West Michigan economy continues to grow amid pandemic logistics challenges

GRAND RAPIDS – West Michigan’s industrial economy continues to grow, although the pace has moderated, a new report from Grand Valley State University says.

Brian G. Long, director of supply management research at Seidman College of Business, reports that his monthly business trends report showed new orders released in June (+33) were lower than the May index. from +40. The production index remained stable and the purchasing index eased in June to +38 compared to May (+41). Long said that, overall, purchasing officials continue to grapple with lingering logistics issues, including material shortages and rising prices.

“Although some industries have fully recovered from the pandemic shock, a significant number of companies in our survey panel continue to experience one-time shortages and shipping delays for a wide range of industrial products with no immediate end in sight.” , Long said.

Michigan’s unemployment rate fell to 5% in June from 5.1% in May (the latest reporting month available), Long said, adding that excess unemployment benefits end in all states in September.

In western Michigan, the June employment index was +25, down from the 10-year high of +40 in March and stable from May’s index of +24, Long said. “Again, the main segments of COVID-19 unemployment in western Michigan remain in the hospitality and service industries, not in industrial companies,” he said.

The Institute for Supply Management survey is a monthly survey of business conditions that includes 45 purchasing managers in the greater Grand Rapids area and 25 in Kalamazoo. Respondents are from the region’s leading industrial manufacturers, distributors and industrial service organizations. It is modeled on a national survey conducted by the Institute for Supply Management. Each month, respondents are asked to rate eight factors as “same”, “top” or “bottom”.

For more information, contact Brian Long at (269) 870-0428.

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