Inside the Region’s Business Climate: Key Trends from a Recent Retention Blitz

Each year, The Right Place meets with over 600 local organizations to provide unique insight into the economy and understand recent trends they see in their respective industries.

During the bi-annual Business Blitz, 164 business retention visits were completed in just 30 days, providing a real-time pulse of the local economy and helping to find new growth opportunities. Through these conversations, The Right Place aimed to uncover the state of employment, recruitment, sales, and underlying “pinch points” through the eyes of the businesses in our region, gaining an understanding of how they are directly experiencing the impact of a changing economy. During this most recent blitz, we found that navigating through uncertain times, technological advancement, and a shifting workforce are causing numerous companies in Greater Grand Rapids to adapt to new needs and challenges.

West Michigan Employment Trends

When looking at the successes and pain points across organizations, employment trends are a key aspect of daily operation. Forty-one percent of companies stated plans to increase employment (41% in 2024), 51% are opting to keep staffing levels stable (54% in 2024) and 8% plan on decreasing staffing (4% in 2024). These employment trends show that while most companies plan to keep staffing levels the same (stable or increasing), 4% more companies plan to decrease staffing levels compared to last year. Recruitment challenges continued to ease slightly, reducing 1% from 2024 and 19% from 2023.

Investment in training shifted slightly, with fewer companies reporting an increased commitment to training employees

Sales Trends

Since 2024, sales have displaced talent challenges as the dominant concern for businesses. Sixty-six percent of companies reported increasing sales, compared to 62% in 2024. Likewise, 25% reported stable sales, and 9% reported decreasing sales compared to 31% and 7%, respectively, the previous year.

Pinch Points

Uncovering where local businesses feel the most pressure can help pinpoint key economic and workforce concerns and correctly align resources for these companies to succeed. When asked about the biggest barrier to success, companies mostfrequently reported Sales (23%), a trend that remains consistent with 2024. Many organizations are worried about their ability to generate sales in an uncertain economy, where outside factors continue to impact them.

The second largest specified response was Talent Attraction, with 11% of organizations citing difficulty attracting top talent. These rates are down 2% from 2024 and 6% from 2023, indicating that companies are facing fewer talent attraction challenges than in the past. Additional pinch points of importance include Facility Issues, sitting at 9%, financing at 6%, and both Lean/Efficacy Issues and Customer Issues at 5%.

While not indicative of a broader trend, 19% of organizations referenced highly specific, organization-level challenges that did not align with our primary pinch-point categories. These pressures reflect unique circumstances rather than common barriers faced across the region. Among those mentioned were challenges related to AI adoption, particularly around change management and workforce buy-in. A smaller number of organizations also pointed to difficulties securing ISO certification, managing tariff impacts, or addressing market development constraints.

The findings from the retention blitz make one thing clear: while the local business community is feeling real pressure from shifting sales trends, evolving technology, and ongoing workforce needs, there are signs of cautious optimism and companies remain proactive and focused on long-term success. These conversations provide a window into what businesses are experiencing right now and help identify opportunities where strategic support can make the biggest difference.

As we move into the new year, The Right Place will continue to use this insight to strengthen regional competitiveness and help organizations navigate change with confidence. Together, we can build a stronger, more adaptable economy for the Greater Grand Rapids Region.