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Michigan Economy Faces 'New Normal' of Moderate Inflation

  //food-wine.news-articles.net/content/2026/02/07 .. nomy-faces-new-normal-of-moderate-inflation.html
  Published in Food and Wine on Saturday, February 7th 2026 at 2:41 GMT by inforum
      Locales: Connecticut, UNITED STATES

Grand Rapids, MI - February 7th, 2026 - Two years after the insightful discussions at Inforum 2024, Michigan's business community continues to grapple with the complex economic forces first highlighted at that pivotal event. While some initial anxieties have subsided, new challenges have emerged, demanding continued adaptability and strategic foresight from the state's leaders.

Inforum 2024, as many now recall, served as a crucial bellwether, accurately predicting many of the economic headwinds Michigan businesses would face. The specter of inflation, a dominant concern in 2024, proved to be more persistent than initially hoped. While inflation rates have cooled from their peak, they remain elevated compared to pre-pandemic levels, continuing to impact consumer behavior and corporate pricing strategies. The Federal Reserve's aggressive interest rate hikes, debated extensively at the 2024 conference, did succeed in curbing inflation but also triggered a period of slower economic growth, as feared.

Today, Michigan businesses are navigating a more nuanced economic landscape. The immediate crisis of rapidly escalating prices has eased, but a "new normal" of moderate inflation appears to be settling in. This necessitates a shift in business strategies - moving away from reactive cost-cutting to proactive measures focused on efficiency, innovation, and value creation. Companies are increasingly investing in automation and technology to offset rising labor costs and improve productivity. The initial discussions around this trend at Inforum 2024 have become widespread adoption.

However, the workforce development crisis identified in 2024 has arguably deepened. The demand for skilled talent continues to outstrip supply, particularly in high-growth sectors like advanced manufacturing, mobility, and technology. The 'Great Resignation' has evolved into a persistent 'Great Reshuffle,' with employees prioritizing work-life balance, career development opportunities, and purpose-driven work. Michigan's aging population and declining birth rate are exacerbating the problem.

Efforts to address this challenge have expanded beyond traditional STEM education initiatives. There's a growing emphasis on apprenticeships, vocational training, and reskilling programs aimed at equipping workers with the skills needed for in-demand jobs. Collaboration between businesses, educational institutions, and government agencies is more critical than ever. The panelists' call at Inforum 2024 to create an environment where people want to live and work in Michigan has spurred a wave of investment in quality of life initiatives. Cities across the state are focusing on improving infrastructure, expanding access to affordable housing, and creating vibrant cultural amenities to attract and retain talent.

The global economic environment, another key topic at Inforum 2024, has become even more volatile. Geopolitical tensions, particularly the ongoing conflicts in Eastern Europe and the Middle East, continue to disrupt supply chains and create uncertainty. The rise of protectionist trade policies and increasing competition from emerging economies present additional challenges.

Michigan businesses are responding by diversifying their supply chains, nearshoring production, and investing in resilience. Many are adopting a more cautious approach to international expansion, prioritizing stability and predictability over rapid growth. The push towards greater supply chain security, initially discussed as a potential solution in 2024, has become a core strategic priority.

Looking ahead, Michigan's economic future hinges on its ability to adapt to these evolving challenges and capitalize on emerging opportunities. Innovation, sustainability, and inclusivity will be key drivers of long-term growth. The spirit of collaboration fostered at events like Inforum remains crucial. The conversation initiated in 2024 must continue, evolving to address the increasingly complex economic realities of 2026 and beyond. Michigan's leaders are actively working to position the state as a leader in future-focused industries like electric vehicle technology, renewable energy, and biotechnology, building on the foundations laid during the initial Inforum discussions.