Back to Allegan County

Allegan County

Michigan | Economic Development Report

TerraMetrics

May 9, 2026

Population: 122KGDP: $5.0BAI Exposure: 28/100Establishments: 2,578Farms: 1,120

Total Employment

41.3K

Resilience Score

70/100

Diversification

94/100

Net Impact (Probable)

-626

STEEPE Disruption Profile (Probable)

Political Risk
70.84
State: 65US: 52(+5.840000000000003 vs state)

Metro jurisdiction -- larger government apparatus with more regulatory complexity.

Economic Vitality: stable -- adequate governance but limited capacity for bold policy moves.

Economic Disruption
67.46
State: 72US: 74(-4.540000000000006 vs state)

Median household income $85K (+29.2% vs state median) -- well above state average, providing economic cushion.

Unemployment 4.3% with 58,054 total employed. Poverty rate 7.4%.

Ecological Stress
64
State: 58US: 38(+6 vs state)

Climate-sensitive specialty crops

Agriculture/food sector (8.3% of employment) directly exposed to climate variability and extreme weather.

AI > AGI > ASI
52
State: 68US: 94(-16 vs state)

AI Exposure Index: 28/100 -- lower vulnerability to AI-driven workforce disruption.

Highest risk sector: Agricultural labor (harvest automation, precision farming)

Bitcoin Adoption
41
State: 35US: 72(+6 vs state)

No significant financial sector employment -- BTC adoption impact is indirect through consumer behavior and investment flows.

Higher household income ($85K median) correlates with greater crypto adoption and investment exposure.

Education Value
40
State: 55US: 72(-15 vs state)

28.5% bachelor's+ attainment is 5 points below the national average (33%).

93.6% high school+ completion rate -- strong foundation for workforce training programs.

Quantum Readiness
31
State: 30US: 82(+1 vs state)

Research institutions (Western Michigan University (nearby)) provide local quantum/STEM workforce pipeline, though direct quantum compute facilities are rare outside major metro areas.

28.5% bachelor's+ rate limits local STEM talent pool -- PQC migration will depend on external expertise.

Social Trust
18.92
State: 42US: 55(-23.08 vs state)

Low poverty rate (7.4%) supports stable community networks.

Population gaining (+1.6% since 2020) -- modest inflow diversifies the base.

CBDC Rollout
16
State: 15US: 12(+1 vs state)

Lower poverty (7.4%) means most residents already have bank access. CBDC impact would be through payment efficiency, not financial inclusion.

Retail/hospitality sector (11.1%) would be early adopters of CBDC point-of-sale infrastructure.

Industry Sectors (CBP)

Manufacturing
14.6K
Retail Trade
4.1K
Accommodation & Food Services
2.9K
Construction
2.7K
Healthcare & Social Assistance
2.7K
Wholesale Trade
2.3K
Professional & Technical Services
2.0K
Transportation & Warehousing
1.5K

Signature: Food Processing & Plastics Manufacturing - 35.5% of employment in manufacturing. Perrigo, Padnos, food processing for Allegan's massive agricultural output.

AI Vulnerability

  • Agricultural labor (harvest automation, precision farming)
  • Small-scale manufacturing (plastics, wood products)
  • Seasonal tourism staffing

AI Benefiting

  • Precision agriculture (drone monitoring, soil analysis, yield prediction)
  • Agri-tech (automated irrigation, frost protection)
  • Eco-tourism AI (booking optimization, trail management)

Target Industries

1. Agribusiness & Food Processing
2. Tourism & Hospitality
3. Advanced Manufacturing

Agricultural Economy (USDA 2022)

Farms: 1,120
Farmland: 209K ac
Market Value: $728M
Net Income: $176M

Top Commodities:

Poultry & eggs$217M
Milk from cows$164M
Hogs & pigs$106M
Grains & oilseeds$98M
Crops 28%Livestock 72%

Sector Impact Analysis (Probable Future)

Manufacturing
-695
Healthcare & Social Assistance
+347
Retail Trade
-336
Accommodation & Food Services
-222
Construction
+212
Professional & Technical Services
+156
Transportation & Warehousing
-127
Educational Services
+68

Net employment change by sector under probable futures scenario. Green = growth, Red = displacement risk.

Ranked Opportunities

1. Precision Agriculture & AgTech Corridor

71/100

Combine agricultural land base with AI/tech capabilities to become a precision agriculture testing and deployment hub.

2-5 yearsModerate economic impact potential
  • -Recruit AgTech startups (drone monitoring, AI crop analytics, autonomous equipment)
  • -Create farm-to-tech apprenticeship programs for agricultural workers
  • -Establish precision agriculture demonstration farms with university partners

2. Value-Added Food Processing

66/100

Leverage agricultural output to attract food processing, cold storage, and distribution operations that create higher-wage jobs from raw commodities.

2-5 yearsModerate economic impact potential
  • -Identify sites for food processing plants near major agricultural output
  • -Create cold-chain logistics incentives for distribution hub development
  • -Partner with agricultural cooperatives for supply agreements

3. Advanced Manufacturing Automation Hub

60/100

Attract robotics and AI-augmented manufacturing companies to leverage existing manufacturing workforce and retrain for higher-wage automation roles.

2-5 yearsPotential: 732 new jobs, $41.4M annual payroll
  • -Partner with local community colleges for robotics/PLC certification programs
  • -Create tax incentives for manufacturers investing in automation upgrades
  • -Establish a manufacturing innovation center with shared robotics equipment

4. Reshoring & Nearshoring Attraction

60/100

Position existing manufacturing infrastructure to capture companies returning production from overseas, driven by supply chain security concerns.

1-2 yearsPotential: 732 new jobs, $41.4M annual payroll
  • -Identify vacant or underutilized industrial sites suitable for rapid conversion
  • -Develop fast-track permitting for reshoring manufacturers
  • -Create workforce pipeline agreements with regional training programs

Under the probable future, this county's strongest opportunity is precision agriculture & agtech corridor (feasibility: 71/100). While 626 jobs face displacement risk, proactive investment in precision agriculture & agtech corridor can offset this with moderate economic impact potential. Additionally, value-added food processing scores 66/100 feasibility.

Key Traits

Michigan blueberry/peach agriculture capitalSaugatuck arts and tourism destinationRural manufacturing pockets (Perrigo HQ)Limited broadband infrastructureAging population, youth outmigrationClimate-sensitive specialty crops

Major Employers

Perrigo Company (Allegan, consumer health products)

Allegan General Hospital

Allegan Public Schools

Agricultural operations (blueberry, peach, asparagus farms)

Saugatuck/Douglas tourism sector

WARN Act Notices (Recent)

CompanyDateWorkersType
Beacon Health (Ascension)2025-03-0160layoff
Perrigo Company2024-04-1565layoff
Perrigo Company2023-07-0180layoff
Padnos (scrap recycling)2021-07-0150layoff
Compass Group/Morrison Healthcare2020-04-1555layoff

Michigan Economic Incentives

Michigan Business Development Program (MBDP)

Performance-based grants for creating and retaining high-quality jobs. Michigan's primary incentive for large-scale proj...

grant

State Essential Services Assessment (SESA) Exemption

Exemption from the SESA on eligible personal property for qualified high-tech, manufacturing, and corporate office facil...

exemption

PA 198 Industrial Facilities Tax (IFT) Abatement

Local property tax abatement on new or replacement industrial facilities. Reduces property taxes by approximately 50% on...

exemption

Michigan Strategic Fund (MSF) Job Training Grants

Grants to support customized workforce training for new and expanding businesses. Going PRO Talent Fund provides demand-...

training

SmartZone / LDFA Tax Increment Financing

Technology-focused business incubators supported by local tax increment financing. Captures growth in local and state ta...

exemption

Lakeshore Advantage + Southwest Michigan First

Target Sectors

Agriculture & Food ProcessingPharmaceuticalPlastics & PackagingTourism

Active Programs

  • SURGE incubator access (Holland, shared with Ottawa)
  • SWMF First Up / First Path / First 50 (workforce)
  • SWMF Leadership Greater Kalamazoo
  • Sustainable Business Collaborative

Recent Wins

NameInvestmentJobsYear
Profielnorm USA (Plainwell)$7.5M322024
Walinga USA agricultural equipment (Wayland)-312023

Preferred Future Actions

PriorityDimensionActionImpactControl
criticalEconomic DisruptionReduce Manufacturing (pharma/plastics) Concentration Risk+8local
criticalEducation ValueClose the Skills Gap with AI-Ready Credentials+6local
criticalAI > AGI > ASIUniversal Broadband for AI Economy Participation+3federal
highEducation ValueSector-Aligned K-12 + Community College Pipeline+5local
highEducation ValueRegistered Apprenticeship Expansion: Manufacturing (pharma/plastics)+4local
highSocial TrustPre-Positioned Displaced Worker Rapid Response+4local
mediumEcological StressClimate Resilience Infrastructure Investment+4local
criticalAI > AGI > ASIRural Broadband for AI Economy Participation+6federal
highEconomic DisruptionBlueberry Belt Precision Agriculture Program+5local

Projected Impact Summary

Education Value
45 + 15 = 60
Economic Disruption
60 + 13 = 73
AI > AGI > ASI
46 + 9 = 55
Social Trust
45 + 4 = 49
Ecological Stress
68 + 4 = 72

Total Impact

+45 pts

9 actions

Local Control

78%

7 of 9 actions

Critical Actions

4

highest priority

Impact estimates are modeled projections based on STEEPE dimension sensitivity analysis. Actual outcomes depend on implementation quality, timing, and external conditions.

Data Sources

Census CBP 2022, USDA Census of Agriculture 2022, Census ACS 2024, BLS QCEW, BEA County GDP, WARN Act Notices, TerraMetrics STEEPE Engine. Census ACS 5-Year 2023: Allegan County. BLS LAUS: Allegan County. USDA Rural-Urban Continuum Codes.

Definitions

STEEPE Framework: A multi-dimensional disruption assessment covering Social, Technology (AI, Blockchain, CBDC, Quantum), Ecological, Economic, Political, and Education. Each dimension is scored 0-100, where higher values indicate greater disruption intensity. Scores shown in this report reflect the Probable scenario projection.

Resilience Score (0-100): How well-positioned a county is to absorb economic disruption. Calculated from economic diversification (40%), opportunity-to-threat ratio (35%), and average sector wage levels (25%). Higher scores indicate greater capacity to weather change.

Diversification Score (0-100): Economic diversity across industry sectors, based on the inverted Herfindahl-Hirschman Index (HHI). A score of 100 indicates a perfectly diversified economy; lower scores indicate concentration in fewer sectors, increasing vulnerability to sector-specific shocks.

AI Exposure Score (0-100): Degree of exposure to AI-driven disruption based on knowledge worker concentration, tech company density, and manufacturing automation exposure. Higher scores indicate greater exposure, meaning both higher risk of displacement and higher potential for AI-driven growth.

Futures Cone (Probable / Possible / Preferable): Based on the Voros (2003) futures cone methodology. Probable represents where current trends lead (highest confidence). Possible covers what could happen across a wider range of conditions. Preferable describes the abundant future that proactive policy and investment can build toward.