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Michigan Business Leaders Project Continued Growth Amid Talent Shortages

  //food-wine.news-articles.net/content/2026/02/21 .. ject-continued-growth-amid-talent-shortages.html
  Published in Food and Wine on Saturday, February 21st 2026 at 2:46 GMT by inforum
      Locales: Connecticut, UNITED STATES

Detroit, MI - February 21, 2026 - Michigan business leaders are projecting a continuation of economic growth in the coming year, though their optimism is carefully balanced by concerns over persistent talent shortages and the lingering effects of inflation. The findings, gleaned from the latest Michigan Business Beat survey and reinforced at a recent Inforum event, paint a picture of a resilient, diversifying economy navigating complex headwinds.

The general consensus among executives across key sectors - automotive, technology, manufacturing, and services - is that consumer spending remains surprisingly robust, and business investment is steadily increasing. This positive momentum is expected to drive continued, albeit moderate, growth throughout 2026 and potentially into 2027. Several leaders highlighted strong demand for their products and services, suggesting a degree of economic health that defies predictions of a significant downturn.

However, the path forward isn't without significant obstacles. The talent shortage continues to be the most frequently cited challenge, eclipsing even concerns about inflation and global instability. The issue isn't merely a lack of any workers, but a dearth of skilled workers capable of filling increasingly specialized roles. This skills gap is forcing businesses to offer increasingly competitive wages and benefits packages, as well as investing heavily in internal training programs and apprenticeships. The costs associated with acquiring and retaining talent are significantly impacting profit margins for many companies, and are delaying expansion plans for others.

"We're not just competing for talent within Michigan anymore," explained Sarah Chen, CEO of Advanced Robotics Solutions, a leading automation firm in Metro Detroit. "We're competing globally. The demand for engineers, programmers, and technicians is exceptionally high, and we need to create a more attractive environment to keep these individuals - and attract new ones - to our state. This includes not only competitive compensation, but also a strong emphasis on work-life balance and opportunities for professional development."

Inflation, while seemingly past its peak, remains a significant factor in business planning. Although the rate of price increases has slowed considerably from the highs of 2023 and early 2024, prices are still considerably higher than pre-pandemic levels. This necessitates a more strategic approach to pricing and cost management, with businesses carefully analyzing supply chains and seeking efficiencies wherever possible. Some companies are exploring near-shoring and re-shoring initiatives to mitigate risks associated with global supply chain disruptions and rising transportation costs.

Beyond domestic challenges, Michigan business leaders are acutely aware of the unpredictable global economic landscape. Geopolitical tensions, particularly in Eastern Europe and the South China Sea, pose a constant threat to stability and could disrupt trade flows. Rising interest rates, implemented by the Federal Reserve to combat inflation, are also impacting investment decisions and making it more expensive for businesses to borrow money. These factors contribute to a heightened sense of uncertainty and necessitate a cautious approach to long-term planning.

Several leaders emphasized the importance of government support in addressing these challenges. Calls for increased investment in workforce development programs, particularly those focused on STEM (Science, Technology, Engineering, and Mathematics) education, were common. Furthermore, some advocated for policies that would make Michigan a more attractive destination for skilled immigrants.

Despite the headwinds, there's a prevailing sense of optimism regarding Michigan's long-term economic prospects. The state's diversified economy, bolstered by its traditional strength in automotive and manufacturing and its growing presence in high-tech industries, is considered a significant asset. The ongoing investment in infrastructure, including road improvements and expansion of broadband access, is also seen as a positive sign. Michigan's relatively low cost of living compared to other major tech hubs is an added draw.

"Michigan is undergoing a transformation," said David Miller, president of the Michigan Chamber of Commerce. "We're moving beyond our reliance on traditional manufacturing and embracing innovation and technology. This diversification, coupled with a skilled workforce and a supportive business environment, positions us for continued success in the years to come. We need to proactively address the talent gap and mitigate the risks associated with inflation and geopolitical instability, but I am confident that Michigan is well-equipped to navigate these challenges."

The Inforum event served as a crucial platform for these discussions, fostering a collaborative environment where business leaders could share insights and explore potential solutions. The Michigan Business Beat survey, conducted quarterly, provides a valuable barometer of the state's economic health and helps policymakers and business leaders make informed decisions.