B y all accounts, 2017 was another record year of economic growth for West Michigan. And already, “2018 is shaping up to be another strong year,” according to Jim Robey, Director, Regional Economic Planning Services, W.E Upjohn Institute. Robey’s message was delivered on December 14 at The Right Place’s 2018 Economic Outlook event, which attracted nearly 400 attendees for an in-depth review of 2017 and a look ahead to 2018. 2017 RESULTS AND INSIGHTS Birgit Klohs, President and CEO, The Right Place, kicked off the event with a review of the organization’s work in 2017. Klohs provided a “feet-on-the-street” look at 2017 and what might be ahead for 2018. The first year of The Right Place’s three-year strategic plan (2017–2019) ended with a record 22 economic development projects. Those projects are estimated to create or retain 1,442 jobs, $70.4 million in payroll, and generate $119 million in capital investments over the next three years. Interestingly, out of the 22 projects completed, only four were business attraction projects (California Closet, J-Star Motion, Siliconature USA, and Zimmer Biomet/RespondWell). This aligns with our goal of dedicating at least 80 percent of our efforts to companies already located in the region. Further analysis of these projects reveal several interesting trends and insights into what areas of West Michigan’s economy continue to grow and expand. When breaking down projects based on industry, jobs, and investment, manufacturing continues to be the bigwinner in the region. Half of all projects completed in 2017 were in the manufacturing sector, resulting in 545 new jobs and nearly $70 million in capital investment. Food processing and agribusiness also had a strong year. In 2017, The Right Place completed five food-related projects, resulting in 165 new jobs and $38 million in investment. On the jobs sideof theequation, professional services had a very strong year. Although professional services only accounted for two projects at The Right Place, those projects will result in the creation of 538 new or retained jobs over the next three years.
Graphic 1
THE RIGHT PLACE
ADVANCING THE WEST MICHIGAN ECONOMY
may not be as high as previous years. The future of NAFTA and international trade arealreadybeginningtoimpactcommodity prices. And the challenges associated with the Food Safety Modernization Act (FSMA) continue to create uncertainty in food processing.
LOOKING AHEAD While setting the stage for 2018, Klohs framed her remarks through the focus areas of The Right Place’s three-year strategy ( see Graphic 1 ) .
ADVANCED MANUFACTURING Coming off a strong 2017, manufacturing
LIFE SCIENCES AND MEDICAL DEVICES All indications point to another banner year for
is expected to continue growing in 2018, albeit with some possible headwinds. At present time, there remains some uncertainty around vehicle production estimates for 2018. Many industry experts are warning of a decrease in production— into the mid-16 million range or below. Although West Michigan manufactures a wide variety of goods, automotive manufacturing still represents a significant percentage of the total sector. FOOD PROCESSING AND AGRIBUSINESS The food processing and agribusiness sectors are expected to continue growing in 2018. However, the rate of growth
West Michigan’s medical device industry. The industry already employs more than 2,500 in the region and is growing at an annual rate of five percent. The Right Place intends to support that anticipated growth through MiDevice—a collaborative group of medical device manufacturers in West Michigan.
INFORMATION TECHNOLOGY AND COMMUNICATIONS No surprise here. West Michigan’s IT and
communications industry continues its rapid growth. The region’s industry is one
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ECONOMIC OUTLOOK
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