The greater Grand Rapids industrial economy is experiencing
modestly positive growth, according to the results of a monthly survey
compiled by Brian G. Long, director of Supply Management Research in
the Seidman College of Business at Grand Valley State University.
The survey results are based on data collected during the last
two weeks of November. The survey’s index of business improvement,
called new orders, advanced to +13 from +9. The production index
remained virtually unchanged but retreated to +7 from +8. The
employment index posted a gain, rising to +24 from +15.
Long said Michigan still has the automotive parts producers to
thank for the positive numbers. He said second strongest group for
November was industrial distributors, many of whom appear to be having
a good year. He said the office furniture firms appear to be
plateauing at the current level.
“The auto industry continues to strengthen,” said Long. “Since
much of Michigan’s recession recovery can be attributed to the auto
parts suppliers and assemblers, it is especially gratifying to see
industry sales for November rise by 14 percent, up from October’s
increase of 8 percent.”
Long said the other big economic news for November was the drop
in the national unemployment rate to 8.6 percent from 9 percent.
The Institute for Supply Management survey is a monthly survey
of business conditions that includes 45 purchasing managers in the
greater Grand Rapids area and 25 in Kalamazoo. The respondents are
from the region’s major industrial manufacturers, distributors and
industrial service organizations. It is patterned after a nationwide
survey conducted by the Institute for Supply Management. Each month,
the respondents are asked to rate eight factors as “same,” “up” or
“down.” An expanded version of this report and details of the
methodology used to compile it are available at www.gvsu.edu/scblogistics.
DOWNLOADABLE AUDIO
* Long said there is no indication of a double-dip recession (audio).
* Long said the automotive industry is sustaining the local economy (audio).
* Long said 120,000 jobs were added nationally but they are temporary retail jobs (audio).
* Long said the automotive industry should remain strong into 2012
(audio).
