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Michigan Business Leaders Brace for Complex Economic Year

  //food-wine.news-articles.net/content/2026/02/20 .. ess-leaders-brace-for-complex-economic-year.html
  Published in Food and Wine on Friday, February 20th 2026 at 20:20 GMT by inforum
      Locales: Connecticut, UNITED STATES

Detroit, MI - February 21, 2026 - Michigan's business leaders are bracing for a complex economic year, characterized by persistent challenges but also promising opportunities, as revealed in a recent Inforum panel discussion. The conversation, largely focused on the forces shaping the state's economic future, outlined a landscape of fluctuating interest rates, inflation concerns, a critical workforce gap, and geopolitical instability, while simultaneously pointing to the burgeoning electric vehicle (EV) sector, technological advancements, and the state's diversified economic base as potential drivers of growth.

Inflation remains a significant worry for Michigan businesses. While the rate of increase has slowed from its peak in 2024, it continues to erode consumer purchasing power and increase operating costs. Several panelists expressed concern that the Federal Reserve's attempts to curb inflation through interest rate hikes could tip the economy into a recession, dampening investment and leading to job losses. This delicate balancing act - cooling inflation without triggering a severe downturn - is seen as a key factor in determining Michigan's economic trajectory.

The struggle to attract and retain skilled labor is intensifying. The panel repeatedly highlighted the widening skills gap across various industries, from manufacturing and technology to healthcare and skilled trades. The exodus of experienced workers due to retirement, coupled with a lack of qualified candidates entering the workforce, is creating a significant bottleneck for businesses seeking to expand or even maintain current operations. Leaders emphasized the need for increased investment in workforce development programs, apprenticeships, and partnerships between educational institutions and businesses to address this critical issue. The discussion alluded to the growing success of innovative training models - like 'earn and learn' programs - but acknowledged that scaling these initiatives to meet the state's overall needs remains a major hurdle.

Geopolitical risks are also weighing heavily on the minds of Michigan business leaders. The ongoing conflicts in Eastern Europe and the Middle East are disrupting global supply chains, increasing commodity prices, and creating uncertainty in international markets. This instability makes it difficult for Michigan companies - particularly those involved in international trade - to plan for the future and make long-term investments. The panel discussed the potential for further disruptions due to escalating trade tensions and the increasing protectionist policies adopted by some countries.

However, the outlook isn't entirely bleak. Michigan is experiencing a surge in investment in the EV sector and battery manufacturing, largely fueled by federal incentives and the state's strategic location. Companies like General Motors, Ford, and LG Energy Solution are pouring billions of dollars into Michigan, creating thousands of new jobs and transforming the state into a hub for EV production. This investment is not limited to vehicle assembly; it also extends to the entire EV supply chain, including battery cell manufacturing, component production, and charging infrastructure.

Furthermore, the adoption of automation and artificial intelligence (AI) is expected to boost productivity and innovation across various industries. Businesses are increasingly leveraging these technologies to streamline operations, reduce costs, and improve product quality. However, the panel also acknowledged the potential for AI to displace workers, underscoring the importance of reskilling and upskilling initiatives to help employees adapt to the changing demands of the labor market.

Michigan's economic diversity - extending beyond its traditional reliance on the automotive industry - is proving to be a key strength. The state is seeing growth in sectors such as healthcare, tourism, advanced manufacturing, and professional services. This diversification helps to mitigate the risks associated with fluctuations in any single industry and provides a more stable economic foundation. The burgeoning life sciences sector, particularly in Ann Arbor, was specifically mentioned as an area of significant promise.

Ultimately, the business leaders expressed a sentiment of cautious optimism. They recognize the challenges ahead but remain confident in Michigan's long-term economic potential. Success, they believe, will hinge on adaptability, innovation, and the fostering of strong partnerships between government, industry, and education. The ability to navigate the complexities of the global economy and capitalize on emerging opportunities will be crucial for ensuring Michigan's continued prosperity in the years to come.