GVSU Seidman College of Business

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By GVSU

Business conditions in West Michigan remained positive in July, though several key indicators softened from June, according to the latest survey of supply chain managers by Grand Valley State University.

“July was another good, but not exceptional, month for the West Michigan Industrial economy,” said survey author Brian Long, director of supply management research at GVSU’s Seidman College of Business. “Again, we need to keep an eye on business confidence.”

Many survey respondents reported strong sales, some of which were attributed to increased demand from data centers. However, businesses remained cautious about the uncertainly emanating from the Iran war and its impact on prices and supply chains, Long said.

“This past month, we did not have a single survey participant reporting lower prices, but way over half of the participants are buried under higher prices that they are having difficulty negotiating,” Long said. “Tariffs are, of course, part of the problem, and higher oil prices drive a myriad of costs higher. Almost all the participants are still hanging on, but this can’t last forever.”

Here’s a look at the key indicators measured in the survey of sentiment by West Michigan businesses:

New orders (business improvement), +30 vs. +49 in June
Production (output), +19 vs. +35 in June
Employment, +6 vs. +25 in June
Lead times, +28 vs. +27 in June

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

By GVSU Communications
greer@wktv.org

Despite modest improvement across several key metrics, a report from a Grand Valley State University researcher indicates the West Michigan economy closed out 2025 continuing a softening trend.

Brian Long, director of supply chain management research at GVSU’s Seidman College of Business, said his December survey of the region’s businesses and purchasing managers revealed widespread uncertainty and concern among respondents.

“According to the data we collected in the last two weeks of December, the West Michigan economic softness that we reported in November has unfortunately carried over for another month,” Long said.

“But again, the word is soft, not collapsing. January is a back-to-work month and sometimes gives us a better clue where the economy is really going for the rest of the year.”

Long noted that performance within some of the region’s traditionally strong industries — including auto parts manufacturing and office furniture production — continues to weigh on the overall economy.

“Business planners are of course confused and frustrated because there’s simply too many moving parts to make an accurate assessment of exactly where we’re going,” Long said. “So, as a consequence, expansion plans and new hire plans have often been put on hold.”

Looking ahead to 2026, Long said ambiguity remains the defining theme.

“I guess ‘confused’ might be the best way to describe the 2026 outlook for West Michigan,” Long said. “Yes, we have some data that is continuing to soften, but almost every day there’s an announcement that can change the paradigm for the business environment.”