The most listened to, relevant organization in Annapolis,bar none.
Robert L. Ehrlich - Governor, State of Maryland

"Why Jobs Really Come and Go..."
A.B. "Buzzy" Krongard

After 24 years at Alex. Brown & Sons, Inc., Mr. Krongard now holds the positions of Chairman and CEO. He is the Chairman Elect of the Securities Industries Association. Among Mr. Krongard's many community leadership roles, he is a Director of Maryland Business for Responsive Government, the Maryland Chamber of Commerce, Maryland Economic Growth Associates, and a member of the University of Maryland School of Law Board of Visitors.

What are the factors that influence a business decision as to where to locate its operations? I'm going to answer it directly, specifically and candidly.

Each individual corporate decision directly creates or eliminates jobs and tax revenue. And, as important as the direct impact of the business location decision is, the indirect or the ripple effect that affects the creation of collateral and supplemental economic development, such as suppliers, restaurants, retailers, residential and commercial development, is equally important. Put another way, just as marine biologists can trace a linkage in the ocean from the large whale to tiny bits of plankton, economists in Detroit can trace a similar food chain from General Motors to the hot dog vendor on the corner.

There's nothing new about this question of business location. But my answers, and certainly the basis for them, are likely to differ substantially from what you have been used to hearing.

There's been a lot of talk in the papers about Alex. Brown's location decision process. Bear in mind, that except for inertia, the issues relative to relocating the business are the same as those influencing the decision to remain or expand in a given location.

Further, as an investment banker, I've spent my career talking to executives of growing companies about issues such as this. On an anecdotal basis I have a good understanding of how people think and how they reach the decisions they do. I will examine the major increments of the decision-making process and offer a casual opinion or two about how Maryland fares in the various components.

Probably the most important factor in business location is sheer happenstance. Bill Gates is the founder of Microsoft, a firm which employs more than 12,000 people in the Seattle area and is almost singlehandedly responsible for the rebirth of that city Gates did not leave Harvard for Seattle because of Boeing's technical base or the University of Washington's R&D capability Bill Gates went back to Seattle because that's where his family lived.

Alex. Brown is headquartered in Baltimore, Maryland. Alex. Brown has benefitted the local economy In the last two years our payroll was about $338 million, we paid approximately $7.75 million in state and local taxes, we were directly responsible for almost $3 million in local restaurant and hotel expenditures, and we directly made about $1.8 million in local charitable contributions.

Page 2

Download a Membership Brochure here.
JOIN TODAY!