A new economic impact study, a testament to Northwood University’s significant contributions, reveals that in FY 2022-23, the institution added a staggering $879.3 million to Michigan’s economy, with $211.8 million benefiting the Great Lakes Bay Region. This substantial economic boost supports over 10,000 jobs statewide and strengthens various sectors, including education, business, and public services.
The study’s unique approach evaluates the University’s economic impact, focusing on direct spending and the enhanced productivity of its alumni across Michigan. This distinctive perspective underscores Northwood’s value to taxpayers and society, a value that is achieved without relying on government funding.
“This study confirms Northwood University’s profound impact on the Great Lakes Bay Region and the entire state,” states President Kent MacDonald with a sense of pride. “We are proud that our efforts to champion free enterprise and develop skilled graduates are yielding tremendous returns, benefiting local communities and Michigan taxpayers alike.”
Economic impact highlights
In FY 2022-23, Northwood University contributed to Michigan’s economy in several key areas:
- Operations spending impact: Northwood supported 719 jobs directly and spent $25 million in payroll and $23.4 million in operational expenses, with $17.5 million remaining within Michigan. This spending generated $15.7 million in added income statewide and supported 588 additional jobs.
- Visitor and student spending impact: More than 20,000 visitors to Northwood events injected new dollars into local businesses across the Great Lakes Bay Region, contributing approximately $1.3 million. The spending of students who relocated to or stayed in Michigan for their education added $5.1 million in income to the state and supported 85 jobs.
- Volunteerism impact: Northwood’s student and employee volunteers contributed nearly 31,800 hours to Michigan, adding an estimated $1.3 million in income and supporting 39 jobs.
- Alumni Impact: Thousands of Northwood alumni work in Michigan, generating $856.6 million in added income for the state and supporting 9,376 jobs. In the Great Lakes Bay Region, alumni impact alone amounted to $188 million.
“This analysis underscores Northwood University is an anchor of the Midland community and highlights that our commitment extends well beyond the classroom,” said Justin Marshall, chief development and engagement officer. “We’re honored to be an important part of the City of Midland and remain committed to educating the future workforce, being recognized as one of America’s Great Colleges to work for, driving economic growth, and contributing to a thriving future for Michigan.”
Return on investment for students, taxpayers, and society
The study also highlighted the long-term return on investment for students, taxpayers, and society:
- Students: Northwood students who invest in their education can expect a cumulative return of $252.9 million in additional earnings over their careers — a return of $4.10 for every dollar invested.
- Taxpayers: Northwood’s impact generated $96.7 million in public revenue over the working lives of its students through increased tax income and reduced demand for public services despite receiving no government funding.
- Societal impact: For every dollar invested in Northwood, Michigan’s economy will see an estimated $12.70 in added benefits over students’ careers, totaling $1 billion in long-term economic contributions.
“As Northwood University continues our mission to develop free-enterprise leaders who drive global economic and social progress, our impact is expected to grow, further solidifying its role as an economic driver in Michigan,” stated Vice President of Advancement Murray Kyte. “We welcome those who value freedom, personal responsibility, limited government, earned success, and the importance of free enterprise to support our mission and Northwood’s role as America’s Free Enterprise University.”
The economic impact study was done by Lightcast, a global leader in labor market analytics that specializes in providing objective, third-party data that demonstrates a higher education institution’s economic and social benefits.
To read the full economic impact study, visit Northwood’s Community webpage.
