GVSU survey shows economic resilience in West Michigan

Despite months of economic uncertainty stemming from tariff policies and ongoing global trade tensions, the West Michigan economy has remained resilient, according to data collected by a GVSU researcher.

Brian Long, the director of supply management research at the Seidman College of Business, said his monthly survey of local firms and purchasing managers shows the regional economy has gained unexpected strength through the summer.

In fact, Long said two key metrics in his recent survey - the new orders index and production index - hit three-year highs. The survey's new orders index measures a company's business improvement while the production index reflects a firm's output.

"Almost any firm with a supply chain that originates anywhere outside of the country is having trouble keeping up with the tariff wars on virtually a daily basis," Long said.

"Fortunately most of our respondents seem to be taking it in stride partially based on the experience gained from the COVID crisis, but almost all of them are holding up major decisions on new equipment, plant expansion, new sourcing and so forth until the trade war with their segment of the supply chain is resolved."

Long said the short- and long-term business confidence among local firms has also remained relatively stable since a sharp drop in April, when the tariffs were first announced.

"In the industrial market, the trauma over tariffs is of course causing a certain amount of consternation, but one of our survey respondents says that tariff management is becoming more routine," Long said. "He is, however, watching all the so-called tariff deadlines to see what actually happens."

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

• New orders index (business improvement): +21 vs. +14 in May
• Production index (output): +28 vs. +14 in May
• Employment index: 0 vs. 0 in May
• Lead times index: +4 vs. +18 in May

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