Michigan’s Economic Outlook: 73% of CEOs Expect Michigan’s Economy to Remain Steady

A recent survey conducted by Business Leaders for Michigan revealed that a significant majority of Michigan’s top executives anticipate that the state’s economy will remain stable over the coming six months. Approximately 73% of CEOs expressed this expectation, with over half predicting an increase in their companies’ revenues during the same period.

However, the path to long-term growth presents challenges. Executives pointed to Michigan’s sluggish population growth, economic stagnation, rising costs, state policy hurdles, and a shortage of skilled talent as significant obstacles that need to be addressed.

Jeff Donofrio, President and CEO of Business Leaders for Michigan, remarked on the survey’s findings, noting that while there has been an improvement in the short-term economic outlook, ongoing issues could hinder sustained long-term progress. He emphasized the concerns among consumers and businesses regarding rising costs, which are often influenced by state policies and the availability of talent. Donofrio stressed the importance of Michigan enhancing its competitiveness in job creation, business development, and talent acquisition to foster economic growth.

The latest survey results, which cover the second half of 2024, show a more optimistic view compared to the previous survey conducted in December 2023. In the current survey, 73% of CEOs expect Michigan’s economy to remain steady, a significant increase from the 53% who held this view in December. On a national level, the outlook is more varied, with 54% predicting that the U.S. economy will stay the same over the next six months.

The survey also highlighted an optimistic revenue forecast, with 51% of executives expecting their companies’ revenues to rise in the near future. Despite this positive outlook, the issue of rising costs continues to affect overall profitability. Moreover, despite the nationwide decline in demand for office real estate, nearly 85% of respondents anticipate no change in their real estate footprint in Michigan over the next six months.

A notable concern among the state’s executives is the difficulty in finding qualified candidates to fill job vacancies. According to the survey, 38% of the respondents reported challenges in recruiting skilled workers. The internal survey, conducted between June 18 and July 15, 2024, underscores the ongoing need for solutions to these pressing issues.

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