GVSU survey: West Michigan economy posts strongest performance in years

Data collected in June by a Grand Valley State University researcher reflected tremendous economic growth across West Michigan's industrial market.

Brian Long, director of supply management research at GVSU's Seidman College of Business, said his monthly survey of the region's purchasing managers showed considerable gains across several of his key indicators.

"Our survey of the West Michigan industrial market posted one of the best performances that we've seen in the last five years," Long said. "Several of our cyclical industries appear to be adjusting to the new marketplace, but again, this is the industrial market, which is now quite positive."

Two of Long's metrics reached levels not seen in five years. His new orders index, which measures a firm's business improvement, jumped 33 points, reaching a 64-month high.

The production index, which measures output, also saw a significant increase, rising 21 points to its highest level since August 2021.

Long said several factors contributed to the strong results.

"Our measures of both short and long-term business confidence are again very positive," Long said. "Now part of this optimism may be based on the hope that all the problems arising from the Iran war may be subsiding.

"Part of it is undoubtedly based on plain old demand, which seems to be running quite strong despite all the limitations brought on by the tariffs and rising prices."

Though his data points to strong industrial growth for West Michigan, Long said one key regional industry, the office furniture business, continues to face challenges in the economic climate.

"New office space is not being opened nearly as fast as it was, and new offices generally require new office furniture," Long said. "However, the trend toward working at home has not disappeared, and the traditional office is not about to disappear either."

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

• New orders index (business improvement): +48 vs. +15 in May
• Production index (output): +35 vs. +14 in May
• Employment index: +25 vs. -4 in May
• Lead times index: +27 vs. +22 in May

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