Michigan Economy 2025: The Split No One Wants to Admit

A vertical split-screen image contrasting economic hardship and affluence. Left: A middle-aged couple sits at a dimly lit, cluttered kitchen table covered in bills and receipts, both with worried expressions. Right: A smiling, well-dressed group (one man, two women) walks confidently through a bright, luxurious shopping arcade, carrying designer bags from brands like Chanel and Prada.

The Detroit Regional Chamber’s September 2025 Michigan Statewide Voter Survey, conducted by the Glengariff Group, offers a snapshot of a state both resilient and restless. The data reveal a public that sees signs of economic stabilization but remains haunted by high costs, uneven opportunity, and deep uncertainty about what lies ahead. Over the next six months, the outlook hinges on whether consumer confidence and job quality can overcome the drag of inflation and tariff pressure.

Michigan’s Mood: A Narrow Majority Feels the State is on Track

For the first time since early 2025, more than half of Michigan voters, 51.5 percent, say the state is on the right track, compared to 33.7 percent who believe it is on the wrong one. This modest optimism stems mainly from independents, whose right-track sentiment jumped from 44.7 percent in April to 52.3 percent in September. Strong Republican voters also showed a notable uptick, from 20.9 percent to 34.0 percent. These shifts suggest a fragile coalition of confidence that extends beyond partisan lines, even as economic doubts persist.

But when asked specifically about the economy, Michiganders are divided. Forty-two point four percent say it is on the right track, and 42.8 percent say it is not. This statistical split highlights a state where people may feel better about direction and leadership than about their wallets.

Political identity shapes how people read the same economic facts. This is normal and well documented. Pew shows that views of national economic conditions swing with party control of the White House, with Republicans turning more positive and Democrats more negative in 2025. Gallup reports the same flip in its Economic Confidence Index following the 2024 election, driven by Republicans becoming more upbeat and Democrats more downbeat. Political scientists describe this as motivated reasoning or partisan bias in perception, where people seek and interpret information that affirms prior loyalties rather than updating neutrally. 

Grouped bar chart titled “Economy Is Growing: Michigan Voters by Party.” X axis lists Strong Democratic, Lean Democratic, Independent, Lean Republican, Strong Republican. Y axis is percent from 0 to 100. Four series labeled Sept 2024, Jan 2025, April 2025, Sept 2025. Strong and Lean Democrats are high in Sept 2024 and Jan 2025 at about 62 to 70 percent, then fall to about 14 to 18 percent by April and Sept 2025. Independents are 35.6 in Sept 2024, 34.9 in Jan 2025, dip to 25.4 in April 2025, then rise to 43.2 in Sept 2025. Lean Republicans rise from 10.2 in Sept 2024 to 53.5 in Sept 2025. Strong Republicans rise from 6.9 in Sept 2024 to 60.2 in Sept 2025. Note shows recession reasons among those saying recession: inflation and costs 49.1 percent, job reduction 17.0 percent, tariffs 13.2 percent. Source Michigan Statewide Voter Survey Sept 2025, Glengariff Group for Detroit Regional Chamber.
Inflation: The Persistent Undercurrent

Inflation remains the state’s defining economic anxiety. Among voters who say Michigan’s economy is on the wrong track, 38.8 percent cite inflation and the cost of goods as the main reason, up sharply from 22.9 percent in May. Three out of four residents, 75.8 percent, report paying more for groceries, two thirds, 68.1 percent, for utilities, and 60.4 percent for home or auto insurance. These figures cut across demographics and party lines.

The pain of rising costs has not translated into universal despair. Roughly 72.6 percent of voters say they are doing better or about the same as a year ago. Yet, of the 27.1 percent who say they are doing worse, a majority, 55.2 percent, blame inflation. Only 16.8 percent say they are doing better, often due to wage increases, promotions, or new jobs, small but meaningful signs of labor-market movement.

Jobs and Hiring: The Confidence Gap

Just over half, 52.0 percent, believe good-paying jobs are available, a drop of eight points since May. That decline is led by Democratic voters, only about one third of whom see strong job prospects. Independents, 60.4 percent, and Republicans, roughly two thirds, are more upbeat. Still, four in ten Michiganders say they know someone looking for work, and 77.8 percent of them say it has been hard to find a job. Among those aware of recent college graduates, 77.0 percent say the same.

This sentiment gap, between perceived availability of good jobs and personal experience finding them, underscores a labor market that feels tight on both sides. For employers, it signals lingering competition for skilled workers even as wage pressure softens. For job seekers, especially younger and lower-income workers, it reflects frustration that openings do not always translate into sustainable pay.

Tariffs: A Clear Economic Flashpoint

Michigan’s manufacturing base feels the bite of global policy more than most. Voters oppose the expanded tariffs by a 51.2 to 40.8 margin. A majority, 71.5 percent, say tariffs have increased what they pay for goods, and 60.3 percent believe tariffs are hurting the state’s auto industry. Nearly half expect smaller profit-sharing checks for auto workers this year.

Those numbers suggest that what was once an abstract policy debate has become a daily reality for Michigan households. The rising costs of vehicles, materials, and inputs are trickling through to local economies. Yet, some blue-collar workers remain more supportive of tariffs than their white-collar counterparts, indicating that the political divide over trade is tied to identity as well as economics.

stack of deliquent bills on a kitchen table with a bag of groceries and a tv out of focus in background
Artificial Intelligence: A Dividing Line Between Opportunity and Anxiety

Nearly half of Michigan voters (47.5%) report using AI in their personal or professional lives, but optimism about its benefits is muted. Only 23.7% believe AI will make Michigan more prosperous, while 39.4% think it will make the state less so. A majority (61.0%) expect AI to lead to fewer jobs, not more Fall-2025-Michigan-Voter-Poll . The divide between white-collar and blue-collar voters is striking: 71.6% of white-collar workers say they use AI, compared to just 36.6% of blue-collar workers. This gap reveals an emerging structural challenge: whether technology adoption will widen or bridge economic divides. If Michigan’s industrial base fails to reskill its workforce at pace with automation, that pessimism could become self-fulfilling.

The Next Six Months: Two Diverging Roads
Optimistic scenario: Inflation continues to cool, tariffs stabilize, and employers—especially in automotive and advanced manufacturing—resume hiring to meet long-term production goals. Wage growth steadies, confidence rises among independents, and consumer spending normalizes into early 2026. Negative scenario: Inflation expectations, already high (43.1% expect it to worsen), drag on real wages. Tariff-driven costs ripple through Michigan’s manufacturing base, curbing output and dampening profit-sharing. Job openings persist, but workers remain mismatched or underpaid. In that climate, optimism could collapse as quickly as it rebounded. The September 2025 survey captures a moment of balance—between endurance and fatigue, adaptation and anxiety. Whether Michigan leans toward renewal or retrenchment will depend less on macroeconomic forces and more on how effectively its employers, educators, and policymakers convert short-term strain into long-term resilience.

Michigan Economy 4Q Outlook 2025: Shutdown Adds New Headwinds

A quiet auto plant shipping dock at midday. Shrink-wrapped pallets with 'HOLD' labels are stacked in rows. A clipboard in the foreground reads 'EPA permit on hold'. Several forklifts are idle near closed dock doors, and a wall clock shows 12:00 noon.

Federal shutdown stalls permits, freezes loans, hits tourism and auto supply chains, eroding confidence across Michigan manufacturers, consumers, and businesses.

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Can a President Really Grow Manufacturing?

clean energy symbols like electric cars and windmills on the blue side under the donkey, and a pickup truck with oil rigs on the red side under the elephant. This should further highlight the contrast in political ideologies, while keeping the manufacturing center unaffected by the chaos.

As the upcoming election draws near, the revitalization of American manufacturing has once again become a central theme in political discourse. Presidential candidates are making ambitious promises to bring back factory jobs and strengthen the industry. However, for manufacturing professionals in Michigan—a state with a rich industrial heritage—the pressing question is: How much can a president truly influence the revival of manufacturing, and what local opportunities are shaping the industry’s future? This recent New York Times article asked that question. In this blog, we examine how the election could affect jobs here in Michigan. 

Political Proposals vs. Economic Realities

Former President Donald J. Trump proposes imposing hefty tariffs on nearly all imports to encourage foreign companies to produce goods in the United States. Vice President Kamala Harris, meanwhile, advocates for tax credits and expanded apprenticeships to bolster factory towns and invest in advanced technologies. While these proposals make for compelling campaign narratives, historical evidence suggests that no president can single-handedly dictate the growth of specific industries.

Economic forces such as global market trends, technological advancements, and exchange rates often have a more significant impact on manufacturing. While federal policies can provide incentives and create a favorable environment, the real drivers of manufacturing growth are often found at the state and local levels.

Sun Belt States: The Rise of Business-Friendly Environments

In recent years, manufacturing jobs have been migrating toward the Sun Belt states—such as Texas, Florida, and those in the Southeast—known for their business-friendly climates. These states offer lower taxes, fewer regulations, reliable access to power, and a growing workforce attracted by a lower cost of living and favorable weather.

Nevada, for example, has seen its manufacturing job base grow by more than 13% from early 2020 to March 2023. The state has actively worked to diversify its economy beyond hospitality and entertainment, offering incentives and a welcoming atmosphere for manufacturers. Companies like Alliance North America (ANA) have relocated there, attracted by lower operational costs and a supportive business environment.

“Instead of companies choosing the right location based on all of their other requirements and the presumption that the workers are going to come to them, companies are starting from the presumption of, where are the people moving to?” said Didi Caldwell, president and CEO of Global Location Strategies.

Michigan’s Manufacturing Landscape: Leveraging Local Opportunities

Michigan offers a variety of subsidies and incentives designed to lure businesses and encourage expansion:

  • Michigan Business Development Program (MBDP): Provides grants, loans, and other economic assistance to businesses that create qualified new jobs and make new investments in Michigan.

  • Industrial Property Tax Abatement (PA 198): Offers property tax incentives to manufacturers looking to renovate or expand facilities, reducing costs associated with property improvements.

  • Michigan New Jobs Training Program (MNJTP): Assists employers in training workers for new positions by providing flexible funding to meet the demand for skilled labor.

  • Michigan Reconnect Program: Aims to help adults over the age of 25 earn a tuition-free associate degree or skilled trade certificate. This program enhances the workforce by providing manufacturers with a pool of skilled workers trained in advanced manufacturing techniques.

  • Good Jobs for Michigan Program: Provides incentives for businesses that create a significant number of high-paying jobs, aiming to boost the state’s economy and employment rates.

These programs underscore Michigan’s commitment to fostering a business-friendly environment, reducing operational costs, and supporting workforce development—a critical factor for manufacturers considering relocation or expansion.

Candidates Kamala Harris and Donald Trump have different ideas how to grow manufacturing in the USA.

Case Study: Michigan’s Attractiveness to Manufacturers

Several companies have taken advantage of Michigan’s incentives to grow their operations:

Ford Motor Company’s Electric Vehicle Investment: Ford has announced significant investments in Michigan to expand electric vehicle production, leveraging state incentives to modernize facilities and retrain workers.

LG Energy Solution’s Battery Plant Expansion: In Holland, Michigan, LG Energy Solution is expanding its battery manufacturing plant, supported by state grants and tax incentives aimed at boosting the clean energy sector.

These developments highlight Michigan’s strategic focus on not only preserving its manufacturing legacy but also pivoting towards emerging industries like electric vehicles and renewable energy technologies.

Balancing Local Advantages with National Trends

While the Sun Belt states offer attractive environments for manufacturers, Michigan’s unique combination of incentives, skilled workforce, and infrastructure continues to make it a compelling choice for manufacturing professionals.

Manufacturers in Michigan benefit from:

Skilled Workforce: Michigan boasts a rich pool of skilled labor, thanks to its strong educational institutions and programs like the Michigan Reconnect, which enhances workforce skills by providing tuition-free pathways for adults seeking degrees or certificates in high-demand fields.

Infrastructure and Logistics: The state’s robust transportation network—including major highways, railroads, and ports—facilitates efficient distribution and supply chain operations.

Community and Government Support: Local governments often work closely with businesses to streamline permitting processes and provide assistance, enhancing the ease of doing business.

Cautious Optimism Amid Uncertainty

Despite the positive local factors, the manufacturing industry remains cautious due to broader economic uncertainties and the impending election. Companies are mindful that the outcome could influence taxes, trade policies, and regulations.

“We’re a couple of months away from a huge decision point—who controls Congress and the White House,” said Timothy Fiore, manufacturing business committee chair at the Institute for Supply Management. “I think we’re kind of stuck here until the end of the year.”

Seizing Opportunities in Michigan While Recognizing National Trends

For manufacturing professionals in Michigan, the path to revitalization lies in leveraging state-specific incentives and opportunities while staying aware of national trends like the growth in Sun Belt states. While federal policies and political promises can influence the broader landscape, it’s the tangible, local actions that create a conducive environment for growth.

Michigan’s commitment to supporting manufacturing through various incentives, workforce development programs like Michigan Reconnect, and a business-friendly climate positions it as fertile ground for industry expansion. As the election nears, industry stakeholders should focus on these local advantages, ensuring they are well-positioned to capitalize on the opportunities ahead, regardless of political outcomes.