Northern Michigan - Economy

Economy

The economy of Northern Michigan is limited by its lower population, few industries and reduced agriculture compared to lower Michigan. Seasonal and tourism related employment is significant. Unemployment rates are generally high. (In June 2007, seven of the ten highest unemployment rates occurred in counties in the Northern Michigan area.

The northeast corner has an industrial base. In particular, Alpena is home to the LaFarge Company's holdings in the world's largest cement plant and is home to Besser Block Co. (the inventor of concrete block and maker of concrete block making machine), and has a hardboard manufacturing facility owned by Decorative Panels, International; and Rogers City is the locale of the world's largest limestone quarry, which is also used in steel making all along the Great Lakes.

Nearer to the Lake Michigan shore, Cadillac and Manistee have manufacturing and chemical industries, including the world's largest salt plant. Also, the East Jordan Iron Works corporate offices, as well as the original foundry, are located in East Jordan.

Historically, lumbering and commercial fishing were among the most important industries. Logging is still important but at a mere fraction of its heyday output. Commercial fishing is a minor activity.

A major draw to Northern Michigan is tourism. Real Estate, especially condominiums and summer homes, is another significant source of income. Because money spent in the real estate and tourism market in Northern Michigan is dependent upon visitors from southern Michigan and the Chicago area, the Northern Michigan economy is sensitive to downswings in the automobile and other industries. See Also: Economy of Detroit and Economy of Chicago

Agriculture is limited by the climate and soil conditions compared to southern regions of the state. However, there are significant potato and dry bean farms in the east. wine grapes, vegetables and cherries are produced in the west in the protected microclimates around Grand Traverse Bay. The Grand Traverse region has two of Michigan's four federally-recognized wine growing areas. The Grand Traverse Bay area is listed as one of the most endangered agricultural regions in the U.S. as its scenic land is highly sought after for vacation homes.

Large industries are sparse; cement-making and the mining of limestone and gypsum on the Lake Huron shore are the major exports of the area. Much of Michigan's natural gas extraction is from wells in Northern Michigan. A small number of men work on the Great Lakes freighters.

The only military presence in Northern Michigan is in two places:

• Alpena Combat Readiness Training Center in Alpena, Michigan is run by the Air National Guard and is co-located with the Alpena County Regional Airport.
• Camp Grayling near Grayling, Michigan. Camp Grayling is the largest military installation east of the Mississippi River, and the nation's largest National Guard training site. It is used by the U.S. National Guard, as well as active and reserve components of the Army, Navy, Air Force and Marine Corps. Year-round training is conducted on its 147,000 acres (590 km2) in Crawford, Kalkaska and Otsego counties. Much of the land (including Lake Margrethe) is accessible to the public for hunting, fishing, snowmobiling and other recreational uses (when military training is not happening).
• Wurtsmith Air Force Base near Oscoda closed in 1993.and has been converted to civilian use as Oscoda-Wurtsmith Airport