How Have Michigan Manufacturers Fared During COVID-19?

In recent years, manufacturers around the globe have had to adapt to new challenges with the workforce, technology evolutions, changing economy and tariffs, among others. However, none of these challenges could prepare manufacturers for the crisis they would endure with the coronavirus pandemic, which made the future of many companies, and even the entire industry, uncertain.

With the impacts of the nation-wide lockdown weighing heavily, many have wondered how exactly manufacturers in the United States have fared during and after the pandemic. In an effort to capture current business conditions among smaller manufacturers in certain areas of the United States, the Federal Reserve Bank of Chicago recently conducted a Survey of Business Conditions on the Impact of Covid-19 on Manufacturers.

In partnership with the Manufacturing Extension Partnership (MEP), the survey was completed by clients of both the Michigan Manufacturing Technology Center (The Center) and the Illinois Manufacturing Excellence Center (IMEC) to gauge how small to mid-sized manufacturers have been impacted by the pandemic. Responses from 124 Michigan manufacturers were collected, with all companies employing less than 500 employees and 97% reporting 2019 revenue of less than $50 million.

Key findings from the survey can be seen in the infographic below.

While most Michigan manufacturers faced financial, operational and workforce challenges due to COVID-19, this data suggests many were able to adapt and receive the support necessary to set up their businesses for success going forward. Despite the challenges faced by manufacturers during this time – from closing operations to retooling to create new products – more than half of the companies were able to continue operating during the pandemic with the greater majority receiving funding support from Payment Protection Program (PPP) loans. 

While the majority of those surveyed anticipate the impacts of COVID-19 to continue into the foreseeable future, the resilience and strength of Michigan’s manufacturers is undeniable. Manufacturers are adapting, moving forward and making history.

To receive guidance and support as your company responds to the coronavirus pandemic, The Center is here to help. Visit www.the-center.org to learn more about our service offerings or contact inquiry@the-center.org to speak to one of our experts today.
 

Since 1991, the Michigan Manufacturing Technology Center has assisted Michigan’s small and medium-sized businesses to successfully compete and grow. Through personalized services designed to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at www.the-center.org.