Editor’s note: This article was published in the Record-Eagle’s “Momentum 2026” special publication. For more stories from lower northwest Michigan’s economic engine, click here to read Momentum in its entirety online.
As we head toward another summer season in northern Michigan, the signals are familiar, but the context feels different. We are coming off a strong winter for outdoor recreation, one that once again reinforced how deeply that sector supports jobs, small businesses, and community vitality across the region. At the same time, we are approaching a significant statewide election this fall, and with it, a legislative calendar that has slowed considerably as policymakers shift to campaign mode.
Yet amid that pause, momentum continues to build locally. Early travel booking reports suggest Midwesterners and travelers from across the country may be staying closer to home this summer. For northern Michigan, that often translates into another busy season for hospitality, retail, and recreation, and a reminder that our natural assets remain one of our strongest economic drivers. But tourism is only part of the story. Other forces are shaping our region’s outlook as we move into the heart of the year.
Across the Grand Traverse region, the most consistent challenge facing employers of every size remains staffing and hiring. While demand for goods and services remains steady, workforce availability continues to constrain growth. Encouragingly, however, long‑term demographic trends are beginning to bend in a more favorable direction.
Northwest Michigan’s prime working-age population is rising, distinguishing our region from much of the state and the Midwest. This shift supports business growth, entrepreneurship, an expanded tax base, and long-term community sustainability.
That demographic signal aligns with another important trend: the continued emergence of BlueTech, advanced mobility, and manufacturing as growth sectors for northern Michigan. With a shifting workforce, these industries are forming the backbone of a more diversified and resilient regional economy that is less vulnerable to seasonal swings and external shocks.
One of the most visible expressions of that shift is the Freshwater Research and Innovation Center, currently under construction along West Grand Traverse Bay. This facility represents a partnership among Northwestern Michigan College, Discovery Center & Pier, 20Fathoms, Michigan Technological University, and Traverse Connect; an intentional collaboration designed to connect research, talent, and commercialization.
With confirmed and future tenants representing research, innovation, and BlueTech, the Center will serve as both a landing pad for companies and a catalyst for new ventures rooted in the Great Lakes. This fall’s Lakebed 2030 Conference will again feature the Great Lakes Blue Tech Challenge, awarding funding to three promising startups and helping build a pipeline of future tenants. Strong out‑of‑state interest in this year’s applicants points to something important: northern Michigan is increasingly on the national map for water‑focused innovation.
Perhaps no sector better illustrates the region’s evolving identity than uncrewed air, land, and water mobility. Recent federal designation of the National All‑Domain Warfighting Center reinforces northern Michigan’s strategic role in the future of autonomous systems.
Building on that foundation, the NorthSky Consortium, a collaboration among 20Fathoms, Northwestern Michigan College, and Traverse Connect, is advancing a coordinated regional strategy to attract investment, expand workforce development, and accelerate commercialization. With uncongested airspace, diverse terrain, and proximity to Lake Michigan, northern Michigan offers a rare testbed for beyond‑visual‑line‑of‑sight operations and maritime applications.
Work also continues on a medical drone delivery between Munson Healthcare locations, positioning the region not only as a testing ground but also as a national voice in shaping how these technologies integrate safely and responsibly into communities.
Northern Michigan’s startup and tech ecosystem continues to mature. 20Fathoms’ programs support founders with mentorship and coaching, while events like Startup Week draw outside talent and capital. This year, programming with BlueTech and drone integration highlights the region’s widening entrepreneurial scope.
At the same time, population data offers both encouragement and caution. Several northern Michigan counties ranked among the fastest‑growing in the state over the past year, and the region accounts for two of Michigan’s top counties for growth among 25‑ to 34‑year‑olds. However, these gains must be understood in the context of broader statewide trends: most counties continue to see more deaths than births, and international migration has slowed across Michigan.
That reality underscores why continued investment in talent attraction and retention matters. Regional efforts are producing results, but reductions in state support for these programs run counter to Michigan’s long‑term interests. Without sustained action, risks to wage growth, educational attainment, and competitiveness will continue to compound.
Small business growth and investment remain central to regional momentum. Opportunity Zones, particularly with improvements coming in the next phase of the program, could offer an important lever to spur development in communities across Grand Traverse, Kalkaska, and Antrim counties, with potential expansion into neighboring areas.
Manufacturing, too, is gaining ground. Events like the Northern Michigan Defense Conference and Manufacturing Summit highlight opportunities for metal treating, food processing, and precision machining to integrate into defense and government supply chains, as well as broader industry applications. While uncertainty around inflation, tariffs, and global trade persists, diversification and specialization are helping regional manufacturers adapt.
Momentum does not mean certainty. Economic crosscurrents remain, and challenges from workforce availability to affordability are far from resolved. But the seeds planted across northern Michigan in recent years are beginning to show real, measurable results.
As we look toward summer and beyond, there is reason for grounded optimism. The work ahead is to align our education, innovation, and policy around a shared vision; one where northern Michigan doesn’t just weather the seasons but leads the nation in the industries of the future.