Mid-size companies in Western Michigan
When it comes to economic growth in Michigan, one size does not fit all. Take a look at the varying scope and scale of companies here and you’ll find a general pattern of three different types of businesses associated with different regions: large multinational corporations in Southeast Michigan, small high-tech start-ups in Ann Arbor, and family-owned, mid-size companies in Western Michigan.
Each of these micro-economies has its own set of dynamics. In the Detroit metro area, big companies connected to the auto industry and heavy manufacturing dominate. These organizations are sensitive to changes in the economic climate, and when the industry falters, nearly everything falters with it. The good news, though, is that these large organizations provide stability in the region.
The story in Ann Arbor is completely different. Despite its proximity to Detroit, Ann Arbor does not depend on the same massive companies. With the University of Michigan as an intellectual, cultural, and financial hub, the industry is knowledge and the spirit is an entrepreneurial one: people don’t depend on pre-existing companies—they start new ones. Consider the fact that the founders of Google and Groupon, and dozens of other successful new economy entrepreneurs, got their start in Ann Arbor.
The thing about Ann Arbor, though, is that all this start-up energy and growth is unsustainable. The people who start new companies don’t stay in Ann Arbor. They move elsewhere, to places where they can get the capital they need to quickly grow.
There is yet another economic reality in Western Michigan, where neither big businesses nor small start-ups dominate. From Kalamazoo to Traverse City, mid-size, family-owned companies thrive. Grand Rapids serves as its economic center. Excellent sources of jobs, these organizations are sustainable units of reliable profitability. They make the region a particularly stable place and grow at a steady pace. But attracting younger, highly skilled talent into this region can be a challenge given its distance from a vibrant cosmopolitan center.