Report: Ottawa County employers hopeful for growth, despite labor, housing shortage

HOLLAND — The economy across Allegan and Ottawa counties in West Michigan is demonstrating remarkable strength, with the vast majority of employers reporting stable or increasing sales, according to the new 2025 Industry Trends Report. 

But there’s a catch: This robust expansion is being challenged by a severe labor shortage and a growing housing shortage, which business leaders cite as primary barriers to future growth.

The report, compiled by Lakeshore Advantage from interviews with more than 130 local executives between July 2024 and June 2025, paints a picture of a dynamic region that continues to be heavily anchored by its industrial base. Manufacturing is powering the two-county area, generating 40 percent of the gross regional product.

Growth, innovation metrics show confidence

The outlook, according to the report, remains overwhelmingly positive among local firms, with 85 percent of employers reporting stable or increasing sales. Furthermore, companies are moving forward with expansion plans:

• One-third of companies surveyed plan to expand operations within the next three years.
• These expansion projects are projected to create an average of 12 new jobs and attract an average of $7.5 million in private investment per project.

Innovation appears to be part of why they remain confident. 

Around 75 percent of companies introduced new products in the past two years, and nearly half — 49 percent — reported that their key products are currently in a growth phase. The primary focus for research and development is on production improvements, new product development and operational efficiency.

Talent, infrastructure challenges intensify

Despite the strong growth metrics, executives are increasingly concerned about the structural challenges facing the region. Labor shortages and the housing shortage top the list of barriers to success, followed by limitations in industrial space, infrastructure, and rising costs.

The demand for talent is concentrated in highly skilled positions. The report indicates that 87 percent of in-demand jobs are skilled roles. The top occupations companies are actively seeking to fill include:

• Skilled trades workers
• Mechanical technicians
• Software developers
• Hardware engineers

Lakeshore Advantage, the economic development organization for the region, indicated in the report that the findings will guide its efforts to address these issues. The report concluded that by listening to business leaders, the region can target solutions that advance growth, innovation and talent development to ensure the area remains competitive.

— Heather VanDyke covers northern Ottawa County for the Ottawa News Network. Contact her at hvandyke@ottawanewsnetwork.org.