Economic Recovery and Resiliency Plan

Workforce

A skilled and talented workforce is vital to any economy. Strong partnerships between K-12 schools, local community colleges, trade programs, universities, business, and Michigan Works! are required for success. In order to achieve a more resilient economy and community, there should be emphasis of upskilling the most vulnerable and disadvantaged including individuals living below the ALICE threshold (asset limited, income constrained, employed). Jobs that tend to be more resilient require higher levels of cognitive, people, and motor skills.

Other key factors to consider in developing and retaining a solid workforce include transportation, childcare, housing, and other basic needs. It is extremely difficult to achieve economic mobility without basic needs being met first.

Value Chain

The term value chain refers to the various business activities and processes involved in creating a product or performing a service. A value chain can consist of multiple stages of a product or service’s lifecycle, including raw production, research and development, sales, and everything in between.

The organic tomato soup value chain example on page 9 shows how different regional players from farmers to marketers can work together to deliver a finished product to the community. The more operations that occur within the region equates to increased economic activity and greater resilience (fewer possible supply chain issues for one).

Traditional Retail Models Challenged

The apprehension of workers to be exposed to customers in any way for fear of virus transmission, caused major workforce challenges for businesses. It appears that as workers rethought their engagement in the economy, many made the decision to pursue new directions. Thus, as the economy reopened, many businesses found that their post-pandemic workforce was significantly diminished from pre-pandemic levels.

Vulnerability Exposed – Many in the workforce seemed to come to a realization that their work-life existence was out of balance. Since the pandemic caused this disruption, employers are rethinking the benefits necessary to sustain the workforce they need. Benefits that are more sensitive to the work-life balance appear necessary in the post-pandemic economy.

ALICE Population

ALICE stands for "asset limited, income constrained, employed" and are those who are slightly above the federal poverty level and are employed but struggle to make ends meet. The pandemic had the most impact on these individuals who were already living paycheck-to-paycheck. Between layoffs, an even more difficult time finding affordable childcare and increasing rent/home prices, many faced not only temporary set-backs but are still very much feeling the residual impacts of the pandemic.

Vulnerability Exposed - Individuals and families already in a precarious economic condition, experienced the harshest effects of the pandemic.

Learning Disparities

Not all students learn the same and this was especially true regarding online classes. While schools jumped into action in connecting students online, not all had internet access at home or even had relatives that could help them navigate technology. Many students quickly fell behind in coursework and essentially lost a year of both knowledge and socialization with fellow classmates and teachers.

Vulnerability Exposed - Children of lower-income families or those with limited high- speed internet access at home were more likely to fall behind in school.

Transportation Issues

During the height of the pandemic the absence of vehicles on the streets and highways was striking. Movement of people and products was dramatically reduced, if not stopped altogether. However, some needs did not disappear. Those who normally rely on public transportation for essential goods and services were put in a difficult position. Public transit services were diminished and the ability to ensure the safety of its passengers and drivers was largely beyond its reach. Passenger rail service (the South Shore Electric Line, Amtrak Pere Marquette, Blue Water, and Wolverine) shut down entirely during the pandemic. When rail reopened, ridership was significantly reduced because of public health apprehensions. In the post- pandemic environment, the shift to work-from-home options for many has resulted in less commuter volume on the roads. Also clear is that there are residual supply chain issues nationwide. Those issues have a transportation element but are more complicated than transportation alone.

Vulnerabilities Exposed – The transportation network for people and products requires more robust infrastructure across all its layers such that when one sustains a shock, others can expand to fill the gap. Additionally, it is clear that emergency plans should exist so that when major disruptions occur, each mode is able to quickly pivot onto emergency footing.

Elderly and Those with Health Issues

Elderly and those with pre-existing health issues tend to be more vulnerable to serious complications if exposed to the COVID virus. In addition to the government shutdowns, it proved to be difficult for these groups to carry on normal lives with even more caution required being out in public. Some medical procedures that were deemed non-essential were put on hold and some facing health issues besides COVID were still greatly impacted by the strain on our healthcare system.

Vulnerability Exposed – Those with persistent health issues or vulnerabilities experienced greater risk from COVID and a reduced access to health care because of the burden that COVID placed on the health care network. They were also less able to participate in the economy.

Supply Chain

Prior to the pandemic some economic sectors were already feeling the negative effects of supply chain issues. This was drastically amplified by the shutdowns, changes in production of goods, and other changes caused by the pandemic. There was a shift toward the production of personal protection equipment and other health care supplies. Ports around the world experienced massive backlogs with pent up demand following the initial shut downs. Locally, stores had (and in some cases continue to have) difficulty keeping certain items in stock. This has ranged from personal hygiene items to food and even packaging materials. There continues to be some supply chain issues driven by a shortage of truck drivers and limits to other modes of transportation.

Vulnerabilities Exposed - Globalization has created a complex network of supply chains that was greatly impacted by the global pandemic. One weak link can disrupt the supply of goods and services.

Border Region

Not all states had the same approach to containing the virus through shutdowns and restrictions placed on businesses varied widely. This was especially felt by local businesses in southwest Michigan given the proximity to Indiana where a generally less restrictive approach was applied. More southwest Michigan residents traveled to Indiana for entertainment and employment than usual as a result of the stricter response in Michigan. As restrictions were lifted, some employers struggled to re- attract workers who found employment in Indiana.

Vulnerabilities Exposed - It proved to be difficult for regions who bordered a state with a more relaxed approach to the pandemic. While the intentions behind slowing the spread of the virus were good, local businesses did suffer.

Labor Supply

There has been a shortage of skilled workers in our region for a number of years now. This was in part caused by a nation-wide push for high school seniors to attend college or university rather than enter into a trades or apprenticeship program. One area in which absence of skilled labor was particularly felt was in housing construction.The hospitality and tourism industries have also been affected by a shift in labor trends in recent years that was highlighted by the pandemic. High school and college students returning to class leaves these industries challenged to find workers during shoulder seasons (spring and fall). These industries, as well as agriculture, also suffered staffing issues as the result of fewer migrants being able to obtain work VISAs due to both policy and the global pandemic.

Vulnerabilities Exposed - The region has not historically been intentional enough in recognizing the relationship between labor demand and labor supply. As a result, the COVID disruption further amplified the existing mismatch.

Business Assistance

Many small businesses face obstacles to capital and overall support during their first years in business.

Vulnerabilities Exposed - Businesses already in precarious periods of their growth cycle, will be more susceptible to regional economic disruption.