MBA programs on the rise in Maryland, across the nation

Daily Record, The (Baltimore), May 25, 2007 by Dori Berman

MBA programs in Maryland and the nation have steadily gained in popularity, and the demand for their graduates appears poised to continue upward.

There are 14 institutions in Maryland offering the master in business administration program, up from nine in 1996, according to the Maryland Higher Education Commission. Enrollment in MBA programs statewide increased by 46 percent in that same time period, from 4,481 to 6,544.

"By and large we have seen significant increase in the interest that professionals have in pursuing MBA degrees. This is reflective of the transformation of the economy from a blue-collar economy to a white-collar economy," said economist Anirban Basu, chairman and CEO of the Sage Policy Group, a Baltimore-based economic consulting firm.

Companies view MBA graduates as having desirable leadership characteristics that differentiate them from other job candidates. In its annual survey of corporate recruiters, the Graduate Management Admission Council, which owns the GMAT entrance exam, found recruiters expect to hire 18 percent more workers with MBAs this year than they did in 2006.

The survey also found that recruiters expect to trim the number of positions for applicants with only an undergraduate degree by about 7 percent. Bob Ludwig, the organization's director of external communications, said this was the first year the council asked for that number, so it could not be compared to 2006.

"As corporate profits have increased and the economy has gotten better over the last several years, you're seeing that corporations are needing to manage that growth," Ludwig said. "It's a great time to be an MBA student."

Locally, MBA programs are seeing demand climb after a dip over the last few years. After reaching 6,295 statewide in 2003, enrollment dropped over the next two years to 5,828 in 2005, before rebounding.

"What we're seeing most recently this year is we've doubled or tripled our numbers at our information sessions that we run around the region. We know there's more interest than there was last year," said Rick Milter, director of the MBA program at the Johns Hopkins University.

The new Carey Business School at Hopkins offers MBA degrees jointly with some other departments. For example, a health industry professional could hone his or her business skills while also getting some knowledge specific to his or her industry.

Basu said those specialized focuses are popping up more and more in MBA programs. A student can now receive an MBA in nonprofit administration, health administration or various other fields.

"That is because of the growing specialization in the economy. Now there are enough positions in those disciplines to support an MBA curriculum," Basu said.

In Maryland, Basu said he would expect to see a greater demand for MBA graduates in two specific areas: health care and defense contracting.

With the base realignment bringing thousands of new jobs to Central Maryland, Basu said, "increasingly what you're going to see [in the Baltimore region] is the corporate operations for defense contractors, and that will translate to increased demand for those types of skills."

But with or without a specialization, the MBA has become increasingly lucrative.

Loyola College in Maryland has been offering an MBA program since the 1960s, but the school is exploring the idea of creating a modified program for candidates coming directly from college, said Scott Greatorex, Loyola's director of graduate admissions.

While MBA students have traditionally come to the program with several years of professional experience under their belts, Greatorex said younger students are starting to apply.

"It's still a small percentage [of the total applicant pool], but enough to peak our interests in wanting to know more about what we could do to maybe capture" some of that market, Greatorex said.