GRAND RAPIDS, Mich. — The greater Grand Rapids economy continues to
improve, according to a survey compiled by Brian G. Long, director of
Supply Management Research in the Seidman College of Business at Grand
Valley State University.
Results of the survey, conducted the last two weeks of
September, show that the index of new orders rose to +31. The new
orders index tracks business improvement, and this is the highest the
index has been since May of 2006. The production index fared better as
well, rising to +38 from +34. Activity in the purchasing offices
moderated to +24, down from +33. The index of employment remained
positive for the second time in two years, although it sank to +14
from +19. Just as last month, 31% of the firms that respond to this
survey respondents reported that employment levels are rising.
In individual industries, Long noted that new orders are
still up for many of the auto parts suppliers, adding that “many of
these firms are justifiably worried that production schedules will be
cut if auto sales continue to slide.” Long also noted improvements
for industrial distributors while capital equipment firms remain flat.
The uncertainty in the auto sector casts a long shadow over the
Michigan economy.
“We are in uncharted territory,” Long said. “The international
economy is improving, which is good for the U.S. and Michigan
economies. However, the most recent auto sales reports will probably
put pressure on our auto parts producers in the near future if sales
remain flat. Although some of our other industries are starting to
recover, it seems improbable that they can offset a decline in
automotive enough to continue. The recovery will probably continue,
but it may be slower and bumpier that we hoped.”
The Institute for Supply Management, Greater Grand Rapids survey
is a monthly survey of business conditions that includes 45 purchasing
managers in the Greater Grand Rapids area and 25 in Kalamazoo. The
respondents are purchasing managers from the region's major industrial
manufacturers, distributors, and industrial service organizations. It
is patterned after a nationwide survey conduced by the Institute for
Supply Management. Each month, the respondents are asked to rate eight
factors as “same,” “up” or “down.” An expanded version of this report
and details of the methodology used to compile it are available at www.gvsu.edu/scblogistics.
Call Brian J. Bowe at (616) 331-2221 or e-mail [email protected] to
arrange interviews with Long.
AUDIO CLIPS:
Long says there are opportunities for the unemployed in Michigan
(audio clip)
Long says overall this is an encouraging report (audio clip)
Long says while the report is positive, the automotive companies
didn't post good numbers for September (audio clip)
Long says Grand Rapids is doing better than many other cities in
our state (audio clip)
