Vital signs from the manufacturing industry

Despite current economic uncertainty

56% of U.S. manufacturing executives report moderate optimism about their business prospects over the next six months

Top concerns among respondents

Current and proposed tariffs: 63%

Geopolitical climate: 43%

National political environment: 36%

To address the impact of tariffs

67% of executives are passing increased costs on to customers

43% are actively adjusting their supply chains

Almost 30% are absorbing added costs or plan no changes

In response to broader economic uncertainty and to protect profit margins

56% are raising prices

46% are implementing cost-cutting measures

40% have paused hiring

In the longer term

Where manufacturers stand on artificial intelligence (AI) and automation

84% believe AI will be standard in manufacturing within five years, although

only 1% of companies have expanded AI across multiple functions

39% are in the research-only phase

25% are not exploring AI at all

Respondents see the most immediate disruption coming from

Advanced robotics: 54%

Industrial Internet of Things (IIoT): 18%

Augmented or virtual reality: 10%

Read the full report here: https://www.sikich.com/industries/manufacturing/manufacturing-industry-pulse/