GVSU economist: Local economy is flat

The West Michigan economy is currently flat, but should rebound through the summer, according to a Grand Valley State University economist.

Brian G. Long, director of Supply Management Research in the Seidman College of Business, surveyed local business leaders and his findings are based on data collected during the last two weeks of May. 

The survey's index of business improvement (new orders) backtracked to +0, down from +7. The production index remained positive, but retreated to +4 from +20. The index of purchases gave back most of its previous gain to come in at +7, down from +14. The employment index came in at +12, up modestly from +11. 

"Michigan still claims to have about 80,000 technical jobs that cannot be filled because of a lack of qualified applicants," said Long. "Even for unskilled jobs, some employers offering as much as $13 per hour are still having difficulty finding new employees."  

Long said local auto parts suppliers are operating at full capacity and some smaller office furniture businesses are setting records. He said West Michigan is still outpacing most of the rest of the state with unemployment numbers. 

"The Ottawa County unemployment rate fell to 2.7 percent, the lowest in the state, while Kent County is at 2.9 percent. Kalamazoo County posted an unemployment rate of 3.3 percent," Long said. 

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. Each month, the respondents are asked to rate eight factors as "same," "up" or "down." An expanded version of this report can be found in the Dropbox link provided above under media note.

For more information, contact Brian Long at (269) 323-2359.