Independent report finds Northwood University supported more than 9,300 jobs statewide, including 3,007 in the Great Lakes Bay Region, in fiscal year 2024-25.
Northwood University added $894.6 million in income to Michigan’s economy during fiscal year 2024-25, according to a newly released independent economic impact report that demonstrates the independent university’s far-reaching value to students, taxpayers, businesses and communities.
Lightcast, a leading provider of labor market analytics and economic impact studies, examined Northwood’s statewide and regional impacts through university operations, spending by students and visitors, volunteerism, and the increased productivity and earnings of alumni. The analysis found Northwood supported 9,376 jobs across Michigan in 2024-25. In the Great Lakes Bay Region, Northwood generated $234.1 million in economic impact and supported 3,007 jobs.
“Northwood’s economic impact begins with the people we educate,” said Northwood University President Kent MacDonald. “Our graduates carry the principles of free enterprise, personal responsibility, and earned success into their careers. They strengthen organizations, create jobs, and expand opportunity across Michigan. This study puts a remarkable value on that impact, but the larger story is what happens when principled, capable leaders apply their education in service to others. Their success becomes Michigan’s success.”
Economic impact felt across Michigan
Northwood’s $894.6 million statewide impact includes:
- $862.2 million from alumni, reflecting the increased earnings of former Northwood students working in Michigan and the additional productivity they bring to their employers.
- $26.8 million from university operations, including payroll and spending on facilities, supplies and professional services.
- $5.2 million from spending by students who relocated to Michigan to attend Northwood or who would have left the state for their education if Northwood did not exist.
- Approximately $274,500 from visitor spending at hotels, restaurants, gas stations and other Michigan businesses.
- Approximately $285,100 from volunteerism, generated through more than 6,400 hours contributed by Northwood students and employees.
The alumni impact alone is equivalent to supporting 8,648 jobs statewide, underscoring the long-term value Northwood graduates create through their knowledge, skills and professional contributions.
A major contributor to the Great Lakes Bay Region
Northwood’s impact is particularly significant in the Great Lakes Bay Region, which the study defines as Arenac, Bay, Clare, Gladwin, Gratiot, Isabella, Midland and Saginaw counties.
Of the university’s $234.1 million regional economic impact, $201.3 million was generated from alumni working in the region, while university operations added $26.3 million and student spending contributed another $6.1 million.
“Northwood’s connection to this region extends well beyond our campus,” said Chief Development and Engagement Officer Justin Marshall. “Our employees live, shop and contribute here; our students support local businesses and organizations; visitors bring new dollars into the community; and our alumni create new businesses while helping existing ventures grow. This report illustrates how investing in Northwood produces benefits that are shared throughout the region and state.”
Strong returns for students, taxpayers and society
The reports also evaluate Northwood as an investment from the perspectives of students, taxpayers and society.
For every dollar students invest in their Northwood education, they are projected to receive $3.90 in higher future earnings. Their average annual return is estimated at 16.5%, with FY 2024-25 students expected to receive a cumulative present value of $276.7 million in increased earnings throughout their working lives.
Michigan taxpayers are projected to receive $80.3 million in benefits through increased tax revenue and reduced demand for government-funded services. Northwood is a private, nonprofit university that receives no government funding.
From a broader societal perspective, every dollar invested in Northwood during FY 2024-25 is projected to produce $10.50 in added income and social savings for people in Michigan for as long as those students remain active in the state workforce.
Construction creates additional economic activity
The reports also examine Northwood’s significant FY 2025-26 capital investments, including construction of a new academic hall and conference center adjacent to the existing and remodeled N.A.D.A. Hotel and Conference Center.
Northwood’s construction activity is projected to produce $7.6 million in added economic value, support 87 jobs and generate $52.8 million in total output or sales transactions, including $30.4 million in initial university capital investment. Because the construction analysis covers a different fiscal year, that impact is not included in the university’s $894.6 million FY 2024-25 total.
The Lightcast study used Northwood’s FY 2024-25 academic and financial information, government industry and employment data, economic modeling, and research connecting education with economic and social outcomes. Its methodology evaluates both the university’s immediate spending and the enduring value created when graduates apply their education in the workforce.
The new study uses an updated Lightcast model, data sources and methodology. Lightcast advises that its findings should not be directly compared with Northwood’s previous economic impact report because differences between the studies do not necessarily represent changes in the university’s underlying value. You can view the new report on the Midland’s University webpage on northwood.edu.
