Crystal Ball 2012

Where do you see the economy going in 2012 and how will that influence your industry and company?

That was the question we put to business leaders across West Michigan. Their responses show there’s no denying West Michigan is finally feeling unchained from the doldrums of the Great Recession.

Exhibit A: The December MetroMonitor report from The Brookings Institution found that the Grand Rapids-Wyoming MSA was one of the nation’s top performers through the third quarter of 2011. The MSA was second in the nation when measured by its improving employment picture through the recovery.

There was more good news from regional economist George Erickcek of the Upjohn Institute, who spoke in mid-December at an economic forecast event sponsored by The Right Place Inc. He told a packed crowd of executives that the region scored above average compared to its peers in service employment, manufacturing employment and total employment. The region led the pack in entrepreneurship and job creation, he said.

More positive signs: Michigan’s unemployment rate dropped into single digits for the first time in three years. Much of that improvement is being led by the manufacturing sector, spurred on by the recovery of auto sales. That improvement is helping drive business for the automotive supply chain, still a major part of West Michigan’s industrial base.  

However, there are some major worries for the region’s employers. In talking with leading executives for this Crystal Ball edition, they were mostly positive about their own situation and that of the state of Michigan. But they told us they’re put off by the uncertainty caused by the European debt crisis, as well as by the inability of our own federal politicians to move the needle on any issue.

Talent concerns seem to be on the minds of just about everyone in the business community, especially the manufacturers who tell us they see a considerable skills gap in today’s labor pool. What’s more, they know the issues of education and training aren’t solved overnight.

But the participants in this year’s Crystal Ball edition — as well as people in the general business community we’ve been in contact with — are overwhelmingly positive. They see Michigan moving in the right direction. They feel the chains of a tough decade finally starting to fall off.

So how do they see the economy in 2012? How will the economy influence their companies, their industries and West Michigan? Read on to find out.

Brian Edwards,                         Joe Boomgaard,
Editor & Publisher                    Managing Editor


P.S. - You’ll no doubt notice that we’ve changed up our publication format for this special year-end issue. It’s a one-time change, and we’re back to our regular newspaper format next issue. Let us know what you think!


2012 Executive Sentiment

Over the next 12 months, what growth do you forecast for your firm compared to the past 12 months?

Pie Chart

2012 Sustainable Biz Forecast

Renae Hesselink: Green building construction and management

  From our perspective, 2012 holds the opportunity to convince more West Michigan businesses of the savings and eff...

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Bill Stough

In Western Michigan, manufacturers are again busy and many companies are working at full capacity filling pent-up demand...

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2012 Finance Forecasts

Mary Tuuk

“I expect 2012 to be marked by steady, modest economic recovery for the state of Michigan. For the industry, I anticip...

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John Gudritz - Finance and the economy

While most economists and Wall Street strategists have given the “all clear” signal for the national economy in 2...

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Crystal Ball 2012: More on Finance

We expect interest rates to remain low, which should be good for those homeowners refinancing and for homebuyers during...

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Curt Pullen

“Going forward, signs suggest conditions will continue to improve and that we’ll likely avoid a double-dip recession...

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2012 Manufacturing Forecast

Melissa Anderson: Automotive industry and manufacturing

IRN’s forecast for the automotive industry in 2012 calls for a 7-percent increase in North American vehicle product...

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Randy Thelen

With more than $1 billion in investment announced in the Holland/Zeeland area in 2010, Thelen was the envy of the econo...

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Fred Keller

“Internally, we plan to focus on two major programs in 2012. The first will accelerate our improvement processes as we...

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Crystal Ball 2012: More on Manufacturing

We project that the economy in 2012 is going to be better than 2011. It will be stronger. For us specifically, there wi...

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2012 Healthcare Forecasts

Joseph Papa

“While we don’t try to exactly predict what will happen with the overall economy on a short-term basis, it’s obvio...

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Kent Riddle

“We already know that Medicare reimbursements to hospitals such as Mary Free Bed will remain flat, while Medicaid rei...

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Philip H. McCorkle, Jr.

“Gazing into a crystal ball to predict the future is always risky, whatever the subject. Add our complicated health ca...

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David Van Andel

“I happen to be especially bullish on the life sciences because this is a promising sector of Michigan’s economy flo...

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2012 Economic Development Forecasts

Crystal Ball 2012: More on Economic Development

Over the next 12 months, Michigan’s and the nation’s economy should continue to improve. Many auto industry compani...

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Ron Kitchens

“National election years are always interesting. Uncertainty pushes back investment and commitment because businesses ...

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Birgit Klohs

“We expect 2012 to be a year of continued steady economic growth in several sectors throughout the region. ...

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David J. Smith: Talent and the regional economy

Change is one of our few constants in life, yet we all react differently to the opportunities generated by a simple t...

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Q&A: In 2012, what will you not do business-wise?

Some of the best business lessons come from making mistakes. Others come from recognizing prior bad experiences or matu...

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2012 Real Estate Forecast

Rick DeKam

I’m a real estate developer invested in West Michigan with no plans of leaving. ...

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2012 Education Forecast

Crystal Ball 2012: More on Education

In 2012, Grand Valley State University is poised to do more of what our region depends upon us to do: produce human cap...

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Steven C. Ender

"Trying to predict the economy for the next 12 months is a little like picking up pieces of sand: not impossible, but c...

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2012 Energy Forecast

Tom Fehsenfeld

Under the surface, I see a viable economic recovery forming in Michigan. ...

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2012 MiDesign Forecast

John Berry

I think growth in the economy is in a state of ready. However, political party bickering and a focus on ‘risk manageme...

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2012 Small Biz Forecasts

Crystal Ball 2012: More on Small Biz

I believe our economy will continue to inch — and I do mean inch — forward in 2012. However, the inching forward by...

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2012 Design Build Forecasts

Mike VanGessel

President and CEO, Rockford Construction Company Inc. From my perspective, we have been in a hyper-competitive construc...

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Arnie Mikon

A favorite expression I’ve always had is that economists know a lot more about this stuff than I do, but my guess is ...

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Crystal Ball 2012: More on Design + Build

The year 2012 will definitely be better for the architecture/construction community than the last few years. For as bad...

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Bill Main

“A lot of businesses are doing quite well. They generate more of their own activity; there is no tailwind pushing any...

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