February 6, 2006
MiBiz West
Tim Gwozdz

MUSKEGON — Muskegon is bucking the trend.

With economic statistics and forecasters predicting everything from a flat to a dismal 2006, W.E. Upjohn Institute for Employment Research Senior Regional Analyst George Erickcek said Muskegon has a “good story to tell.”

Erickcek told attendees at the Muskegon Area Chamber of Commerce early bird breakfast late last month that 300 new jobs were created within the Muskegon-Norton Shores Metropolitan Statistical Area during 2005. The majority of those were in the education, health, leisure and hospitality sectors. And despite several well-publicized waves of corporate downsizing, the MSA also had an increase in manufacturing jobs over the last year.

“You don’t see that in Kent County, Ottawa County or Kalamazoo,” said Erickcek.

The combination of job growth in both the good producing and the service sectors “shows real strength” said Erickcek, and puts the Muskegon-Norton Shores MSA in an enviable position because it indicates a diversification in the economy.

Although Erickcek did not predict Muskegon as the land of milk and honey, he did state that his projections indicate solid growth ahead for the MSA. Total employment is expected to rise 1.1 percent in 2006 and 1.3 percent in 2007. Goods producing should increase 0.5 percent and 0.6 percent in ’06 and ’07 respectively, and job increases by service providers should rise 1.5 percent in 2006 and 1.6 percent in 2007.

Muskegon County does have its fair share of economic development challenges ahead. As the overall economy switches from manufacturing to knowledge-based, Muskegon must find a way to retain and attract the lucrative younger demographic — the sophisticated, better-educated professional who typifies the profile of the knowledge-based worker. In addition to the obvious “quality of life” draw, the Muskegon-Norton Shores MSA must be able to provide trailing spouses of the knowledge workers with quality work opportunities.

‘That’s much easier to do in Detroit, or even Grand Rapids for that matter,” Erickcek said.

Today’s knowledge worker also values vibrant downtowns and neighborhoods and a feeling of “sense of place.” The clean slate that Muskegon has downtown with the former Muskegon Mall site and Edison Landing ready for fresh development should play in Muskegon’s favor, remarked Erickcek.

“You are a city with the potential for your downtown to be a calling card that is outstanding,” he said. “What happens there could be the glue that will help younger people stick around and help the area grow.”

The MSA’s still strong dependence on the manufacturing sector could pose trouble in the future in the form of a labor shortage. Erickcek explained that manufacturing job growth will be minimal over the next six years. It is the need for replacement workers that will create job openings in Muskegon County.

Unfortunately, the manufacturing death march being trumpeted by so many economic analysts has parents telling their children to turn away from production jobs. Plus many standing in line to fill the replacement jobs are finding they do not have the skills needed to perform in the computerized high-tech world of modern manufacturing. As a result, a shortage of skilled labor appears imminent for manufacturing in the Muskegon-Norton Shores MSA.

With manufacturing employment numbers so high, it is something to think about said Erickcek.

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This article appeared in the February 6, 2006 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who do business in West and Southwest Michigan. For further information about MiBiz Network, visit www.mibiz.com.