Nearly two months after Inauguration Day 2025, Forvis Mazars and a panel of CFOs discussed trends within the U.S. manufacturing industry, and potential challenges faced by business leaders. We polled attendees* to capture their perspectives directly, the results of which—along with our context and insights—are detailed below.
Which of the following key trends is impacting your business the most?
Market uncertainty was by far the most prevalent response. This makes sense because there are a lot of factors affecting the market right now. In fact, upon reflecting on the data, we recognize that the other options—rising costs, labor shortages, administrative/regulatory changes, and supply chain disruptions—all contribute to market uncertainty.
Some may be experiencing very specific impacts today, which is why we see responses scattered into more focused areas, but the resounding concern is the unknown.
Based on the current/impending regulatory changes, do you expect your business volume to: decrease, increase, stay the same, or not sure?
The knowledgeable panel from Forvis Mazars was surprised to see “not sure” as the highest response, followed closely by “stay the same.” Also concerning was the high number of “decrease” responses. The manufacturing industry has faced challenges in the past, so our experienced industry leaders want to encourage organizations in this category to have discussions with trusted third parties to develop road maps and provide additional scenario planning to take advantage of market disruptions.
However, given the uncertainty of the marketplace, it’s possible respondents are unsure where to start or might even be cautiously optimistic that the key trends listed in the previous question will stabilize, allowing their business to stay the same.
The “decrease” response likely indicates the need for respondents to seek additional insights in order to address what might lead to a decrease in business volume.
Also worth noting is the contrast from four to five years ago, when manufacturing companies were forced to quickly adapt to the impact of COVID-19 on the marketplace. It’s possible the administrative changes will be easier to address based on past experience and adaptability. One factor to be mindful of is your organization’s dependence on imports/exports.
Which of the following administrative policies do you expect to positively vs. negatively impact your business?
For policies with anticipated positive effects, the highest responses of “tax changes” and “reduced regulations” makes sense here and falls in line with what the new administration has billed as getting back to the components of a “free market” economy. Respondents likely assume to see lower corporate taxes and that reduced government regulations would also lower costs and simplify their business plans and strategies going forward.
On the other hand, “tariffs” was far and away the highest response to what manufacturers anticipate will negatively impact their businesses. This indicates the probability that most respondents rely on imports and exports, and the recent stopping and starting of various tariffs could be contributing to this being the prevalent concern right now.
If tariffs really are going to become a substantially negative aspect of doing business, then it’s critical to a) have a good strategy to reduce the impact of tariffs by making supply chain adjustments, and b) fully utilize tax, energy, and regulation savings to offset tariffs. Exploring how to fine-tune strategies in these ways might help your organization thrive, not just survive, through these changes.
What action are you taking to prepare for the current/impending regulatory changes in manufacturing?
“No action” as the highest response was surprising, primarily because Forvis Mazars encourages clients to consider several potential outcomes and get a step ahead of competition that might be waiting to see how things net out. You risk missing key strategic planning time if you take a wait-and-see approach.
Simultaneously, the “no action” response is not so surprising given the previous indications of market uncertainty and concerns that business will decrease, stay the same (at best), or respondents simply not knowing what will happen.
In addition, “search for alternate sourcing” aligns with the overwhelming “tariffs” response when asked what might negatively impact business.
So, what now?
Market uncertainty was top of mind for attendees, and the story of preparedness to face positive and negative trends (both perceived and real) is clear—most aren’t sure where to start or how long to wait before getting started.
You’re heading in the right direction by continuing to research and educate your leadership team on what’s happening in the market and how your company might be impacted. It also can be beneficial to work with trusted third-party advisors to create different strategies so you’re prepared to move forward with the right plan if and when necessary. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.
Register for our next webinar, “The Resurgence of Manufacturing: Workforce Development,” for strategies on retaining current employees and attracting new talent.
*Data was collected from 390+ individuals who attended The Resurgence of Manufacturing: Trends & Challenges on March 10, 2025 and answered several poll questions. The majority of attendees represent middle-market manufacturing companies, but others span a range of industries with an interest in the state of the manufacturing industry. The bulk of participants listed themselves as managers/supervisors or at the C-suite/executive/owner level at their organizations.