Michigan lags US in outdoor economy growth, report says

Michigan’s outdoor recreation industry continues to grow, though at a slower pace than much of the nation, according to recent data from the U.S. Bureau of Economic Analysis.

The state’s outdoor recreation sector added $15.1 billion to the economy in 2024, marking a 3.5% increase from the $14.6 billion contributed in 2023. However, this growth rate falls below the national year-over-year increase of 4% and trails behind 35 other states.

Brad Garmon, executive director of Michigan’s Outdoor Recreation Industry Office, isn’t surprised by these figures. “In some ways, that’s not entirely unexpected,” Garmon explained. “One thing about Michigan’s outdoor recreation economy is it’s really diverse. In some ways, that means that we don’t grow as fast as some other states that see a big upswing.”

The latest economic data comes as Michigan experiences one of its strongest winter sports seasons in years, thanks to substantial snowfall. Mike Panich, executive director of the Michigan Snowsports Industries Association, reports robust activity across the sector.

“We’ve had a very strong winter,” Panich said. He noted that snowfall in the Midwest has surpassed that of western mountain states, encouraging more people to enjoy winter sports closer to home. “We do believe that that will have an impact on the numbers for next year.”

Despite the current success, Panich maintains a cautious outlook. “We can’t rest on that,” he warned, recalling that just three years ago, an unusually warm winter created one of the worst seasons for the industry. Outdoor businesses continue to monitor climate change data and seek ways to diversify their offerings to mitigate future weather-related risks.

The federal data reveals significant variations in growth rates across the country. Massachusetts led the nation with a 6.9% increase, followed closely by Arizona at 6.8% and Iowa at 6.6%. At the other end of the spectrum, Louisiana, Hawaii, and Wyoming each saw minimal growth of 0.5% or less.

Michigan’s current growth represents a normalization after the exceptional surge experienced during the early years of the COVID-19 pandemic, when outdoor activities and related purchases like RVs, bicycles, and kayaks saw double-digit growth as people eagerly sought outdoor experiences during lockdowns.

While faster growth would be welcome, Garmon emphasized the benefits of stability. “We want long, slow, steady growth over more volatile big wins and big losses,” he said.

The Bureau’s analysis also broke down economic contributions by activity category. Michigan ranked in the top 20 nationally for most outdoor recreation categories, which Garmon interprets as evidence that the state is “actually punching above our weight in almost everything.”

Within Michigan’s outdoor economy, travel and tourism were the largest contributors, adding $4.8 billion. Transportation contributed $1.7 billion, while conventional multi-use apparel and accessories added $1.5 billion. At the lower end of the spectrum, canoeing and kayaking contributed $17.7 million, recreational flying added $34.4 million, and skiing and snowboarding generated $48.5 million.

Overall, Michigan’s outdoor recreation industry supports nearly 125,000 jobs across the state, highlighting its significant role in the state’s economic landscape despite the slightly slower growth rate.

The industry’s diverse composition may moderate growth compared to states with more specialized outdoor economies, but this diversity also provides resilience against downturns in specific sectors. As climate patterns continue to shift, this balanced approach may prove advantageous for Michigan’s long-term outdoor economy.

This report was originally published by Bridge Michigan and distributed through a partnership with The Associated Press.