Maryland dropped the ball - and dropped the call - on one of the biggest corporate headquarters relocation sweepstakes of 2026. South Korean technology giant Samsung is fleeing New Jersey after locating its U.S. headquarters there nearly 40 years ago. Up for grabs were not only the prestige of having the HQ of a conglomerate with fifth-highest brand value of any company in the world, but also 1000 high-wage jobs. You would expect Maryland, which hasn't attracted a single new major corporate headquarters in over a quarter century, to pull out all the stops to lure Samsung to the state. But you would be wrong: Samsung is instead moving its HQ to Plano, Texas.
How hard did Montgomery County and Maryland try to win the game? We don't know, because neither discussed their desire or strategy to win over Samsung publicly. We know Maryland Governor Wes Moore was in touch with executives of a Samsung biotech division when he traveled to South Korea on a trade mission in 2025. Those conversations played a role in Samsung Biologics agreeing to take over a Montgomery County manufacturing facility that was likely to close otherwise. Was Moore able to tap into those contacts during this year's HQ competition? We don't know.
What we do know, is that Montgomery County and Maryland again reaped the whirlwind of failing to get themselves into fighting shape for economic development. While the Maryland tax burden is less than New Jersey's, it cannot remotely compete with Samsung's choice of Texas. The Lone Star State has no individual or corporate income tax. Maryland, whose leaders chose to close 8 power plants and implement "clean" power mandates and a Communist EmPOWER surcharge on electric bills, can no longer generate enough power and is forced to import electricity at higher "boardwalk prices." As a result, energy costs in Texas are literally half of those in Maryland.
Those two factors alone were likely enough to convince any intelligent executive to choose Texas over Maryland. But wait - there's more.
Texas has superior highway and air travel infrastructure. Dallas Fort Worth International Airport is closer by car to Plano than Montgomery County is to Dulles International Airport, thanks to Montgomery County and Maryland officials actively blocking construction of a long-planned Potomac River crossing to the Dulles area.
There's also no contest when it comes to private jet travel. Business executives can travel to international destinations like London and Mexico City from Addison Airport, located only 12-17 minutes from Plano. Such jaunts are not possible from the Montgomery County Airpark, which cannot accommodate larger business jets. Addison has customs facilities; Montgomery County Airpark does not. Addison boasts 3 Fixed-Base Operators providing fueling, minor maintenance, deicing, and baggage handling; flight crew resources and facilities such as flight plan and weather rooms and crew lounges; and luxury VIP passenger lounges, secure parking, and corporate sedan/limousine ground transportation coordination. MCA has one FBO, which is limited to fueling and hangar storage, and does not offer luxury facilities or amenities.
Finally, Texas is a Right to Work state and has a far-cheaper cost of living than Maryland. This means lower overall labor costs, and the lower cost of housing and everything else helps to attract the best and brightest to Texas.
Texas has a whopping 57 Fortune 500 corporate headquarters. Maryland has...3. Womp womp.
"Texas is the undisputed headquarters of headquarters," Texas Governor Greg Abbott said in a (under)statement earlier this week.
I'm not denying the validity of your comments from a business perspective, but I don't want Maryland to be like Texas. Texas is a repulsive place from every perspective unless you are a white male. Samsung has chosen to force its employees to either quit or live there and I wouldn't want to be forced to make that decision. Maryland needs to do better in attracting businesses but it should never become Texas.
ReplyDeleteIn the DMV I see there more of a relationship between the areas rather than direct competition. Virginia scores the tech jobs. Young people want to live in DC for the nightlife. Families then end up in Montgomery County. A lot in my neighborhood are young families that are coming in from DuPont, Petworth, H Street etc. in MoCo for more space and schools.
ReplyDeleteA more logical catalyst for future MoCo growth is probably going to be if DC continues to thrive and continues to be a draw from a prestige standpoint, pushing development into places like Fr. Totten and then over the Maryland line.