October 24, 2021

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Wicked Real Estate

West Michigan firms count on ‘strong growth’ in second 50 % of 2021

3 min read

GRAND RAPIDS, MI — Organizations in West Michigan are predicting “strong growth” in the second fifty percent of this calendar year, but troubles discovering employees and shortages of steel and other uncooked components continue on to be a headache for companies.

All those are two of the findings of a June survey performed by The Right Location, a Grand Rapids-dependent economic development business, of 118 enterprises in Kent, Ionia, Montcalm, Newaygo, Lake and Oceana counties. Corporations integrated in the survey are largely in the producing, technological innovation, health sciences and food items processing industries.

“Our crew has been eager to head out and reengage deal with-to-confront with our shoppers, which drove us to established the aggressive purpose of assembly with above 100 region businesses in June,” Randy Thelen, president and CEO of The Suitable Location, said in a assertion. “Through these meetings with regional business enterprise leaders, we’ve observed an optimistic business enterprise neighborhood that is anticipating potent expansion in the 2nd half of 2021.”

The survey integrated firms of all dimensions, while 71% experienced much less than 100 personnel. Nineteen % experienced in between 100 and 500 employees, when 10% experienced far more than 1,000 workers. Additional than 60% of the employers surveyed were being in Kent County.

A single spotlight from the study: raising revenue.

Eighty percent of the organizations claimed climbing sales, with the remaining providers reporting secure profits. 1 organization said its sales had fallen. The Suitable Area does not expose the survey final results of personal firms, but releases the benefits as an mixture to give the general public a search at how firms and the financial state are performing.

The survey also confirmed companies are possessing hassle acquiring sufficient staff.

Fifty-a few percent of businesses claimed they have been experiencing recruitment challenges. In an endeavor to clear up the trouble, 35% of businesses said they are growing their investment decision in staff education programs.

“I’ve been hearing that for a extensive time, even pre-COVID,” Eric Icard, senior director of enterprise progress at The Appropriate Location, reported of the lack of personnel.

But he reported that now, “it’s more of a obstacle. We’ll see what happens in September when the enhanced advantages of unemployment expire.”

Kinks in the offer chain were being one more significant locating.

Microchip shortages are hurting automotive suppliers and a metal scarcity is putting a strain on various production companies, Icard claimed.

“You seem at a company like X-Rite,” Icard claimed, referring to the Grand Rapids-primarily based maker of color measurement and management products. “What they make are the equipment that can essentially inform what coloration a certain paint is. So each individual Lowe’s and Household Depot and Ace (Components) has one of people, and that little machine has quite a few microchips in it.”

Yet another takeaway from the study: lots of employers say they program to expand.

Sixty percent of companies said they plan to expand, the survey exhibits. That progress is expected to include choosing far more personnel and investments in buildings and equipment, or else acknowledged as capital expenses.

Icard mentioned The Ideal Location employs its study effects to supply organizations with methods to support them conquer their issues. For instance, manufacturers who are battling to locate employees are remaining referred to the Michigan Production Know-how Centre, which is funded in aspect by the U.S. Section of Commerce.

He mentioned officers at the manufacturing technologies middle can advise all those makers on how to use automatic equipment to perform vital duties when employees are not readily available.

“We can make makers a lot more lean and automate specified functions,” he mentioned. Later on, he added: “In lots of scenarios, these alternatives price tag considerably less than an annual salary of an personnel, and can just take the spot of maybe various (workers).”

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