Muskegon County Outperforms Neighboring Counties in 2025
MUSKEGON, MI — Muskegon County’s economy has always been contrarian when compared to its West Michigan neighbors.
Whereas over the decades Muskegon had an under-performing economy, that was not the case in 2025. And, 2026 could see Muskegon County leading the West Michigan region, especially when it comes to the critical manufacturing sector, according to Grand Valley State University economist Paul Isely’s annual economic forecast.
Muskegon County had a more than 3 percent increase in industrial employment last year while Kent and Ottawa counties had more than a 2 percent decrease. The uncertainty of the national economy has Isely predicting flatter industrial employment growth in Muskegon but the community still remains poised to take advantage of a favorable industrial mix.
Relying heavily on the aerospace, defense and chemical sectors – and less on automotive — the current political environment’s erratic tariffs and explosive defense spending is favorable to Muskegon County companies, Isely said. The automotive sector has been hurt more by the current economic climate, a manufacturing group with heavier concentrations in Ottawa and Kent counties.
“The good news is that the bottom 70 percent (of income earners) are doing stronger in Muskegon than in other parts of West Michigan,” Isley told the Muskegon Lakeshore Chamber of Commerce’s January economic forecast breakfast Friday at the VanDyk Mortgage Convention Center.
“Your mix of manufacturing in Muskegon is favorable as your exposure to automotive is not high … you have more exposure to aerospace and chemicals,” Isley said as local companies such as Howmet and GE Aviation have faired better in the ever-changing U.S. tariff policy.
The employment data bears this out. Muskegon County employment grew by 1 percent last year while Kent and Ottawa counties increased by just 0.2 percent
“The economy slowed down a little bit more than we expected last year,” Isley said. “The good news in Muskegon is we didn’t.”
“The word for the year is slow,” he said. “But slow is much better than uncertain. Businesses have begun to figure it out.”
Isley said “slow” is expected in four key areas:
- Consumers are slowing;
- Business is slowing;
- Government is slowing business investment, and
- AI slowing employment.
The highly-regarded University of Michigan’s consumer sentiment survey shows that by political affiliation, Independents have the gloomiest outlook, Isley said. “They’ve pretty much been in despair for a long time. These people are the most sad they’ve ever been … but we spend money when we’re sad.”
“Muskegon businesses are doing well; Muskegon workers are doing well,” Isley said. “They will keep up and outperform the region for a second year.”
However, Isley added a note of caution as 2026 unfolds. “It’s going to be a little rocky while we make that transition” to having sales growth with little employment growth.
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To view a copy of Dr. Isely’s presentation click here.