GVSU research finds region’s economy continuing to slow

Grand Rapids' economy continued to slump in August, according to data gathered by a Grand Valley State University researcher.

In his August survey of local firms and purchasing managers, GVSU's Brian Long said the lingering effects of tariffs implemented by President Donald Trump's administration continue to ripple through West Michigan companies.

"Depending on what commodities they buy, some firms have found that tariffs have not turned out to be such a bad situation as they thought," said Long, director of supply chain management research at GVSU's Seidman College of Business.

"Some of those costs they've been able to pass along to their customers. In other instances, they've been able to push them back to the suppliers or they've found other workarounds. In some instances, they have decided to reshore the purchase altogether."

Several of Long's key metrics fell last month, including the new orders and production indices. The new orders index measures a firm's business improvement, while the production index tracks output.

Long's employment index also slipped in August, reflecting the rising jobless rate in Michigan. The state has the third-highest unemployment rate in the nation, he said.

"Unemployment for West Michigan, and especially Michigan, has crept up on us," Long said. "In the industrial market though, our index of employment has remained relatively stable.

"We've had some workforce reductions, but no major layoffs, and the pre-COVID expansion that we saw just a few years ago is gone. Office furniture, of course, is stagnated, and some of the tax incentives that fueled our local auto parts suppliers have run their course as well."

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

• New orders index (business improvement): -16 vs. -4 in July
• Production index (output): -4 vs. 0 in July
• Employment index: -4 vs. +13 in July
• Lead times index: 0 vs. +15 in July

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