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Michigan Business Leaders Warn of Economic Challenges

  //business-finance.news-articles.net/content/202 .. usiness-leaders-warn-of-economic-challenges.html
  Published in Business and Finance on Thursday, February 19th 2026 at 11:41 GMT by inforum
      Locales: Connecticut, UNITED STATES

Detroit, MI - February 19th, 2026 - A panel of Michigan's most influential business leaders convened today to discuss the state of the state's economy, painting a picture of cautious optimism tempered by significant challenges. The discussion, captured in a recently released video, revealed a consensus around mounting pressures from inflation, interest rates, supply chain vulnerabilities, and, most critically, a deepening workforce crisis. While acknowledging areas of strength, the leaders emphasized the need for proactive and innovative strategies to secure Michigan's economic future.

Inflation, while showing signs of cooling nationally, continues to disproportionately impact Michigan's manufacturing base and the cost of doing business. Leaders noted that increased input costs, from raw materials to energy, are forcing difficult decisions regarding pricing and investment. "We're seeing a real squeeze on margins," explained Sarah Chen, CEO of a major automotive supplier during the discussion. "We're trying to absorb costs where we can, but ultimately, some of that has to be passed on to the consumer. The question is how much the market will bear."

Adding to the inflationary pressures are the persistent elevated interest rates. While designed to curb spending, these rates are impacting business expansion plans and making capital investments less attractive. Several panelists highlighted the difficulty in securing affordable financing, particularly for small and medium-sized enterprises (SMEs) which form the backbone of Michigan's economy. This creates a bottleneck in growth, hindering innovation and job creation.

The legacy of supply chain disruptions, exacerbated by global events of the past several years, continues to haunt Michigan businesses. While some sectors have seen improvements, access to critical components and materials remains unpredictable. The discussion touched upon the importance of diversifying supply chains and exploring "reshoring" opportunities - bringing manufacturing back to the United States, and specifically, to Michigan. Several leaders advocated for increased state and federal incentives to encourage domestic production and reduce reliance on foreign sources.

However, the most pressing issue highlighted by the panel was the escalating workforce crisis. The shortage of skilled labor spans multiple industries, from advanced manufacturing and technology to healthcare and trades. "It's not just about finding any workers, it's about finding qualified workers," stated David Miller, President of a leading construction firm. "We're leaving projects on the table because we simply can't find enough people with the necessary skills."

The panelists identified several contributing factors to the workforce shortage, including an aging population, a skills gap between the available workforce and the demands of modern industries, and a perceived lack of attractive career pathways. Discussions centered on the need for a fundamental overhaul of workforce development programs, emphasizing apprenticeships, vocational training, and partnerships between businesses and educational institutions.

"We need to start preparing students for the jobs of tomorrow, not the jobs of yesterday," argued Maria Rodriguez, Superintendent of a major vocational school district. "That means investing in STEM education, expanding access to trade schools, and creating more opportunities for hands-on learning." She also highlighted the importance of addressing barriers to entry into the workforce, such as childcare costs and transportation challenges.

The conversation also touched on the evolving nature of work and the increasing demand for remote and hybrid work arrangements. Leaders acknowledged the need to adapt to these trends to attract and retain talent, but also expressed concerns about maintaining productivity and fostering a strong company culture.

The panel's insights aren't isolated. Recent reports from the Michigan Bureau of Labor Market Information and Strategic Initiatives corroborate these concerns, showing a steady decline in labor force participation rates and a widening gap between job openings and available workers. Experts predict that if these trends continue, Michigan's economic growth will be significantly hampered.

The business leaders concluded by urging policymakers to prioritize workforce development, incentivize domestic manufacturing, and create a business-friendly environment that fosters innovation and investment. They stressed the importance of collaboration between the public and private sectors to address these challenges and ensure Michigan remains a competitive force in the global economy. The video serves as a vital call to action, highlighting the critical issues facing Michigan's economy and the urgent need for collective action.