force is lower than State percentages. Washington County's participation ratio has and continues to exceed both the State and National ratios, and furthermore, the County's percentage of rate increase was more rapid than either the State or Nation. This achievement of a labor force participation ratio comparable to state and national norms does not necessarily imply any equality of productivity, wages, or income structure; nor does it give any indication of the economic structure. Thus, labor force 36 % OF TOTAL FEMALE LABOR FORCE Washington County 14,583 35.6 Hagerstown RGA* 12,329 34.7 Hancock RGA* 590 39.7 State 616,988 37.3 *Regional Growth Area Source: Appalachian Maryland Development Plan In review of female labor force statistics, it is apparent that there is an increasing percentage of females in the labor force, although the proportion of the local labor force is lower than State percentages. Washington County's participation ratio has and continues to exceed both the State and National ratios, and furthermore, the County's percentage of rate increase was more rapid than either the State or Nation. This achievement of a labor force participation ratio comparable to state and national norms does not necessarily imply any equality of productivity, wages, or income structure; nor does it give any indication of the economic structure. Thus, labor force 36 participation is an indicator of the quantity of the populous employed in the labor force, relative to those persons available for employment in a given geographic area; and is not an indicator in respect to the quality of employment or the levels of employment or unemployment. It is conceivable to have a relatively favorable labor force participation ratio concurrent with a high unemployment rate, although a high unemployment rate would eventually effec- tively diminish the positive implications generally associated with a large labor force. In addition, high unemployment would add to the dependency ratio, whereas a segment of the populous would be drawing their economic support from a decreasing volume of employment through some source of transfer of payments. As a result of the unemployment, the per capita income will be lower than comparable areas and could be expected to increase at a slower rate than if there were full employment. The County's labor force in 1972 consisted of approximately 43,688 persons of whom 40,603 were employed; and between 1960 and 1970 the labor force increased from 35,386 to 43,185 persons. This was a ten year gain of 22.0 per- cent in the local labor force, which is indicative of an attraction to an expanding labor force. 37 Unemployment Unemployment is those -persons in the labor force, who are presently unemployed and are seeking employment. Recent unemployment rates show that Washington County's rates have been proportionally high as compared to state rates, although they have fluctuated in a parallel fashion to the State rates. Annual Average Unemployment Rates (1960-1974) 60 62 66 67 68 69 70* 71 72 73 United States 5.5 5.5 3.8 3.8 3.6 3.5 4.9 5.9 5.6 4.9 Maryland 5.6 7.9 4.6 5.2 5.8 3.0 3.7 4.6 4.7 4.1 Washington County 10.7 6.4 3.4 4.5 5.8 4.3 6.6 8.4 6.7 5.3 *Note: Compilation of data determined from place of residency since 1970. Prior to this, unemployment figures were derived from place of employment. Source: Maryland Department of Employment and Social Services, Employment Security Administration. 2- 38 -•. L L Unemployment - Washington County 39 Number of Number of Persons Persons 1960 3,865 1969 2,020 1962 2,320 1970 2,890 1966 1,410 1971 3,655 1967 1,930 1972 2,810 1968 2,520 1973 2,310 Source: Maryland Department of Employment and Social Services, Employment Security Administration. K In 1950 Washington County had an unemployment rate of 1.6 percent, with 550 persons unemployed. These figures represent almost full employment, and reflect the dependence upon the war related aircraft industry at that time. In L the early fifties unemployment was as low as 1.0 percent, but as demands for war related aircraft tappered off, unemployment began to rise. Unemployment in 1955 was up to 3.4 percent, and in 1958, 8.3 percent. Unemployment reached its pin- nacle in 1960 at a double digit 10.7 percent. The average unemployment rates k declined steadily between 1962 and 1969, excluding 1968. This decline may be L 39 attributed to the location of a large truck manufacturer in the. -Hagerstown area. Unemployment in the sixties had a low of 3.4 percent or 1,410 persons unemployed in 1966. Unemployment in the seventies has reflected a general rise in unemploy- ment nationally, although again local unemployment rates have exceeded those at State and national levels. Since 1970 the lowest unemployment rate has been 5.3 percent, or 2,310 persons unemployed in Washington County. Trends reveal a steady growth in the labor force during recent years, which can account in part for the unemployment, however, the number of unemployed in the labor force has consistently increased on an annual basis. The general direction and magnitude of unemployment in Washington County cannot be attributed solely to economic cyclic conditions, but rather, they are structural in origin. There has been a history of substantial unemployment in Washington County that has exceeded 6 percent in 8 years since 1960. Unemployment figures do not identify the seasonality of the local economy, but reflect the average unemployment over a twelve month period. Gener- ally employment is at its peak in the early months of autumn, and at its low 40 point in the final months of winter. Contributing to the high employment period are the transportation, communication, and utility industries, which reflect the resumption of activities in the autumn, after a summer slow down. Retail trade sales and employment are invariably up throughout holidays and manufacturing of gift items have high employment prior to holiday seasons. In February construc- tion employment is usually at its low point due to weather conditions. A certain degree of seasonal variation in employment levels is an., inherent characteristic of nearly all types of economic indeavors, and in this regard, Washington County is not unique in comparison to other national patterns. 41 Employment Employment is the largest and most important aspect of the labor force This segment is the productive portion of the labor force, which consists of those persons having, generally, the highest earning and purchasing power in the local economy. Employment creates needs for other employment, due to the demand for products and services. In review of employment, there are two approaches; discussion by indus- trial sector, and discussion by occupation sector. Washington County's total employment from each perspective will be the same, although the approach and analysis will be different. The conclusion of each approach will be to denote each sector and trends within the County. Employment by Industrial Sectors Washington County's total employment of 39,199 will be reviewed first by industrial sectors. The industrial sectors (in this discussion industrial is not to be confused with manufacturing, but signifies a classification of employment) consists of ten components, which will be identified and discussed independently. The components of the industrial sectors include basic or goods producing indus- 42 tries, and supporting or service producing industries. The basic sectors con- sist of agriculture, construction, mining, manufacturing, transportation, and communication and utilities. Service producing industries include wholesale trade, retail trade, service industry and public administration. It is the interrelationships of the sectors that form the economic structure of the local economy. The following chart entitled Employment and Employment Change by Components, shows the employment structure by industrial sector for decennial periods, and the percent increase by sector for each decennium. In addition, the diagram, Distribution of Employment, visually identifies the employment sectors and the profile of the total employment. In the review of local employment sectors, a brief critique will be given to determine the sectors influence on the local economy. Agriculture The initiator of basic industry in Washington County was agriculture. Originally agriculture was of the subsistence type only, but through development of a complex economic structure, agriculture became more commercially oriented. Agriculture, which includes forestry and fisheries, has experienced a gradual 43 EMPLOYMENT AND EMPLOYMENT CHANGE BY = TOLIENTS Washington County, Maryland: 1940 - 1970 Source: U.S. Census - Characteristics oi'the Population, 1970. 44 1940-1950 1950-1960 1960-1970 1940 1950 % Change 1960 % Change 1970 8 Change Basic Industries (Goods Producing) Agriculture, Forestry & Fisheries 3,434 2,692 - 24.1 1,976 - 26.6 1,550 - 21.6 Mining 110 107 - 2.7 84 - 21.5 127 51.2 Contract Construction 1,046 1,751 67.4 1,900 8.5 2,860 50.5 Manufacturing 6,394 10,004 56.5 10,119 1.1 12,700 25.5 Food & Kindred Products 463 516 11.2 634 22.9 321 - 49.3 Textile Products 1,238 1,339 8.2 1,404 4.9 1,994 42.0 Lumber, Wood, Furniture 599 762 27.2 809 6.2 668 - 17.4 Printing & Publishing Manufacturing 231 352 52.4 552 56.8 746 35.1 Chemicals & Allied Mfg. 92 198 115.2 147 25.8 127 - 13.6 Electrical, Other Machinery Mfg. 661 1,175 77.8 1,438 22.4 2,870 99.6 Other Trans. Equip. Mfg. 520 3,342 542.7 2,871 - 14.1 3,772 31.4 Other-& Misc.-Mfg. 2,590 2,320 - 10.4 2,264 2.4 2,202 - 2.7 R.R. & Railway Express 1,543 2,021 31.0 1,794 - 11.2 1,216 - 32.2 Trucking & Warehousing 245 442 80.4 619 40.0 645 4.2 Other Transportation 216 285 31.9 266 - 6.7 273 2.6 Communications 188 282 50.0 281 -- .3 497 76.9 Utilities & San. Service 348 569 63.5 625 9.8 986 57.8 Supporting Industries (Service Producing) Wholesale Trade 472 909 92.6 1,013 11.4 1,454 43.5 Food & Dairy Stores - 762 897 17.7 803 - 10.5 1,003 24.9 Eating & Drinking Places 457 812 77.7 817 0.6 985 20.6 Other Retail Trade 1,958 2,856 45.8 3,423 19.9 4,051 18.3 Finances, Insurance, Real Estate 483 633 31.1 857 35.4 1,309 52.7 Private Households 1,040 804 22.7 737 - 8.3 498 - 32.4 Business & Repair --Services 457 645 41.1 615 - 4.7 694 12.8 Entertainment, Recreation Services 158 230 45.5 232 - .8 197 - 15.1 Other Personal Services 896 999 11.5 907 9.2 1,078 18.9 Hospital, Health Services 733 693 - 5.5 1,878 171.0 Education 1,232 797 56.9 1,426 78.9 2,268 59.0 Welfare, Reglious, Professional i_ 404 j_ 1,198 196.5 1,154 - 3.7 Public Administration 505 777 53.9 1,220 57.0 1,776 45.6 Industry Not Reported 526 276 47.5 839 204.0 ---- - - - Total 22,581 29,925 32.6 32,444 8.4 39,199 20.8 Source: U.S. Census - Characteristics oi'the Population, 1970. 44 C C decline in employment, having a 21.6 percent decrease from 1960 to 1970; and since 1940 there has been a 56.3 percent decrease in agricultural employment. In 1940 agricultural employment consisted of 15.7 percent of the work force, which has declined to the present 4.0 percent (1,550) of the work force. It can be expected that agricultural employment trends will continue, although not at as high a rate, in the future; as technology increases the capability of farm machinery, and as the number of farms and acreage of:farmland con- tinues to diminish. IMining Industry The mining industry in Washington County was originally com- prised of shale, iron ore and manganese. Today the mining industry has a relatively small impact on the County's economy. Mining employment consists of 127 or .3 percent of total employment. This represents a 51.2 percent increase from 1960. Although this percentage is impressive, this denotes a numerical increase of only 43 additional mining employees in a decade. Although mining represents a small portion of the County's work force, the potential for additional forms of mineral extraction exists with the abundance of silica sand, limestone, and shale. 45 Construction The construction industry has been one of the most successful sectors in Washington County, having a 50.5 percent increase from 1960 to 1970, although this sector is susceptible to economic flucuations and seasonality. Since 1940 the construction industry has grown 173.4 percent, when it cons-'ated of 4.6 per- cent of total employment, to the present 7.3 percent of total employment. The growth pattern of the local construction industry should continue to oscillate, due to local and national economic flucuations, although progressively expanding, especially as community facilities expand to accommodate new development. Manufacturing The manufacturing sector is the most dominant sector of Washington County's economy. The manufacturing sector consists of the following: food and kindred products, textile products, lumber, wood, and furniture products, printing and publishing, chemicals and allied products, transportation equipment and other miscellaneous manufacturing. Washington County is dependent upon the manufacturing sector as an employment and economic base. The manufacturing sec - for consists of 32.4 percent of the total employment, which is a 25.5 percent growth from 1960, and a 98.6 percent growth from 1940, when manufacturing 46 co& a7 ,c (250) MINING 3% (12 7) A4 URE 01% (1550) P'�g0' 11411.5 O��'[ 11.E CIO DISTRIBUTION OF EMPLOYMENT (1970) BY PERCENT COMPOSITION 47 COMVAUt0CAT E "C u'T'Ll� 1E5 ki48 WHOLESALE TRA[)E 3.7 (1454) J VUH'C.0 U. 5, Gt N5 US (/970) POPUL A T/ON CHARACTERISTICS employment consisted of 28.3 of the total employment. Manufacturing will most likely continue to command the local economy, due to Washington County's prox- imity to metropolitan markets and the excellent -transportation network. Transportation The transportation sector comprises 5.4 percent of the total employ- ment and includes railroad and railway express, trucking and warehousing, and other transportation. There has been some slight flucuation, with a net decrease in railroad and railway express in Washington County. This may be attributed to national trends of railroads in general. Trucking and warehousing, although showing only a 4.2 percent gain in the last decade, should progress as a major segment within the transportation sector. The existing highway transportation network and additional manufacturing development probably will be the stimulants for mote trucking and warehousing activity and, therefore, additional employment in the County. Communications, Utilities, Sanitary Services Communications, utilities, and sanitary services is the final sec - for of the basic industry. Communications has expanded employment showing a 76.9 48 f L percent increase from 1960 to 1970. In addition utilities and sanitary services have grown 57.8 percent in the same period. Combined, communications, utilities, and sanitary services comprise 3.8 percent of the total employment, an increase over the 2.4 percent in 1940. The second segment for discussion is the supporting or service industries. Growth of supporting industries should continue, as statistics for the State show employment for supporting industries at twice the level of basic industries, a ratio not equaled in Washington County. Wholesale Trade The wholesale trade sector has had continuous growth, although a pro- portionally small sector, conprising 3.7 percent of the total employment. In 1970, the wholesale trade sector has an employment growth of 43.5 percent from 1960. Retail Trade Retail trade has grown proportionally with the basic or goods producing industries. The retail trade components consist of food and dairy stores, eating i and drinking places, and other retail trade. The retail trade sector consists of 49 15.4 percent of the total employment, and had an average growth of 21.3 percent from 1960 to 1970. The retail trade, should as a supporting industry, continue to grow proportionally to the basic industry growth. Service Industry The service industry includes finance, insurance, real estate, per- sonal services, private households, business and repair services, entertainment, recreational services, hospital, health services, education, welfare, religions, and professional services. The service sector consists of 23.2 percent of the total employment. Although.this sector is a major segment, the individual sec- tors have grown as much as 171 percent, and others have decreased as much as 32.4 percent. The service industry is vulnerable to economic and sociological demands, and in which certain segments may unpredictably rise or decline. Public Administration The final sector is public administration which consists of 4.5 percent of the total employment in 1970 compared to 2.2 percent in 1940. Public adminis- tration growth in Washington County grew 45.6 percent between 1960 and 1970. These sectors, when consolidated, form the local employment structure of Washington County, which today consists of 39,199 total employment. 50 Employment by Occupational Sectors The second perspective is the type of employment in which the populous is engaged. The categories consist of professional and technical, managers and administrators, sales workers, clerical and kindred, craftsman and foremen, operatives, laborers and foremen, and service workers. Professional and Technical In 1970 the professional and technical fields consisted of 11.4 percent of the local employment, compared to 5.8 percent in 1940. Between 1960 and 1970 there was a 53.8 percent increase in the professional and technical employment, and since 1940, there has been 239.3 percent increase in the professional and technical fields. The growth in the professional and technical field may be cross-referenced to the manufacturing sector's growth and need for technical ser- vices. Managers and Adminstrators Managers and administrators constitute 7.5 percent of the local employ- ment. The rate of employment growth for this sector has fluctuated, but there 51 OCCUPATION GROUPS 52 % Change % Change % Change 1940 1940-50 1950 1950-60 1960 1960-70 1970 Professional, Technical 1,317 60.6 2,115 27.2 2,905 53.8 4,468 Managers & Administrators 1,836 38.5 2,542 - 5.7 2,398 22.1 2,929 Sales Workers 2,192 18.2 2,590 - 7.7 2,391 3,411 Clerical & Kindred L 31316 25.2 4,150 47.9 6,138 Craftsmen, Foremen 3,211 72.8 5,549 - 8.5 5,078 39.7 7,093 Operatives 5,253 30.5 6,854 4.9 7,194 16.7 8,395 Laborers 1,481 16.3 1,722 - 8.1 1,583 2.9 1,630 Farmers & Farm Managers 1,636 -15.2 1,387 -31.5 950 -27.3 691 p Farm Labors & Foremen 1,860 -33.4 1,238 -29.5 872 -24.5 658 fll Service Workers 2,250 23.5 2,771 27.9 3,546 35.5 4,806 Not Reported 326 239 _1,178 Total 22,581 29,925 32,444 39,199 52 has been an overall net growth of 59.5 percent since 1940, and a 22.1 percent growth in the last decennium. Growth in this sector may be attributed to the growth of the retail sector of the economy. Sales Workers R Sales workers account for 6.1 percent of the County employment. The component has fluctuated and has had a slight decrease of 7.7 percent over the last ten years, although there has been a net gain of 9.1 percent since 1950. The pattern of sales employment may be the effect of economic trends, although with new retail trade centers in the County, it may be projected that employment within this sector should again increase. Clerical and Kindred Clerical and kindred workers in 1970 consisted of 15.7 percent of the local work force, which is a 47.9 percent increase since 1960. Since clerical and kindred workers are supplemental staff, any increase in other employment sectors would have a proportional influence on clerical and kindred employment. It may be expected that increases in this employment sector will continue as the economy expands. 53 SALES 610/6 (2391) OCCUPATIONAL DISTRIBUTION (1970) BY PERCENT COMPOSITION 9-IRCE : U. S. CENSUS (/970) POPULATION CHARACTER/ST/CS tf HOUSEHOLD COQ WORKERS ado\° 1.4% (536) 5401 a Craftsmen and Foremen Craftsmen and foremen make up 18.1 percent of the total 1970 employment Craftsmen and foremen classifications-, which are associated with the manufacturing and warehousing sectors have shown corresponding increases and decreases. The last decade showed a 39.70 percent increase, although there was an 8.5 percent decrease from 1950-1960. The 1940's saw a 72.8 percent increase which can be attributed to the growth in airplane manufacturing locally. Employment growth in this sector has grown 120.9 percent since 1940. Operatives Operatives, or those associated in mechanical operations, in 1970 consisted of 21.4 percent of the employment. Operatives are the consequence of additional manufacturing employment, as are craftsmen and foremen. Operatives have grown consistently through the last three decades, with the largest increase of 30.5 percent from 1940-1950. The 1960-1970 period showed a 16.7 percent increase in employment of operatives. 55 Laborers The laborer classification, or that supplemental to most retail, whole- sale, and manufacturing sectors has fluctuated in the past, although having a net gain of 10.1 percent growth over 30 years. The need for laborers will continue to exist as economic development continues, although susceptible to economic fluctuations. Farmers, Farm Managers, Laborers The next two employment sectors will be discussed concurrently, due to their similarity in character of employment; and in addition,both sectors have similar statistical trends. The sectors include farmers and farm managers, and farm laborers and foremen. Both sectors have, as has agriculture related employment, shown a consistent decline since 1940, with farm laborers and foremen having as high as a 33.4 percent decrease in employment between 1940 and 1950; and farmers and farm managers showing a decrease of 31.5 percent between 1950 and 1960. Ir the last decade farmers and farm managers decreased 27.3 percent, while farm laborers and foreman decreased 24.5 percent. The net thirty year decrease for both sectors was 57.8 percent and 64.6 percent respectively, These figures coincide with the previously discussed agricultural sector figure in which there has been a 56.3 percent decrease since 1940. W Service Workers The final sector is the service workers, which in this discussion also includes household workers. Service personnel, which is generally associated with service industry, has had stable growth in most sectors. Service workers comprise 12.3 percent of the total Washington County employment, and has shown a 35.5 percent growth over the last ten year period. To summarize, employment in Washington County has shown a net growth from 1940 to 1970 of 16,618 or 73.6 percent over the last thirty years. These represent total growth and include declines in certain sectors, and increases in other sectors. Growth was the greatest between 1940 and 1950, having a 32.6 percent growth compaked to 20.8 percent between 1960 and 1970. The following chart, Occupation and Comparative Areas, gives a compar- ison between Washington County and other areas in the State. 57 OCCUPATION/COMPARATIVE AREAS 1STATE CATEGORY STATE TOTAL URBAN TOTAL STATE URBANIZED AREAS STATE PLACES 10,000 OR MORE STATE RURAL NON-FARM WASHINGTON COUNTY HAGERSTOWN CITY Professional, Technical and Kindred 18.9 20.2 20.0 20.9 15.0 11.4 10.4 Managers and Administrators, except Farm 8.8 8.8 8.7 8.7 8.9 7.5 5.9 Sales Workers 7.0 7.4 7.4 7.6 5.8 .6.1 7.2 Clerical and Kindred Workers 21.2 22.8 23.4 19.2 15.7 15.7 20.5 Craftsmen, Foremen and Kindred Workers 13.7 12.9 12.9 12.6 17.7 18.1 13.7 Operatives, except Transport 9.7 9.0 8.8 10.1 12.6 16.7 17.0 Transport, Equipment Operatives 3.6 3.4 3.4 3.4 4.8 4.8 3.3 Laborores, except Farm 4.0 3.7 3.7 3.9 5.5 4.2 3.4 Farmers and Farm Managers 0.7 0.1 0.1 0.1 0.7 1.8 0.0 Farm Laborers and Farm Foremen 0.6 0.0 0.1 0.2 1.7 1.7 1.9 Service Workers except Private Household 10.3 10.4 10.3 11.6 9.9 10.9 16.0 Private Household 1.5 1.3 1.2 1.7 1.7 1.1 7.7 Total Percent 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total Number 1,538,766 1,204,542 1,056,918 90,418 292,273 39,199 19,350 Source: U.S. Census, Characteristics of the Population. 58 A brief review in comparison, Washington County is low in the follow- ing categories: professional and technical, managers and administrators, sales workers, and clerical workers, while high employment and the obvious reliance on manufacturing exists in the remaining sectors. In addition, the following chart gives the female occupation composition. Female Occupation Composition PERCENT FEMALE OCCUPATION 1940_ 1950 1960 1970 Professional, technical and Kindred 42.1 38.5 36.0 37.6 Managers and Administra- tors, except Farm 8.6 13.1 12.1 14.2 Sales Workers 35.9 37.6 37.1 42.1 Clerical and Kindred * 55.9 63.4 66.9 Craftsmen, Foremen and Kindred 2.4 5.0 3.4 6.5 Operatives 28.0 28.6 29.0 32.8 Laborers, except Farm 3.9 3.3 3.2 9.2 Farmers and Farm 1.7 2.1 6.0 8.1 Managers Farm Laborers and Farm 4.0 10.7 13.4 Foremen 3.6 Service Workers including Professional Household 64.2 61.4 65.1 63.0 *Single category in 1940 59 Sector Employment Sector Employment is the total number of employees at the various types of employment in Washington County. Although there is published data on the types of commuters, an examination of labor force and at -place employment estimates for Washington County give some idea of the gereral composition of the commuter or commutation groups. The largest proportion of commuters is apparently those in construction and the ser- vice industries. These apparently involve construction foremen and laborers, and service technicians, with lesser numbers of other occupational types. TRENDS IN ESTIMATED SECTOR EMPLOYbTENT WASHINGTON COUNTY, 1964, 1967 & 1973 1964 1967 1973 GOODS PRODUCING: Manufacturing 11,694 15,463 12,957 Construction 1,312 1,397 1,989 Sub -Total (13,006) (16,860) (14,946) SERVICES PRODUCING: Trade Wholesale 1,327 1,451 1,744 Retail 4,750 5,642 5,975 T.E.V. 1,714 1,810 2,173 Fire 750 911 1,030 Services 2,962 3,516 4,743 Unclassified 40 8 12 Sub -Total (11,543) (13,338) (15,677) TOTAL 25,549 30,198 30,623 Source: County Business Paterns, 1973, Bureau of the Census, U.S. Department of Census 61 Income Income of the populous of a given area is perhaps one of the best indicators of an economy's health. The most accepted approach in consideration of income are per capita personal income and family income. These approaches are generally used as representatives for assessing the level of the welfare associated with a local economy. The previous chapter discussed sources of employment; this chapter will be an examination of the sources of income and earnings by industrial and occupational sectors, which can indicate special characteristics and depen- dencies of the economy. In review of Washington County's income structure is the comparable income components at State and National levels. Income is the dollar amount of money received as wages, salaries, farm and non-farm self-employment earnings, social security and retirement pay- ments and public assistance or welfare payments. Additional sources of income include: interest, dividends, veterans payments of all kinds, retirement pen- sions from private employers, unions, and governmental agencies, and other regular payments such as net rental income, unemployment insurance benefits, workmen's compensation, private welfare payments and alimony and/or child 62 support. The U.S. Bureau of the Census definition of income excludes receipts from sale of personal property, capital gains, lump -sum insurance or inheritance payments, or payments in "kind". "Per capita income identifies the correlation between an areas total personal income and its total population. Per capita income as a measure of economic welfare, relates to the ability of the -economy to provide adequate facilities and services to its population. Where income levels are low, the quality and quantity of these services are likely to be deficient. Where per capita income is relatively high, the quality of these services, and the standard of living will be proportionally higher". WASHINGTON COUNTY $2,795 PER CAPITA INCOME FREDERICK COUNTY $2,900 ALLEGANY COUNTY $2,584 Source: U.S. Bureau of Census STATE OF MARYLAND $3,540 The per capita income of Washington County is comparable to contiguous 63 County's although there is considerable disparity between Washington County and the State of Maryland. Another approach by which to examine a local economy is to discuss family income. The median family income, or the intermediate income in Washing- ton County in 1970 was $8,778. Including all unrelated individuals, the median income was $7,986. The following map, Median Family Income, and table, Family Income Characteristics, identify by election district the median family incomes for Washington County. In addition, the mean or average family income was $9,676. Approximately 27 percent of the County's families had incomes over $12,000, more than 9 percent had less than $3,000 in annual income and approximately 25 percent of families had incomes between $3,000 and,$7,000. The map, Percent of Families Below the Poverty Level may be used in conjunction with Family Income Characteristics to identify MCD's of sub -par family incomes. Percent Change in Median Family Income by election district is shown on the map by the same title, and identifies those areas having a low increase in median family incomes. In analysis, the developed system identifies those MCD's having low median family incomes, percentages below poverty level, and those with a minimum of percent change in family income, thus, identifying areas in possible need of housing, 64 WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS MEDIAN FAMILY INCOME SOURCE INCOME CHARACTER/ST/CS �- - MARYLAND DEPARTMENT STATE PLANNING 65 0 1 2 3 4 SCALE LEGEND $ 6000 - 6999 $ 7000 - 7999 $ 8000 - 8999 $ 9000 - 9999 $ 10,000 -10,999 $ 11,000 - 11,999 $ 12,000 - 12,999 SOURCE INCOME CHARACTER/ST/CS �- - MARYLAND DEPARTMENT STATE PLANNING 65 0 1 2 3 4 SCALE FAMILY INCOME CHARACTERISTICS Source: Income Characteristics - Maryland Department of State Planning Number of Median Number Below Percent Families Income Poverty Level of Total 1 Sharpsburg 542 8,111 49 9.0 2 Williamsport 1,001 8,492 90 9.0 3 Hagerstown 2,434 7,178 328 13.5 4 Clear Spring 517 8,293 42 8.1 5 Hancock 930 7,082 151 16.2 6 Boonsboro 922 9,075 85 9.2 7 Cavetown 909 9,211 93 10.2 8 Rohrersville 414 7,088 106 25.6 9 Leitersb urg 555 10,708 20 3.6 10 Funkstown 1,435 10,188 446 3.2 11 Sandy Hook 346 8,833 77 22.3 12 Tilghmanton 471 8,279 41 8.7 13 Conococheague 1,068 8,800 119 11.1 14 Ringgold 977 7,496 112 11.5 15 Indian Springs 420 6,698 65 15.5 16 Beaver Creek 515 8,269 60 11.7 17 Hagerstown 1,494 7,619 196 13.1 18 Chewsville 1,428 9,766 83 5.8 19 Keedysville 243 6,224 76 31.3 20 Downsville 269 7,779 29 10.8 21 Hagerstown 1,705 11,729 32 1.9 22 Hagerstown 1,539 7,749 172 11.2 23 Wilson 699 8,386 61 8.7 24 Cedar Lawn 220 9,258 11 5.0 25 Hagerstown 2,325 8,040 264 11.4 26 Halfway 2,110 10,814 56 2.7 27 Fountain Head 1,491 12,871 80 5.4 Total County 26,979 8,778 2,544 9.4 Total Hagerstown 9,497 8,215 992 10.4 Total State 974,143 11,063 74,601 7.7 Source: Income Characteristics - Maryland Department of State Planning WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS PERCENT OF FAMILIES BELOW I THE POVERTY LEVEL -1970 0.0 — 4.9% 5.0 — 9.9% 10.0 — 14.9% 15.0 — 19.9% 20.0% Or Greater SOURCE: FAMILY INCOME CHARACTER/ST/CS �q MARYLAND DEPARTMENT STATE PLANNING 67 0 1 2 3 4 6ilm� SCALE economic development, education, or better transportation access to employment markets. The following table, Family Income, gives comparable data for Washington County, the State of Maryland and adjacent counties. This table shows that, while Washington County's median family income is substantially below that of the State of Maryland, the median and distribution of income are similar to those of Fred- erick and Allegany Counties. Some of the relatively low family incomes in Washingt©n County can be attributed to farm families. Since the census only reports monetary income, many farm families may not include as part of their income, housing and those goods pro- duced and consumed on the farm. This difference between farm and non-farm income is apparent in the following chart titled, Median Earnings of Individuals of Selected Income Groups. The table shows that Washington County's earnings structure tended in 1970, to be similar to that structure in Frederick and Allegany Counties. Washington County's median earnings per wage earner lagged behind the Maryland median income in every category, except male operators, where the level was sub- stantially equal. This is not an anomally since both wages and the cost of living are generally higher in the metropolitan areas, which consist of a large portion of the State's populous. M WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS PERCENT CHANGE IN MEDIAN FAMILY INCOME ( in constant dollars) 1960-1970 LEGEND 0.0 - 24.9% INCREASE 25.0 - 49.9% INCREASE 50.0 - 74.9% INCREASE IN SOURCE FAMILY INCOME CHARACTERISTICS -I MARYLAND DEPARTMENT STATE PLANNING 69 0 1 2 3 4 SCALE FAMILY INCOME Source: U.S. Census of Population 1970 70 Washington Frederick Allegany State of County County County Maryland Median Family Income $8,778 $ 9,550 $8,036 $11,063 Mean Income $9,676 $10,514 $8,707 $12,682 Percent of Families with income of under $3,000 9.4 7.5 12.4 7.1 $3,000-6,999 25.1 22.7 27.6 16.9 $7,000-11,999 38.4 37.2 39.7 31.9 over $12,000 27.1 32.6 20.3 43.9 Source: U.S. Census of Population 1970 70 MEDIAN EARNINGS OF INDIVIDUALS OF SELECTED INCOME GROUPS Washington and Surrounding Counties and State of Maryland Source: U.S. Census of Population, 1970 71 Washington Frederick Allegany State of County County County Maryland Male, Total $7,265 $ 6,983 $7,223 $ 8,177 Professional, Managerial and Kindred 9,935 10,460 9,736 12,307 Craftsmen, Foremen and Kindred 7,389 7,389 7,625 8,223 Operatives, including Transport 6,817 5,839 6,864 6,772 Laborers, except Farm 4,595 4,904 5,457 4,957 Farmers & Farm Managers 4,641 5,779 ----- j 5,034 1 Farm Laborers 2,871 3,210 2,143 2,971 Female, Total 3,433 3,777 3,495 4,154 Clerical & Kindred 4,153 4,339 4,017 4,758 Operatives, including Transport 3,450 3,883 3,970 3,703 Source: U.S. Census of Population, 1970 71 Economic Sectors From 1945 to 1969, the number and land area in farms decreased, whereas the agricultural product value and average farm size increased. Through most of the past, Washington County has been predominantly an agricultural area. It has prime -productive agricultural soils and is within easy access to metropolitan areas to the east. In recent years, however, agriculture has not expanded as rapidly as have other sectors of the economy. Trends in Washington County have reflected those throughout the United States, with declining agricultural employ- ment, area in farms, and number of farms. As in other regions, the average size and value of farms have increased as has value of agricultural output. The market value of all agricultural products sold increased 25.8 per- cent between 1964 and 1969. In addition, the market value per farm has increased 49.6 percent. These increases are cited in relation to a 29.52 percent decrease in land in farms from 1945-1969. There also has been a net decrease of 60.83 per- cent in the number of farms in a similar time period. This is a net decrease annually of 2,825 acres of farmland. The real value of farmland has increased considerably as evidenced in the following graphs; Value Per Farm Acre, Average Value Per Farm Acre, and Value Per Farm. 72 700 .0i 10( C 700 WASHINGTON COUWY F-1 STATE OF MARYLAND �o M �o VIA m10 — 10 N N N O � O N � M N ti CD ... - 0 KS gil m C 1959 1964 1969 VALUE PER ACRE FARM LAND 1959-1969 WASHINGTON COUNTY AND STATE OF MARYLAND 73 SOURCE: U.S. CENSUS OF AGR/CULTURE $ 1200 $ 1 100 $ 1000 $ 900 $ 800 $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 AVERAGE VALUE PER ACRE OF FARM LAND 1965- 1974 74 SOURCE: ASSESSMENT OFF/C£ 7 7 7 7 1202.03 ''�` f > C %Cwq! dy.L div +d± -f?+ •F�; f- a 561.69 540.24 427.17 429.49> 276.65 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 AVERAGE VALUE PER ACRE OF FARM LAND 1965- 1974 74 SOURCE: ASSESSMENT OFF/C£ 7 7 7 7 120 4=0 so 40 20 a X959 1964 1469 VALUE PER FARM 1959-1969: WASHINGTON t COUNTY, W46HINGTON 'COUNTY : REGION. - r STATE , V1+9 y"MARYLAND FARMS, LAND AREA, SIZE, VALUE PER FARM, VALUE PER ACRE Washington County in Selected Years Source: U.S. Bureau of The Census, U.S. Census of Agriculture, 1969, Statistics for the State and Counties, Maryland. 76 1945 1950 1954 1959 1964 1969 Change 1945-1969 Number Percent Land Area 295,680 295,680 295,680 295,680 295,680 295,680 Land in Farms 229,496 218,540 213,104 193,053 182,988 161,702 - 67,749 - 29.52 No. of Farms 2,446 2,025 1,934 1,399 1,139 958 - 1,488 - 60.83 Avg. Size/Farm 93.8 107.9 110.2 138.0 160.7 168.7 + 74.9 + 79.85 Value of Land and Building Avg. Per Farm $ 7,398 $12,280 $15,916 $24,788 $38,876 $68,247 + 60,849 + 790.45 Avg. Per Acre $102.24 $118.96 $147.30 $187.82 $243.63 $404.55 + 302.31 + 295.69 Source: U.S. Bureau of The Census, U.S. Census of Agriculture, 1969, Statistics for the State and Counties, Maryland. 76 VALUE OF AGRICULTURAL PRODUCTS SOLD Washington County 1964 & 1969 Source: U.S. Census of Agriculture, 1969. 77 1964 1969 % Change Market Value of all Agri- cultural Products Sold 15,200,500 19,127,746 25.8 Average Market Value Per Farm 13,346 19,966 49.6 All Crops 4,338,029 3,925,685 - 9.5 Forest Products 53,999 - 24.0 Livestock, Poultry, Etc. 10,798,121 1-5;1-61,035 40.4 Source: U.S. Census of Agriculture, 1969. 77 Livestock dominates the agricultural industry in Washington County. A large portion of the field crops are raised for consumption by live- stock. The table, Value of Agriculture Products Sold, illustrates agricultural productivity in Washington County. Urbanization is a contributor to the relative decline of the agricul- tural industry. The increased accesibility of employment centers has improved the potential of Washington County land for development. This, in combination with widespread speculation in land, has raised land prices to the point where agricultural activities are increasingly economically feasible. Farming is now con- ducted almost exclusively on land purchased many years ago and on leased land. Mining and Quarrying The most important of the mineral extraction activities in Washington County is the quarrying of limestone, and shale. In addition, there are silica sand deposits in the western part of the County that warrant mineral resource recovery. Limestone quarried in Washington County is used primarily for the manu- 78 facture of construction materials. Approximately half of Washington County is underlain by limestone bedrock. The following geologic formations comprise the limestone in Washington County that has recovery value: Tomstown Dolomite Formation, Elbrook Limestone, Conococheague Limestone, Beekmantown Limestown, Stones River Formation and Chambersburg Limestone. The limestone is both quantitive and qualative, and the purity ranges from the suitability for metallurgical uses, to cement manufacture and road construction uses. Limestone is found throughout the United States and supply is plentiful. The critical factors in producing and marketing limestone products are the location of raw materials and the proximity of the market. Other mining industries in Washington County, although no longer actively recovered, include iron ore, as evidenced by Antietam Furnace; and manganese. Clay is presently extracted and used in the manufacture of brick pro- ducts for marketing in the regional area. The importance of quarrying employment is small, although the potential for extraction of silica sand and industrial limestone exists. 79 Construction The construction industry is an important element of Washington County's economy. About 8 percent of the County's labor force is employed in construction. The industry operates to some extent in the "export" sector of the economy, in that several Washington County firms do business outside of the County. Another distinctive aspect of the construction industry is the commutation level of employ- ment in this sector. Because construction activity is temporary in each location, and because some County firms perform a portion of th6ir work outside the County and due to the seasonality of the industry, the actual amount of activity within the County will fluctuate periodically. The following table, Development in Washington County, illustrates the number, value, and mean value per unit of residential and commercial units in Wash- ington County from 1960 to 1974. Manufacturing Manufacturing is the most important of the County's economic sectors, not only as an export industry, but as a major employer, with 32.4 percent of RE DEVELOPMENT IN WASHINGTON COUNTY Source: U.S. Department of Commerce Report from Department of Permits and Inspection 81 Residential Commercial # Units Value # Units Value 1974 511 $13,506,407 1974 30 $5,296,390 1973 369 10,597,180 1973 34 8,522,289 1972 529 12,153,591 1972 87 8,760,345 1971 623 10,649,673 1971 67 3,460,966 1970 432 6,874,222 1970 27 1,968,647 1969 316 5,334,430 1969 43 1,790,085 1968 310 5,518,263 1968 44 1,478,858 1967 332 5,158,664 1967 28 2,007,137 1966 382 5,707,308 1966 32 557,702 1965 449 5,865,375 1965 31 1,654,375 1964 685 7,667,445 1964 18 314,150 1963 403 5,631,685 1963 14 4,418,285 1962 374 5,285,787 1962 28 2,638,850 1961 385 5,182,865 1961 26 510,275 1960 237 2,712,530 1960 32 2,014,700 Source: U.S. Department of Commerce Report from Department of Permits and Inspection 81 employment currently found in this sector. The proportion of the County's employment in manufacturing has constantly increased at a sporadic rate - from 56.5 between 1940 and 1950 to 1.1 between 1950 and 1960. Growth in manu- facturing employment between 1940 and 1950 may be attributed to World War II, in which there was a demand for locally produced aircraft. The following table gives Selected Measures of Manufacturinq for 1963 through 1972. The number of manufacturing establishments has consistantly remained around 130, with approximately 12,500 employees. Annual payroll is estimated at $115,1000,000 which represents a 69.5 percent increase since 1963. The value added by manufacture, is $243.2 million, is the measure of manufacturing activity and is derived by subtracting the cost of materials, supplies, con- tainers, fuel, purchased electricity, and cost of resale contract work from the value of shipments for products manufactured plus resales and receipts for services rendered. The result of the calculation is adjusted by the net change in finished goods, work in process and inventories between the beginning and end of the year. The table, Value Added by Manufacture, gives a comparison between Washington County and adjacent counties, to which Washington County compares favorably. 82 SELECTED MEASURES OF MANUFACTURING WASHINGTON COUNTY Source: U.S. Census of Manufacturing, 1972. 83 1963 1967 1972 Establishments Washington County 134 121 134 Maryland 3,519 3,401 3,580 Employees_ (000) Washington County 12.2 15.5 12.5 Maryland 263.7 287.6 253.9 Pa roll (000,000) Washington County 67.9 102.0 115.1 Maryland 1,549.8 1,956.0 2,369.6 Source: U.S. Census of Manufacturing, 1972. 83 VALUE ADDED BY MANUFACTURE WASHINGTON COUNTY AND SURROUNDING COUNTIES STATE OF MARYLAND AND UNITED STATES: 1958 - 1972 Maryland $2,394,414 $3,001,468 $3,781,300 $4,697,400 United States $141,611,000 $192,103,000 $261,984,000 $348,048,000 Source: U.S. Bureau of the Census, Census of Manufactures, 1972, Maryland. 84 916,100 24.45 86,064,000 32.85 Value Added ($1,000) Change in Percent Place 1958 1963 1967 1972 $1,000 Change Washington County $61,701 $101,254 $159,800 $243,200 83,400 52.19 Allegany County 94,157 123,674 200,400 183,000 - 17,400 - 8.68 Frederick County 27,719 49,344 72,500 104,000 31,500 43.45 Maryland $2,394,414 $3,001,468 $3,781,300 $4,697,400 United States $141,611,000 $192,103,000 $261,984,000 $348,048,000 Source: U.S. Bureau of the Census, Census of Manufactures, 1972, Maryland. 84 916,100 24.45 86,064,000 32.85 The manufacturing sector itself is fairly well diversified, although, the table Employment and Employment Change by Components, makes it clear that there is a concentration of employment in transportation equipment, electrical and machinery, and miscellaneous manufacturing. The primary location factor for industry, appears to be the excellent highway network, railway system, and air transport. The following table, Distribution of Manufacturing Establishments, illustrates by industry, the products, employees, value added by manufacture, and value per production worker. W Washington County DISTRIBUTION OF MANUFACTURING ESTABLISHMENTS Source: U.S. Census Manufactures, 1972. 86 Value Added Value Added By Per Production Number Employees Employees Manufacture Worker 1972 1967 (5 Millions) (Millions) Total 134 12.5 15.5 243.2 25,333 Food and Kindred 19 .5 .5 9.5 47,500 Textile Mill Products 6 .7 .7 6.3 10,500 Apparel 12 1.6 1.5 14.1 6,286 Women's & Misses Outerwear 7 .7 (NA) 4.4 6,286 Lumber & Wood Products 13 .5 (NA) 6.5 21,666 Millwood, Plywood, Structures 6 .5 (NA) 6.0 10,000 Furniture & Fixtures 5 .6 .7 8.1 16,200 Household Furniture 5 .6 (NA) 8.1 16,200 Printing & Publishing 10 .7 .5 16.2 32,400 Stone, Clay, Glass Products 15 .5 .6 12.8 32,000 Fabricated Metal Products 12 .7 (NA) 20.3 40,600 Fabricated Structural Metal Products 8 .6 .5 19.3 48,250 Misc. Manufacturing Industries 10 .5 .7 8.2 20,500 State of Maryland 26,873 Source: U.S. Census Manufactures, 1972. 86 This industrial information is further defined as the following table identifies all industry in the County, its products, employment by male and female, Standard Industrial Classification and location by address and election district. The high employment concentration in the manufacturing industry is largely attributable to the manufacture of transportation equipment. Such heavy dependence upon a sector of the local economy can have severe.repercussions. The manufacturing sector, in addition to being strongest in terms of employment, also shows the highest personal income, due to the high specializa- tion within the sector. Therefore, the total economy of the area is dependent upon the economic health of this sector for its stability. This dominance of one sector has made the County vulnerable to cyclical variations in the national economy, as the imbalance inhibits the local economy to compensate or adjust to economic flucuations. Consequently, adjustments in the national economy are mag- nified in the local economy. In review of the tables, Selected Measures of Manufacturing, Value Added by Manufacture, and Distribution of Manufacturing Establishments shows M. INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE FEMALE S.I.C. NO. ELECTION DISTRICT Boonsboro, Maryland 21713 Kline Paving Company Benevola Church Road Black Top Paving •5 5 0 2953 6 Londontown Corporation Orchard Drive Rainwear 364 46 318 2395 6 Martin Marietta Aggregates Benevola Church Road Crushed Limestone 19 19 0 3295 6 Thomas and Sons, Inc. 308 North Main Street Awnings and Storm Doors 7 5 4' 2394 6 Funkstown, Maryland 21734 Tri-State Printing, Inc. 1 West Green Street Printed Matter 10 6 4 2752 10 Hagerstown, Maryland 21740 Angstrom Precision, Inc. Kebler Road Electronic Equipment 240 50 190 3679 13 Arnold Graphics Industries, Inc. Airport Industrial Park Busiftess Forms 145 120 25 2761 27 Banks Brothers Corporation 1095 Jefferson Blvd. Shoe Soling 10 10 0 3069 18 Beachley Furniture Company, Inc. 227 North Prospect Street Upholstered Furniture 84 72 12 2512 25 Bester-Long Inc. 439'South Potomac Street Bituminous Concrete 131 130 1 2951 17 Products Brandt Cabinet Works, Inc. 686 Pennsylvania Avenue Furniture 270 210 60 2511-4 21 INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE FEMALE S.I.C. NO. ELECTION DISTRICT Carborundum Company, The Panborn Blvd. Abrasive & Finishing 815 739 76 3569 21 Machines Central Chemical Corporation Mitchell Avenue Fertilizer & Insecticides 91 75 16 2874-9 25 Central Manufacturing & Welding 50 East Wilson Blvd. Steel Fabrication 24 23 1 3443-6 17 Works Coffman H.L. Lumber Company 449 North Prospect Street Millwork & Roof Truss 8 8 0 2431-9 25 Conservit Inc. Early Industrial Park 10 Danzer Metal Works Company 2000 York Road Sheet Metal Fabrication 120 115 5 3444 26 Digby Products, Inc. Key Street & Highland Way Briefcases 35 10 25 3161 3 ! Dixie Millwork Company, Inc. 727 North Mulberry Street Window & Door Units 17 14 3 2431 22 Dorbee Manufacturing Company 825 Commonwealth Avenue Dresses 330 60 270 2335 17 Doris Manufacturing 113 Summit Avenue Teen Dresses 32 3 29 2361 3 Duvinage Corporation Downsville Pike & Oak Sn_iral Stairways 53 46 7 3446 3 Ridge Drive Electro Enterprises, Inc. 743 Bowman Avenue Electro Plating & Ano- 25 22 3 3471-9 17 dising Evonne Kay, Inc. 818 Bowman Avenue Ladies' Dresses 160 3 157 2335 17 89 INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE FEMALE S.I.C. NO. ELECTION DISTRICT Fairchild Republic Company Showalter Road Commercial Aircraft 1082 882 200 3721 27 Fennel, E.J., Inc. 324 East Antietam Women's Apparel 430 10 420 2335 17 Foltz Manufacturing & Supply Co. Washington & Locust Sts. Industrial Supplies 22 18 4 3599 17 Machine Shop Gilbert Industries, Inc. Long Meadow Road Educational Toys 200 50 150 3944 27 Gray Concrete Pipe Company 1007 Virginia Avenue Concrete Pipe Products 38 37 1 3272 3 Hagerstown Block Company 448 East First Street Concrete Products 27 25 2 3271-2 17 Hagerstown Bookbinding & Printing 952 Frederick Street Commercial Printing 56 39 17 2751-2 17 Hagerstown Coca-Cola Bottling 100 Charles Street Soft Drinks 39 35 4 2086 25 Works Hagerstown Kitchens, Inc. 23 West Long Meadow Road Kitchen Cabinets 46 37 9 2431 27 Hagerstown Leather Goods Company 858 Willow Circle Leather Goods 93 18 75 3172 3 Hagerstown Lumber Company 700 Frederick Street Millwork 19 17 2 2431 17 Hagerstown Shoe Company 148 West Franklin.Street Shoe Production 281 79 202' 3143 25 Harper & Row Publishers, Inc. 2350 Virginia Avenue Medical Reference Books 116 29 87 2731 26 Har -Tru Corporation 1637 Salem Avenue Recreational Construction 8 7 1 1799 13 90 cr INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE FEMALE S.I.C, NO. ELECTION DISTRICT Hesco 720 North Mulberry Street.Plastic Injection Molding 21 6 15 3079 22 Horn Corporation 1612 Downsville Pike Air Conditioning & 70 65 5 3444 10 Heating Horner Manufacturing Company 400 West Oak Ridge Drive Cabinets & Furniture 153 93 60 2511-2-7 26 Jamison Door Company 55 Maple Avenue Insulated Doors 300 270 30 3442 25 L'Aiglon Apparel East Antietam Street Dress Manufacture 62 17 45 2335 17 Lowe's of Hagerstown 1225 Maryland Avenue Lumber & Building Supply 16 5211 3 I Lynn Fabricators Earley Industrial Park Metal Fabrication 10 3446 10 Mack Truck, Inc. 1999 Pennsylvania Avenue Truck Engines 4000 3800 200 3519 27 Manbeck Bread Company 358 West Church Street Bakery Products 150 125 25 2051 25 !Marine & Electronics Manufactur- 747 Bowman Avenue Precision Fabricators 37 31 6 3469 17 ing, Inc. Marquette Cement Manufacturing Security Portland & Masonary 162 160 2 3241 18 Company Cements Martin Marietta Aggregates Hump Road Crushed Limestone 16 0 3295 24 E Maryland Machine & Foundry Works 89 West Lee Street Fabricated Steel 20 20 0 3443 3 91 INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE FEMALE S.I.C. NO. ELECTION DISTRICT Maryland Maid Kitchens 227 East Washington Sti Kitchen Cabinets 66 34 '32 2334 17 Maryland Ribbon Company 857 Willow Circle Ribbons 350 100 250 2241 17 Milmar Plastics, Inc. Leitershurg Plastic Fabrication 12 7 5 3079 9 Mitchell Corporation South Locust & Matthew Machine Products 19 81 1 3451 17 Streets Moller, M.D., Inc. 403 North Prospect St. Pipe Organs 272 210 62 3931 25 Murrey Sales & Manufacturing Co. 826 Oak Hill Avenue Custom Injection Molding 2 2 0 3079 25 Oak Ridge Metal Craft Company 1604 Downsville Pike Machine Shop 32 12 20 3599 10 Plummer, E.D., Sons, Inc. Beaver Creek Road Bituminous Concrete 5 5 0 2951 16 Potomac Dye & Printing Corp. ;367 East Franklin Street Dyeing & Printing of 94 94 0 2262 22 Textiles Potomac Farms Dairy- 215 East Washington St. Dairy Products 12 7 5 3079 9 Reed Industries, Inc. 775 Frederick Street Beverage & Vending 104 92 12 3581 17 Machines Reisner, Inc. 240 North Prospect Street Electromechanical Assem- 66 35' 31 3679 25 blies Roper Eastern 881 Pennsyavania Avenue Utility Buildings 365 295 70 3448- 25 92 -z INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE (FEMALE S.I,C. NO. ELECTION DISTRICT Ross Garment Company, Inc. 2030 Pennsylvania Avenue Women's Dresses 104 4 100 2335 27 Royal Crown Bottling Company of Earley Industrial Park S6ft Drinks 16 15 1 2086 10 Hagerstown Seven -Up Bottling Company of Commonwealth & Bowman Soft Drinks 13 13 0 2086-7 17 Hagerstown Avenues Statton Furniture Manufacturers East First Street Household Furniture 160 131 29 2511 17 d! Company Superior Dairy, Inc. 201 Reynolds Avenue Dairy Products 46 33 13 2026 3 Sumpreme Concrete Block & Pro- Dual Highway Concrete Block 46 39 7 3271 17 ducts Thomas, Bennett & Hunter, Inc. 410 Burhams Blvd. Ready -Mix Concrete 9 9 0 3273 26 Victor Hosiery Corporation 700 East First Street Hosiery 100 20 80 2251-2 17 :•7olfkill Vault Service, Inc. U.S. Route 40 W (Western Concrete Products 14 14 0 3272 25 Pike) Maugansville Elevator & Lumber Railroad Street Building Supplies & Lum- 80 72 2431 13 ber Hancock, Maryland 21750 Calbern, Inc. High Street Women's Dresses 110 8 102 2335 5 93 INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland COMPANY ADDRESS PRODUCT TOTAL EMPLOYMENT MALE IFEMALEIS.I.C. NO] ELECTION DISTRICT Hancock Block Products, Inc. 122 Washington Street Concrete Products 8 7 1 3271-2 5 Londontown Corporation Pennsylvania Avneue Rainwear 455 34 421 2385 5 t Norris Distributing Company Sideling Hill Custom Kitchens 10 9 1. 2511 5 Prowler Industries 25 South Street Travel Trailers 225 200 25 3792 5 Rayloc Division Genuine Parts, Co Hancock Industrial Park Automotive Replacement 83 71 12 3714 5 Parts Smithsburg, Maryl&nd 21783 Cavetown Planning Mill,Company Route 66, Cavetown Millwork 49 47 2 2431 7 Doubleday & Company, Inc. Water Street (Rt. 66) Book Publishing 220 100 120 2731 7 Dutchie, Inc. 47 South Main Street Soft Pretzels 79 23 56 2052 7 Williamsport, Maryland 21795 Byron, W.D. & Sons, Inc. North Conococheague St. Leather Tanning & Finish- 150 130 20 3111 2 ing Certain -Teed Products Corp. -Washington County Indus- P.V.C. Pipe, Siding 110 90 20 3079 2 trial Park Cushwa, Victor & Sons, Inc. North Conococheague St. Face Brick 89' 85 I 4 3251 2 Escambia Treating Company saint James (Route 68) Pole Treatment Yard 7 7 0 2491 2 94 INDUSTRIAL INFORMATION LIST OF MAJOR INDUSTRIES Washington County, Maryland N TOTALELECTIO` 9 COMPANY ADDRESS PRODUCT EMPLOYMENT !MALE FEMALE S.I.C. NO. DISTRICT Holland Woven Label, Inc. South Conococheage Street Woven Labels 54 18 36 2241 2 Maccaferry Gabions Manufacturing Washington County Indus- Erosion Control 40 0 0 3496 2 Company trial Park Martin Marietta Aggregates Bottom Road - Pinesburg Crushed Limestone 67 0 3295 23 I Miller G.A. Lumber'Company 142 West Potomac Street Custom Millwork 15 3 2431-4 2 Rust-Oleum Corporation Washington County Indus- Rust Preventive Coatings 2851 2 j trial Park Wilderness Industries of Maryland Washington County Indus- Travel Trailers 116 95 21 3792 2 — trial Park Source: Maryland Manufactures 1975-1976 Directory of Products and Manufactures 95 that between 1967 and 1972 there has been a 10.7 percent increase in the number of establishments, but a 19.4 percent decrease in the number employed by manu- facturing establishments. The Value of Manufacture has also increased 52.19 percent in the same period, although the Value Added by Manufacture per Pro- duction Worker in most sectors is below the State average of $26,873. This low productivity in -certain sectors suggests lower wages and existence of some marginal firms. The sector, therefore, appears more sensitive to economic cycles than sectors in comparative areas. Transportation, Communication, Utilities The transportation, communication, and utilities sector includes those economic activities such as railroads, railway express service, trucking and warehousing, air transportation and other transportation, telephone, telegraph radio and television communication, electric, gas, steam, water supply, and other utility and sanitary services. These activities take the form of services in most areas, and can be expected to operate at levels proportional to the size of the population served. Washington County is served by five railroads, two interstate highways, Major Highways ,% \ Interstate 4� �► Railroads z -r Airport- WASHINGTON COUNTY V TRANSPORTATION NETWORK 1 I 0 1 2 3 4 SOURCE: STATE HIGHWAY ADMINISTRATION SCALE 97 twenty-two common carrier motor freight lines,(with ten having local terminal facilities), two bus lines, and a regional airport having commuter service to metropolitan areas. Transportation comprises 5.4 percent of the total employ- ment in the County. Communications and Utilities account for 3.8 percent of the total employment within this sector. Communications in Washington County include two UHF television stations,(one commercial and one educational), and five radio stations of which two are AM -FM, two FM, and one AM. There are two daily news- papers and one weekly newspaper. Public utilities consist of one commercial and two municipal electric systems; and natural gas distribution. There are several central water and sewerage systems available in the metropolitan area. Wholesale Trade Wholesale trade in Washington County consists of two components. One serves activities within the County; the other the "export" conponent serves areas outside the County as well. The census since 1948 has shown a gradual, but consistent growth in employees and sales. In Washington County, wholesale WASHINGTON COUNTY, STATE OF MARYLAND: WHOLESALE TRADE 1948, 1954, 1958, 1963, 1967, 1972 Source: U.S. Bureau of the Census, U.S. Census of Business, 1972, Wholesale Trade, Maryland. 100 1948 1954 1958 1963 1967 1972 Establishments Washington County 138 139 144 142 151 171 Maryland 3,101 3,038 3,363 3,658 3,943 4,746 Employees Washington County 1,278 1,270 1,304 1,539 1,517 1,794 Maryland 37,273 37,163 37,297 44,104 50,889 62,923 Sales (000) Washington County $ 59,025 $ 72,713 $ 66,561 $ 97,179 $ 102,515 $ 147,713 Maryland $2,083,715 $2,583,748 $3,313,203 $4,473,736 $5,957,830 $10,212,246 Payroll (000) Washington County $ 3,613 $ 4,604 $ 5,234 $ 7,444 $ 91998 $ 15,141 Maryland $ 105,916 $ 141,396 $ 165,804 $ 248,208 $ 338,410 $ 580,399 Source: U.S. Bureau of the Census, U.S. Census of Business, 1972, Wholesale Trade, Maryland. 100 150 125 W Q 50 OEM I&I 10 cQ 25 CL , L 0 kr- F:? i UWE WHOLESALE TRADE FOR SELECTED YEARS WASHINGTON COUNTY, MARYLAND SOURCE: U.S. CENSUS OF WHOLESALE TRADE 101 150 125 100 75 50 25 0 11 0 0 Frei fit} UWE WHOLESALE TRADE FOR SELECTED YEARS WASHINGTON COUNTY, MARYLAND SOURCE: U.S. CENSUS OF WHOLESALE TRADE 101 150 125 100 75 50 25 0 0 0 fit} ti ti UWE WHOLESALE TRADE FOR SELECTED YEARS WASHINGTON COUNTY, MARYLAND SOURCE: U.S. CENSUS OF WHOLESALE TRADE 101 150 125 100 75 50 25 WASHINGTON COUNTY, STATE OF MARYLAND: RETAIL TRADE 1948, 1954, 1958, 1963, 1967, 1972 Source: U.S. Bureau of Census, U.S. Census of Business, 1972, Retail Trade, Maryland. 102 1948 1954 1958 1963 1967 1972 Establishments Washington County 934 910 968 893 869 991 Maryland25,052 24,857 26,150 23,901 25,009 31,325 Employees Washington County 3,847 4,170 4,692 4,756 5,278 5,468 Maryland 111,298 124,699 146,098 157,289 183,552 228,243 Sales (000) Washington County $ 63,964 $ 85,379 $ 106,916 $ 129,659 $ 172,072 $ 238,715 Maryland $1,914,689 $2,539,530 $3,326,057 $4,237,061 $4,237,061 $9,480,043 Payroll (000) Washington County $ 6,470 $ 9,478 $ 12,131 $ 15,029 $ 19,943 $ 28,101 Maryland $ 208,438 $ 298,471 $ 374,495 $ 503,698 $ 700,650 $1,186,746 Source: U.S. Bureau of Census, U.S. Census of Business, 1972, Retail Trade, Maryland. 102 trade consists of 3.7 percent of the total employment. Wholesale trade, sales per establishment in Washington County was $863.82 in comparison to $2151.76 for the State, or 40 percent of the State average. Similiar payrolls per establishment are below the State average; thus wholesale trade in the County is characterized by small scale, and limited volume outlets. The wholesale trade sector provides the potential for additional employment, which would help deversify the economic dependence on manufacturing. Retail The number of retail trade establishments has been irregular although gradually increasing. This trend will continue with the addition of new shop- ping complexes in the regional area as illustrated in the table, Retail Trade. Although the number of establishments have not increased, the sales volume has increased 38.7 percent since 1960.as demonstated in the graph titled, Retail Trade. Sales per establishment measure the relative size of indivudual outlets. Statewide retail outlet averaged $302,635 in sales in 1972, an average increase of 34.9 percent over 1967. Washington County's sales per establishment was 80 percent of the State average, and the volume of sales increased 21.7 percent over 1967. 103 RETAIL TRADE ESTABLISHMENTS - 1972 Number (Sales) Building Materials, Hardware, Garden Supply, Mobile Home Dealers 37 19,579 General Merchandise, Group Stores 29 33,297 Food Stores 154 53,861 Automotive Dealers 58 41,235 Gasoline Service Station 111 20,532 Apparel & Accessory Stores 53 11,653 Furniture, Home Furnishings, and 61 Equipment Stores 61 11,623 Eating and Drinking Places 164 14,260 Drug Stores and Proprietary 16 7,304 Other Retail, 308 25,371 Total 238,715 Source: U.S. Bureau of Census, Retail Trade 104 1948 1954 Q 1958 J J O 4 ? 1963 197'A 0 25 50 75 100 125 150 175 ?-W 'LLo coo RETAIL TRADE 105 SOURCE, U.S. CENSUS OF RETAIL TRADE Expanded sales can be attributed to expanding merchandising and personal income permitting increased expenditures for consumer goods. With earnings derived from this sector below corresponding sectors, wages remain somewhat lower per worker than those in other sectors. The diagram, Distribution of Retail Tradeidentifies the types, number, and percentage of Retail Sales in Washington County for 1972. Real Estate, Finance and Insurance This section consists of personal services such as banking, credit, insurance, etc. Recent employment in the industry has increased 52.7 percent since 1960, or a total of 1309 persons employed in this sector. This accounts for 3.4 percent of employment in Washington County, as compared to 5 percent of at the State level. Expansion of this sector, such as location of a regional office, would offer additional diversification of the local economy. This category constitutes all local service industry. As illustrated on the table, Selected Services for Washington County and the State of Maryland, 106 I'4, 0/!L 4` EATING $ DRINKING 14,260 6.0% �tygJAX-V ORE � }'6zl 4.Ca 9 G-11 5� Cab Qs l7 b 0 SOURCE: DISTRIBUTION OF RETAIL 1970 TRADE (000) U. S. CENSUS OF RETAIL TRALE 0972) 107 �aCa �h v 107 WASHINGTON COUNTY, STATE OF MARYLAND, SELECTED SERVICES 1948, 1954, 1958, 1963, 1967, 1972 Source: U.S. Bureau of the Census, U.S. Census of Selected Services, Maryland, 1972. 108 1948 1954 1958 1963 1967 1972 Establishments Washington County 344 382 454 505 543 711 Maryland 9,131 10,597 13,474 13,840 16,923 27,727 Employees Washington County 1,017 913 1,083 1,153 1,158 1,727 Maryland 39,604 46,139 51,904 68,990 74,395 117,859 Annual Receipts (000) Washington County $ 5,166 $ 6,993 $ 9,357 $ 13,269 $ 14,545 $ 30,036 Maryland $184,231 $293,743 $459,937 $705,999 $1,143,943 $2,261,677 Annual Payroll (000) Washington County $ 1,665 $ 1,948 $ 2,570 $ 3,198 $ 3,993 $ 8,265 Maryland $ 55,974 $ 87,801 $125,365 $215,035 $ 374,309 $ 818,257 Source: U.S. Bureau of the Census, U.S. Census of Selected Services, Maryland, 1972. 108 SELECTED SERVICES °- 1972 (D) - Withheld to avoid disclosure Source: Census of Selected Service Industries, 1972. 109 Number Receipts (000) Employees Hotels, Motels, Etc. 25 $ 5,373 347 Personal Services 275 $ 5,822 431 Business Services 105 $ 3,445 238 Automotive Repair, Services 91 $ 4,157 150 Miscellaneous Repair Services 84 (D) (D) Amusement and Recreation Services 72 $ 3,449 260 Dental Laboratories 1 (D) (D) Legal Services 37 $ 2,028 58 Architectural, Engineering and Land Surveying Services 21 $ 3,868 168 Total 711 $30,036 1,727 (D) - Withheld to avoid disclosure Source: Census of Selected Service Industries, 1972. 109 the service industry has grown at a gradual rate from 1948 to 1972. The number of -establishments since 1967 has increased by 30.9 percent, while employment has grown 49.1 percent in a similar period. Annual receipts have increased 106.5 percent, and annual payroll has also increased by 106.9 percent. Presently, com- mercial service industry employs only 6.3 percent of the total employment in the County. Public services account for approximately 13.5 percent of the total employment, which includes public health,.education, etc. The table, Selected Services - 1972, indicates the types, numbers, and receipts of service industry in Washington County. Since the service industry is relatively underdeveloped in Washington County, compared to the State of Maryland, additional development in this sector would aid in the diversification of the local economy and would be directly related to the level of local population in commercial and industrial development. Public Administration Public administration comprises 4.5 percent of the local employment in 1970, and probably will continue to be a small portion of the local economy. Although as County growth and development occur, a proportional amount of public 110 employment will be required to meet the needs and demands of the populous. Public administration employment totals in Washington County are com- parable to Allegany County, but there is a considerable discrepency between those of Frederick County; although this is attributable to the commutory pat- terns between Frederick and the Washington D.C. area. Public administration does not include those personnel in public employment such as hospital and educational employment, but includes those persons directly related to governmental adminis- tration at national, state, and local levels. 111 Development Indicators Development Indicators* The County development indicators to be discussed in this chapter consist of a series of indicators whose change through time permits the moni- toring of (A) the forces affecting development and (B) the consequences of the development process. Forces affecting development mean indicators of (A) employment structure and economic base, (B) socioeconomic status, (C) area supply of social overhead capital and, (D) local area efforts:, that is, indicators whose interplay depicts the strength of development in the County. By indicators of consequences of strength, one may postulate (A) indicators of the strength of development, (B) indicators of social distress, and (C) indi- cators of environmental quality. The concept of development indicators thus enable grouping of a multitude of economic, social and environmental statistics into a self-contained set of indicators which discribe the forces effecting development and the conse- quences of the development process itself. The first set of indicators to be portrayed are area designation characteristics, are those that pertain to (A) unemployment rates, (B) income per 'The following text is substantially reproduced from R.M.C. Research Corporation, Economic Development in Western Maryland 115 person, and (C) net out migration rates for the population. County Development Indicators Area Designation Indicators 1) Unemployment Rates 2) Per Capita Personal Income 3) Net Out Migration Rates indicators of Factors Affecting Development 1) Employment Structure 2) Socioeconomic Status 3) Indicators of Social Overhead Capital Supply 4) Indicators of Local Effort Indicators of Consequences of Development 1) Indicators of Distress 2) Indicators of Environmental Quality 3) County Growth Indicators Unemployment rates usually do not provide a good indicator for the need for long term development assistance since they are usually volatile, changing frequently in response to temporary economic changes. in fact, they are indicative of areas tusually rural areas) where low unemployment rates are associated with low per capita income. Unemployment rates are thus usually 116 more indicative of economic adjustment problems than they are of long term development problems. Low income per person is associated with underemployment and low area productivity. A high net migration rate provides evidence of need and of adjustment of population to changing income and employment opportunities. The area designation indicators applicable to Maryland Counties appear in the following table, and provide a comparison of Washington County to the other political subdivisions within the State. Area Designation Characteristics for Washington County, 1970 Source: RMC Research Corporation, Economic Development for Western Maryland. 117 Indicators Classification with Respect to Net Migration Unemployment Per Capita Rates Per Capita Net Out - Rates Personal 1960-1970 Unemployment Personal migration (percentages) Income (percentages) Rates Income Rates 4.3% $2,795 4.1% High Medium Medium Source: RMC Research Corporation, Economic Development for Western Maryland. 117 In 1960, shortly after a slowdown in production at the Fairchild Hiller plant, unemployment in the County was at a rate of 8.3%. In 1970, the rate had declined considerably to 4.3%, but the County still had the 8th highest unemployment rate in the State. By 1972, unemployment had risen to Despite the relatively high rate of unemployment, it is interesting to note that the County's per capita personal income ranked 13th in the State which would seem to indicate that if the unemployment rate decreased, there would be a significant increase in this -value and a resulting change in Wash- ington County's rating in this area. The net migration value shows that many are attracted to the area by job opportunities within the expanding economy. These net migration rates appear to reflect both incomes and unemployment rate conditions in Washington County. The industrialization and employment structure indicators are charac- terized by: 118 1) percentage of manufacturing employment 2) percentage of agricultural employment 3) percentage of military personnel (as a proportion of total civilian employment) 4) percentage of federal government employment and (5) the leading sectors in employment Industrial and Employment Structure Indicators for Washington County, 1970 Percentage Manu- Percentage Percentage Military Employment Out of Total Percentage Classification with Respect to Area Leading, facturing Agricultural Civilian Federal Manu- Sectors Employment Employment Employment Employment facturing Aqricultural Military Federal in 1970 1970 1970 1970 Employment Employment Personnel Employment Employment 32.4 4.0 3.1 5.9 High Medium Low Low Manufacturing Retail Trade Source: RMC Research Corporation] Economic Development for Western Maryland By far the most important indicator is the proportion of agricultural employment whose productivity and growth potential are considerably lower than the other sectors. The percentage of agricultural employment outperformed 119 any other indicator when predicting the employment growth of an area. Agriculture employment in Washington County, as illustrated in the table Industrial and Employment Structure Indicators, had a medium classification in respect to the total employment of the County. There is a very low level of employment within the agricultural section of Washington County's economy (4%) and this has continued to declined over the years. Some believe that the trend in agricultural employment is an excellent indicator of the economic prospects of a region as there is a inverse relationship between the employment,in this sector and the overall economic growth. This results from a national trend toward larger, more efficient farms which utilized more mechanized techniques which results in a surplus of labor that has the potential to be channeled into other sectors with appreciable increases in their incomes. Military employment is not seen as a very stable base in any community as it is subject to abrupt changes in response to national and international priorities. Although the military installation of Fort Ritchie is located within Washington County, employment there represents a comparatively small percentage (3.1%) of the total employment in the County; however, this 120 percentage ranks it 7th in the State. As a result of the significant impact of the National Capital on the adjacent Maryland suburbs and the number of suburban federal facilities in nearby Counties, Washington County is the 3rd from the bottom of the list in its percentage of federal employment. The area socioeconomic status indicator is comprised of eight demo- graphic indices. Of all these characteristics, growth is generally associated with high values of white collar employment, an urban population, size of the largest city, the percentage of commuters, and low values for non-white popu- lation. Socioeconomic Status Indicators for Washington County, 1970 Source: RMC Research Corporation, Economic Development for Western Maryland. 121 Residential Commuters Percentage Population Density as Worked Classification Percentage Percentage of (persons Percentage in with Respect Non- White Percentage Largest per of County Median to Area White Collar Urban City square Area of Age Socioeconomic Population Employment Population (thousands) mile) Employment Residence (years) Status 3.4 40.6 40.4 36 226 11.1 80.9 29.2 Medium Source: RMC Research Corporation, Economic Development for Western Maryland. 121 Washington County is characterized by a low percentage of non-white population, a large metropolitan center (Hagerstown) and a low value of commuters as a percentage of the total area employment. Indicators of social overhead capital includes a mixture of man-made resources which promote economic development. The social overhead includes development prerequisites such as transportation, communications, and utilities, electrical power availability, and investments in County human resources. The importance of social overhead as a force of promoting regional growth is the concentration of facilities in an area, thereby unbalancing the distribution of these facilities, which will promote development in the area. These factors include school expenditures, the number of hospital beds, accessibility factors in terms of highways, airport facilities, and public utility services. Indicators of Social Overhead Capital Supply for Washington County Public School Expendi- Hospital No. Major Intersec- tions with Number of Interstate Airports with Airlines/ Electric Power Generating Typical Electric Bills Residential Water Transportation Facilities Classification of Area with Respect tures Beds Per Multilane Highways Commuter Capacity 1,000 kwh Depth Tonnage Handled to Social Per Thousand Hiqhways in the Service and/or Millions Billing in (thousands of Overhead Pupil Population (4 & over) County Air Taxi Kw Hours Category Feet short tons) Capital 1971-72 1970 1973 1973 1972 1973 1972 1971 Supply $849 4.7 28 2 Yes 598 $19.51 None None High Source: RMC Research Corporationp Economic Development for Western Maryland. 122 Washington County has a very high level of social overhead capital. Although school expenditures are moderate when compared to the remainder of the State, by virtue of its excellent transportation system, highlighted by two interstate routes, a variety of quality State roads, and an airport, along with relatively low utility rates makes it an attractive location for business and industry. Four major routes, I-70, I-81, U.S. 40 and U.S. 11 provide basic means of vehicular access to the County. I-70 and I-81 are a part of the national interstate network. The intersection of these two major routes are -approximately 3 miles southwest of the City of Hagerstown and is a major factor in contributing to the overall growth of Washington County. Five railroads service the County including the Penn Central, the Chessie System (B&O/C&O), the Reading, the Western Maryland, and the Norfolk and Western. Approximately fifty trains a day pass through the region. The Hagerstown Municipal Airport is located two miles north of the City adjacent to a 130 acre industrial park. Allegheny Commuter Lines provides numer- ous flights daily to the major national and international airports in the 123 Baltimore and Washington regions. The most difficult to quantify,are the indicators of local development efforts, since they attempt to portray the degree of initiative of the local development groups. There are six indices which attempt to measure the degree of local effort. Indicators of Local Effort for Washington County Percentage of Manufacturing Local and Employment County Commercial Commercial Area Represented by Government Federal Bank Bank Savings Classification Subsidiaries of Expenditures Grants Time Total and Loans with Out -of -State Per Per Deposits Deposit Capital Respect to Parent Companies Person Person Per Person Per Person Per Person Local 1973 1971-1972 1971-1972 1970 1970 1970 Effort 52 $374 $37 $767 $1,410 $673 High Source: Subsidiary employment calculated from the State Department of Economic and Community Development, Directo Maryland Manufactures (1973). Local and county expenditures and federal grants data from Local Government Finances - State of Maryland (Fiscal year ended June 30, 1972). Commercial Bank and Savings and Loan Associations data from the City and Count Data Book, 1972. RMC Research Corporation, Economic Development for Western Maryland, The first local effort indicator is the percentage of employment 124 represented by subsidaries of out-of-state firms. Since the promotion of industrial development and location of out-of-state firms require an effective organization and favorable business climate, this indicator provides some evi- dence of aggressiveness of the County's economic development. The second category of local effort concerns how the County and local government have attempted to support local markets via County and local expendi- ture level rankings highlight the local effort which has been performed in lagging counties. The federal grants per person indicator denotes both the federal government support of local development efforts, as well as the initiative of the local government in applying for and following through with the grant pro- cess. The federal grants per person figures reveal that by and large the grants have been targeted on development problems. Lower federal grants per person may characterize high income communities, denoting that the federal grant policy has been geared to reduce area income disparities. The commercial bank time and total deposits per person indicator is difficult to evaluate because of difference in the pattern of financial inter - 125 mediaries between urbanizing and non -urbanizing areas. In the non -metropolitan areas the commercial banking sector attracts a greater proportion of local area savings, Furthermore, the household savings rate itself is also affected by the urbanization process which tends to promote consumption expenditures. Thus, the commercial bank time deposit rankings exhibit the non -urbanized counties outper- forming the metropolitan areas, the significance of which may be obscure in the analysis of the local effort. The savings and loan association indicator is easier to interpret since numerous counties do not have associations of this type, thus evidencing lack of development aggressiveness. Based upon these six indices, Washington County ranks high. The true validity of these indices could be questioned as to how well they actually measure the degree of local effort. However, aside from the facts and figures presented in this analysis, Washington County would also rate high if one were to look at the degree of local effort which is presently used to attract busi- ness and industries through the activities of the local Chamber of Commerce and and the County's Economic Development Commission. 126 The lack of economic development (and even some forms of economic development) may be representative of social and economic indicators of distress in the impacted areas. In Maryland, excluding Baltimore, most problems of social and economic distress appear to be the result of lack of development. Indicators of Distress for Washington County, Selected Years 1970-1972 37.8 12.5 3.2 45.9 23.2 38.4 11.0 5.6 Source: RMC Research Corporation, Economic Development for Western Maryland_ Eight indicators of distress consist of two economic; labor Medium force participation and persons in poverty. Two indicators concern the housing stock quality as measured by the lack of plumbing or overcrowding. Health indi- cators include infant mortality and the percentage failing selective exams. An educational quality indicator is the completion of high school education while a 127 Percentage Percentage Percentage Families Infant Percentage Percentage Housing Labor with Caseloads Percentage Mortality Falling Housing Units Classification Force Income of Public Completed Rate Selective Lacking Overcrowed of Area Participation Below Assistance High School 1971 Service Some or all (1.01 or more with Rates Poverty (thousands) Education (per Exams Plumbing persons Respect 1970 1969 1970-1971 1970 thousands) 11972 1970 1970 to Distress 37.8 12.5 3.2 45.9 23.2 38.4 11.0 5.6 Source: RMC Research Corporation, Economic Development for Western Maryland_ Eight indicators of distress consist of two economic; labor Medium force participation and persons in poverty. Two indicators concern the housing stock quality as measured by the lack of plumbing or overcrowding. Health indi- cators include infant mortality and the percentage failing selective exams. An educational quality indicator is the completion of high school education while a 127 final indicator comprises the caseloads of public assistance. Washington County has a moderate standing in terms of these indices which are used to determine the degree of area distress. Of significance is the high infant mortality rate (6th highest in the State) and the fact that 11 percent of the housing units lack some or all plumbing. The environmental quality indicators include the presence of parks, undeveloped land, and air and water pollution. The environmental degradation in some instances accompanies development, and in other instances it occurs in less prosperous areas which are not enforcing environmental standards. Environmental Quality Indicators for Washington County Source: RMC Research Corporation, Economic Development for Western Marvland. 128 Number of Percentage Number of Sewage of - Industrial Plants Total Plants Not in Classifications Acreage in with Comoliance with State/ Percentage Sulphur Particulates Carbon Hydro- Nitrogen. Discharges with Water Respect to National Acreage Dioxides Suspended Monoxides Carbons Dioxides Causing Pollution Environmental Parks in Farms Pollution Regulations Quality 1973 1970 ug/m3 ug/m3 Ug/m3 ug/m3 uc/m3 1972 1972 Indicators } 0.8 1' 55.1 26 77 1 89 7 5 Medium Source: RMC Research Corporation, Economic Development for Western Marvland. 128 In Washington County less than 1 percent of the land is used for state and federal parks, although a sizeable percentage of the land (550) is farm acreage. Air quality will have to be carefully monitored particularly in con- sidering the number of manufacturing activities which have established themselves in the County. Within Washington County, especially since the County is attractive to industrial activities, this index must be carefully watched. As an ever increasing number of acres of farmland are converted to an urban land use, the quality of the environment in Washington County, unless closely regulated and controlled, could see a substantial decline. The final category of development indicators is the County growth record indicator, in terms of both employment and income. This indicator is composed of two indices, the annual employment growth rate between 1960 and 1970, and the annual growth rate of the median faiily income within the same period of time. Gains in the annual employment growth rate would be a sign of rapid economic development. The annual growth rate in median income indicates the 129 Growth Indicators for Washington County Annual Source: RMC Research Corporation, Economic Development for Western Maryland. relative posture of the County in closing or widening the gap between the County's residents and those of the other counties of the State. Washington County is in a moderate position when compared to the other counties of the State of Maryland with regard to each of these two indices. A recapitulation of development indicators is in the following table, The basic development problems of Washington County have been identified and its relative position has been established with regard to other counties within 130 Growth Classification Annual Rate with Employment in Median Respect to Growth Family Employment Rate Incomes Growth 1960-1970 1960-1970 Indicators 1.9% 5.5% Medium Source: RMC Research Corporation, Economic Development for Western Maryland. relative posture of the County in closing or widening the gap between the County's residents and those of the other counties of the State. Washington County is in a moderate position when compared to the other counties of the State of Maryland with regard to each of these two indices. A recapitulation of development indicators is in the following table, The basic development problems of Washington County have been identified and its relative position has been established with regard to other counties within 130 the State of Maryland. Summary of Development Indicators for Washington County Source: RMC Research Corporation, Economic Development for Western Maryland. H - High Rating M - Medium Rating L - Low Rating 131 Indicators of Factors Affecting Development_ Indicators of Consequences of Develo ment Area Area Designation Indicators Employment Structure Area Area Area Per Unermlov- Ca-ita Net Out- Percentage Socio- Social Area Environ- Area i' ment Personal Migration Agricultural economic Overhead Local Area mental Employment II ates I.co-;e Rates Employment Status Capital Ef€or Distress Quality Growth H, M M I M M F. H M M M Source: RMC Research Corporation, Economic Development for Western Maryland. H - High Rating M - Medium Rating L - Low Rating 131 Economic Base Analysis L L L Economic Base Analysis* Economic base analysis attempts to identify that part of an economy which is basic, i.e. which generates the total employment of the area. In any economy some goods and services are imported, some are exported, and some are produced and consumed locally. The economic base of a community is defined as the employment used in producing goods and services to be consumed locally. Export employment is considered basic to growth because it is limited only by the community's ability to compete with other regions for export industries, while local employment is considered basic to growth because it is limited only by the community's ability to compete with other regions for export industries. Local employment is determined by local demand which only grows if the population grows or if there in an increase in employment responding to non -local demand, i.e. export employment. An industry may sell output to both local and export markets. Economic base analysis attempts to divide employment into basic and local categories in order to determine the economic base of a region. Since direct measurement of basic and non -basic employment would involve an exhaustive survey to determine the destination of locally produced goods and services, methods of indirect 'The following text is substantially reproduced from R.M.C. Research Corporation, Economic Development in Western Maryland 135 measurement estimation have been developed. The three prominent methods are: 1) the assumption approach 2) the location quotient approach 3) the minimum requirements approach The assumption approach is the simplest method. Arbitrary assumptions are made as to what constitutes basic and non -basic employment. Normally, it is assumed that all employment in agriculture, manufacturing, and government is basic. The remainder is assumed to be non -basic. Crude though this method is, it gives a convenient first approximation of the proportion of basic employment in the community. The location quotient method assumes that a community's demand pat- terns are a microversion of the national patterns. Since the nation as a whole is assumed to be self-sufficient, the proportion of national employment in a sector is assumed to be the proportion needed for local demands. If a community has a higher proportion of its employment in a certain sector, the excess over the natural norm is assumed to be export employment. The minimum requirements approach is further refinement of the location 136 Economic Base Analysis of Washington County Agriculture Mining Construction Manufacturing Furniture & lumber & wood products Metal industries Machinery, except electrical Electrical machinery Transportation equipment Other durable goods Food & kindred products Textiles & fabricated textile products Printing, publishing & allide industries Chemicals & allied products Other nondurable g000ds Railroads & railway express service Trucking service & warehousing Other transportation Communication Utilities & sanitary services Wholesale trade Food, bakery, & dairy stores Eating & drinking places General merchandise retailing Motor vehicle retailing & service stations Other retail trade Banking & credit agencies Insurance, real estate & other finance Business & repair services Private households Other personal services Entertainment & recreation services Hospitals Health services, except hospitals Elementary, secondary schools & colleges (government) Elementary, secondary schools & colleges (private) Other education & kindred services Welfare, religious, & non-profit membership organizations Legal, engineering & miscellaneous professional services Public administration Total Assumption Approach Location Quotients Minimum Requirements LocalTotal Basic 8 Basic Local Basic 8 Basic Local Basic % Basic Employment 1,550 1,550 100.0 1,450 100 6.5 353 1,197 77.2 127 2,860 0.0 127 0 0 127 100.0 127 0.0 2,352 508 17.8 2,195 665 23.3 2,860 668 100.0 510 158 23.7 118 550 82.3 668 839 100.0 839 0 0.0 39 800 95.4 839 1,801 100.0 1,019 782 43.4 0 1,801 100.0 1,801 230 100.0 230 0 0.0 39 191 83.0 230 3,772 100.0 1,098 2,674 70.9 78 3,694 97.9 3,772 1,350 100.0 1,038 292 21.6 78 1,272 94.2 1,350 321 100.0 321 0 0.0 118 203 63.2 321 1,994 100.0 1,137 857 43.0 0 1,994 100.0 1,994 746 100.0 627 119 16.0 118 628 84.2 746 127 100.0 127 0 0.0 39 83 69.3 127 852 100.0 852 0 0.0 235 617 72.4 852 1,216 0.0 314 902 74.2 0 1,216 100.0 1,216 645 0.0 549 96 14.9 274 371 57.5 675 273 0.0 273 0 0.0 196 77 28.2 273 497 0.0 497 0 0.0 118 379 76.3 497 986 0.0 666 320 32.5 196 790 80.1 986 1,454 0,0 1,454 0 0.0 588 866 59.6 1,454 1,003 0.0 980 23 2.3 784 219 21.8 1,003 985 0.0 985 0 0.0 549 436 44.3 985 1,006 0.0 1,006 0 0.0 274 732 72.8 1,006 896 0.0 862 34 3.8 823 73 8.1 896 2,149 0.0 2,149 0 0.0 1,568 581 27.0 2,149 474 0.0 474 0 0.0 274 200 42.2 474 835 0.0 835 0 0.0 314 521 62.4 835 694 0.0 694 0 0.0 549 145 20.9 694 498 0.0 498 0 0.0 196 302 60.6 498 1,078 0.0 1,078 0 0.0 706 372 34.5 1,078 197 0.0 197 0 0.0 39 158 80.2 197 1,149 0.0 1,149 0 0.0 353 796 69.3 1,149 729 0.0 729 0 0.0 431 298 40.9 729 1,771 100.0 1,771 0 0.0 1,529 242 13.7 1,771 357 0.0 357 0 0.0 157 200 50.0 357 140 0.0 140 0 0.0 0 140 100.0 140 513 0.0 513 0 0.0 314 199 38.8 513 641 0.0 641 0 0.0 353 288 44.9 641 100.0 1,776 0 0.0 1,411 365 20.6 1,776 !1,402 17,797 45.4 132,334 6,865 17.5 15,406 23,793 60.7 39,199 Source: RMC Research Corporation, Economic Development for Western Maryland. 137 quotient method. It assumes that there is a minimum percentage of the labor force that is required in various sectors of the local economy to maintain the community. This minimum is computed by calculating the percentage of the total labor force employed in each 'sector of a number of communities with similar characteristics and then selecting the lowest percentage for each of the sectors. The presumption is that the minimum requirement closely approxi- mates the local or internal needs of the community, and any excess employment (above this minimum) approximates the export or basic employment. All three methods give the proportion of employment in a community which is basic (the location method and the minimum requirements method attempt to detect which industries generate export employment). Using this proportion the effort of an increase in export employment on total employment can be esti- mated. The usual assumption is that the ratio of local to total employment will remain the same over the long run. The size of this ratio determines the impact of an increase in export employment through the multiplier. The accompanying table displays the economic base analysis for Washing- ton County. The assumption approach implies that 45.4 percent of the County's employment is basic. 138 The location quotient approach identifies that only 17.5 percent of the local economy is basic employment. Using location quotients, Washington County's major basic industries are: 1) machinery manufacturing 2) transportation equipment manufacturing 3) textiles and fabricated textile products 4) railroads and railway express service These four indicators account for more than 75 percent of the employment classi- fied as basic by this method. Using the minimum requirements method, 60.7 percent of employment is classified as basic. The major basic industries through the minimum require- ments approach are: 1) agriculture 2) durable good manufacturing (all six sectors) 3) textiles and fabricated textile products 4) printing, publishing and allied industries 5) railroads and railway express services 6) utilities and sanitary services These major industries account for more than 62 percent of the basic employment in Washington County. Although the methods of economic base analysis used in this study are estimates they are valuable indicators of the important sectors in a local economy. 139 The economic base mutlipliers indicate the impact of new employment on a region's growth in these sectors. For Washington County, the minimum requirement approach has a multiplier of 1.6. This means that as economic development increases that for each 100 basic employment there will be a corresponding 160-170 non -basic employment created. Shift Share Analysis The changes in sector employment are analyzed..using shift -share analysis. Here changes in employment from 1960 to -1970, and from 1970 to 1972 are explained by this method. The shift -share analysis is a good technique for regional economic analysis of the competitiveness of a regional economy. Shift - share analysis essentially decomposes regional (or state) employment changes into into three major components: 1) change at national rates . 2) change at industry mix rates 3) change in regional shares The shift -share analysis is based on the rationale that regions may grow either because they have a favorable industry mix (industries that grow faster than the national average) or because they attract an increasing regional share of the employment in a given industry. 140 Washington County's 1960, 1970, and 1972 employment change is disag- gregated in to its components of change following the shift share methodology. The components of employment for each major sector of Washington County's economy have been divided into five major components. The first element, the national growth shows what would have happened had that sector's employment in the County grown at exactly the overall -,national rate for all employment. The second component of change, the industrial mix effect indicates the change in the County's sectoral output is attributable to the national growth (or decline) of that particular sector relative to overall national growth. The third element, the Maryland share effect, indicates whether the Maryland share of the national employment in a given sector is increasing or decreasing. The ARC Counties share effect measures whether the Appalachian Regional Commission Counties share of employment in a particular Maryland sec - for is increasing or decreasing. The fifth element, the specific share,indicates-whether positive or negative changes are occuring in Washington County's share of employment in an 141 Shift -Share Analysis of Washington County's Major Industrial Sectors, 1960-1970 Source: RMC Research Corporation, Economic Development for Western Maryland. 142 Washington County Regional Shares Employment 1960-1970 Total ARC Employment National Industrial Maryland Counties Washington 1960 1970 Chancre Growth Mix Share Share Share Mining 39 42 3 8 - 12 10 - 21 18 Construction 1,155 1,782 627 226 - 27 314 - 279 394 Manufacturing 10,130 12,988 2,858 1,978 -525 -1,201 64 2,538 Durables 6,802 8,874 2,072 1,329 -179 - 918 - 638 2,476 Nondurables 3,328 4,114 786 649 -346 - 283 702 62 Transportation, Communica- tion and Utilities 1,609 2,179 570 314 -118 - 9 - 12 394 Wholesale and Retail Trade 5,284 7,327 2,043 1,032 622 1,591 -2,401 1,198 Wholesale Trade 1,009 1,464 455 197 74 267 - 391 308 Retail Trade 4,275 5,863 1,588 835 548 1,324 -2,010 890 Finace, Insurance, and Real Estate 657 842 185 128 123 115 - 182 1 Services 1,714 2,376 662 335 632 636 - 890 - 52 Federal Government 485 693 208 95 - 2 205 - 31 - 58 Total 21,073 28,229 7,156 4,116 693 1,661 -3,753 4,433 Source: RMC Research Corporation, Economic Development for Western Maryland. 142 ARC Sector. In addition, the three share effects - Maryland, ARC, and Washing- ton County- may be added, if desired, to derive an overall regional share effect, which determines whether the County's share in natural employment in a sector is increasing or decreasing. Employment changes in Washington County between 1960 and 1970 and between 1970 and 1972 are presented in the accompanying tables. These tables display the components of employment changes, national growth, industry mix, total regional share itemized into Maryland share, ARC counties share, and Washington County share. 1960-1970 - During the sixties, Washington County had a favorable industry mix; however, this factor accounted for less than a tenth of the income in employment. The total regional share for Washington County (2341 = 4433 - 3753 + 1661) is quite favorable, accounting for almost a third of the total change over the decade. Only two sectors had negative total regional shares in the sixties: finance insurance and real estate, and services. Nationally, these are the two fastest-growing, so the regional share losses are cause for concern. Large regional shares were exhibited during this decade for manufac- turing and for trade. The detailed analysis of manufacturing is displayed on the accompanying table. Although a number of manufacturing industries in Washington County lost employment over this decade, large gains in other sectors 143 Shift -Share Analysis of Washington County's Manufacturing Sector, 1960-1970 Source: RMC Research Corporation, Economic Research for Western Maryland. 144 Washington County Regional Shares Employment 1960-1970 Total Employment National Industrial Maryland ARC County Washington 1960 1970 Change Growth Mix Share Share Share Durable Goods 6,802 8,874 2,072 1,329 -179 -918 - 638 2,476 Lumber and Wood Products 233 31 -202 46 - 66 - 35 22 -169 Furniture and Fixtures 470 586 116 92 2 - 95 - 137 253 Stone, Clay, Glass Products 576 535 - 41 112 - 78 - 10 235 -301 Primary Metals 22 14 - 8 4 - 3 - 1 4 - 12 Fabricated Metal Products 447 635 188 87 9 641 -1,184 635 Machinery, Excluding Electrical 900 1,301 401 176 130 - 28 - 374 497 Electrical Machinery 389 80 -309 76 43 - 33 --- -395 Transportation Equipment 3,076 5,233 2,157 601 -149 -918 774 1,849 Instruments 9 4 - 5 2 1 - 3 - 9 4 Miscellaneous and All Other 680 455 -225 133 - 68 -436 31 115 Nondurable Goods 3,328 4,114 786 649 -346 -283 702 62 Food and Kindred Products 480 443 - 37 94 - 96 12 - 63 16 Textile Mill Products 608 732 124 119 - 85 -207 --- 297 Apparel 900 1,529 629 176 - 80 -156 905 -216 Paper and Allied Products 42 15 - 27 8 - 1 5 - 13 - 27 Printing and Publishing 483 63.9 156 94 7 134 - 161 82 Chemicals 120 116 - 4 23 9 - 24 - 1 - 12 Petroleum Refining 0 8 8 0 0 0 0 8* Rubber and Miscellaneous Plastics 181 21 -160 35 61 - 59 35 -232 Leather and Leather Products 514 611 -97 100 -161 12 --- 146 Totals 10,130 12,988 1 2,858 1,978 -525 -1,201 64 2,538 Source: RMC Research Corporation, Economic Research for Western Maryland. 144 more than compensated. In durable goods manufacturing, large employment increases occured in furniture and fixtures, fabricated metal products, machinery and most notably transportation equipment. Of these, only machinery had a very favorable growth rate, as indicated by the industrial mix factors. Total regional shares for these industries ranged from small (furniture and fixtures) to major (transportation machinery). For all of these sectors, the national growth factor is significant. Of the nondurable goods sectors, several showed major increases in employment: textile mill products, apparel, printing and publishing, and leather and leather products. All of these except printing and publishing grew at a lower rate than the national average (as shown by the industrial mix figures). Washington County compares very favorably to the rest of the Country. The tendency to lose its regional share of the faster growing sectors (finance, insurance and real estate, and services) is a cause for some concern, but the healthy growth in other sectors is more than compensated. 1970-1972 - During the first three years of the seventies, Washington County gained 1,560 jobs. However, heavy losses were experienced in durable goods manufacture and transportation, communication and utilities. As the industrial mix shares show only three sectors grew signigicantly faster than the 145 national average: retail trade, finance, insurance and real estate, and services. Washington County had mostly positive regional shares; however, much of this effect is attributable to the growth of the State and ARC region. Washington County compared favorably with the rest of the Western Maryland in mining, construction, nondurable manufacturing, and federal government. Looking at total regional shares, Washington County compared favorably to the national averages in all sector except retail trade and transportation, communications and utilities. In the early seventies, Washington County reversed its negative regional shares in the fast growing service sectors, but also lost ground in the previously healthy retail trade and transportation, communications and utilities. The accompanying table displays the detailed analysis for manufac- turing during this period. Heavy losses occured in most of the durable goods industries. The rising trend of the sixties was continued for furniture and fixtures manufacture. The other industries which grew during the sixties declined from 1970 to 1972. In the case of machinery, the three year decline (-359) almost matched the previous decade's gain (401). In nondurables manu- facturing, the trends of the sixties were continued with one exception. The 146 Shift -Share Analysis of Washington County's Manufacturing Sector, 1970-1972 Source: RMC Research Corporation, Economic Development for Western Maryland. 147 Washington County Regional Shares Employment 1970-1972 Total Employment National Industrial Maryland ARC County Washington 1970 1972 Change Growth Mix Share Share Share Durable Goods 8,874 7,802 -1,072 347 -1,204 9 862 -1,084 Lumber and Wood Products 31 32 1 1 0 0 - 8 8 Furniture and Fixtures 586 710 124 23 - 23 - 15 - 92 231 Stone, Clay and Glass Products 535 419 - 116 21 - 49 1 26 - 115 Primary Metals 14 12 - 2 1 - 3 0 7 - 6 Fabricated Metal Products 635 548 - 87 25 - 30 4 0 - 86 Machinery, Excluding Electrical 1,301 942 - 359 51 - 135 26 174 - 127 Electrical Machinery 80 91 11 3 - 10 0 0 18 Transportation Equipment 5,233 4,565 - 668 204 - 885 - 4 1,161 -1,144 Instruments 4 4 0 0 1 0 0 - 1 Miscellaneous and All Other 455 479 24 18 - 70 - 3 - 58 138 Nondurable Goods 4,114 4,124 10 162 - 585 -113 296 250 Food and Kindred Products 443 419 - 24 17 - 47 - 1 53 - 46 Textile Mill Products 732 743 11 29 - 220 - 94 0 296 Apparel 1,529 1,534 5 60 - 189 - 18 255 - 103 Paper and Allied Products 15 0 - 15 1 - 2 0 0 - 13 Printing and Publishing 639 748 109 25 - 41 - 4 13 116 Chemicals 116 87 - 29 'S - 10 5 - 29 0 Petroleum Refining 8 7 - 1 0 0 0 0 - 2 Rubber and Miscellaneous Plastics 21 22 1 1 - 3 - 1 4 0 Leather and Leather Products 611 564 - 47 24 - 73 0 0 2 Totals 12,988 11,926 -1,062 509 -1,789 -104 1,158 - 834 Source: RMC Research Corporation, Economic Development for Western Maryland. 147 Shift -Share Analysis of Washington County's Major Industrial Sectors, 1970-1972 Source: RMC Research Corporation, Economic Development for Western Maryland. 148 Washington County Regional Shares Employment 1970-1972 Total 1970 1972 Employment Change National Growth Industrial Mix Maryland Share ARC County Share Washington Share Mining 42 93 51 2 - 3 4 2 46 Construction 1,782 2,206 424 70 4 91 66 193 Manufacturing 12,988 11,926 -1,062 509 -1,789 -104 1,158 - 834 Durables Nondurables 8,874 4,114 7,802 4,124 -1,072 10 347 162 -1,204 - 585 9 -113 862 296 -1,084 250 Transportation, Communica- tion, and Utilities 2,179 2,033 - 146 85 - 85 - 54 2 - 94 Wholesale and Retail Trade 7,327 7,429 102 286 105 247 - 42, - 493 Wholesale Trade 1,464 1,505 41 57 - 16 95 - 93 - 1 Retail Trade 5,863 5,924 61 229 121 152 51 - 492 Finance, Insurance, and Real Estate 842 954 112 33 22 13 65 - 20 Services 2,376 4,287 1,911 93 50 18 2,124 - 374 Federal Government 693 861 168 27 - 41 17 - 26 191 Total 28,229 29,789 1,560 1,105 -1,737 232 3,349 -1,385 Source: RMC Research Corporation, Economic Development for Western Maryland. 148 manufacture of leather and leather products which gained 97 jobs in the sixties, lost 47 positions in the first third of the seventies. Printing and publishing was the only industry in this group to show significant gains during this period. The industrial mix effects in this period were all negative. The over- all regional share effect was positive, but many of the industries exhibited declining regional shares. In the first third of the seventies, Washington County continued the basic trend of the sixties, as most growth was attributable to an increasing regional share. However, in the sixties, Washington County compared favorably to the rest of Western Maryland. In the seventies, Washington County still compared favorably to Maryland, but not to the rest of Western Maryland. This may only indicate that the other portions of Western Maryland grew faster because they were "catching up", however, since Washington County depends on growth for increasing its regional share, this should be a caveat for future development. 149 L L Gap Analysis I' it L Gap Analysis* Indicators of growth will now be examined as measures of the need for growth. Rates of increase of employment and income relative to population are compared to estimate the future of this regions economic stability relative to the State as a whole. One of the basic goals of the development process is the stimulation of private investment aimed at securing the establishment and/or expansion of relatively rapid growth and high wage industries which will generate and/or sustain an area's economic growth. From such development, it is anticipated that underemployment, in particular, and unemployment, in general, can be sub- stantially reduced. As a result per capita income and employment should increase reducing any disparity between the area's level of employment and income to that of the State of nation. The amount of increase in new economic activity which is necessary to close this gap, depends on the magnitude and difficulty of the problems facing the area. The following discussion presents the income gap analysis of Washington County. To be discussed are population, employment, and income characteristics *The following text is substantially reproduced from R.M.C. Research Corporation, Economic Development in Western Maryland 153 for Maryland and Washington County. If it is assumed that the rates of increase of these factors during the past decade will provide reasonable estimates of future economic behavior, projections of County and State employment can be easily obtained. It should be noted that without special effects to change the socio-economic characteristics, economic structure, and growth rate of Washington Characteristic Income Gap Analysis Maryland Washington County Population 3,992,391 103,829 Employment 1,538,766 39,199 Employment/Population Ratio 39,2% 37.8% Personal Income 1,000's of Dollars 15,634,651 393,200 Per Capita Income - M 3., 986 3,787 Per Capita Income, Gap Dollars 199 Aggregate County Income Gap, Thoudands of Dollars 20,662 Average Income Per Employed Persons, Dollars 10,161 10,031 Average Income Gap for Employed Persons M 130 Source: Economic Development in Western Maryland, R.M.C. Research Corporation 154 County, it is reasonable to assume that economic characteristics of the County will resemble those of the past. In 1969 Maryland's employment to population ratio was 39.2 percent, higher than a similar ratio for Washington County, as was the per capita income in a similiar comparison. Concerning income and employment gaps, the loss of potential income is attributed to a low average income, a low level of employment, or the combination of the two. Washington County has the smallest per capita income gap of the Western Maryland counties. However, it also shows the slowest growth rates. As shown, the per capita income gap in Washington County was $199 in 1969. If per capita income in Washington County in 1969 had been equal to the State average, total personal income would have been $20,662,000 or 5.3 percent (of the actual $393,200,000) higher. The percentage of the population which was employed in Washington County (37.80) is only slightly lower than the State average of 39.2 percent. If Washington County had matched the State employment/population ratio with the same income per employed person ($10,031), then per capita income -would have been $3,932, only $54 lower than the State average. Hence, although Washing- ton County's income per employed differs from the State average by a significant $130 per year, low employment, rather than low income accounts for most of the 155 income gap. - The income and employment differences between Washington County and the Maryland average are not large. Consideration of the growth rates in Washington County are more revealing. Although the per capita income gap is small, it is widening over time since Washington County is growing at a slower pace than is the average for the State. If Washington .County's per capita income were growing at a rate of 6 percent to 7 percent, the per capita income gap would be closed in five years. This rate of growth should not be impossible for Washington County to achieve. Alternatively, at the 1969 income per employed person level, an additional 2,060 jobs would also close the gap. This represents an increase of 5.3 percent in the number employed, a reasonable goal. If past growth trends continue, income gaps of Washington County will continue - to progressively increase, and a present negligible income gap can widen, becom- ing more significant. 156 L L t L L L C C L L L L L Income Multiplier Income Multiplier* An effective means of examining the economic structure of a community is through the analysis of its income. The basic approach is much the same as is the analysis of the community's economic base,in that it decomposes the various components of the total into the sources and establishes a relationship between the various sources of income and the total local economy. The income multiplier approach has a significant advantage over other analysis,in that it recognizes income not only from employment but from other sources of income, such as.proprietors income, property income, transfer pay- ments (welfare payments, social security benefits, veterans benefits, etc.), all of which have an effect upon the community's overall economy. In some locations, commuters are more dependent upon this income flow than they are upon employment income. The following table, Sources of Personal Income, catagorize the three origins of income; local, that which is dependent upon the local economy, basic that which depends upon export related activity; and a third category classified as autonomous, which includes that income which is dependent upon neither the *The following text is substantially reproduced from Economic Development in Washington County 159 Sources of Personal Income - 1972 (In Thousand of Dollars) Source: Economic Development Bureau of Social and State Department of in Washington County, Maryland. Economic Statistics, United Commerce. 160 local economy nor exports. Each of the sources of income is then classified into one of the particular catagories: local, basic, or autonomous. The Wages and Salaries for federal employment, manufacturing employ- ment and agricultural employment are considered basically export oriented. The catagory, All Others, is considered to represent primarily the income derived from non -basic activities and is thus considered local. Other labor income (that" is not included in the above) is also considered primarily local. Proprietors income from farm, or profits from agricultural productivity, would not be included under Wages and Salaries, is also considered export related. However, Proprietors income (non-farm) is defined as that income which was not included under Wages and Salaries, but was profit from service activities, local professionals and small businesses and is thus considered local. Property Income is composed principally of interest, dividends, and monetary rent which was received by residents of the community. This"is defined as basically autonomous income. Transfer payments include that income which was -not earned but rather that which was received through a monetary redistribution of income. The 161 payments include all forms of welfare, income from social security, veterans benefits, etc. This income is autonomous as well since it does not depend upon either local or basic activities. Contributions to Social Insurance Programs subtracts from local income and since this money is not dispensable, it does not stimulate the economy. As with the economic base study, income analysis also assumes that the introduction of income into an area will stimulate the local economy and have a multiplier effect. The multiplier for Washington County is 1.61, which means that within the present income structure of the County, for every $1..00 of income which is brought into the County from an outside source (either through export activity or autonomous income) will result in an additional 61 cents being gener- ated within the local sector. The importance of attracting not only export oriented employment to the County will result in growth, but as seen in this analysis, that the attraction of income to the County will also have a positive effect on local growth. 162 C L C L C C C C L L Local Government— Fiscal Health Local Government Fiscal Health Tax Rate In the State of Maryland real property is taxed by both the local and state governments. In genera],the same tax rate applies to both residential and non-residential property. Property tax revenues are computed by multiplying the tax rate, which is $2.60 per $100 in Washington County, by 50 percent of the assessed value of the property. The assessed value to the property is 50 percent of the market or full value of the property, although the effective taxable value is below the market value, due to time lag in updating assessments, and inflation. In Washington County the total assessable basis for 1974, was $706,361,480, or for taxing pur- poses was $353,180,740. It is this valuation that determines the real property tax revenue. The general property tax rate is annually reviewed and set by the Board of County Commissioners. For historical perspectives, the following table gives a review of State and County tax rates since 1935. 165 Year County Rate State Rate Year County Rate State Rate 1935 .97 .22 1956 1.69 .109 1936 1.06 .22 1957 1.69 .1425 1937 1.07 .2225 1958 1.89 .1425 1938 1.10 .2301 1959 1.89 .1342 1939 1.20 .2335 1960 1.89 .1375 1940 .72 .2335 1961 1,95 .15 1941 1.10 .2335 1962 1.98 .15 1942 1.10 .14 1963 2.14 .15 1943 1.10 .1275 1964 2.14 .15 1944 1.10 .12 1964* 1.14* .18 1945 1.22 .12 1965 2.14 .15' 1946 1.22 .10 1966 2.17 .16 1947 1.50 .10 1967 2.17 .16 1948 1.50 .1113 1968 2.17 .20 1949 1.50 .1115 1969 2.27 .18 1950 1.50 .1239 1970 2.40 .18 1951 1.50 .06 1971 2.50 .21 1952 1.50 .0625 1972 2.50 .21 1953 1.50 .0604 1973 2.50 .21 1954 1.54 .0567 1974 2.50 .21 1955 1.75 .11 1975 2.60 .21 *Tax Revenue Changed from Annual to Fiscal Year Source: Treasurers Office 166 The following chart titled -Maryland Tax Rates for Counties, lists Washington County's Tax Rate in comparison to Baltimore City and the other counties in Maryland. It is especially noteworthy that geographic assessment values will be of significant importance in comparative tax rates. The assessed valuation is determined by comparison of similar valued property that reflects the local market value of the property. Thus equivalent properties in different geographic locations will have different assessed values, which will be determined by demand, and local market values. Baltimore City Prince George's Baltimore County Montgomery Harford Caroline Garrett Dorchester WASHINGTON Calvert St. Mary's Kent Source: Maryland Tax Rates (Fiscal 1976) (Counties and Baltimore City) Rate Per $100, 50 % Assessed Valuation $6.02 Charles 3.37 Carroll 3.11 Cecil 2.94 Howard 2.90 Allegany 2.75 Frederick 2.73 Anne Arundel 2.69 Queen Annes 2.60 Sommerset 2.55 Talbot 2.55 Wicomico 2.54 Worchester Rate Per $100, 50 % Assessed Valuation State Department of Assessments and Taxation 167 $2.52 2.50 2.45 2.44 2.40 2.40 2.30 2.10 2.00 2.00 1.90 1.75 Washington County's real estate tax rate compares favorably with other county tax rates, although the total tax burden varies due to assessments and other local taxes. Those properties located within the nine incorporated munici- palities within the County have the following effective tax rates also: Tax Rate (Municipalities) Rate Per $100, at 50 Total Assessable Percent Assessed Valuation Basis Hagerstown 1.75 $191,292,930 Williamsport 1.00 13, 646, 880 Hancock .85 11,537#,800 Smithsburg .75 4.069.000 Boonsboro .60 11,646,800 Sharpsburg .60 3,477,400 Keedysville .57 2,631,250 Clear Spring .50 1,984,400 Funkst©wn .35 4,916,050 Revenue The revenue for the operation of local government is derived primarily from the local property tax, although a local income tax, that is 50 percent of the State income tax, is levied on those persons deriving their income in the County. "M The following diagram and table, Revenues - Washington County, gives a summary of the County's fiscal resources. As stated, the General Property Tax, derived from assessed valuation, is 56.5 percent of the total revenues. Together, the property tax and income tax account for over 80 percent of the tax revenues. Other sources of local revenue are identified along with their percentage of the total budget. 1974 Fiscal Revenues General Property Tax Federal Grants, Revenue Sharing County Inoome Taxes Grants from State Government State Shared Taxes Licenses & Permits Local Taxes Fines & Forfeitures Revenue from use of Money & Property Charge for Current Servides Other Revenues Revenue 12,264,141 184,845 5,219,164 1,784,506 734,279 144,163 399,280 10,438 652,802 22,872 308,622 21,698,112 Source: Financial Statement, Smith Elliott Company During the fiscal year 1974, revenues totaled $21,698,112. 169 Percent 56.52 .85 24.05 8.23 3.38 .67 1.84 .05 2.88 .11 1.42 100.00 It is this amount of s_ WASHINGTON COUNTY FISCAL 1974 RECEIPTS STATE GRANTS VE SH PR\V SOURCE: FINANCIAL STATEMENT SMITH, ELLIOTT B COMPANY 170 revenue that in turn is expended for the operation of the County Government. Expenditures The revenue, is then expended for services to the public. The following table and diagram, Washington County Disbursements, identifies expenditures and percentage allocated by category for performance of services by local government. Domminating expenditures in Washington County, as in other counties, is education, which absorbs 75 percent of the budget. 171 WASHINGTON COUNTY FISCAL 1974 DISBURSEMENTS SOURCE: FINANCIAL STATEMENT SMITH, ELLIOTT Q COMPANY 172 p UBLIC Nd ORKS HEALTH NCSpI TAL S SpCfaL SER C 7-10MS K- Eq �raN �F© 414 � IC4 rG 44 WASHINGTON COUNTY DISBURSEMENTS (Fiscal 1974) Percent Legislative & Executive 90,057 .4 Judicial 336,520 1.6 Election Board 31,426 .2 D Finance 357,808 1.7 Legal Counsel 21,832 .1 'Planning & Zoning 322,006 1.6 Municipally Owned Buildings 209,903 1.0 +Community Promotion 77,376 .4 Public Safety 310,298 1.5 'Public Works 759,947 3.7 Conservation of Health 616,762 3.0 Hospitals 38,686 .2 Social Services 392,365 1.9 Correction 235,747 1.2 *Education 15,507,929 75.5 Recreation & Culture 453,876 2.2 Conservation Natural Resources 59,247 .3 Unallocated 239,894 1.2 Debt Service 205,765 1.0 Econ. Opportunity & Development 271,020 1.3 Total 20,538,464 100.0 3 Figure includes Data Processing, Accounting, & Assessments. 'Line item includes Engineering, Building Inspection, & Planning & Zoning Commission. +Includes Economic Development Commission & Tourism. Includes Roads Department *Includes Bonded Indebtedness for School Construction Source: Financial Statement - Smith Elliott Company 173 MILLIONS $ 24 $ 22 S 20 s 18 s 16 s 14 $ 12 $ 10 $ 8 $ 6 got". �, 15mgmil 91 :AR — 1966 -1967 1967-1968 1968-1969 1969-1970 1970-1971 1971-1972 1972-1973 1973-1974 1974-1975 REVENUES EXPENDITURES WASHINGTON COUNTY. MARYLAND 1 1 7 r• f - 15mgmil 91 :AR — 1966 -1967 1967-1968 1968-1969 1969-1970 1970-1971 1971-1972 1972-1973 1973-1974 1974-1975 REVENUES EXPENDITURES WASHINGTON COUNTY. MARYLAND 1 1 7 The size of the budget is generally proportional to the size of the geographic area, amount of populous, and those services rendered to the public. The following chart illustrates the growth of the County budget since the 1966- 1967 fiscal year. During this nine year period, the budget has grown 137.51 percent Further examination of the County's budget may be done by establishing a Per Capita Cost of County Government by Department. The following table , titled the same, identifies those departments as presented in the external auditors report to the County. From the per capita ratio of cost of County Government, the average expenditure per family may be determined by multiplying by 3.3, the average family size, or in the case in which the family size is definitive, the number of persons may be used as the multiplier. It may be noted that the local County Government cost per person, a sum of $185.79, or a per family ($185.79 x 3.3) = $613.11. These figures are averages, and therefore tax paid by individuals will vary according to the type and amount of property, income, etc. The County budget is adopted by the County Commissioners after departmental hearings are held to consider budget requests. The agency requests 175 are reviewed with final determination and appropriations are given to the depart- ments as deemed by the County Commissioners. Expenditures of County Government *(Per Capita) Fiscal 1974 4) Planning & Zoning 2.91 Engineering Expenditure Per Capita 1) Legislative & Execttive 90,057 .81 2) Election Board 31,426 .28 3) Finance 357,808 3.24 Data Processing 60,435 .55 Accounting 55,564 .50 Assessments 159,999 1.45 Tax Collector 56,440 .51 Others •23 4) Planning & Zoning 2.91 Engineering 131,212 1.19 Building 40,000 .36 Planning & Zoning 133,698 1.21 Others 17,096 .15 5) Buildings 209,903 1.90 176 L L L L L Expenditure of County Government (Continued) 6) Community Promotion Economic Development Tourism Others 7) Public Safety Fire Protection Sheriff Civil Defense Animal Protection Coroner Others 8) Public Works Roads Department Projects General Fund Transportation System 9) Conservation of Health Sanitation Sanitary Commission Plumbing Board Health - Health Department Ambulance Expenditure 77,367 38,748 31,007 310,298 137,192 80,028 28,220 49,857 10,902 4,099 759,947 201,035 363,185 195,727 616,762 80,704 55,374 25,330 536,058 517,308 18,750 177 Per-CaRita .70 .35 .28 .07 2.81 1.24 .72 .26 .45 .10 .04 6.87 1.82 3,29 1.77 5.78 .73 .50 .23 4.85 4.68 .17 Expenditure of County Government (Continued) 178 Expenditure Per Capita 10) Hospitals 38,686 .35 Washington County 31,186 .28 State 7,500 .07 11). Social Services 392,365 3.55 Social Services 337,926 3.06 United Fund 38,500 .35 Others 15,939 .14 121 Correction Jail & Probation 235,747 2.13 13) Education 15,507,929 140.28 Board of Education 13,106,861 118.56 Current Expense 12,517,278 113.23 Junior College 589,583 5.33 Pensions 89,467 .81 Debt. Service 2,296,004 20.77 Other 15,597 .14 178 Expenditure of County Government (Continued) 179 Expenditure Per Capita 14) Recreation & Culture 453,876 4.11 Contributors to Agencies 283,890 2.57 Washington County Agencies 231,487 2.09 Washington County Museum 29,350 .27 Community Recreational 18,000 .16 Other 4,550 .04 Park Commission 138,921 1.26 Parks & Recreation 31,065 .28 15) Conservation Natural Resources 59,247 .54 University of Maryland 39,491 .36 County Agent 10,161 .09 Soil Conservation 9,595 .09 16) Unallocated 239,894 2.17 Grants to Municipalities 38,543 .35 Retirement 84,142 .76 Insurance - General 15,089 .14 Insurance - Employee 28,961 .26 Social Security 71,656 .65 Other 1,503 .01 179 Expenditure of County Government (Continued) 17) Debt Service - General Interest Principal Payments Public Improvements - Interest Public Improvements - Principal 18) Economic Opportunity & Development Total Expenditures *1974 Estimated Population of 107,814 Expenditure 205,765 10,965 85,000 43,133 66,667 217,020 20,538,464 Per Capita 1.86 .10 .77 .39 .60 1.96 185.79 With growth of the County, the demands for services, i.e. education, police protection, roads etc., have also increased, necessitating additional per- sonnel to render those services. The following chart lists employment and illustrates the growth of personnel in the Washington County Government. These figures represent the Court House and Roads Department employees only. Not included are the Board of Eduction, Sanitary Commission and the Health Department. 180 Employment Growth Washington County Government Year/Average, 1963 - 172 1964 - 231 1965 218 1966 - 245 1967 - 237 1968 - 268 Year/Average 1969 - 267 1970 - 276 1971 - 28.2 1972 - 368 1973 - 343 1974 - 345 r; Washington County's Bond Rating June 1975 Moody's - Al Standard and Poor's - AA 181 L C L L C L C C 11 LI L L Geographic Economic Development Geographic Trends in Economic Development Washington County has been divided for planning purposes, into six geographic sectors referred to as "Planning Sectors." The following discussion will give a critique of recent economic base and development and those trends that may be anticipated in the future. Metropolitan Hagerstown (Planning Sector I), contains 67.2 percent of the County's population, and 40.4 percent of the sectors population is urban, and is considered the central core area of economic activity. Between 1960 and 1970 there was a 9.7 percent increase in the population within the sector, a value that represented 60 percent of all growth for the County. There were also population shifts or migration within this sector. This is primarily exemplified by a 4.1 percent decrease in population in the City of Hagerstown. Located within the Metropolitan sector are major components of the transportation network. Two major interstate highways, I-70 and I-81, intersect in this sector, and in addition there are nine intersections with suburban arterials on I-81, and three similar intersections with I-70. The two interstates form a peripherial corridor around the Metropolitan area, thus creating excellent highway accessibility to all points in the sector. 185 VI V 3 13 4 J WASHINGTON COUNTY ELECTION DISTRICTS PLANNING SECTORS 0 2 4 Scale I I I I 186 I IV 74 13 r 27 9 121 7 25Y"- 18 24 12 3 j /� 1T 26 2 10 if 16 20 12 6 14 LJ 8 Five railroads presently serve Planning Sector I, which include the Penn Central, Western Maryland, Reading, Norfolk and Western, and the Chessie System (B&O/C&O), thus providing excellent rail freight service. The Hagerstown Regional Airport is located approximately 4.5 miles north of the City, and is easily accessible by interstate. The airport is served by the Allegheny Commuter, which offers both passenger and freight service to metropolitan areas. The accessibility to the Metropolitan area by these modes of trans- portation is a primary asset to economic development. Presently within the limits of Planning Sector I are fifteen industrial sites as noted in the indus- trial site index map. The following industries have located within Planning Sector I since 1970: 1) Certain Teed Products Corporation Interstate Industrial Park 2) Conservit Incorporated Earley Industrial Park 3) Eastern Products Martin Road 4) Maccaferri Gabions of America Interstate Industrial Park 187 COMMUNITY ECONOMIC /NVFNTORY SCALE ,88 1. HANCOCK INDUSTRIAL PARK (38 ACRES) PLANNED INDUSTRIAL 2. RUTHLEDGE SITE (47 ACRES) HIGHWAY INTERCHANGE 3. CENTRAL CHEMICAL SITE (29 ACRES) HEAVY INDUSTRIAL 4. BOYS CLUB SITE (7 ACRES) HEAVY INDUSTRIAL 5. JAMISON SITE (218 ACRES) INDUSTRIAL GENERAL 6. WESTERN MARYLAND RAILWAY SITE (500 ACRES) INDUSTRIAL GENERAL 7. DUTTON SITE (85 ACRES) HIGHWAY INTERCHANGE 8. TAYLOR SITE (108 ACRES) INDUSTRIAL GENERAL 9. L.IGHTNER SITE (30 ACRES) HIGHWAY INTERCHANGE 10. INTERSTATE INDUSTRIAL PARK (493 ACRES) PLANNED INDUSTRIAL 11. RONEY SITE (30 ACRES) PLANNED INDUSTRIAL 12. NORFOLK & WESTERN RAILROAD SITE (70 ACRES) PLANNED INDUSTRIAL 13. HAGERSTOWN INDUSTRIAL PARK (58 ACRES) LIGHT INDUSTRIAL 14, GOSSARD SITE (90 ACRES) HIGHWAY INTERCHANGE 15. EARLEY INDUSTRIAL SITE (115 ACRES) INDUSTRIAL GENERAL 16. BOONSBORO SITE (148 ACRES) PLANNED INDUSTRIAL 17. AIRPORT INDUSTRIAL PARK (36 ACRES) PLANNED INDUSTRIAL Im 5) Racklin Properties, Incorporated Interstate Industrial Park 6) Rust-Oleum Corporation Interstate Industrial Park 7) Roadway Express, Incorporated East Oak Ridge Drive 8) Ryder Truck Lines Pennsylvania Avenue 9) Wilderness Industries Interstate Industrial Park Y ,1 190 In addition, there has been expansion of existing local industry such as Mack Truck, Gabriel Industries, Reed Industries, and Certain Teed Products Corporated. Most industrial and commercial development in Washington County has been in proximity to the interstate interchanges along the U.S. Route 11 corridor and U.S. Route 40 East corridor. This type of development can be expected to increase with additional availability of public water and sewer. Additional retail development and travelers services, (i.e. motels, restaurants, and gaso- line stations) have evolved around the interchanges also. A regional retail complex, the Valley Mall, with various adjacent centers, has located in the Halfway area. Other new retail developments include the Zayre Shopping Center, and urban renewal of the Central Business District in Hagerstown. The only major recreational area in Planning Sector I, is the C&O Canal, along the Potomac River, that is proposed for development by the National Park Service in the Williamsport area. Proposals designate the Williamsport area as an interpretive zone, which states that there are "major historic restoration opportunities that will be designed to support high density use." 191 Public employment base in Planning Sector I has increased principally at the Maryland Correctional Institution, with the addition of the Maryland Correctional Training Center. Several proposals are being deliberated presently for expansion of the MCI facilities. In review, most of the employment base has centered in the proximity'to highway interchange areas. This trend will continue, and will be enhanced with the expansion of water and sewer facilities to these areas. Planning Sector II (mid -county) is directly south of the metropolitan area. Planning Sector II recorded a population increase of 13.1 percent between 1960 and 1970. The mid -county sector, constituting 12.7 percent of the total County population, is predominately rural non-farm (92.4 percent), being agri- cultural in nature. Growth in this sector is attributed to residential development which is the result of expanded economic growth in the metropolitan area. Industrial development in this sector is limited to the Boonsboro area, with recent location of the London Fog factory. The sector is endowed with a number of significant tourist and recrea- tional attractions, including Greenbriar State Park, Washington Monument State 192 Park, the C&O Canal, the Antietam National Battlefield, and the Devil's Backbone County Park. The State Parks are located within the South Mountain Environmental area and local expansion of these parks may be anticipated. C&O Canal proposals include those areas in this sector as "remote zones" designed for "low density use... and little development." The Antietam Battlefield and Sharpsburg are significant historical sites, and current plans call for expanded public control and increased protec- tion of the Battlefield. Another tourist attraction is the Crystal Grottoes, commercial caves located south of Boonsboro. A significant portion of new development in the sector is of second or vacation homes of those persons residing in the Baltimore -Washington Metropolitan area. Planning Sector III (southeast sector), due to its topography consists primarily of agricultural and open space lands. This region exibited a population increase of 4.2 percent between 1960 and 1970 and contains 2.9 percent of the County's populous, of which 92 percent is rural non-farm. This sector is primarily enhanced by its historical character such as 193 the Harpers Ferry National Historical Park, C&O Canal Park, Fort Duncan, and Gathland State Park. Environmentally the area is endowed with such features as South Mountain and Weverton Cliffs, Elk Ridge and Harper's Ferry Geological Section, and the confluence of the Shenandoah and Potomac Rivers. Of significant importance is the accessibility to the area by U.S. Route 340, and State Route 67. As the National Park Service develops and promotes their numerous interests in this area, the tourist industry should continue to expand. Because of Planning Sector III's geographic location, it is extremely attractive for residential and vacation homes, which will be the primary source of growth in this sector. Planning Sector IV (northeast sector), exhibited a 40.2 percent popu- lation increase in the past decade, although the region contains only 7.4 percent of the total population, and of this 96.7 percent are rural non-farm inhabitants. The eastern portion of this sector consists of South Mountain, and includes the water supply for the Hagerstown area. 194 Industrial development is limited to the Smithsburg area, and the principal source of employment base in the sector is at Fort Ritchie Military Installation. Most development in this area is limited to Smithsburg, Pen Mar, Highfield, and Cascade. The most prominent factor contributing to growth in this sector is residential development along Maryland 64 east of Hagerstown. In addition, this sector is also attractive for vacation or second residency. Planning Sector IV is predominantly agricultural in nature; this is augmented by orchards in the Smithsburg area. Planning Sector V (central sector), showed a population increase of 7.2 percent between 1960 and 1970. This sector accounts for 6.0 percent of Washington County's population of which 94.8 percent is rural non-farm. This sector exhibits a characteristic agricultural economy, having no industrial development. Most commercial development in this sector is centered around the two Interstate 70 interchanges located at Clear Spring and Big Pool. This sector is enhanced with environmental and recreation facilities; Fort Frederick State Park, Indian Springs Wildlife Management Area, C&O Canal MM National Park, and Camp Harding County Park. The facilities will continue to attract tourists and those seeking recreation activities. The Town of Clear Spring recently completed installation of a sewer system that will serve the I-70 Maryland Route 68 interchange. The availability of public facilities will be favorable for travelers service industry and resi- dential development. Development will be limited to the U.S. 40 corridor due to the mountainous topography of the sector. Planning Sector VI (western region) is the only sector in the County that registered a decline in population between 1960 and 1970. With a 5.5 per- cent decrease in its overall population. This sector presently maintains 3.3 percent of the total County population, of which 99.6 percent are rural non-farm residents. Hancock is the principal marketing area in the sector, which showed a 18 percent decline in population. Accessibility to the sector is piincipally by Interstate 70 and U.S. Route 40 (National Freeway). There are four interchanges within the sector, 196 which have seen the development of traveler services. The completion of the National Freeway will structure the area, with a major interstate interchange. This should encourage development of additional traveler services and highway transportation orientated industry. Located just east of Hancock is the Hancock Industrial Park. The following firms have recently located in the Hancock area (Planning Sector VI). 1) Londontown Corporation Pennsylvania Avenue, Hancock 2) Prowler Industries South Street, Hancock 3) Rayloc Division of Genuine Parts Company, Inc. Hancock Industrial Park Y .s yy 3 r. t�f Y a yW i. ■J1 �+f 'icy,. }i�q ("• � . S• �i t �'._ i 44 197 Planning Sector VI does contain some mineral resources such as silica sand, which warrant recovery. Because of the relative unspoiled environment, the economic and environmental impacts should be analized. The area also has access to recreational areas such as those of the C&O Canal, Sideling Hill Wildlife Management Area, and the Liller-Aaron Strauss Boy Scout Camp. Proposed in the C&O Canal development plan at Hancock is an interpre- tive zone "areas containing major historic restoration opportunities" and representing "the largest density of visitor use." In summary, most of the commercial and industrial base is located within the Hagerstown metropolitan area, and this trend may be anticipated to continue. However, due to the other. sectors proximity to the metropolitan sec- tors, and their rural character with numerous recreational facilities, economic growth of Washington County will continue with respect to their geographic endowments. L Economic Development Action Economic Development Action Organized economic promotion of Hagerstown originated at the turn of the century. Through considerable efforts the Hagerstown Chamber of Commerce was granted its charter February 1, 1919. "The new organization has a busy year: seeking new industries, working for completion and expansion of the City's sewerage system ..." Since its inception, the Chamber has been effective in the promotion, and the attraction of new recreational, commercial, and industrial endeavors to the area. Through monthly meetings the Board of Directors and the General Membership, the Hagerstown -Washington County Chamber of Commerce con- tinues to promote community progress, activities, and expansion. Included in these programs are educational curriculums, small business management, and sponsoring the renovation of the Square project. These activites further enhance the character of Washington County, and therefore will promote and advance the general welfare and economic opportunities of the area. 201 In 1951 the Economic Development Commission of Washington County was "created for the purpose of advancing the general welfare of the people through programs and activities to develop Washington County's national resources and economic opportunities pertaining to commerce, agriculture, forestry, mineral extraction and processing, transportation, travel, tourism and recreation, and to cooperate and offer assistance to existing industries and businesses, and to promote and encourage the establishing and locating of new industries and busi- nesses in Washington County and other matter intended to foster and develop gainful employment and pursuit of happiness of all who are now or may hereafter be residents of Washington County." The Economic Development Commission consists of fifteen members, although by law a "there shall not be less than eleven," appointed by the Board of County Commissioners for three year terms. The Commission holds a monthly meeting to review and discuss the economic promotion of Washington County. Economic development is fostered through several sources including Maryland Industrial Development Financing Authority, Development Credit Corpora- tion of Maryland, and Industrial Revenue Bonds. 202 The Maryland Industrial Development Financing Authority (MIDFA), is a State agency within the Department of Economic and Community Development, created in 1965 to provide State insurance for industrial mortgage loans. MIDFA is exis- tence is to play a key role where interstate competition is a significant factor. MIDFA insures mortgage loans for financing the aquisition, construction, rehabilitation and/or improvement of industrial plants and equipment, which normally carry tax exempt interest rates. Mortgage loans on land and buildings may be insured for up to 90 percent of the cost (or appraised value if lower) for a maximum of 25 years. Industrial machinery and equipment may be financed up to 70 percent of the cost for a period of 15 years (or useful life, if less). In all cases, the mortgage that MIDFA insures must constitute a first lien on the project being financed. Currently the fee is 0.5 percent per year on the outstanding principal obligation, but this is waived in areas having an unemployment rate greater than 1 percent above the national average. Under MIDFA five specific business categories are eligible for insured financing: 1) manufacturing, 2) warehousing, 3) research and development, 203 4) certain tourism and recreation projects and, 5) corporate or regional head- quarters buildings. The Development Credit Corporation of Maryland (DCCM) was established for the purpose of "stimulating business and industry in the State of Maryland by making loans when and to the extent such loans are not otherwise readily available." Thus the DCCM makes loans to any business or industrial enterprise unable to obtain funds from other sources. DCCM is a private development bank which gets its capital and loan funds from private sources. With this capital as a base, it then obtains the funds to make loans to businesses and industries. DCCM makes term loans of five to fifteen years in the range of $25,000 to $250,000 for equipment acquisition, plant construction and working capital or combinations of these at rates of not more than 41-2 percent in excess of the prime rate prevailing in the City of Baltimore on unsecured commercial loans. DCCM prefers to make long term loans to companies where significant payrolls will be created, increased, or preserved as the consequence of the loan. The Annotated Code of Maryland authorizes Maryland counties and munici- palities to issue industrial development revenue bonds. 204 A cooperating Maryland polital subdivision sells its revenue bonds to finance a specific project for a specific industrial or public service company. The lot permits. the revenue bonds to be secured by any of the following: 1) a lease of industrial facility entered into between the County and the industrial or public service company. 2) an installment purchase agreement by which the company agrees to purchase the facility being financed by the installment payments; and 3) a loan agreement between the subdivision and the corpo- ration providing for the lending of the revenue bond proceeds by the issuing political subdivision to the company for use to acquire the specific facilties being financed. The Act permits the industrial revenue lands to mature over a period not to exceed 25 years. Due to Washington County's optimum location, having numerous tourists passing through the County via destinations along the East Coast. To expose and promote the County, the Board of County Commissioners in 1972 created the Division of Tourism, formerly a division of the Washington County Economic Development Commission. Objectives of the Tourism Division are "to bring the 205 many historical, scenic, and recreational sites of Washington County into regional and national prominence, and to greatly increase the economic impact of tourism, thereby increasing employment, increasing tax revenue, and generally creating a new source of revenue for Washington County." The Tourism Department throughout the year promotes through publications and advertising local sites and events. These are the three principal approaches to economic development in Washington County. Information and assistance for local economic development may be obtained from any of the sources itemized on the Economic Development Reference Index. MM. Department of State Planning State Office Building 301 West Preston Street Baltimore, Maryland 21201 Tri -County Council of Western Maryland Algonquin Motor Inn Suite 510 Cumberland, Maryland 21502 Local Hagerstown -Washington County Chamber of Commerce 14 Public Square Hagerstown, Maryland 21740 Economic Development Commission of Washington County Court House Annex 24 Summit Avenue Hagerstown, Maryland 21740 Washington County Planning Commission Court House Annex 24 Summit Avenue Hagerstown, Maryland 21740 Washington County Division of Tourism 40 S ummi t Avenue Hagerstown, Maryland 21740 City of Hagerstown Planning Commission City Hall North Potomac and Franklin Streets Hagerstown, Maryland 21740 209 The Potomac Edison Company Community Services Department Downsville Pike Hagerstown, Maryland 21740 210 ECONOMIC DEVELOPMENT REFERENCE INDEX National Department of Commerce Washington, D.C. 20503 American Economic Association Northwestern University 629 Noyes Street Evanston, Illinois 60201 American Industrial Development Council 230 Boylston Street Boston, Massachusets 02116 Chamber of Commerce of the United States 1615 H Street North West Washington, D.C. 20006 Committee on Economic Development 477 Madison Avenue New York, New York 10022 Conference on Economic Progress 1001 Connecticut Avenue North West Washington, D.C. 20036 National Association for Community Development 1424 16th Street North West Washington, D.C. 20005 207 National Industrial Zoning Committee 2459 Dorset Road Columbus, Ohio 43221 Tax Institute of America 457 Nassau Street Princeton, New Jersey 08540 S tate Department of Economic and Community Development 2525 River Road Annapolis, Maryland 21401 Western Maryland Regional Development Office 100 West Washington Street Hagerstown, Maryland 21740 Division of Tourism 2525 River Road Annapolis, Maryland 21401 Maryland Industrial Development and Financing Authority 1823 Munsey Building Baltimore, Maryland 21202 Department of Employment and Social Services 1100 North Eutaw Street Baltimore, Maryland 21201 Office of Economic Opportunity 1100 North Eutaw Street Baltimore, Maryland 21201 Nw- Bibliography BIBLIOGRAPHY 1. Characteristics of the Population, 1970 Census of the Population, Maryland. 2. Housing Characteristics for States, Cities and Counties, 1970 Census of the Population, Maryland. 3. Census of Agriculture, 1969 Census of the Population, Maryland. 4. County Business Patterns, 1973, Bureau of the Census, Maryland. 5. 1972 Census of Retail Trade, Bureau of the Census, Maryland. 6. 1972 Census of Wholesale Trade, Bureau of the Census, Maryland. 7. 1972 Census of Manufactures, Bureau of the Census, Maryland. 8. 1972 Census of Selected Service Industries, Bureau of the Census, Maryland. 9. AARpalachian Maryland Development Plait, 1975, Preliminary Draft, Tri -County Council for Western Maryland.. 10. Maryland Family Income Characteristics: 1970 Census, Maryland Department of State Planning. 11. The Maryland Economy 1974, Department of Economic and Community Development. 12. Income Characteristics, Maryland 1970 Social Indicator Series, Volume III, Maryland Department of State Planning. 13. Age and Mobility Characteristics, Maryland 1970 Social Indicator Series, Volume II, Maryland Department of State Planning. 213 14. Labor Force and Employment Characteristics, Maryland 1970 Social Indicator Series, Volume IV, Maryland Department of State Planning. 15. 1973 Maryland Statistical Abstract, Maryland Department of Economic and Community Development. 16. Community Economic Inventory, Washington County Maryland, Maryland Depart- ment of Economic and Community Development, 1973. 17. Industrial, Community, and Specific Information, Hagerstown, Washington County, Maryland, Division of Community Services, Potomac Edison Company, 1974. 18. Maryland Manufactures, Directory 1975-1976, Maryland Department of Economic and Community Development. 19. Directory of Products and Manufactures, Division of Community Development, 1974. 20. Washington County Housing - Analysis - Needs Action Program, Urban Research and Development Corporation, 1974. 21. Economic Development in Maryland, 1960-1972, R'.M.C. Research Corporation, 1974. 22. Economic Development in Western Maryland, R.M.C. Research Corporation, 1974. 23. Economic Development in Washington Count, Harold W. Barley, 1974. 24. Environment Assessment - General Plan - Chesapeake and Ohio Canal, National Park Service, 1975. 25. Washington County, Maryland Overall Economic Development Plan, 1971. 214 ABSTRACT Title: ECONOMIC BASE STUDY Author: Washington County Planning and Zoning Commission Subject: Review, analysis, and update of economic base data for the revision of the Comprehensive Plan Name of Planning Agency: Maryland Department of State Planning Name of Local Agency: Washington County Planning and Zoning Commission Sources of Copies: Maryland Department Washington County Planning of State Planning and Zoning Commission State Office Building 24 Summit Avenue Baltimore, Maryland Hagerstown, Maryland U.S. Department of Housing and Urban Development Regional Office Baltimore, Maryland HUD Prosect No.: MD. P-1013 Series Number: Pages: 214 Abstract: This report evaluates the economic base of Washington County, Maryland, in terms of historical trends and comparative analysis. This report is intended to be a guide for economic development, and to provide local decision makers the economic information so as to ascertain existing and future programs and policies for community development. An attempt is made in this report to avoid technical discourse, and instead use "everyday" language. The primary concern here is that the information contained in the report may be understood by as many average citizens as pos- sible; although in the analysis of these factors, it is intended to show the interrelationships that exist in an economic environment, thereby increasing opportunities for citizen understanding and;.hopefully participation.