Business leaders from Antrim, Charlevoix, Emmet and Cheboygan counties met in Petoskey on Thursday for a forum on the region’s business outlook.
The event started with a presentation from Sam Bailey, of the Northern Lakes Economic Alliance, who cited some stark statistics: the prime working age population (those ages 25-54) within the four counties they operate in has declined by 14% since 2010, though it has seen a slight uptick of 2% in the last two years.
Panelists from different industries, including agriculture, construction and finance agreed that recruiting workers is the biggest challenge in the region.
Jake Manthei of Aster Brands, a concrete manufacturing company, said he told local students at a recent event that they were needed at home in northern Michigan.
“The young people had no idea there was a demographic issue here. So I presented that and [said], ‘Hey, everybody thinks that there's no career level jobs here, [but] it's just not true. We've got a whole bunch of them,’” he told the audience. “Why don't we tell that story more?”
Juliette King-McAvoy, with King Orchards, said they used to hire only people who could work weekends. But now, they have to be more flexible.
“[People] say, 'I can work for two hours on Tuesdays and Thursdays,' and I'll take them,” she said. “That’s been a challenge.”
Some barriers go beyond staffing. Manthei, with Aster Brands, also said they came up against strict zoning regulations when trying to expand.
“The reality is, when you have a growing business that's out of room, and you have a community that doesn't really want business to grow, what do you do? And that's happening here,” he said of some townships.
As for the business outlook overall, King-McAvoy said she worries for her orchard, since Michigan families seem to be spending less on luxury treats like fresh, local apples or a trip up north to a U-Pick farm.
Leaders in the construction industry, on the other hand, said things are still booming but that labor and northern Michigan’s cost of living remain an issue.
Scott Philp, of Landscaping Logic, said he relies on H-2B workers from Guatemala and El Salvador to fill his construction roles.
Housing shortages also create strain: Philp said he searched long and hard for an accountant, and when he hired someone, the candidate was one of 120 people to apply for a Charlevoix rental. Philp knew the owner and was able to get him the house.
Panelists also discussed the trend of retirement-age small business owners selling to private equity instead of passing on trades to their children.
The event was put on by the Northern Lakes Economic Alliance.
