GVSU report: West Michigan economy holds steady amid tariff challenges

A report by a GVSU researcher shows West Michigan's economy has remained flat but stable through October as the federal tariffs continue to challenge businesses.

Brian Long, director of supply management research at GVSU's Seidman College of Business, said businesses and purchasing managers are still adjusting to the ongoing effects of the tariffs months into President Donald Trump's second term.

"For the higher tariff costs, some firms have been able to get the seller to absorb all or most of the increase, and others have been able to pass the higher cost along," Long said.

"But some firms are stuck between a rock and a hard place. They can't get the seller to absorb the increase, and they can't pass the higher cost on to the buyer."

Despite the added costs, one of West Michigan's biggest cyclical industries - auto parts manufacturing - has remained resilient, Long said.

"So far, auto sales are holding up, so our local auto parts suppliers are still doing reasonably well, although some were overpromised business for the EV models, and their production has slowed," Long said. "But our overall production index for West Michigan is still currently positive."

Long said Michigan's unemployment rate remains an area of concern. The state's jobless rate held at about 5.2% in the latest data, ranking 48th in the nation. Only California and Nevada reported higher rates.

"Unemployment for West Michigan, and especially Michigan as a whole, has crept up on us," Long said. "Over the past decade, West Michigan in particular was adding jobs like crazy. That has now stopped."

Here's a look at the key index results from October's survey of West Michigan purchasing managers:

• New orders index (business improvement): -4 vs. -3 in September
• Production index (output): +4 vs. +4 in September
• Employment index: +2 vs. -8 in September
• Lead times index: -4 vs. +13 in September

More information about the survey and an archive of past surveys are available on the Seidman College of Business website .