Strengths, Weaknesses, Opportunities, Threats
SWOT ANALYSIS
A SWOT Analysis is a method of charrette facilitation that seeks to identify information from stakeholders familiar with the subject matter. It is reliant upon open communication that identifies:
STRENGTHS: are a region’s relative competitive advantages and often are internal in nature
WEAKNESSES: are a region’s relative competitive disadvantages and are also often internal in nature
OPPORTUNITIES: are chances or occasions for regional improvement or progress often external in nature
THREATS: are chances or occasions for negative impacts on the region or regional decline and also often are external in nature
Process and Methodology
The first CEDS Regional Task Force meeting was held on October 3, 2024. At this meeting, the Task Force members reviewed the 2021 CEDS Goals and Objectives and discussed regional projects with members. Due to Northern Michigan weather interfering with in-person meeting scheduling for the second meeting, Community Development staff organized a SWOT Analysis Survey with 31 of the members responding to the survey.
The responses from the SWOT Analysis Survey were analyzed by Community Development staff and developed into statements representing the various interests of the region. The statements were then reviewed and commented on by the Task Force members at their second meeting held on February 20, 2025.
SWOT Analysis Results
Below are the statements on strengths, weaknesses, opportunities, and threats, as well as the Internal Identity and External Identity.
STRENGTHS
The region’s economic strengths lie in its high quality of life, driven by abundant natural resources and recreational opportunities, which attract both residents and tourists. A thriving hospitality and tourism sector complements this, while a collaborative environment fosters strong partnerships between public and private entities, educational institutions, and economic development organizations. This collaboration supports a talented and educated workforce, including remote workers and tech professionals, and contributes to a growing and diversifying economy with a strong manufacturing base. Effective economic development leadership further enhances these strengths, focusing on strategic planning and stakeholder engagement. These strengths also include the food and farming industry, a regional workforce that punches above its weight class due to the boomerang effect for family or retirement and natural resources, and arts and culture.
WEAKNESSES
The region’s economic development is hampered by a significant housing crisis, characterized by a lack of affordable options (not just cost, but housing options), particularly for young families and lower-income residents, which deters talent attraction and strains existing residents. Workforce challenges include an aging population, limited skilled tradespeople, wage stagnation relative to housing costs, and seasonal income fluctuation further restrict growth. A lack of industry diversification, especially in the tech sector, coupled with limited career paths and a risk-averse culture, hinders innovation and economic expansion. Coordination and planning gaps, particularly among municipalities, prevent effective regional strategies and resource allocation. Geographic isolation is still a challenge, and there is an aging and lack of infrastructure, specifically multi-modal transportation options that strain roadways. Other weaknesses include limited funding for economic development initiatives, childcare shortages, a high cost of living, declining natural capital, 31digital literacy gaps within the workforce, layers of bureaucracy, funding restrictions, capacity, coordination and planning gaps among road commissions, a lack of incentives or legislation to build collaboration, state legislation silos, and state control of funding mechanisms. This can lead to partners leaving the table or moving further apart, a feeling of competition for funding, and turnover of staff in organizations, which leads to rebuilding.
OPPORTUNITIES
The region has significant economic development opportunities, particularly in strengthening collaboration and partnerships between public, private, and educational institutions to address key challenges like the housing crisis and workforce development. Focusing on skills training in highdemand trades and manufacturing, expanding apprenticeships, and developing comprehensive housing strategies are crucial. Leveraging the region’s natural beauty and desirability, while preserving it, can attract talent and businesses. Continued investment in broadband internet, dedicated economic development personnel, and placemaking (including creating placemaking in pockets such as Kingsley and Interlochen, which requires funding, and creating places where people want to live and bring businesses) along with embracing sustainable practices and modernizing governance models, will further enhance the region’s appeal and competitiveness. Building on recent economic development successes and supporting remote work trends will solidify the region’s position for future growth. Opportunities also include preserving unique rural communities through thoughtful design of development, recognizing that remote workers look for natural beauty and a small-town feel but want city amenities (higher density housing), developing corridors for unified prosperity, intentional development rather than reacting to what comes, addressing missing infrastructure (multi-modal, water, and sewer, including the lack of growth boundaries for water and sewer, which helps with growth and rate-setting best practices), opportunities to invest, zoning reform for housing, political will and the will of the people. Changes in technology, making it easy to share data and create images to display what could be, and a philanthropic older population that will invest in “good things” are also opportunities. The region is also seen as a climate refuge spot due to its fresh water and nice woods, with climate resilience attracting people.
THREATS
A critical threat is the high cost of living, particularly housing, driven by a lack of affordable options, which makes attracting and retaining a workforce difficult. This is compounded by outdated zoning, resistance to denser development, and stagnant wages. Climate change poses another significant challenge, impacting winter tourism, agriculture, and infrastructure. A lack of regional collaboration and political divisions impede effective planning and problem-solving. Reduced funding, particularly compared to urban areas, and a lack of childcare resources further strain the region.Ineffective planning, resistance to change (which leads to stagnation without economic development, and requires adaptation at a faster pace than desired), and an over-reliance on a few industries create additional vulnerabilities. Apathy to get involved, smaller populations of young people in communities, and hostile environments are also threats, along with time commitment from younger ages to be proactive, get involved, and learn how things operate. Finally, while in-migration brings some benefits, it also creates conflict and pressure on infrastructure, highlighting the need to ensure local residents benefit from this growth. Underlying all these challenges is the degradation of natural resources, which threatens the long-term health of the regional economy. Other threats include the privatization of spaces without accommodating public spaces and amenities, losing neighborhood feels in neighborhoods (with people visiting more than living), the risk of losing schools due to a lack of kids, a transient population that takes away from community investment (less likely to be engaged, no kids in school system), the distinction between a second home and a short-term rental, homes being shifted from residential to investment, the growing permanent population vs. transient population, aging (though outpacing the state with workforce ages in the region), losing knowledge 32from retirements or moving on, and health and wellness challenges including behavioral health, mental wellness, and the capacity of physical and mental health systems.
EXTERNAL IDENTITY
Northwest Michigan’s external identity is strongly tied to its natural beauty and recreational opportunities. It’s viewed as a “paradise” and a premier vacation destination, known for its charming small towns, wineries/breweries, beaches, outdoor activities, and overall relaxed atmosphere. The region is also recognized as the cherry capital and a top spot for craft beverages. While seen as a beautiful place to visit, live, and retire, it’s also perceived as rural. Traverse City, in particular, is considered a charming town with a strong arts and culture scene, local food culture, and abundant water resources, making it a popular location for weddings and other celebrations. However, the region’s increasing cost of living is also becoming part of its external image. There is an overlap between residents and visitors, and the “Traverse City” identity could be expanded to the “Grand Traverse Region” with a focus on agritourism and the region’s small towns. Food and farming and the overall safety of communities also contribute to the external identity.
INTERNAL IDENTITY
Residents see the region as having “something special” that they are protective of, recognizing its natural beauty and unique character. There’s a sense of community, with many viewing it as a place to come back to, and a spirit of collaboration and innovation. There is an awareness of the region’s challenges, including a divide between the “haves” and “have-nots” (wealth gap/ income disparity not just in Grand Traverse County), the struggle to diversify the economy while preserving the “small town feel”, and the tension between growth and nostalgia. Many recognize the importance of tourism but also acknowledge its impact on the community. The region is seen as a small metropolitan area striving to educate its workforce and provide opportunities for its youth. The region’s beauty and recreational opportunities are highly valued, but there’s a concern about maintaining them through sustainable growth that benefits all residents. There’s also a sense of the region being “good enough” while acknowledging challenges like seasonal employment, limited career opportunities, and affordability issues. Some perceive a lack of collaboration and a focus on individualistic opportunities rather than collective action. There is a true community feel, and it is an open, welcoming, and kind region with a social service network.