This report is designed to inform the manufacturing community of key trends impacting the region. It is the result of insights gathered from The Right Place’s economic development work across its 8-county collaborative, and economic research performed by its Business Intelligence team.
Greater Grand Rapids is built on a legacy of advanced manufacturing. From the world’s hub for furniture production to strongholds for the automotive, food processing, aerospace, defense, and medical device industries, Greater Grand Rapids is a region that creates. Note on the data: Greater Grand Rapids (GGR) refers to the eight-county region served by The Right Place including: Kent, Ionia, Lake, Mason, Mecosta, Montcalm, Newaygo, and Oceana counties. All data reflects these counties unless otherwise noted. THE STATE OF MANUFACTURING JOBS Manufacturing employment rebounded 5% since the Covid-19 pandemic, adding nearly 4,000 workers since 2020. In 2023 manufacturing jobs topped more than 78,500 . Year-over-year, Greater Grand Rapids’ manufacturing job growth has lagged slightly behind that of the state and nation as a whole.
Percent Change in Manufacturing Jobs
GGR
MI
US
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
-14%
2015
2016
2017
2018
2019
2020 2021
2022
2023
2014
73,414
7% Growth
78,562
Manufacturing Jobs
Manufacturing Jobs
Source: Lightcast
1
INDUSTRY Motor vehicle-related stamping, plastic product manufacturing and office furniture manufacturing represent the top three most prevalent industries in Greater Grand Rapids. These three industries comprise more than 12,000 jobs – or 15% - of total manufacturing employment in the eight-county region covered by The Right Place.
Top Ten Industries by Jobs 2023
Motor Vehicle Metal Stamping
4,693
Office Furniture (Except Wood) Manufacturing All Other Plastics Product Manufacturing
3,944
3,550
Special Die and Tool, Die Set, Jig, and Fixture Manufacturing
2,425
Motor Vehicle Body Manufacturing Other Motor Vehicle Parts Manufacturing
2,178 2,146 2,143
Machine Shops
2,002
Conveyor and Conveying Equipment Manufacturing
Commercial Bakeries
1,890
Soap and Other Detergent Manufacturing
1,777
0
1,000
2,000
3,000
4,000
5,000
Source: Lightcast
GROSS REGIONAL PRODUCT (GRP) In 2022, manufacturing GRP accounted for 21.1% of the total economy, a slight uptick from the 20.8% it comprised a year prior. Manufacturing GRP has slipped lower in recent years compared to 2013 ( 23.4% ) however, companies are more productive than ever, generating more than $12.6 billion . Year-over-year GRP growth in Greater Grand Rapids has lagged slightly behind national and state numbers since 2020. However, from 2021 to 2022, Greater Grand Rapids outpaced both state and national manufacturing GRP growth, increasing nearly 13% .
Manufacturing Gross Regional Product
GGR
MI
US
15%
10%
5%
0%
-5%
-10%
-15%
2014
2015
2016
2017
2018
2019
2020
2021
2022
$ 8.86B
43% Growth
$ 12.63B
Greater Grand Rapids Gross Regional Product
Greater Grand Rapids Gross Regional Product
Source: Lightcast
2
MANUFACTURING WAGES
Wages in both salaried and hourly manufacturing positions have increased overall since 2018, according to survey data collected from manufacturers across Greater Grand Rapids by the Employers Association. These wage gains may be attributed to an aging manufacturing workforce, ongoing supply shortage of qualified talent, volatility during and emerging from the Covid-19 pandemic, and other factors.
HOURLY POSITIONS Hourly occupations including production helpers (30%) , quality inspectors (29%) , entry-level tool and die makers (29%) , and entry-level CNC machining operators (26%) saw some of the largest increases in wages during the past four years.
Hourly Positions
2018 Wages
2022 Wages
Percentage Growth
12.3%
Tool & Die Maker III
8.4%
Electrician II (Journey)
9.2%
Millwright
22.5%
Machinist (Maintenance)
18.4%
Maintenance Person (General)
17.5%
Welder II
10.0%
Machine Op (Setup and Op)
28.6%
Tool & Die Maker I
21.3%
Electrician I (Assistant)
21.4%
Lead - Production
23.5%
Quality Inspector/Auditor II
16.9%
Assembler II (Electrical)
25.7%
Welder I
22.7%
CNC Machining Center Operator I
19.4%
Painter (Production)
23.9%
Assembler II
29.0%
Quality Inspector/Auditor I
22.6%
Machine Operator (Operate Only)
27.8%
Material Handler (WH Labor)
26.9%
Grinder/Operator (Hand)
30.4%
Helper (Production)
24.8%
Injection-Molding Machine Operator I
24.5%
Packer
$0
$5
$10
$15
$20
$25
$30
$35
Hourly Wage
Source: The Employers Association
3
SALARY POSITIONS Though increases in hourly wages outpaced those of salaried employees, annual incomes for those employees also saw growth across the board with assembly supervisors and facility managers experiencing the highest wage growth over the four-year period.
Salary Positions
2018 Wages
2022 Wages
Percentage Growth
12.1%
Plant Manager
19.6%
Facilities Manager
12.9%
Quality Manager
6.6%
Maintenance Supervisor
7.0%
Facilities Supervisor
24.1%
Assembly Supervisor (Light Prod.)
$0
$20K
$40K
$60K
$80K
$100K
$120K
Annual Wage
Source: The Employers Association
Greater Grand Rapids is “One of the world’s manufacturing centers of excellence.”
– The Economist
4
MANUFACTURING INSIGHTS From November 2022 to the present, The Right Place met with over 200 manufacturing companies through in-person retention calls – structured meetings meant to gauge a company’s performance, identify pinch points, and connect them with the resources needed to thrive in Greater Grand Rapids. Through these conversations, we found the majority of manufacturers were seeing their staff grow, sales increase, with many predicting expansions in the coming years. The majority of companies are investing more dollars into training initiatives as a shortage of talent continues to impact the industry at large. Manufacturers identified talent attraction, development and retention, along with facility issues, as the primary barriers to growth.
55% of companies plan to expand
54% of companies are experiencing recruitment problems
8% plan to enter new industries Compared to 3% from Nov. ‘21 to Nov. ‘22
Compared to 52% from Nov. ‘21 to Nov. ‘22
Compared to 61% from Nov. ‘21 to Nov. ‘22
Source: RPI Retention Call Data
Greater Grand Rapids Sales Trends
Greater Grand Rapids Employment Trends
Investing In New Training
Increasing
Stable
Decreasing
1.1%
4.8%
4.4%
30.1%
40.7%
50.5%
44.7%
58.2%
65.5%
Source: RPI Retention Call Data
5
Manufacturing Headwinds
Talent Retention Talent Development
Sales Other
Facility Issues
Talent Attraction
0%
5%
10%
15%
20%
25%
Source: RPI Retention Call Data
SUPPLY CHAIN Greater Grand Rapids’ position as global manufacturing leader is underscored by the wide array of markets served by manufacturing companies across the region. Global companies needing a well-tuned supply base seek out Greater Grand Rapids companies to grow alongside them. The graphic below represents the top ten market sectors supplied by manufacturers across Greater Grand Rapids, according to data obtained through RPI’s retention calls.
Greater Grand Rapids Markets Served
Consumer Goods 10%
Food Processing 7%
Aerospace 6%
Automotive 8%
Medical Equipment/Devices 8%
Health Care 8%
Construction 6%
Industrial 8%
Alternative Energy 7%
Electronics 5%
Source: RPI Retention Call Data
6
MICHIGAN MANUFACTURING TECHNOLOGY CENTER – WEST The Michigan Manufacturing Technology Center – West (MMTC-West), based at The Right Place, offers personalized consulting services for manufacturers across Greater Grand Rapids and beyond. MMTC-West serves a 13-county region including: Kent, Allegan, Barry, Ionia, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, Osceola, and Ottawa counties.
MMTC-West Projects Around the Region
MMTC-West Projects Breakdown
51 19 8 7 10
Industry 4.0 Assessments
MASON
LAKE
OSCEOLA
MECOSTA
OCEANA
Going Pro Projects
NEWAYGO
127 MMTC-West projects (Nov 2022 to Nov 2023)
MONTCALM
MUSKEGON
Supervisor Leader User Groups (SLUG)
KENT
OTTAWA
IONIA
ALLEGAN
BARRY
Quality Audits
1
5
10 15
20 25
30 35 40 45
Geometric Dimensioning & Tolerancing (GD&T)
Number of Projects
Source: MMTC-West Data from November 2022 to November 2023
MMTC-WEST PROJECTS MMTC-West provides customized consulting and training services for manufacturers across Greater Grand Rapids. These programs are tailored to assist manufacturers across the spectrum — small to large, furniture to aerospace to food processing and beyond — in key areas including technology adoption, workforce training, quality assurance, and other consulting services. With talent attraction and retention at the forefront of many manufacturers’ minds, MMTC-West provides customized workforce training plans aimed at improving employee retention, attraction, and even applying for grant opportunities such as the Going Pro Talent Fund. MMTC-West also holds monthly sessions of the Supervisor Leader User Group (SLUG), which provides participants with practical tools to be a more effective supervisor in today’s fast-paced manufacturing environment.
7
INDUSTRY 4.0 ASSESSMENT MMTC-West offers no-cost assessments aimed at helping regional manufacturers adopt Industry 4.0 and advanced manufacturing technologies into their operations. Since the launch, MMTC-West has issued more than 135 assessments to a range of manufacturers. The majority of the assessments recommended system integration (such as integrating ERP with data analytics and plant management), implementing robotic or cobotic equipment, and investing in other non-robotic automated systems or processes. INDUSTRY 4.0 ASSESSMENTS
Industry 4.0 Assessment Highlights
System Integration
Robots/Cobots
Automated Systems
ERP
Data Analytics
IIOT
Strategy Development
AR/VR
Vision System
Workforce Training
0
10
20
30
40
50
60
Number of Recommendations
Source: MMTC-West Industry 4.0 data collected from 135 assessments across Greater Grand Rapids
As a non-profit, objective manufacturing support program, your business success is our primary goal. Call 616.301.6247 or visit thecenterwest.org to discover how we can work together and tackle your biggest business challenges.
8
Data from 2022 MANUFACTURING ECOSYSTEM
3,460 K-12 participants in robotics competitions
4,300 attendees
Nearly 10,000 students across 56 schools
114 manufacturers participated
$11.7M awarded for workforce training across Greater Grand Rapids yielding:
2,937 new hires
619 new apprenticeships
2,644 classroom training sessions
AUTHORS & CONTRIBUTORS
Lead Executives
Terry Hosink Vice President, Manufacturing Services
Rob Llanes Senior Vice President, Business Development
Lead Author
Lead Design
John Wiegand Business Intelligence & Research Manager
Eric Heys Marketing Coordinator
Contributors
Brad Comment Senior Vice President, Strategic Initiatives
Rafael Martinez Business Intelligence & Research Manager
Randy Thelen President & CEO
9
125 Ottawa Ave NW, Suite 450 | Grand Rapids, MI 49503 info@rightplace.org | 616.771.0325
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11Made with FlippingBook - Online catalogs