The economies of Michigan: Grand Rapids
Grand Rapids
By the numbers
$48 billion
Size of local economy, 2013
3.9
Percent economic growth, 2012-2013.
4th
Rank, among 14 metropolitan
regions in Michigan, in terms
of one-year growth
57th
Rank, among 382 metropolitan
regions in country, in terms of
one-year change in GDP
2nd
Rank, among 14 Michigan regions,
in overall economic size
57
Rank, among 382 metropolitan
regions in country, in terms of
one-year change in GDP
57th
Rank nationally, in terms of economic size.
With just over 1 million people over Kent,
Ottawa, Barry and Montcalm counties, the region
is the 52nd largest MSA in population.
The Business Buzz
Pick a sector, any sector – nearly all gained GDP in 2013 compared to 2012. Of the major industries, only government was down, by 2.9 percent in 2013. Manufacturing, the region's largest sector, gained 6.2 percent. It's back up to 25 percent of the overall economy. Arts and entertainment was up by nearly 8 percent, real estate by nearly 8 percent and construction by nearly 7 percent. Real estate stands 17.8 percent above 2007 levels and the educational services sector – which gained 4.1 percent in 2013 – is more than 19 percent above 2007.
All this adds up to a 3.9 percent overall GDP rise, making it 11 percent of state GDP.
“We never gave up on manufacturing here,” said Birgit Klohs, president and CEO of The Right Place, a Grand Rapids-based regional economic organization. “Yes, there is a future in manufacturing and it is highly technological and advanced.”
She cited a need, however, to better prepare workers for that new future.
“You don't give an unskilled worker a $1 million piece of equipment. These are really good paying jobs but we don't have the labor force to match,” she said.
Top 10 industries: Region’s recovery broad based
The state’s second largest regional economy has seen steady growth across sectors, providing positive economic news in a state long beset with bad.
| Sector | 2013 GDP (in millions) | Percent of economy | Peak year | Change (2013) from peak | Change from 2007 | Change from 2012 |
|---|---|---|---|---|---|---|
| Manufacturing | $12,074 | 25.1% | 2006 | -1.7% | 0.4% | 6.2% |
| Finance, insurance | $7,913 | 16.5% | 2013 | 0.0% | 10.9% | 6.3% |
| Prof. and business services | $5,048 | 10.5% | 2013 | 0.0% | 3.5% | 0.6% |
| Educational services, health care | $4,890 | 10.2% | 2013 | 0.0% | 16.2% | 4.1% |
| Wholesale trade | $3,882 | 8.1% | 2005 | -7.4% | -7.7% | 1.0% |
| Government | $3,785 | 7.9% | 2002 | -8.8% | -5.2% | -2.9% |
| Retail trade | $3,269 | 6.8% | 2003 | -0.9% | 7.7% | 4.8% |
| Construction | $1,605 | 3.3% | 2004 | -38.8% | -19.0% | 6.7% |
| Arts, entertainment, recreation, accommodations, food service | $1,374 | 2.9% | 2013 | 0.0% | 23 .2% | 7.3% |
| Transportation and warehousing | $1,136 | 2.4% | #N/A | #N/A | #N/A | #N/A |
Although it's not an "industry" by federal definition, government services were included in the list. |
Click on a region to get a snapshot of its economic fortunes
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