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Michigan Business Roundtable Identifies Skills Gap as Top Concern

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Detroit, MI - February 5, 2026 - A recent roundtable hosted by [ Inforum ] brought together leading business figures from across Michigan to assess the state's economic outlook for 2026. The discussions revealed a landscape characterized by both considerable opportunity and substantial challenges, demanding proactive strategies from businesses to thrive in an increasingly complex world.

The Persistent Grip of the Skills Gap

The most consistently voiced concern was the continuing difficulty Michigan businesses face in attracting and retaining a skilled workforce. This isn't simply a shortage of bodies; leaders emphasized a critical lack of qualified candidates with the specialized skills needed for the state's burgeoning industries, particularly in advanced manufacturing, electric vehicle technology, and software development. Several participants pointed to the aging demographic in certain regions of the state exacerbating the issue, creating a dwindling pool of experienced workers.

While increasing wages were acknowledged as a partial solution, roundtable members stressed the need for more fundamental changes. A key focus was on revamping workforce development programs. This included calls for significant investment in apprenticeships, expanding vocational training within high schools, and fostering stronger partnerships between educational institutions and private sector employers. The conversation drifted towards innovative approaches to talent acquisition, with some suggesting aggressive recruitment campaigns targeting skilled workers in other states and even internationally. A significant point raised was the need to re-brand Michigan as an attractive place to live and work, beyond just offering competitive salaries, emphasizing quality of life factors like access to outdoor recreation, vibrant cultural scenes, and affordable housing (a persistent issue even with new developments). Discussions also touched on reskilling programs for workers displaced by automation, enabling them to transition to new, in-demand roles.

AI and Automation: Augmentation vs. Disruption

Technological transformation, specifically the rapid adoption of Artificial Intelligence (AI) and automation, loomed large in the discussion. Leaders broadly agreed on the potential benefits - enhanced efficiency, increased productivity, and the creation of new products and services. However, this optimism was tempered by anxieties about the potential impact on employment. The consensus wasn't about if jobs would be affected, but how and to what extent.

The preferred approach, repeatedly stressed, was "augmentation" - using AI to enhance the capabilities of existing workers rather than outright replacing them. This requires significant investment in employee training and upskilling to ensure workers can effectively collaborate with AI systems. Beyond workforce impact, the discussion highlighted the critical importance of cybersecurity. With increased reliance on interconnected systems, businesses are facing increasingly sophisticated cyber threats, demanding robust security measures and proactive threat detection capabilities. Investment in robust cybersecurity infrastructure was described as "non-negotiable" for sustained growth.

Geopolitical Volatility and Supply Chain Resilience

The roundtable also acknowledged the significant challenges posed by global geopolitical instability. The ongoing conflict in Eastern Europe, rising tensions in the Asia-Pacific region, and shifting trade relations were all identified as factors impacting Michigan businesses. The disruptions to global supply chains experienced in recent years have highlighted the vulnerability of relying on single-source suppliers.

Participants advocated for diversifying supply chains and developing robust contingency plans to mitigate risks. The potential benefits of "reshoring" (bringing production back to the US) and "nearshoring" (relocating production to nearby countries like Mexico or Canada) were explored, with several leaders indicating they were actively evaluating these options. A key challenge identified with reshoring, however, was the higher labor costs associated with domestic production.

Sustainability: From Buzzword to Business Imperative

Increasingly, sustainability and corporate social responsibility aren't just ethical considerations; they are becoming key drivers of consumer and investor behavior. Leaders emphasized that businesses are now judged not only on their financial performance but also on their environmental and social impact. Discussions focused on strategies for reducing carbon emissions, embracing circular economy principles (minimizing waste and maximizing resource utilization), promoting diversity and inclusion within the workforce, and actively engaging with local communities.

The transition to sustainable business practices was seen as both a challenge and an opportunity. While requiring upfront investment, sustainable practices can lead to cost savings, enhance brand reputation, and attract environmentally conscious consumers and investors. Several participants cited the growing availability of green financing options as a positive development.

A Cautiously Optimistic Outlook

Despite the numerous challenges, Michigan business leaders expressed a cautiously optimistic outlook for 2026. The state's strong manufacturing base, its commitment to innovation, and its collaborative spirit were cited as key strengths. However, success will require proactive planning, strategic investment, and a willingness to adapt to a rapidly changing world. Collaboration between businesses, government, and educational institutions will be crucial to address the challenges and capitalize on the opportunities that lie ahead.


Read the Full inforum Article at:
[ https://www.inforum.com/video/NKIenFrP ]