The longer the UAW strike goes, the more harm it could do to Michigan’s economy – including the manufacturing sector in Southwest Michigan.
That’s according to officials with the Kinexus Group, the organization keeping track of the area’s workforce and industry. In the past, Kinexus has estimated that 68 percent of local manufacturers are in some way connected to the automotive industry.
Caleb Colp, Finance Manager with Kinexus, says the longer the auto workers strike, the bigger the potential impact.
“If we continue much longer, we’re going to see downstream effects and that could disproportionately affect us and the state compared to the rest of the country.”
Kinexus President and CEO Todd Gustofson added that if the strike drags on, the local impact could be measured in hundreds of jobs and millions of dollars.
“A 10-20% decline in sales for Berrien, Cass, Van Buren motor vehicle and motor vehicle parts manufacturing industries, passenger cars and trucks specifically, due to the UAW strike could result in between 256 and 512 total regional jobs lost. This could result in about $18M to $36M in lost regional earnings, and $1.5M to $3M in total lost taxes including between $552K and $1.1M in local tax revenue losses alone.”
Kinexus is working with local employers to help bridge any potential layoff gaps caused by the strike. They’re also working with the state to make sure the information is front and center when lawmakers consider policy connected to the governor’s Grow Michigan effort.
Note: This article was updated on 21-Sep-2023 to reflect the potential lost regional earnings ($18M to $36M) connected to a 10-20% decline in sales for Berrien, Cass, and Van Buren counties.
