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Michigan Businesses Grapple with Lingering Inflation

  //food-wine.news-articles.net/content/2026/02/21 .. businesses-grapple-with-lingering-inflation.html
  Published in Food and Wine on Saturday, February 21st 2026 at 11:17 GMT by inforum
      Locales: Connecticut, Massachusetts, Rhode Island, UNITED STATES

Detroit, MI - February 21st, 2026 - Two years after the discussions at Inforum 2024, Michigan's business landscape continues to be shaped by the forces of inflation, a persistent workforce shortage, and the accelerating need for innovation. While the initial anxieties surrounding peak inflation have subsided, the reverberations of those economic pressures, coupled with evolving workforce dynamics and the rapid advancement of technology, present both challenges and opportunities for Michigan businesses.

Inflation: A Lingering Shadow

The concerns voiced by Michigan executives at Inforum 2024 regarding inflation have largely proven prescient. Although the headline inflation figures have cooled from the highs of 2023 and early 2024, underlying costs remain stubbornly elevated. This isn't simply a matter of raw material prices; it's become interwoven with service sector inflation and ongoing supply chain vulnerabilities, particularly concerning key components sourced internationally. Businesses haven't simply passed these costs onto consumers, as that approach proves unsustainable in a competitive market. Instead, a far more nuanced approach has emerged.

Over the past two years, Michigan companies have focused intensely on operational efficiency. Lean manufacturing principles, initially popularized decades ago, have seen a resurgence. Businesses are investing in technologies like predictive maintenance and real-time inventory management to minimize waste and optimize resource allocation. Price optimization software is now commonplace, allowing companies to dynamically adjust pricing based on demand, competitor activity, and input costs. Furthermore, value engineering - the systematic effort to improve the value of a product or service - has become a critical component of many organizations' cost-control strategies. The focus is less on simply reducing prices and more on demonstrating value for the price paid.

The Workforce Crisis: Beyond Shortages to Skill Gaps

The workforce shortage identified at Inforum 2024 has not abated; it has evolved. It's no longer simply about the number of available workers, but a critical skills gap. Traditional manufacturing sectors, while still vital, are finding it increasingly difficult to attract workers with the necessary expertise in areas like automation, robotics, and data analytics. This is particularly acute in advanced manufacturing, automotive engineering, and the burgeoning electric vehicle (EV) sector.

The strategies discussed in 2024 - training programs, apprenticeships, and partnerships with educational institutions - have gained significant momentum. Michigan has seen a surge in "earn and learn" programs, where individuals receive on-the-job training combined with formal education. Community colleges are playing a pivotal role, offering customized training programs tailored to the specific needs of local employers. However, these initiatives take time to scale and address the immediate demand.

Companies are also increasingly turning to alternative talent pools. Veteran recruitment programs are gaining traction, leveraging the skills and experience of former military personnel. There is a growing emphasis on upskilling and reskilling existing employees, providing them with the training needed to transition into higher-skilled roles. The remote work revolution, initially spurred by the pandemic, continues to influence talent acquisition, allowing Michigan companies to access a broader pool of qualified candidates, though challenges regarding collaboration and company culture remain.

Innovation: The Engine of Future Growth

The assertion at Inforum 2024 that innovation is crucial for long-term success has become a defining imperative for Michigan businesses. The state is undergoing a significant economic transformation, driven by the shift towards electric vehicles, advanced manufacturing, and the growth of the tech sector. This requires a fundamental shift in mindset - from incremental improvements to disruptive innovation.

Artificial intelligence (AI) is no longer a futuristic concept; it's being implemented across a wide range of industries. Michigan companies are using AI-powered tools for everything from predictive maintenance and quality control to customer service and product design. Automation is becoming increasingly sophisticated, with robots and cobots (collaborative robots) working alongside human workers to improve efficiency and productivity. The investment in Research and Development has increased, particularly in areas like battery technology, autonomous driving, and sustainable materials.

However, fostering a culture of innovation requires more than just technology. It demands a willingness to experiment, embrace risk, and learn from failure. Michigan is seeing a growing number of incubators and accelerators designed to support startups and foster entrepreneurial activity. The state government is also playing a role, offering grants, tax incentives, and other forms of support to encourage innovation. The challenge lies in scaling these innovations and ensuring that Michigan remains a global leader in emerging technologies. The key takeaway from 2024, and a continued reality today, is that sustained investment in people and technology is non-negotiable for future prosperity.