ALLENDALE, Mich. — West Michigan's economy is showing continued signs of weakness as 2025 comes to a close, and a Grand Valley State University researcher warns the softening could extend into 2026.
WATCH: West Michigan economy shows signs of softening as 2025 ends, researcher warns
Brian Long, director of supply management research at GVSU, said several key industries in the region took hits this year, creating a challenging environment for manufacturers.
"[A continuation] is indeed possible. When companies start to soften, the directors start to look to say would we be better to get out now while the getting out is good," Long said.
Rather than massive layoffs, Long said companies are experiencing gradual workforce reductions through attrition, with businesses not filling open positions and pulling back on new investments.
Recent Federal Reserve data show Michigan has lost thousands of manufacturing jobs since February. According to the most recent U.S. Bureau of Labor Statistics data from September, Michigan has the fifth highest unemployment rate in the country.
"When a major company starts to weaken, it cascades backward through the supply chain, all the way back to the customer," Long explained.
Long said he's been receiving calls from businesses expressing concerns about tariffs and the state's economic climate. However, despite their concerns Long remains cautiously optimistic about the future.
"Some companies have come in and said that they want to relocate to West Michigan in part because of the level of productivity that we can turn out from our workforce. For that reason, I have to be optimistic as far as the future is concerned," Long said.
For more information and an archive of previous surveys click here.
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