What’s working, lacking in Greater Lansing’s economy

LANSING – With the region behind the coronavirus pandemic, Greater Lansing’s economy is starting to chug. But local business leaders know there is more to be done.

Greater Lansing benefits from the economic development initiatives of recent years. New projects worth 3.2 billion

At the same time, however, slow private sector growth, low levels of education and sluggish population growth are holding back the region.

That’s according to State of the Lansing Region 2020, a report released earlier this year by the Lansing Economic Area Partnership and the Lansing Regional Chamber of Commerce. The two organizations worked together to produce the first report of its kind that examines what Greater Lansing is doing right and where there is room for improvement.

“It’s the classic, we’re very good, but we have to be great,” said Bob Trezise, ​​President and CEO of LEAP.

The report compares Greater Lansing’s economies with that of other major metropolitan areas, including Ann Arbor, Indianapolis, Columbus, Madison, and Nashville. Trezise said Lansing should view the growth and potential in these areas as the framework for success here.

“The story is that we’re fine, but only just fine,” said Trezise, ​​adding that the region can do more.

Chamber President and CEO Tim Daman said Greater Lansing’s economic development efforts are paying off, but the region needs an assessment that shows what the next five, 10, or 20 years of growth could look like. Greater Lansing also needed to study the merits and weaknesses of the areas it competes with for businesses and new residents.

Here are four key takeaways from the report:

Lansing Housing cheaper than comparable cities

In Greater Lansing, the average gross rent was $ 844 and the average home value was $ 153,930, the report said. Ann Arbor had the most expensive apartment in the 12 cities with an average gross rent of $ 1,116 and an average home value of $ 280,500.

“We think the affordable piece is a win for us,” said Daman, because people who choose Lansing can have both a comfortable cost of living and a high quality of life.

More: Cash offers for homes in excess of appraisal keep qualified buyers out of the market

For businesses looking to move, or even people working remotely, Greater Lansing’s affordability is ideal, Trezise said. In addition to affordable housing, the city offers a high standard of living with natural resources, arts and entertainment options, and strong schools, he said.

“We are a high quality product,” said Trezise.

Gen Z population strong

Lansing continues to attract new residents, but it’s not easy, Daman said. When employers see the Generation Z population – those born after the mid-1990s – it shows the city’s potential to meet the labor demand, he said.

Greater Lansing ranked second among the 12 cities classified with a high Generation Z population, just behind Ann Arbor. People born between 1997 and 2012 make up 23% of the population of the four-circle.

That’s good news, said Trezise, ​​as these people are either already in the job market or about to get there.

Sluggish growth in the private sector

Greater Lansing ranked last among the 12 cities in private sector growth in 2018, with startups increasing by 0.3%, according to the report. Although there are more than 10,000 small and large companies in the region, that number has remained “stagnant” since 2014, the report said.

The Lansing area’s economy tended to develop around institutions: the state government, Michigan State University, and health care, Trezise said.

“We’re too heavily on the public sector quota,” he said. “I think it’s historical.”

More: “An immense opportunity”: How LEAP wants to turn Greater Lansing into a center for medical technology

The city’s dependence on institutions has hindered business development in order to create massive jobs, said Trezise. But the development of the private sector has gotten better and is on growth, he said.

Daman said many programs through the Chamber and LEAP are geared towards helping entrepreneurs, startups and other new businesses to fuel growth in the private sector.

Education qualification is too short

Only 43.8% of Greater Lansing residents aged 25 and over had an associate degree or higher education, according to the report. That number is augmented by the MSU and Lansing Community College graduates staying in the area.

With the level of education, Greater Lansing ranks 8th among 12 comparison regions. Ann Arbor was highest at 63.3% of residents over 25 years old with an associate’s degree or above.

More: Expected graduation rates practically unchanged after the year of distance learning

Post-secondary education has become increasingly important to meet the needs of growing and new companies, said Trezise. Any specific training, certification program, or degree can put a candidate in a better position to find a high-paying job, he said.

“There’s no question that the link to high-paying jobs correlates with higher education beyond high school,” said Trezise.

Contact reporter Craig Lyons at 517-377-1047 or calyons@lsj.com. Follow him on Twitter @craigalyons.

source https://collegeeducationnewsllc.com/whats-working-lacking-in-greater-lansings-economy/