GRAND RAPIDS, Mich. -- Business confidence in West Michigan has suffered a decline and is expected to rise modestly in 2007, according to an annual economic report released Friday by Grand Valley State University researchers.
According to the report, employment growth in the Grand Rapids metropolitan area is expected to be modest at 0.7 percent for 2007. Overall sales are expected to grow at 2.5 percent -- down from last year's rate of 3 percent. The big bright spot remains the export sector, which is expected to grow 6 percent in 2007. Last year's projection was 5 percent.
The report was written by Hari Singh, Ph.D., and Nancy Boese, M.B.A., of Grand Valley's Seidman College of Business. Singh is chair of the Economics Department. Boese is the regional director of the Michigan Small Business and Technology Development Center.
According to the report, new job opportunities in manufacturing are likely to be limited. At the same time, opportunities are emerging in sectors like health care, bio-tech, education and specialized services. These opportunities require a highly skilled workforce. Expanding education and training opportunities by improving schooling and extending scholarships for college students are a good long-term strategy for Michigan.
The forecast is based on a November 2006 survey of businesses in the greater Grand Rapids economy (Kent, Ottawa, Muskegon, and Allegan counties). The survey was mailed to the CEOs of 675 organizations based on a representative sample reflecting different sectors of the regional economy and the geographical diversity of the region. A total of 166 organizations responded.
The survey aims to historically track the overall business confidence of the Grand Rapids metropolitan area by a confidence index. This confidence index is scaled from zero percent (no confidence at all) to 100 percent (complete confidence). The results this year indicate that business confidence of the private sector continues to decline. This year's confidence level is 60.2 percent, down from 65.3 percent in 2006 and 69.6 percent in 2005. Respondents predicted that the confidence would rise to 62.6 percent over the next year.
The full report is available for download here: http://main.gvsu.edu/forms/gvnow/W07_page2.pdf
