2023 State of the Region

This report is designed to inform the community of key trends impacting the region. It is the result of qualitative insights from The Right Place’s economic development work across its 8-county collaborative, and quantitative economic research performed by its Business Intelligence team.

STATE OF THE REGION 2023

LETTER TO THE REGION

THE STATE OF GREATER GRAND RAPIDS REGION: Welcome to The Right Place’s annual State of the Region report, designed to give you an in-depth look at the key economic trends in Greater Grand Rapids. Each year, our team meets with over 500 businesses across the region, taking the pulse of the local business community. These qualitative insights, combined with quantitative research performed by our business intelligence team, create a unique economic analysis of our region. What has this research revealed about the state of our region? Overall, business leaders in Greater Grand Rapids have found many reasons to remain optimistic. Most companies are planning for near-term expansions and experiencing increasing sales, although talent recruitment remains a barrier to full growth potential. While some economic headwinds persist, such as labor shortages and the potential of a slowing U.S. economy in 2024, local business leaders continue to make investments in our region’s future. Our community has good reason for this positive outlook, with the region continuing to outperform state and national averages on many key economic indicators. Notably, we are a population growth center that continues to outpace both the state and nation when it comes to attracting and retaining the next generation at a time when communities across the country are seeing a declining youth population. We’ve also accelerated beyond pre-pandemic job levels and are experiencing job growth across many key industries. All of this has been achieved while maintaining an affordable cost of living compared to national averages. The economic success of Greater Grand Rapids is evidenced in the data throughout this report, but it is also visible across our region. From a changing skyline downtown to significant investments in public spaces across our communities, the region remains a vibrant and thriving place to call home.

Tina Freese Decker The Right Place, Inc. Board Chair

Randy Thelen President & CEO The Right Place, Inc.

President & CEO Corewell Health

STATE OF THE REGION 2023 | 1

EXECUTIVE SUMMARY

PEOPLE

PLACE

PROSPERITY

HIGHER concentration of young people as share of the population compared to nation have a bachelor’s degree or higher 35.5% population growth over the last decade 7.8% of the region’s population are diverse communities 23%

industrial vacancy rate 3.2% 3.5% increase in residential building permits since Q3 2022 below national average 10% Low cost of living

regional labor force with 4% increase from 2022 to 2023 606,000 of companies planning expansions (up 3.5 points since 2022) 59.5% of companies report increasing sales (down 1.3 points since 2022) 68.4% of companies plan to increase hiring (up 1.3 points since 2022) 51.3%

11%

increase in air travel

A note on the data: • All data used for this report is based on the Grand Rapids-Kentwood Metropolitan Statistical Area, which contains Kent County and sections of Ionia, Montcalm, and Ottawa counties unless otherwise noted. • Lightcast, previously known as Economic Modeling Specialists International (EMSI), represents a significant data source throughout this report. Lightcast aggregates and models public data from the Bureau of Labor Statistics, U.S. Census, and other sources.

STATE OF THE REGION 2023 | 2

RANKINGS  | FOR GREATER GRAND RAPIDS

#1

#2

#5

Best Places to Raise a Family in the U.S. Grand Rapids - Rocket Homes

Best Manufacturing Hubs (Large) Grand Rapids–Kentwood - Business Facilities

Best Place to Raise a Family in Michigan Forest Hills - Niche

“Grand Rapids has an abundance of opportunities for kids to engage in culture, history, art and nature at more than 20 museums. Residents can also be sure their children will receive a good education. Grand Rapids ranks in the top 5% in the country for school system ratings.”

Best City to Start a Tech Career

#5

#2

Best Place to Buy a House in Michigan Eastgate, Grand Rapids - Niche

“Grand Rapids has spent the last decade evolving into what will be the most significant tech cluster in the Midwest by 2031.” Grand Rapids - Yahoo Finance

Best Cities in Michigan to Live and Visit Grand Rapids -  Touropia

#10

#3

10 US Cities Offering the Most Bang for Your Buck in 2023 Grand Rapids - GoBankingRates

Best Business Climate (Mid-Sized) Grand Rapids - Business Facilities

#18

#2

#10

Top 10 Cities for Young Female Professionals Grand Rapids - Pheabs

Best Suburbs to Buy a House in Michigan Hudsonville - Niche

10 Most Beautiful & Affordable Cities to Live in the U.S. Grand Rapids - Travel + Leisure

STATE OF THE REGION 2023 | 3

PEOPLE People from across the country continue to choose Greater Grand Rapids as the place to build their lives and their careers. The section that follows presents data showing how the region’s population continues to be the primary growth magnet in Michigan, how diversity is increasing, and how Greater Grand Rapids remains a bastion for young people.

STATE OF THE REGION 2023 | 4

PEOPLE

POPULATION Population in Greater Grand Rapids continues to increase as more people discover the region as a place to work and play. In 2023, Greater Grand Rapids gained nearly 6,000 people from the previous year, bringing the region’s total to more than 1.1 million. Greater Grand Rapids’ population rose at a slightly lower rate from 2022 to 2023 than compared to 2021 to 2022. Greater Grand Rapids has added nearly 80,000 people in the past decade, comprising nearly 40% of Michigan’s overall population growth (200,500 people) during the same period.

GREATER GRAND RAPIDS POPULATION BY DEMOGRAPHICS

2013 Population

2023 Population

Demographic

White, Non-Hispanic Black, Non-Hispanic

815,888

851,721 75,343

68,130

American Indian or Alaskan Native, Non-Hispanic

3,462

3,818

YEAR OVER YEAR POPULATION GROWTH RATE 1.40% Greater Grand Rapids Michigan

Asian, Non-Hispanic

24,629

31,717

United States

Native Hawaiian or Pacific Islander, Non-Hispanic

277

405

Two or More Races, Non-Hispanic

19,801 93,418

26,098 116,343

1.20%

Hispanic

1.00%

Total

1,025,605 1,105,446

.80%

Source: Lightcast

.60%

RACE/ETHNICITY AS OVERALL PERCENTAGE OF POPULATION IN 2023

.40%

.20%

GGR % Total Population

MI % Total Population

U.S. % Total Population

Demographic

0.00%

White, Non-Hispanic Black, Non-Hispanic

77.0%

73.8% 13.8%

58.5%

-.20% 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021

6.8%

12.7%

American Indian or Alaskan Native, Non-Hispanic

Source: Lightcast

0.4%

0.6%

0.7%

Asian, Non-Hispanic

2.9%

3.4%

6.1%

DIVERSITY & DEMOGRAPHICS Diversity continues to increase in Greater Grand Rapids, with Hispanic populations showing the largest increases in population. In 2023, diverse communities accounted for 23% of the population, an uptick from the 22.8% of the population the year prior and significantly higher than the 20.4% of the population a decade prior.

Native Hawaiian or Pacific Islander, Non-Hispanic Two or More Races, Non-Hispanic

0.0%

0.0%

0.2%

2.4%

2.5% 5.9%

2.5%

Hispanic

10.5%

19.3%

Source: Lightcast

STATE OF THE REGION 2023 | 5

PEOPLE

LABOR FORCE The labor force in Greater Grand Rapids hit a high point in mid-2023 of approximately 606,000 workers. These numbers represent a 3.2% increase over Q1 2023 and a 4% increase over Q3 2022. Meanwhile, the unemployment rate in Greater Grand Rapids continued to hold around the low to mid three percent range, on par with 2022.

GREATER GRAND RAPIDS LABOR FORCE BY QUARTER

620,000

600,000

GREATER GRAND RAPIDS UNEMPLOYMENT BY QUARTER 18%

580,000

560,000

16%

540,000

14%

12%

520,000

10%

500,000

8%

480,000

6%

2013 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Bureau of Labor Statistics

4%

2%

0%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Bureau of Labor Statistics

STATE OF THE REGION 2023 | 6

PEOPLE

EDUCATIONAL ATTAINMENT Student attainment of advanced degrees continues to increase in Greater Grand Rapids. The region has seen a steady increase in the rates of bachelor’s and graduate or higher degrees in the past decade. Of note, the rate of associate degree attainment has traditionally increased along the same trend as advanced degrees, however this year shows a slight decrease compared to 2022.

GREATER GRAND RAPIDS EDUCATIONAL ATTAINMENT

YOUTH POPULATION Greater Grand Rapids, like elsewhere across the country, is seeing a gradual decline in young people as a share of the overall population. However, Greater Grand Rapids does maintain a higher concentration of young people compared to the state and country at large.

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

POPULATION UNDER 19 YEARS OLD

Greater Grand Rapids

Michigan

United States

29%

Associate’s Degree

28%

Some College

27%

26%

High School Diploma

25%

24%

9th Grade to 12th Grade

23%

22%

Less than 9th Grade

21% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0% 5% 10% 15% 20% 25% 30% 35%

Source: Lightcast

Source: Lightcast

STATE OF THE REGION 2023 | 7

Place matters in Greater Grand Rapids. From natural amenities and events to a low cost of living, Greater Grand Rapids offers residents and businesses alike a place to call home. PLACE

STATE OF THE REGION 2023 | 8

PLACE

COMMERCIAL REAL ESTATE Inventory of office space in Greater Grand Rapids has remained relatively stable since Q3 2022, increasing approximately a half percent (75,000 square feet). During the same period, total vacancy in the office market (combining direct vacancy and sublease vacancy) rose a percentage point to 14.1% in Q2 2023 and remained the same going into the following quarter. Meanwhile, industrial inventory increased nearly 1.9 million square feet (1.3%) from Q3 2022 to Q3 2023. Industrial vacancies edged down in 2023 compared to the previous year’s rates, reaching a low of 2.7% in Q2 2023. In Q3 2023, industrial vacancies crept up to 3.2%.

INDUSTRIAL INVENTORY BY QUARTER

150,000,000

148,000,000

146,000,000

144,000,000

142,000,000

OFFICE INVENTORY BY QUARTER

140,000,000

14,000,000

13,500,000

138,000,000

2019

2020

2021

2022

2023

13,000,000

Source: JLL

12,500,000

VACANCY RATES BY QUARTER

12,000,000

Office

Industrial

16%

11,500,000

14%

11,000,000

12%

2019

2020

2021

2022

2023

10%

Source: JLL

8%

6%

4%

2%

0%

2019

2020

2021

2022

2023

Source: JLL

STATE OF THE REGION 2023 | 9

PLACE

COMMERCIAL REAL ESTATE Square-footage under construction significantly declined beginning in Q4 2022 as firms completed the majority of pent-up construction in the office and industrial space. Both sectors have avoided new construction projects, likely due to increased interest rates, and inflation. Uncertainty in the office sector and reduced demand for warehousing space for the industrial market is also likely contributing to the decline in construction.

SQUARE FEET OF OFFICE SPACE UNDER CONSTRUCTION BY QUARTER

450,000

SQUARE FEET OF INDUSTRIAL SPACE UNDER CONSTRUCTION BY QUARTER

400,000

350,000

2,500,000

300,000

2,000,000

250,000

200,000

1,500,000

150,000

100,000

1,000,000

50,000

0

2019

2020

2021

2022

2023

500,000

Source: JLL

0

2019

2020

2021

2022

2023

Source: JLL

STATE OF THE REGION 2023 | 10

PLACE

AVERAGE HOME PRICE BY QUARTER

$50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000

RESIDENTIAL HOUSING Greater Grand Rapids, like many other regions, continues to contend with a housing shortage. Average home prices continued to increase through 2023, up nearly 6% in Q3 compared to the same period the previous year. Likewise, median home prices have also increased through Q2 2023, reaching a peak of $414,000. Prices have slid somewhat in recent months, dropping 2.4% to $404,300 the following quarter. Median house prices in Greater Grand Rapids are more expensive compared to Michigan, but less than na- tional numbers. The gap between the region’s median home prices and the U.S. has closed in recent quarters, largely due to a 15% hike in Greater Grand Rapids between Q4 2022 and Q2 2023. Houses have tended to stay on the market longer in 2023 than previous years, reaching a high of 35 days in Q1 2023 and a low of 17 days in Q3 2023. New residential structures are being built in the region, with the number of building permits issued year-to-date (2,730) significantly outpacing building permits issued between Q1 and Q3 of 2019 (2,139). Issued building permits increased 3.5% in Q3 2023 compared to the same period the previous year.

$0

2023

2022

2021

2019

2020

Source: Grand Rapids Association of Realtors

AVERAGE DAYS ON MARKET BY QUARTER

60

50

40

30

20

10

MEDIAN LISTING PRICE BY QUARTER

0

2023

2022

2021

2019

2020

Greater Grand Rapids

Michigan

United States

$500,000

Source: Grand Rapids Association of Realtors

$450,000

NEW PRIVATE HOUSING BUILDING PERMITS BY QUARTER

$400,000

1,200

$350,000

1,000

800

$300,000

600

$250,000

400

$200,000

200

0

$150,000

2023

2022

2021

2019

2020

2023

2022

2021

2019

2020

Source: Realtor.com

Source: U.S. Census Bureau

STATE OF THE REGION 2023 | 11

PLACE

COST OF LIVING Living and working in Greater Grand Rapids provides a lower cost of living compared to a number of other similar metropolitan areas. While communities including Indianapolis, Louisville, Oklahoma City, and others have experienced increases in the cost of living relative to the national average, Greater Grand Rapids has remained the same since 2022. Note: The Cost of Living Index compares communities to the national average. Communities with numbers above 100 have higher costs of living than the national average, while communities with numbers below 100 offer a cheaper cost of living than the national average.

Source: Lightcast

COST OF LIVING INDEX 92 90 91 93

94 95

96 97

98

99 100

Grand Rapids, MI

National 100

Knoxville, TN Chattanooga, TN 93.2 93.2

Columbus, OH

Indianapolis, IN 98.4

91.9

95.1

Birmingham, AL 94.9

Louisville, KY 97.6

Greensboro, NC

Oklahoma City, OK

Raleigh, NC 96.8

93.6 93.7

STATE OF THE REGION 2023 | 12

PLACE

COMMUNITY VIBRANCY Demand for hotel rooms in Greater Grand Rapids continued to show signs of strength in 2023, with the first 10 months of the year slightly outpacing demand over the same period in 2022 by approximately 1.4%. According to Smith Travel Research, hotel demand in Michigan is expected to increase 1.4% compared to 2022 and 1.3% across the U.S. compared to 2022.

AIRLINE TRAVEL Airline travel at the Gerald R. Ford International Airport in Greater Grand Rapids reached a three-year quarterly high in Q3 2023, eclipsing 1 million passengers. Airline travel on a quarterly basis has steadily increased since the Covid 19 pandemic, rising 150% from Q3 2020 to Q3 2023. Likewise, airport activity in Q3 2023 was 11% higher compared to the same period the previous year.

HOTEL ROOM DEMAND (SALES) BY MONTH

250,000

200,000

GERALD R. FORD INTERNATIONAL AIRPORT PASSENGERS BY QUARTER

150,000

1,200,000

1,000,000

100,000

800,000

50,000

600,000

400,000

0

2019

2020

2021

2022

2023

200,000

Source: Smith Travel Research

0

2020

2021

2022

2023

Source: Gerald R. Ford International Airport

STATE OF THE REGION 2023 | 13

Greater Grand Rapids continues to prove itself as the region of choice for all businesses, regardless of size or industry. Jobs in the region have continued along a track of recovery, outpacing pre-pandemic levels in 2023. Meanwhile, Greater Grand Rapids continues to blaze the trail to becoming the preeminent tech hub in the Midwest by attracting more high-tech workers and supporting tech businesses as they grow in the region. PROSPERITY

STATE OF THE REGION 2023 | 14

PROSPERITY

JOBS In 2023, jobs in Greater Grand Rapids exceeded those of pre-pandemic levels, cresting 606,000 jobs, compared to 599,000 jobs in 2019. This job growth shows the Greater Grand Rapids economy has found its balance since 2020, adjusting to a new normal and expanding. Industries including healthcare, construction, and wholesale trade have increased substantially since 2019.

COMPARATIVE JOB GROWTH 2019-2022:

United States

JOB GROWTH IN GREATER GRAND RAPIDS (2013-2023) 620,000

Michigan

600,000

GGR

580,000

-0.5% 0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

560,000

Source: Lightcast

540,000

GREATER GRAND RAPIDS TOP INDUSTRIES BY JOBS

520,000

Industry

2019 Jobs 2023 Jobs

% Change

500,000

Manufacturing

118,823

113,683 79,806

-4.33%

Health Care & Social Assistance

78,177

2.08%

480,000

Retail Trade

66,153

61,150

-7.56% 1.58% 1.43%

Government

49,838 49,749

50,627

460,000

2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Leisure & Hospitality

50,462

Administrative Support & Waste Remediation Services

Source: Lightcast

43,480

43,783

0.70%

Wholesale Trade

30,026

32,588

8.53% 8.07%

Construction

25,636

27,706

Source: Lightcast

STATE OF THE REGION 2023 | 15

PROSPERITY

TECH JOBS Greater Grand Rapids continues to attract and grow tech talent throughout the region. In line with the regional Tech Strategy, overall tech employment grew by nearly 1,000 jobs from 2022 to 2023. This growth represents a 2.4% increase from the previous year and a nearly 5% increase from pre-pandemic levels. Meanwhile, regional employers continue to look for talent with experience in advanced software skills including SAP Applications, SQL for database querying, and programming languages like Python.

GREATER GRAND RAPIDS TECH JOBS

34,500 34,000 35,000 35,500 36,500 36,000 37,000 37,500 39,000 38,500 38,000

TOP SOFTWARE SKILLS (JAN. 2023-OCT. 2023)

1,163 1,345 1,052 1,613 NUMBER OF JOB POSTINGS

SAP Applications

SQL (Programming Language)

2020

2021

2022

2023

Source: Lightcast

AutoCAD

Microsoft Azure

984

Python (Programming Language)

Source: Lightcast

STATE OF THE REGION 2023 | 16

PROSPERITY

VENTURE CAPITAL Venture capital follows innovation. A region with robust venture capital activity is often home to new, bold ideas and technological breakthroughs. Over the past decade, venture activity in terms of deal size has generally increased throughout Greater Grand Rapids, while the number of deals tend to fluctuate. Despite a dip in 2021, recent data shows both deal volume and total capital invested rising post-pandemic.

GREATER GRAND RAPIDS VENTURE CAPITAL INVESTMENT*

250M

200M

150M

GREATER GRAND RAPIDS VENTURE CAPITAL DEAL COUNT*

100M

60

50

50M

40

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

30

Source: Lightcast *Note: Grand Rapids-Wyoming-Muskegon Combined Statistical Area used for VC Data

20

10

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Lightcast

STATE OF THE REGION 2023 | 17

PROSPERITY

2019 to 2023 % Change

Industry

Title

2019 2023

Manufacturing Assembler 1

$15.02 $18.57

23.6%

Manufacturing Machine Operator

$16.64 $18.38

10.5%

Manufacturing Assembler 2

$16.74 $19.93

19.1%

Manufacturing Material Handler

$16.54 $19.89

20.3%

WAGES AND OCCUPATIONS Average hourly earnings in Greater Grand Rapids decreased 1.3% in Q3 2023 compared to the same period the previous year. According to the data, average wages rose following the Covid-19 pandemic through Q4 2022 before beginning to decline in Q1 2023. Meanwhile, average wages across Michigan have continued to climb steadily, outpacing those of Greater Grand Rapids in Q3 2023 for the first time since Q1 2020. Average wages in Greater Grand Rapids are still lower than the average across the U.S., however, the region has a cost of living nearly 10% lower than that of the rest of the country.

Manufacturing Packer

$14.70 $18.02

22.6%

Injection Molding Machine Operator

Manufacturing

$14.87 $18.74

26.0%

Healthcare

Registered Nurse

$31.47 $34.04

8.2%

Healthcare

Medical Assistant

$15.78 $20.05

27.1%

Healthcare

Case Worker

$17.20 $23.16

34.7%

Healthcare

Social Worker

$27.16 $33.24

22.4%

Information Technology Information Technology Information Technology Information Technology Information Technology Professional Services Professional Services Professional Services Professional Services Professional Services Professional Services

Software Eng 1

$59,136 $71,379

20.7%

AVERAGE HOURLY EARNINGS BY QUARTER $33 $34 $35 $32 $31 Greater Grand Rapids Michigan United States

Software Eng 2

$74,395 $95,996

29.0%

Software Eng 3

$95,647 $107,546

12.4%

OP Systems Programmer I (Entry)

$58,073 $62,393

7.4%

$30 $29 $28 $27 $26 $25

OP Systems Programmer II (Experienced)

$81,954 $85,489

4.3%

Accountant I

$50,726 $53,415

5.3%

HR Manager

$80,000 $95,563

19.5%

Admin Assistant II

$41,981

$49,427

17.7%

2019

2020

2021

2022

2023

Source: Bureau of Labor Statistics

Help Desk II

$22.27 $26.78

20.3%

Account Manager

$81,991

$79,792

-2.7%

At an occupation level, wages across a number of occupations in Greater Grand Rapids continue to increase, though at a slower rate than in previous years. Occupations such as social workers, intermediate-level software engineers, and medical case workers experienced some of the largest growth from 2022 to 2023. Wages in occupations including entry-level software engineers, registered nurses, and entry-level accountants fell slightly during the same period.

Retail Store Manager

$48,010 $59,696

24.3%

Source: The Employers Association (TEA) Wage and Salary Survey Report

STATE OF THE REGION 2023 | 18

PROSPERITY

LOCAL BUSINESS INSIGHTS In 2023, The Right Place met with more than 500 companies across Greater Grand Rapids through retention visits. These meetings help The Right Place staff learn more about the diverse businesses across the region and connect them with the resources they need to grow and stay in Greater Grand Rapids. These retention visits give The Right Place a unique perspective on the health of the economy. Here are some insights from those discussions: Expansions •  59.5% of all companies interviewed by The Right Place in 2023 planned to expand in the future. • This represents an increase from the 56% of companies who noted the same plans in 2022. Sales Trends •  68.4% of companies indicated sales trends were increasing , down slightly from the 69.7% of companies saying the same the previous year. • However, 29.4% of companies in 2023 said their sales trends were stable, a slight improvement from the 28.1% the previous year.

TOP CHALLENGES TO GROWTH

Talent Attraction

Sales

Facility Issues

Talent Retention

Financing

0%

5%

10%

15%

20% 25%

Top Challenges to Growth • Talent attraction remains the highest barrier for growth, with 20.5% of companies identifying finding qualified workers as their biggest challenge. This figure does represent a slight decline from 2022, when 22% of companies identified talent attraction as their most significant pinch point. • Sales ( 17.9% ) replaced facility issues ( 12.3% ) as the second highest barrier to growth in 2023, more than doubling from the 6.9% of companies referencing sales the previous year. Investment in Training •  49.6% of companies indicated plans to increase investment in workforce training, up moderately from the 43.1% of companies noting the same in 2022. •  49.9% of companies said they planned to continue investing in workforce training at a stable level in 2023, compared to 39% the previous year. Employment Trends •  51.3% of companies planned to increase hiring across Greater Grand Rapids in 2023. This represents an increase in planned hiring among interviewed companies over the previous year ( 50% ).

GREATER GRAND RAPIDS SALES TRENDS

2.2%

Sales Increasing Sales Stable Sales Decreasing

29.4%

68.4%

STATE OF THE REGION 2023 | 19

PROSPERITY  | RECENT PROJECTS

Big Rapids Products

The Mecosta-County-based metal stampings and assembly company announced plans in August 2023 to build an additional 70,000-square-foot facility. The project is expected to add 60 jobs and generate $3 million in capital investment. The company specializes in stainless steel products ranging from vehicle exhaust systems to appliance parts.

Jireh Metals

Jireh Metals invested nearly $1.6 million in May 2023 to expand its metal stamping and fabrication facility in Walker. The minority-owned supplier plans to create 50 new jobs through the project, which will vertically integrate the company’s fabrication and assembly operations.

Falk Panel

Falk Panel announced a $35 million investment in October 2023 to expand its facility in Walker. The company, which manufactures insulated metal paneling systems, plans to create a new production line with the investment, yielding 45 new jobs.

Payload CMS

This Silicon Valley-backed company invested nearly $1 million to create 55 jobs in Greater Grand Rapids in October 2023. Payload CMS, which provides a digital content management platform and framework for enterprise engineering and marketing teams, began as a startup in the region. The investment will be used to fund a 1,600 square- foot addition to the company’s office.

Gentex Corporation

In September 2023, Gentex Corporation opened a technology hub in downtown Grand Rapids. The manufacturer of advanced electro-optical products for the automotive, aerospace, and fire protection industries created the space, in part, to help attract and retain top engineering and software talent from across Greater Grand Rapids. The facility is designed to hold more than 100 team members.

TiiCKER

TiiCKER announced a $4.8 million expansion project in Greater Grand Rapids in May 2023. The company, which designed a digital shareholder loyalty and engagement platform, plans to create 73 jobs over the next three years as part of the expansion.

STATE OF THE REGION 2023 | 20

REGIONAL PARTNERS

The Right Place services an eight-county region across western Michigan including Kent, Ionia, Lake, Mason, Mecosta, Montcalm, Newaygo, and Oceana counties. This broad geographic area comprises a range of diverse industries, geography, and lifestyles – from Oceana County’s orchards and Newaygo County’s forests and rivers, to the lakeshore communities in Mason County. This year, The Right Place undertook a strategic planning project with each partner county to uncover new opportunities for collaboration and growth across the Greater Grand Rapids region.

*The data in the following section was collected from Lightcast and the U.S. Census Bureau.

| 21

STATE OF THE REGION 2023

IONIA COUNTY

Population in Ionia County continues to climb, increasing nearly 2% from the previous year. Ionia County’s population, while growing, also continues to become more educated with 27% of the population having an associates degree or higher. Median household income reached nearly $76,000 in 2022, a 26% increase from 2020. Approximately 44% of companies interviewed by The Right Place throughout 2023 said they expected sales to increase, while 36% said they planned to expand. These figures represent a cooling from last year when nearly 66% of companies expected increased sales and nearly 58% planned future expansions. However, fewer companies in 2023 said they were experiencing recruitment challenges (42%), compared to 2022 numbers (50%).

IONIA COUNTY TOP INDUSTRIES BY JOBS

NOTABLE STATISTICS

Industry

Number of Jobs

Education & Hospitals (Local Government)

1,452 1,348 1,170 1,120 1,080 6,170

Population 69,497 $1.83B 27%

Employment Services

Restaurants & Other Eating Places

Gross Regional Product

State Government, Excluding Education & Hospitals

Motor Vehicle Body & Trailer Manufacturing

Total

Associates Degree & Higher

Unemployment Rate* 3.9% Labor Force* 31,503

IONIA COUNTY TOTAL POPULATION (2012-2022)

55,000 57,500 60,000 62,500 65,000 67,500 70,000 72,500 75,000

Median Age** 41.3

$75,865

Median Household Income**

Cost of Living Index 90.0

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 22

IONIA COUNTY

IONIA COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

44.4% SEEING INCREASING SALES TRENDS 36.1% PLANNING TO EXPAND THEIR BUSINESS

41.7% EXPERIENCING RECRUITMENT CHALLENGES 27.8% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Talent Attraction | Facility Issues | Financing, Infrastructure, Sales

0

2,500 5,000 7,500 10,000 12,500

15,000

17,500

20,000

22,500

25,000

Population

NOTABLE ACCOMPLISHMENTS

Conducted the 3rd annual MIPitch competition, providing $12,500 to five local entrepreneurs and small businesses.

Coordinated with multiple school districts to introduce high school students to local businesses through in-person visits.

Partnered with Ionia schools to arrange two career fairs in the county.

STATE OF THE REGION 2023 | 23

LAKE COUNTY

Population in Lake County reached nearly 13,000 people in 2023. According to the most recent data available, median household income rose to nearly $41,000, a 6.2% increase from 2020 figures. At the same time, Lake County is becom- ing more educated, with 21% of residents having an associates degree or higher in 2023, compared to 17.4% the previous year. Nearly 43% of the companies interviewed by The Right Place planned expansions in the coming years, while 14% noted improving sales trends. Talent attraction remains the largest barrier to growth for companies in Lake County, with 43% of companies noting recruitment challenges.

NOTABLE STATISTICS

LAKE COUNTY TOP INDUSTRIES BY JOBS

Industry

Number of Jobs

Population 12,871 $183M 21%

Local Government, Excluding Education & Hospitals

172

Restaurants & Other Eating Places

134

Educational Support Services

130

Gross Regional Product

Drinking Places (Alcoholic Beverages)

112

Education & Hospitals (Local Government)

102

Associates Degree & Higher

Total

650

Unemployment Rate* 6.3% Labor Force* 4,223

LAKE COUNTY TOTAL POPULATION (2013-2023)

10,000 12,500 15,000 17,500 20,000

Median Age** 54.2

$40,753

Median Household Income**

Cost of Living Index 86.6

0 2,500 5,000 7,500

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 24

LAKE COUNTY

LAKE COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

Associate’s Degree

14.3% SEEING INCREASING SALES TRENDS 42.9% PLANNING TO EXPAND THEIR BUSINESS

42.9% EXPERIENCING RECRUITMENT CHALLENGES 28.6% INCREASING INVESTMENT IN TRAINING

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Talent Attraction | Sales | Lean/Efficency

Population

NOTABLE ACCOMPLISHMENTS

Received a $433,600 federal Economic Development Administration grant to develop an Economic Diversification Plan, in response to the closure of Geo Group, the county’s largest employer and taxpayer.

Planning and mapping of Idlewild’s Historic Community to establish historic boundaries and governance for future community driven economic development, funded through a $38,000 Fremont Area Community Foundation grant.

The completion of key planning projects including the Village of Baldwin Downtown Visioning and a county-wide Housing Needs Assessment funded through $70,000 in county ARPA dollars.

STATE OF THE REGION 2023 | 25

MASON COUNTY

Population in Mason county rose modestly in 2023 compared to the previous year. Gross regional product remained consistent while median household income increased nearly 7% from 2020 figures. Cost of living in Mason County also improved slightly in 2023 compared to the previous year and relative to the national average. Of the businesses interviewed by The Right Place in Mason County, 51% said sales were increasing, while nearly 68% identified plans to expand in coming years. That compares to the 50% of business that noted increasing sales and 75% of companies planning expansions noted in 2022. Talent attraction remains the top barrier to growth in Mason County, in line with the prior year.

MASON COUNTY TOP INDUSTRIES BY JOBS

NOTABLE STATISTICS

Industry

Number of Jobs

Education & Hospitals (Local Government)

752

Population 29,767 $1.1B 37%

Restaurants & Other Eating Places

738 723

General Medical & Surgical Hospitals

Gross Regional Product

Local Government, Excluding Education & Hospitals

716

Warehouse Clubs, Supercenters, & Other General Merchandise Retailers

565

Associates Degree & Higher

Total

3,494

Unemployment Rate* 4.5% Labor Force* 13,962

MASON COUNTY TOTAL POPULATION (2013-2023) 17,500 15,000 20,000 22,500 25,000 27,500 30,000 32,500 35,000

Median Age** 46.5

$55,035

Median Household Income**

Cost of Living Index 91.3

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 26

MASON COUNTY

MASON COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

51.4% SEEING INCREASING SALES TRENDS 67.6% PLANNING TO EXPAND THEIR BUSINESS

51.4% EXPERIENCING RECRUITMENT CHALLENGES 29.7% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Talent Attraction | Sales | Facility Issues & Talent Development

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Population

NOTABLE ACCOMPLISHMENTS

Created a Mason County Land Bank to support housing and commercial development efforts.

Hosted Mason County Developer Day where a dozen Midwest developers toured sites in Ludington, Scottville, Pere Marquette, and Amber Townships.

Secured a $50,000 Rural Readiness Grant from the

Office of Rural Development to help fund the Mason County Housing Readiness Initiative.

STATE OF THE REGION 2023 | 27

MECOSTA COUNTY

Median houshold income in Mecosta County increased 5.8% from 2020 to 2022 in Mecosta County. Data suggest Mecosta County continued to experience a general decline in population, decreasing nearly 3% since 2022 and nearly 13% over the past decade. Nearly 35% of companies in Mecosta County interviewed by The Right Place said they planned to see increased sales in the coming years while 45% said they had future expansion plans. Only 10% of companies in Mecosta County noted they were experiencing recruitment challenges, while 38% of companies continue to ramp up investment in training.

NOTABLE STATISTICS

MECOSTA COUNTY TOP INDUSTRIES BY JOBS

Industry

Number of Jobs

Population 37,825 $1.3B 34%

Education & Hospitals (State Government) Education & Hospitals (Local Government)

1,960

896 875 778 703

Restaurants & Other Eating Places

Gross Regional Product

Employment Services

General Medical & Surgical Hospitals

Associates Degree & Higher

Total

5,212

Unemployment Rate* 5.6% Labor Force* 18,835

MECOSTA COUNTY TOTAL POPULATION (2013-2023)

32,500 30,000 35,000 37,500 40,000 42,500 45,000 47,500 50,000

Median Age** 37.8

$48,440

Median Household Income**

Cost of Living Index 87.6

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 28

MECOSTA COUNTY

MECOSTA COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

34.5% SEEING INCREASING SALES TRENDS 44.8% PLANNING TO EXPAND THEIR BUSINESS

10.3% EXPERIENCING RECRUITMENT CHALLENGES 37.9% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Facility Issues | Lean/Efficency Issues | Talent Retention

0

2,000

4,000

6,000

8,000

10,000

12,000

Population

NOTABLE ACCOMPLISHMENTS

Collaborated with Discover Manufacturing and Ferris State University to introduce nearly 400 students to manufacturers across Mecosta County.

Facilitated a $3 million expansion project for Big Rapids Products, which plans to add between 50 jobs and 75 jobs.

Assisted in applying for $200,000 in blight elimination funds for Mecosta County. The funding resulted in one blighted building being demolished and another currently under deconstruction.

STATE OF THE REGION 2023 | 29

MONTCALM COUNTY

Population in Montcalm County increased to more than 70,000 people in 2023, representing a 4.5% increase from the previous year. Population increased 4.5% from the previous year, while gross regional product grew nearly 20% during the same time. Montcalm County’s population is growing slightly older, with the median age increasing to 41.4 in 2022 from 40.8 in 2020. Cost of living in the county edged up marginally from 88.1 in 2022 to 88.2 in 2023. Approximately 60% of businesses interviewed by The Right Place said sales were increasing and they had plans to expand. Nearly 47% of companies noted recruitment challenges, on par with the 46% of companies saying the same in 2022.

NOTABLE STATISTICS

MONTCALM COUNTY TOP INDUSTRIES BY JOBS

Industry

Number of Jobs

Population 70,196 $1.7B 24% Labor Force* 29,052

Restaurants & Other Eating Places

1,784

Education & Hospitals (Local Government) General Medical & Surgical Hospitals Household Appliance Manufacturing

1,690 1,408

Gross Regional Product

1,244

State Government, Excluding Education & Hospitals

781

Associates Degree & Higher

Total

6,908

MONTCALM COUNTY TOTAL POPULATION (2013-2023)

Unemployment Rate* 4.5%

55,000 57,500 60,000 62,500 65,000 67,500 70,000 75,000 72,500

Median Age** 41.4

$61,967

Median Household Income**

Cost of Living Index 88.2

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 30

MONTCALM COUNTY

MONTCALM COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

60% SEEING INCREASING SALES TRENDS 60% PLANNING TO EXPAND THEIR BUSINESS

46.7% EXPERIENCING RECRUITMENT CHALLENGES 20% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Customer Issues | Logistics/Movement of Goods | Infrastructure and Talent Attraction

0

2,500 5,000 7,500 10,000 12,500

15,000

17,500

20,000

22,500

25,000

Population

NOTABLE ACCOMPLISHMENTS

Facilitated Greenville-based Mersen USA with a $10 million expansion that will add 45 new jobs to the region.

Hosted a Developer Day event, bringing 23 people to tour 13 sites across Montcalm County.

Developed a three-year strategic plan with five primary strategies to guide work through 2025. These strategies range from infrastructure and housing, to expanding annual events such as the MIPitch Competition.

| 31

STATE OF THE REGION 2023

NEWAYGO COUNTY

Newyago County’s population grew 1.3% over the previous year. Median household income also increased to $54,235 in 2022 compared to $51,470 in 2020, while cost of living relative to the national average edged down from 89.7 in 2022 to 89.3 in 2023. Half of the companies in Newaygo County interviewed by The Right Place cited increasing sales trends, while 35% said they had plans to expand their business. In 2022, 69% of companies noted increasing sales and 73% planned to expand. Talent development is the second most cited barrier to growth among companies in Newaygo county, with 35% of companies interviewed saying they’re experiencing recruitment challenges.

NOTABLE STATISTICS

NEWAYGO COUNTY TOP INDUSTRIES BY JOBS

Industry

Number of Jobs

Population 51,323 $1.5B 29% Labor Force* 24,250

Education & Hospitals (Local Government) Warehouse Clubs, Supercenters, & Other General Merchandise Retailers

1,134

727

Gross Regional Product

Local Government, Excluding Education & Hospitals

697

General Medical & Surgical Hospitals

654

Associates Degree & Higher

Restaurants & Other Eating Places

451

Total

3,662

NEWAYGO COUNTY TOTAL POPULATION (2013-2023)

Unemployment Rate* 4.4%

35,000 37,500 40,000 42,500 45,000 47,500 50,000 52,500 55,000

Median Age** 42.5

$54,235

Median Household Income**

Cost of Living Index 89.3

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 32

NEWAYGO COUNTY

NEWAYGO COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

50% SEEING INCREASING SALES TRENDS 35% PLANNING TO EXPAND THEIR BUSINESS

35% EXPERIENCING RECRUITMENT CHALLENGES 35% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Industry 4.0 Adoption/Technology Needs | Talent Development | Financing

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Population

NOTABLE ACCOMPLISHMENTS

Facilitated Mercury Broadband in making the decision to open a regional service center in Newaygo County. The Kansas- based highspeed internet and digital phone service plans to invest $2.3 million in the project and create 40 jobs.

Launched the first Tech Week initiative, engaging over 600 students in career exposure activities.

Facilitated the 5th annual Pitch North event. Over the past five years, Pitch North has engaged 134 entrepreneurs and awarded more than $51,000 to 25 finalists.

STATE OF THE REGION 2023 | 33

OCEANA COUNTY

Oceana County’s population remained relatively stable from 2022 to 2023. Gross regional product edged up less than a percent over the prevous year, while median household income increased more than 10% from 2020 to 2022. Of the companies interviewed by The Right Place in Oceana County in 2023, 76% said sales were increasing while 62% noted plans for future expansion. The previous year, 80% of companies noted increasing sales, while 53% said they had plans to expand. Facility issues and sales were cited as the top barriers for growth among companies in Oceana County.

NOTABLE STATISTICS

OCEANA COUNTY TOP INDUSTRIES BY JOBS

Population 27,097

Industry

Number of Jobs

Fruit & Vegetable Preserving & Specialty Food Manufacturing

1,078

$672.7M 32%

Gross Regional Product

Local Government, Excluding Education & Hospitals

529

Education & Hospitals (Local Government)

424

Crop Production

322

Associates Degree & Higher

Restaurants & Other Eating Places

320

Unemployment Rate* 4.9% Labor Force* 12,354

Total

2,673

OCEANA COUNTY TOTAL POPULATION (2012-2022)

15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000

Median Age** 43.5

$56,454

Median Household Income**

Cost of Living Index 89.2

* Data as of Q3 2023 ** Data as of 2022

2013

2014

2015

2016

2017

2018

2019 2020 2021 2022

2023

STATE OF THE REGION 2023 | 34

OCEANA COUNTY

OCEANA COUNTY EDUCATIONAL ATTAINMENT

2013

2023

Graduate Degree & Higher

Bachelor’s Degree

LOCAL BUSINESS INSIGHTS

76.2% SEEING INCREASING SALES TRENDS 61.9% PLANNING TO EXPAND THEIR BUSINESS

61.9% EXPERIENCING RECRUITMENT CHALLENGES 52.4% INCREASING INVESTMENT IN TRAINING

Associate’s Degree

Some College

High School Diploma

9th Grade to 12th Grade

Less than 9th Grade

Top Pinch Points:

Facility Issues | Sales | Infrastructure, Talent Attraction

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Population

NOTABLE ACCOMPLISHMENTS

Oceana County Developer Day saw 35 participants introduced to available sites and projects in four communities across the county.

Hosted the Oceana County Human Resource Network, a monthly user group for human resource managers. More than 50 individuals have participated in 2023.

Participated in the Pitch North Competition for entrepreneurs in Lake, Newaygo, and Oceana counties.

STATE OF THE REGION 2023 | 35

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