GRAND
RAPIDS – As Michigan emerges from a tough and long winter, the state economy is
improving, Comerica reported. While the strong dollar has started to hit
manufacturers’ export sales, vehicle demand remains firm and near its cyclical
high, driving high-paying jobs in the region.
Low
gasoline prices will contribute to regional tourism, as fishing season and
other outdoor activities open for the season. Ann Arbor and Grand Rapids are
both experiencing a great deal of improvement initiatives, like “GR Forward,”
which is redirecting millions of tax dollars to public spaces.
Labor
markets in Central West Michigan continue to improve, with unemployment
dropping to an average of 4.38 percent in 2015Q1. Google recently announced
intentions to expand its office space in the area, and the MADA/Office
Furniture Industry Trends survey has remained strong, indicating that 2015 will
be the best year in a decade for office furniture. The Western Michigan
Purchasing Manager’s Index reinforces the generally positive outlook for
regional business; new orders have increased substantially in the region, and
supply lags from the California port dispute are decreasing. The region’s job
growth will be sustained, but the growth sec-tors will pivot towards services
as the strong dollar hurts U.S. exports.
Unsurprisingly, housing metrics
dragged through the winter. Year-over-year gains in house prices have remained
above five percent for six quarters, and the tightening labor markets of
Central West Michigan will only aid the springtime bounce-back for housing
starts and sales. Area realtors are reporting limited inventories.
The American Institute for
Economic Research recently named Ann Arbor as the number one small city for
college graduates due to its rich concentration of an educated population and
appealing tech jobs. Grand Rapids came in at number 12. Income growth in
Central West Michigan has outpaced the rest of the state, and will continue to
do so as former residents return due to its improving quality of life.
