GVSU expert: Local economy continues modest growth

The greater Grand Rapids industrial economy continues to experience modest growth, according to results of a monthly survey compiled by Brian G. Long, director of Supply Management Research in the Seidman College of Business.

The survey results are based on data collected during the last two weeks of October.

The survey’s index of business improvement, called new orders, remained significantly positive at +26, down slightly from +27 reported last month, and up convincingly from +9 in August. The production index came in at +23, lower than the +29 reported last month, but still strong. The index of purchases edged up to +20 from +14. The employment index, which had risen to a three-year high of +34, retreated to +25, with many firms saying they are unable to locate qualified workers.

“The office furniture business is now seeing stronger sales,” said Long. “Mike Dunlap’s (Dunlap & Associates in Holland) October survey reports an index of 57.58, the strongest the index has been since July 2007. This compares with an all-time record of 59.72 in the July 2005 report.”

Long said the fall uptick is now in full swing for the capital equipment firms, with some firms rushing to make capital investments before the end of the year because of budget and tax considerations. He said industrial distributors were generally positive and the boom continues for most area auto parts producers.

The Institute for Supply Management 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 from the region’s major industrial manufacturers, distributors and industrial service organizations. It is patterned after a nationwide survey conducted by the Institute for Supply Management.
For more information, contact Brian Long at (269) 323-2359.