November 2, 2026
The latest issue of the Upjohn Regional Economic Outlook (REO) explores southwest Michigan’s economic outlook, the state of the medical device and pharmaceutical manufacturing industries, household income trends in Battle Creek, and housing challenges in Comstock Township. The four articles examine employment and productivity projections, industry-level economic changes, Hispanic and Latino household characteristics in Battle Creek, and strategies for addressing local housing needs.
Southwest Michigan’s Economic Outlook: Modest Job Growth and Rising Productivity
Southwest Michigan’s employment is projected to grow by 0.7% between 2026 and 2028, while inflation-adjusted gross regional product is expected to increase by 5.6%. Near-term challenges include declining employment in Logistics, Medical Device Manufacturing, and Wood and Paper Manufacturing amid rising costs, trade uncertainty, and automation.
Automotive parts manufacturing offers a bright spot, with employment projected to grow by 1.6% and gross regional product by 11.3% through 2028, while health care and government are expected to support job growth. By 2030, employment in southwest Michigan is projected to be 2% above its 2019 level, matching Michigan’s growth but trailing the national increase of 7%.
Data Deep Dive: Medical Device and Pharmaceutical Manufacturing
Southwest Michigan’s Medical Device Manufacturing and Pharmaceutical and Chemical Manufacturing clusters are important contributors to the region’s economy, together employing more than 8,600 people and accounting for 5.5% of gross regional product. Anchored by major employers such as Stryker, Pfizer, and Zoetis, these industries provide specialized, well-paying jobs while supporting advances in health care, medical technology, and pharmaceutical research.
The analysis highlights the region’s competitive advantages, including established manufacturing infrastructure, a skilled workforce, and research and commercialization resources, while noting that wages vary considerably across occupations. Both clusters face challenges from shifting trade policies, rising transportation costs, global supply chain uncertainty, and changing market demand, but increased domestic manufacturing and continued investment in innovation could create new opportunities for regional growth. Sustaining this advantage will require continued investment in advanced manufacturing, talent development, and the commercialization of new technologies.
Looking Behind the Median: Hispanic Household Income in Battle Creek
Hispanic and Latino median household income estimates in Battle Creek increased between 2019 and 2024, bringing them closer to estimates for White, non-Hispanic and non-Latino households, although statistical uncertainty prevents researchers from confidently determining which group has the higher median income. Using a statistical method called "raking” to align individual survey responses with summary tables from the American Community Survey, researchers examined household composition, employment, education, and earnings.
The analysis found that Hispanic and Latino households are more likely to be married-couple families, less likely to consist of individuals living alone, and more likely to have multiple working adults than non-Hispanic and non-Latino households. Occupational patterns also differ by gender and education, with Hispanic and Latino men more concentrated in production, transportation, and construction-related jobs, while women without bachelor’s degrees are more represented in service, sales, and office occupations.
Housing in Comstock Township: Where We Are and What’s Next
Upjohn Regional’s Community Development team developed a housing plan for Comstock Township using Census data, local market information, stakeholder input, and a resident survey to identify housing needs and potential solutions. The analysis found that the township’s housing stock is dominated by single-family homes and that nearly 38% of renter households are housing-cost-burdened, with lower-income residents and seniors facing particular challenges.
The plan estimates that the township should permit approximately 175 additional housing units by 2030 to help meet demand. Recommendations include expanding housing options, easing selected zoning restrictions, preserving existing homes, encouraging environmentally responsible development, and improving equitable access to housing, including a goal of at least 10 new supportive housing units by 2035.
About This Issue
Issue 3 of the Upjohn Regional Economic Outlook brings together economic research and community planning insights to support decision-making across southwest Michigan. The issue reflects Upjohn Regional’s work in regional economic analysis, economic development, workforce development, public policy, program evaluation, and economic impact analysis, alongside technical assistance in land use, housing, resource planning, and mapping. For county-level economic indicators and population demographics across Michigan, visit the Regional Datahub, and explore the Institute’s Upjohn Regional website to learn more about its research, publications, and tools
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