Manufacturers had Signaled Hope for Manufacturing in 2025

In 2025, manufacturers across the board signaled hope about the improvements seen in key manufacturing indicators in December 2024, which marked a nine-month high. The Supply Management manufacturing gauge hit 49.3 in December and 48.4 in November. This is slightly lower than the desired 50 but still welcome.

These numbers show strength especially coming out of 2024 when manufacturers and consumers alike experienced the drama of port closures and were forced to contemplate the systematic effects of strikes by dock workers at multiple ports. Events like these prove the importance of reliable processes and how supply chain events can change many day-to-day functions and have a strong long-term ripple effect.

National and International Change

The January 2025 inauguration of President Trump signals the potential of even more changes and affects within the manufacturing sector. President Trump’s 2024 platform highlighted his use of tariffs as part of an “America First” trade agenda during his first administration. As part of the Make America Great Again platform, the President shared his intention to again use tariffs in trade negotiations when he takes office this year.

President Trump will likely also review the U.S.-Mexico-Canada Agreement in July. With the possibility of substantial changes looming, many throughout the industry are looking closely to seeing what could appear as a part of these changes. If tariffs are imposed on Mexico and Canada, it makes sense that these countries could impose their own counter tariffs on the United States.

Trade with China will also likely see changes if President Trump increases tariffs under Section 301 of the Trade Act of 1974. Like the United States’ neighbors to the north and south, it’s reasonable to assume China will also demand its own retaliatory tariffs on the United States. Possible impacts for the industry include tariffs on steel and aluminum with reliance on Section 301 to impose tariffs on goods from China.

Supply Chain Concerns

During the pandemic, the United States discovered the importance of a reliable supply chain. Manufacturers that could not get their needed supplies, parts and equipment had to look elsewhere. In some cases, this has caused long-term shipping delays for equipment and parts. This also saw some manufacturers working together, when possible, to help customers get what they needed in as prompt a manner as possible.