West Michigan becoming competitive in the hunt for big game trophy companies

KEY TAKEAWAYS

» Demand remains strong for industrial space in West Michigan as the region continues to be on the radar for national and international manufacturers, with several new manufacturers entering the region during Q3.

» Construction for speculative industrial buildings remained slow in Q3 as developers face high construction costs and a labor shortage.

» Many new manufacturing and warehousing facilities are attracting non-traditional ancillary users such as hotels, restaurants, banks and other retailers. They are locating nearby as a result of these facilities attracting more people and becoming high-traffic areas.

EXECUTIVE SUMMARY

Despite a slowdown in the auto industry, most of West Michigan’s manufacturing community continues to thrive. There continues to be limited inventory and high demand across the industrial market, causing manufacturers to wait for the right opportunity to buy or build new.

While some manufacturing industries have slowed down a bit, industries like robotics and automation continue to expand. Nationally, robotics and automation is continuing to grow within factories at a record pace, cutting down on costs and boosting efficiency. Here in West Michigan, automation companies including Tuff Automation and JR Automation continue to show signs of steady growth.

Towards the end of summer, the southern United States was hit hard by a devastating hurricane season. Manufacturers in West Michigan responded immediately to communities in need by providing goods and monetary assistance to recent hurricane disaster recovery efforts, such as KL Outdoor/GSC Technologies and Wolverine World Wide. The hurricane relief efforts also depleted some of the construction labor, adding to the strain on construction companies.

Click here for full Q3 2017 West Michigan Industrial Market Report