Heavy Industries: Construction, Manufacturing, Transportation, and Warehousing

The industries described in this segment include construction, manufacturing, transportation, and warehousing. The construction and transportation industries include both commercial and residential construction and transportation. The manufacturing sector is divided by type of occupation within the manufacturing sector, including management, service, sales, production and maintenance. The warehousing industry is extremely small in the region, with only three privately‐owned public warehouses in Wicomico County, one in Worcester County, and none in Somerset County.

The Lower Eastern Shore is in the middle of a 50‐year economic transition. As a consequence some heavy industries may gradually give way to technology‐based economic sectors. This does not mean a divestment in heavy industries. Instead, it indicates the region will need to prepare for the differing economic and workforce development requirements of the emerging sectors.

The construction industry had over 570 businesses and employed 3,545 people in 2017. Additional data on the construction industry specific to the Lower Eastern Shore region is available from various fee‐based online sources.

The resiliency of overland freight transportation is low due to limited north‐south and east‐west corridors. Rail service, while important to the agricultural sector, suffers from tracks in need of repair and upgrading. Waterborne commerce is also important for agriculture as well as the construction industries (aggregate), however, the region’s waterways need more frequent dredging. The upcoming off‐shore wind farm construction and future operations and maintenance of the turbines may increase the importance of West Ocean City for waterborne commerce. The region’s commercial airport, the Salisbury‐Ocean City‐Wicomico Regional Airport, has commercial air service, a FedEx station and private FBO activity.

The manufacturing industry within the three counties varies considerably. Somerset County has increased the number of civilians employed by the manufacturing sector from 2013 to 2017. Management occupations within the manufacturing industry substantially decreased in Somerset County while maintenance and production occupations significantly increased. Yet, both Wicomico and Worcester have decreased their total workforce in the same time period.

An issue in this industry grouping, as in others, is the lack of broadband Internet access to rural areas. This hinders the ability to introduce new technology reliant on Internet connectivity to the area. An aging workforce in the manufacturing industry is a concerning trend, with the ability to attract workers to available jobs being one of the most significant issues. To mitigate this, manufacturing stakeholders need to revamp their recruiting strategy by using job training and development programs to fill these vacant positions. Employing a more demographically diverse workforce will bring a fresh perspective for business development and innovation to the industry. Digitalization, artificial intelligence, and virtual reality will drive manufacturing improvements in processes and engineering.

Manufacturers have also begun to vertically integrate into distribution and retail channels. These business model changes will impact other distributors and retailers that rely on these products to fill their trucks and stock their shelves. As a consequence, distributors will face higher transportation costs associated with underutilized load capacity and backhaul. Retailers’ implementation of various techniques of diversification is a response to the low‐cost vertical integration strategies of manufacturers.