Tariffs, Technology, and Transformation: Manufacturing’s Next Chapter
Tariffs, trade disputes, and global conflicts are shaking up the manufacturing industry, forcing leaders to make tough choices every day. Our latest research reveals how manufacturers are adapting, what’s driving these changes, and where things are headed next.
Here’s what you need to know:
The World Isn’t Waiting
Think back a few years. Global supply chains ran like clockwork. Now, every week brings a new challenge. Political tensions, new tariffs, and economic uncertainty force manufacturers to rethink everything. It’s not just talk; real change is happening.
Take this example: a staggering 85% of manufacturers have already changed their supply chain strategies because of tariffs and economic uncertainty. And it’s not just one region being left behind. One in five global manufacturers have left the U.S. market in the past year. China and Russia are also seeing big exits. These moves aren’t easy, but they are necessary.
Supply Chains: Building Resilience
Manufacturers are not just reacting. They are building for the future. More than half (52%) have cut back on suppliers in high-tariff regions. Nearly half (48%) are working with more suppliers or moving away from single-country sourcing. Why? Flexibility. If one market gets risky, they have options.
It’s a big shift. Old habits focused on cost and efficiency. Now, resilience and agility win the day. Companies want partners who can deliver, even when things get tough. Some are moving production closer to home. Others are diversifying, so a single disruption doesn’t throw everything off.
The Cost Crunch: Every Dollar Counts
Let’s talk about the bottom line. Costs are climbing everywhere you look. Materials, shipping, compliance, it all adds up. Over half (53%) of manufacturers say production costs are up. Procurement and logistics costs are rising for half of companies, too.
Leaders are getting creative. Some switch suppliers more often, chasing better deals. Others use software to compare costs in real time. The goal is simple: stay competitive, even as the pressure mounts.
Digital Tools: The New Advantage
Here’s where things get exciting. More manufacturers are turning to digital tools to stay ahead. AI is not just a buzzword—it is a game changer. Over half already use AI for supply chain management and process optimization. These tools help teams spot problems early, forecast demand, and make smarter decisions.
But digital transformation is not always smooth. Many companies run into issues with legacy systems and messy data. Integration challenges slow things down. The solution is to invest in technology and upskill your team. The companies that get this right move faster and avoid costly mistakes.
What’s Next? Expect More Change
Instead of waiting for calm, now is the time to lean into change and shape the future. Uncertainty is the new normal. The best manufacturers plan for disruption: they build flexible supply chains, invest in technology, and strengthen partnerships. Agility and visibility are now the keys to success.
The takeaway is clear. Companies that move fast, stay informed, and adapt quickly will lead the way. The rest risk getting left behind.
Our report dives deeper into these trends and shares more insights from industry leaders. Curious how others are adapting? Want to know what’s next for manufacturing?