Despite modest improvement across several key metrics, a report from a Grand Valley 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.”
Here’s a look at the key index results from December’s survey of West Michigan purchasing managers:
- New orders index (business improvement): -11 vs. -20 in November
- Production index (output): -17 vs. -23 in November
- Employment index: -9 vs. -22 in November
- Lead times index: +6 vs. +4 in November
More information about the survey and an archive of past surveys are available on the Seidman College of Business website.
