picture should emerge in terms of economic development for the State of Michigan. Infrastructure continues to remain a concern for the state. Without strong infrastructure, our companies cannot grow and compete as effectively. In particular, as Industry 4.0 takes hold, companies will become more reliant on broadband infrastructure. This critical piece of infrastructure is lacking in the nation, particularly in rural communities. THE BIG PICTURE 2018 was another strong year for West Michigan’s economy. We saw progress with regards to economic diversification, job growth, and increases in capital investment. Our team at The Right Place will continue supporting our communities and businesses to maintain a thriving region into 2019 and beyond. Like always, we will face unique challenges in the year to come, and it is up to business and community leaders to address them in ways that are best for our region. We look forward to continuing our work in West Michigan, and wish our area businesses continued success in the New Year.
this time, it’s a “wait-and-see” situation, and rising interest rates have the potential to hurt the economy if the trend continues. Klohs also presented on several challenges and opportunities facing West Michigan in 2019. These include infrastructure, leadership changes in Lansing, trade and tariffs, automotive plant closures, and talent. The nation has been facing a talent shortage for several years, and this shows no signs of abating. While the labor shortage is expected to persist, we’ll also see Industry 4.0 and increases in automation coming into play, especially for manufacturers. Companies are expected to do more with fewer people, and increase capital investments as a result. Hello West Michigan, a strategic partner of The Right Place, continues to work with our regional employers to address their talent needs. Leadership changes in Lansing will affect the regional economy, but it’s too early to know exactly what those changes will look like. As the new administration and legislature settle into their roles, a clearer
WEST MICHIGAN’S ECONOMY “Michigan, once again, continues to outperform expectations,” said Robey. On average, the West Michigan region touted an unemployment rate of 2.6 percent in August 2018, considerably below the national rate of unemployment, which sat at 3.5 percent. It also reported a labor force participation rate 5.6 percent above the national rate. According to data from the Upjohn Institute, Grand Rapids is leading the state and the nation in post-recession recovery. In comparison to economically comparable metropolitans around the country, Grand Rapids MSA reported the lowest unemployment rate among its peers, and, despite the tight labor market, employment growth remained strong for the area. WHAT TO WATCH FOR IN 2019 Tariffs, trade agreements, and interest rate hikes are all factors to keep an eye on as we move into 2019, advises Robey. Tariffs are affecting businesses differently, and at
17-19 Strategic Plan
$560.4M
$164.1M
4,200 3,584
$500M
$150M
GOAL
GOAL
GOAL
ACTUAL
ACTUAL
ACTUAL
3,584 New & Retained Jobs
$ 164.1 MILLION In New Payroll
$ 560.4 MILLION In Capital Investment
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