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Michigan Economy at Crossroads: Inflation, Skills Gaps, and Mobility

  //food-wine.news-articles.net/content/2026/02/17 .. ossroads-inflation-skills-gaps-and-mobility.html
  Published in Food and Wine on Tuesday, February 17th 2026 at 19:57 GMT by inforum
      Locales: Connecticut, UNITED STATES

Michigan Economy at a Crossroads: Navigating Inflation, Skills Gaps, and the Future of Mobility - February 18, 2026

Detroit, MI - February 18, 2026 - A recent gathering of Michigan's top business leaders painted a picture of an economy navigating complex challenges while simultaneously poised for significant growth in key sectors. The forum, held yesterday in Detroit, revealed a consensus around persistent economic headwinds - notably inflation and supply chain vulnerabilities - but also a strong current of optimism driven by advancements in advanced manufacturing, electric vehicles (EVs), and autonomous technologies.

Inflation's Grip & The Lingering Supply Chain Issues

Despite projections of cooling inflation throughout 2025, leaders voiced continued concerns about rising operational costs. While the rate of increase has slowed, the cumulative effect of the past few years is still keenly felt, forcing businesses to make difficult decisions about pricing and investment. "We're not seeing prices decrease," stated Sarah Chen, CEO of a large Michigan-based tool and die manufacturer. "We're seeing a stabilization, which is better than accelerating inflation, but it still means costs are considerably higher than pre-pandemic levels. This impacts our ability to compete globally."

The supply chain, while improved from the chaotic peaks of 2022-2023, remains fragile. Geopolitical instability and localized disruptions continue to create bottlenecks, impacting production schedules and increasing lead times. Businesses are increasingly diversifying their supply chains, exploring near-shoring and re-shoring options to reduce reliance on single sources, but these shifts require significant capital investment and time.

The Workforce Crisis: A Critical Bottleneck

A central theme of the forum was the intensifying struggle to attract and retain skilled labor. The "Great Resignation" may have subsided, but the underlying issues remain. Michigan, like much of the nation, faces a shrinking pool of qualified workers, particularly in skilled trades and technical fields. The aging workforce and a lack of adequate training programs are exacerbating the problem. Leaders cited challenges in attracting younger generations to manufacturing careers, often citing perceptions of the industry as outdated or lacking in opportunities.

"We're competing not just with other companies in Michigan, but with businesses across the country, and even globally, for the same talent," explained Mark Johnson, President of a leading automotive supplier. "We need to rethink how we approach workforce development, focusing on apprenticeships, upskilling programs, and creating more attractive career pathways." Several speakers highlighted successful partnerships between businesses and community colleges, offering tailored training programs that address specific skill gaps. The need for increased investment in STEM education at all levels - from K-12 to higher education - was a recurring point of emphasis.

Michigan's Emerging Strengths: EVs, Autonomy, and Advanced Manufacturing

Despite the challenges, Michigan's economic outlook is far from bleak. The state is uniquely positioned to capitalize on the burgeoning EV market, leveraging its deep automotive heritage and existing manufacturing infrastructure. Investments by major automakers in EV production facilities are creating thousands of jobs and driving innovation in battery technology, charging infrastructure, and vehicle design.

The push towards autonomous vehicles also remains strong, with Michigan continuing to serve as a proving ground for self-driving technology. The state's permissive regulatory environment and collaborative ecosystem are attracting investment from tech companies and fostering rapid innovation. However, leaders cautioned that widespread adoption of autonomous vehicles requires significant improvements in infrastructure, cybersecurity, and public trust.

Advanced manufacturing is another bright spot, with Michigan firms embracing new technologies like 3D printing, robotics, and automation to enhance productivity and competitiveness. This sector is attracting investment and creating high-paying jobs, particularly in areas like aerospace, defense, and medical device manufacturing.

The Power of Collaboration

The forum underscored the importance of collaboration between businesses, government, and educational institutions. Leaders repeatedly called for increased public-private partnerships to address workforce development challenges, support innovation, and create a more favorable business climate. "We can't solve these problems in isolation," said Governor Gretchen Whitmer, who addressed the forum. "We need to work together, leveraging our collective strengths to build a stronger, more resilient Michigan economy." Discussions also touched upon the need for streamlined regulations and increased investment in infrastructure - including transportation, broadband, and energy - to support economic growth.

Looking ahead, Michigan's success will depend on its ability to navigate these challenges and capitalize on its emerging opportunities. The state's future hinges on its commitment to innovation, workforce development, and collaborative partnerships.