By Brian Vernellis
GVSU Communications
The aftereffects of the tariffs implemented by the federal government are rippling throughout the West Michigan economy, said Brian Long, director of supply management research at Grand Valley State University’s Seidman College of Business.
Long’s monthly survey of local businesses and their purchasing managers reflects growing unease with the ramifications of new economic policies.
“As we look at the current economy…some of our participants are growing increasingly uncertain about the future business environment,” Long said.
One particular concern, Long said, is how the tariffs will affect the automotive industry, one of West Michigan’s largest economic drivers. Rising unemployment numbers released by the state are adding to the economic anxiety, despite the region’s employment numbers holding steady for the past 18 months, Long added.
Long said one of the survey’s participants, an auto parts supplier, replied that with the continual flux of federal economic policies and tariffs, it’s become increasingly more difficult to plan accordingly for the business and their customers.
“With the escalating on-and-off tariffs, the Michigan economy is especially vulnerable because of the tariff impact on the auto industry,” Long said. “We have millions of dollars’ worth of auto parts crossing the Ambassador Bridge between Windsor and Detroit in both directions every day, and the enforcement of a new tariff would seriously upset the business models for the firms on both sides of the border.”
Here’s a look at the key index results from February’s survey of West Michigan businesses:
- New orders index (business improvement): +11 vs. +13 in January
- Production index (output): +1 vs. +1 in January
- Employment index: -8 vs. -2 in January
- Lead times index: -9 vs. -7 in January
More information about the survey and an archive of past surveys are available on the Seidman College of Business website.
