GVSU researcher: West Michigan economy resilient amid economic tensions

While global economic markets face turbulence following the Trump administration's implementation of tariffs, the West Michigan economy continues to show modest strength, according to a Grand Valley researcher.

Brian Long, director of supply management research at GVSU's Seidman College of Business, said his monthly survey of local businesses and purchasing managers reveals a local economy that has remained resilient so far.

"According to the data we collected in late April, the West Michigan economy remains marginally positive," Long said. "Incoming new orders, our closely watched index of business improvement, retreated but still came in marginally positive for all the negativity out there right now. That's not bad."

The automotive parts industry, one of the region's key industries, was a factor to the region's economic performance in April. However, Long cautioned that the strong sales in April might not reflect long-term strength.

"From an economic perspective, automobile parts production remains one of West Michigan's most important cyclical industries, and it's good news that April automobile sales remain very strong," Long said. "Unfortunately, a lot of those sales were pulled forward from future months as people try to avoid those pesky new tariffs."

Long's surveys of local firms may show a relatively stable West Michigan economy, but that's not the case for the United States' two largest trading partners, Canada and Mexico, he said.

"As the current tariff war unfolds, the purchasing manager surveys for Mexico and Canada are tanking, so it's obvious that they have plenty of incentive to reach a new trade agreement fairly soon," Long said. "The problem appears to be that reaching a new agreement is taking a lot longer than the president had imagined."

Here's a look at the key index results from April's survey of West Michigan businesses:

• New orders index (business improvement): +2 vs. +10 in March
• Production index (output): +10 vs. +13 in March
• Employment index: +2 vs. -2 in March
• Lead times index: +6 vs. 0 in March

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