The greater Grand Rapids industrial economy is experiencing slower
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 June. The survey’s index of business improvement, called
new orders, remained positive at +9 but was lower than last month’s
+20. The production index remained virtually unchanged at +6, up from
+5 and because of seasonal hiring, the employment index rose to +25,
up from +12.
“Overall, our current statistics are still positive, but less
robust than what we would like to see,” said Long. “Even though the
local economy is still growing, the future is starting to look far
less certain than it did a few months ago.”
Long said the
local numbers would now be negative if it were not for automotive.
“Strong auto sales are still keeping the assembly line humming and our
local automotive parts producers at high levels of output,” he said.
“So far, the production schedules for most of the North American firms
are positive.
Long added that a mood of caution throughout corporate America
has resulted in the office furniture business continuing to soften.
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.
For more information, contact Brian Long at (269) 323-2359.
DOWNLOADABLE AUDIO
Long said the local economy won't always be carried by the automotive industry (audio).
Long said the local, state and national economy is slowing (audio).
Long said so goes the auto industry, so goes the state (audio).
Long said people are now deciding to stay in Michigan (audio).
