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Yahoo
18-06-2025
- Business
- Yahoo
SURVEY: U.S. manufacturers are betting on growth despite economic pressures
New data reveals where manufacturers are investing and where they're vulnerable COLUMBUS, Ohio, June 18, 2025 /PRNewswire/ -- U.S. manufacturers are operating in an environment of elevated risks as they navigate trade policy uncertainty, shifting regulations, potential supply chain volatility and labor market challenges. Despite these pressures – and recent softening in manufacturing sector sentiment – new research from Nationwide shows that industry confidence remains high as 8 in 10 manufacturing leaders expect positive business performance over the next 12 months. This optimism is largely driven by strategic investments in technology, supplier agility and operational resilience. Nationwide's survey, fielded in April 2025 with 400 U.S. decision makers for mid-sized manufacturers, found that 65% rated business conditions in the U.S. as good or excellent, while an even greater share (79%) expressed confidence about conditions for their business specifically. Though tariff questions remain, 64% believe the levies will lead to positive impacts for their business one year from now. "While pressures are building, many manufacturers remain optimistic as they take proactive steps to position for future growth," said Erika Melander, head of Nationwide's national manufacturing practice. "As trade tensions weigh on manufacturers, operators aren't standing still – they're strategically looking at reducing global exposures, investing in technology and strengthening operations to better manage risk and stay competitive." Investing for the future To position for long-term success, manufacturers are making calculated investments aimed at improving flexibility, resilience and speed. Many are taking steps to mitigate ongoing or future supply chain risks, such as: Expanding their supplier base (64%) Frontloading inventory (52%) Creating, reviewing or updating their business continuity plans (48%) While global suppliers still play a key role for 75% of respondents, 1 in 3 (35%) report that they're shifting to more U.S.-based partners due to evolving trade policy and another 50% are considering it. Technology is also seen as a critical driver of growth in the year ahead. Digital tools are being adopted widely to streamline operations, with inventory management systems (91%) and Internet of Things (83%) solutions leading the way. Meanwhile, many manufacturers are leaning into AI technology to improve efficiency and stay competitive. Those already using AI report benefits, such as improved forecasting, cost savings, product quality, and supply chain agility. As reliance on digital tools grows, 31% of businesses say strengthening their cybersecurity is one of their largest business opportunities over the next year. Caution beneath the confidence Despite these upbeat survey results, other surveys point to downbeat views in the manufacturing sector. The May ISM Manufacturing Index declined for the third straight month, falling deeper into contraction territory activity in May as trade policy and economic uncertainty weighed on attitudes. In Nationwide's survey, major concerns remain even among confident manufacturers. Top financial concerns include persistent inflation, changing tariffs, high interest rates, domestic market volatility and supply chain delays. For those worried about inflation, the most cited cost pressures include raw materials, energy, labor, maintenance and logistics. Despite efforts to source locally, nearly half of manufacturers (45%) still expect to rely on tariffed imports, fueling concern for 87% who worry that shifting trade policies could cause further supply chain delays and pricing disruptions. To manage these pressures: 32% plan to pass most rising costs on to customers 44% will absorb some costs and adjust pricing moderately 23% plan to absorb most costs without passing them on to customers Labor shortages also remain a critical pain point. Nearly two-thirds (64%) say they struggle to attract and retain skilled workers, and about 3 in 10 cite difficulty finding employees with the right capabilities (28%) or offering compensation packages that meet expectations (27%). Additionally, two-thirds report that younger workers do not view manufacturing as a desirable career – posing long-term risks to talent pipelines. Even technology adoption – seen by many as a competitive edge – comes with hurdles. While many are leaning into AI, 4 in 10 cite high costs as a barrier, followed closely by challenges integrating AI into existing systems (38%) and a lack of internal expertise (37%). Roughly 3 in 10 worry about product defects or underperformance, underscoring that even promising innovations require careful planning and execution. Navigating uncertainty with strategy, partners and tools As manufacturers prepare for what's next, a focused and flexible strategy is essential. Melander says leaders should prioritize three key areas to strengthen their position in a complex and evolving economy: Technology: Continue scaling technology, from inventory management systems and automation to AI, to drive efficiency and resilience. Talent: Redefine what a career in manufacturing looks like, emphasizing innovation, job security and purpose to appeal to the next generation. Risk Management: Partner with specialized insurance and risk advisors to reassess exposures, tailor coverage and develop mitigation strategies that support long-term needs. "Manufacturers who treat risk management as a strategic priority – not just a safety net – will be better equipped to weather volatility and sustain growth," said Melander. "By aligning their talent strategy, embracing technology and working with experienced insurance partners to anticipate and mitigate risk, they're building a more resilient and competitive future." Learn more about manufacturing insurance and risk management resources, and view the full findings from Nationwide's survey here. Methodology:Nationwide commissioned Edelman Data and Intelligence to conduct a national online survey of 400 U.S. manufacturing business decision makers and 200 independent insurance agents who work with manufacturing clients from April 4 to April 21, 2025. About NationwideNationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified financial services and insurance organizations in the United States. Nationwide is rated A+ by Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance. For more information about Nationwide and Nationwide's ratings, visit or Company Ratings -- Nationwide. Subscribe today to receive the latest news from Nationwide and follow Nationwide PR on X. Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2025 Contact:Graham Shippy(614) to Nationwide News View original content to download multimedia: SOURCE Nationwide Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
02-04-2025
- Business
- Forbes
March 2025 Manufacturing Contracted But Material Handling Expanded
A robot picks up a tote containing product during a public tour of an Amazon Robotics fulfillment ... More center. Photo by Paul Hennessy/NurPhoto via Getty Images. U.S. manufacturing contracted in March 2025, while material handling improved and expanded. The Institute for Supply Management manufacturing index contracted in March 2025 for the first time since December 2024. Meanwhile, the MHI Business Activity Index by Prestige Economics reflected expansions across almost all categories, including business activity, new orders, future new orders, shipments, unfilled orders, exports, and capacity utilization. Only material handling inventories fell in March. Over the next two years, a drop in interest rates and a likely accompanying decline in the dollar have the potential to support material handling and manufacturing. However, tariffs and trade policy uncertainty have added significant downside risks to the growth outlook. The ISM Manufacturing Index fell to 49 in March 2025, contracting for the first time since December ... More 2024. U.S. manufacturing contracted in March as the Institute for Supply Management manufacturing index fell to 49 from 50.3 in February. The March reading was back below the breakeven of 50 for the first time since October 2022. This series is a key leading indicator of U.S. economic growth, and its March weakness does not bode well for U.S. Q1 2025 GDP, especially with recently soft consumer confidence and elevated tariff risks. Based on data available through April 1, the Atlanta Fed's GDPNow reflects a likely Q1 2025 U.S. growth rate of -3.7%. The Q1 2025 Atlanta Fed GDPNow reflects growth likely to be -3.7% based on data available as of ... More April 1, 2025. Material handling data was strong and improved in the Apr. 1, 2025, release of the March 2025 MHI Business Activity Index by Prestige Economics — known in shorthand as the MHI BAI. This is the most real-time economic data available for the U.S. material handling industry. The material handling industry is comprised of manufacturers, technology providers, and other suppliers who provide the hardware and software to move goods through the U.S. and global supply chains. Data in the MHI BAI comes from leading executive leadership members of MHI, which is the largest material handling, logistics, and supply chain association in the United States. The MHI BAI also bodes well for Q1 2025 GDP since January and February data collected from MHI executives reflected expansions across most categories. The March MHI BAI was a solid report, and it strengthened from the February 2025 MHI BAI report. Shipments have been consistently expanding over the past few years in MHI BAI reports. In March, MHI BAI shipments expanded, as 71% of respondents reported expansions in shipments, and only 29% reported contractions. MHI BAI series readings above 50 indicate that a majority of the respondents reported increased monthly activity, while readings below 50 indicate a majority of respondents noted decreased activity. New orders were also positive and expanded, as 58% of respondents reported monthly expansions in new orders. This reading was above the breakeven of 50, and it reflected an acceleration from the expansion in February. Despite expansions over the latest six consecutive months through March, new orders have been mixed over the past two years, reflecting expansions in 15 of the past 24 months. Meanwhile, shipments have contracted only five times in the past 24 months. Unlike shipments, unfilled orders and inventories have been persistently weak. Unfilled orders expanded in March, as 58% of respondents reported monthly expansions and 42% reported contractions. Persistently weak, unfilled orders have only expanded eight times in the past 24 months. Inventories contracted in March, as only 45% of respondents noted monthly expansions, but 55% noted contractions. March reflected the 18th consecutive monthly contraction in inventories, which expanded just twice in the past 24 months. The trend over the past two years of the relative strength of shipments compared to the weakness of new orders, unfilled orders, and inventories appears to indicate that companies have been burning off their backlogs and running down work-in-progress inventories. The March 2025 MHI BAI shipments and new orders expanded. MHI BAI future new orders have been strong and were at 92% in March. This percentage shows that almost all respondents expect future new orders will be higher in 12 months. Although this monthly series accelerated modestly in March, the three-month average for the future new orders series remained unchanged at 92%, and the six-month average decelerated to 92%. These expansion percentages are exceptionally high and bode well for the future of material handling new orders in the year ahead. Beyond the strength in future new orders, there is additional upside potential for material handling activity in the year ahead. Interest rates have started falling and are likely to fall further through the end of 2026, according to recent Federal Reserve member forecasts. A drop in U.S. interest rates and a likely accompanying drop in the dollar have the potential to support material handling and manufacturing in the next two years. The MHI BAI future new orders series accelerated in March to 92% from 90% in February. This implies ... More that the vast majority of respondents expect future new orders will be higher in 12 months. Tariff risks have significantly dampened the outlook for U.S. growth and manufacturing, although material handling data remain positive. However, trade policy uncertainty and tariff risks could also dampen the outlook for material handling. Both the ISM and MHI BAI data should be watched closely because growth dynamics for material handling and manufacturing offer a glimpse into future overall U.S. consumption and aggregate economic demand.
Yahoo
01-04-2025
- Business
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures drop in countdown to Trump's tariff reveal
US stock futures retreated on Tuesday as investors cautiously counted down to President Trump's highly anticipated "Liberation Day" roll-out of sweeping new reciprocal tariffs. S&P 500 futures (ES=F) fell 0.4%, while Dow Jones Industrial Average futures (YM=F) pulled back 0.5%, or over 200 points. Contracts on the tech-heavy Nasdaq 100 (NQ=F) dropped roughly 0.4%. While the S&P 500 (^GSPC) rebounded on Monday, it still ended a brutal March near its lows of the year. The broad benchmark wrapped up its worst first quarter in three years thanks to trade-war fears — though Wall Street sees more ingrained risks to stock performance. Markets are still in the dark as to what Trump will announce when he unveils his plans for like-for-like tariffs on Wednesday afternoon. The president's multiple U-turns in tariff hints have kept investors turning in circles, with stocks jumping or sinking as prospects for more limited duties ebbed and rose. Read more: The latest on Trump's tariffs The big question is whether the US will impose a blanket reciprocal tariff on all trading partners, or will tailor the rate levied to specific countries. What is pretty certain is the effective US tariff rate is likely to reach its highest level since the 1940s, analysts say — putting pressure on a US economy already grappling with slowing growth and stubborn inflation. A JOLTS update on February's jobs openings due later will serve as a lead-in to Friday's crucial monthly jobs reading. Investors are watching for signs of cracks in the labor market, which has so far shown enough resilience to ease Wall Street's worries about recession. Economic data: Job openings (February); ISM Manufacturing Index (March); S&P Global US manufacturing PMI, (March final) Earnings: No notable earnings releases. Here are some of the biggest stories you may have missed overnight and early this morning: Trump aides propose 20% tariffs on most US imports: WaPo Gold hits record as Trump's trade threats fan haven demand Why Trump's 'Liberation Day' is an improbable gamble US chip grants in limbo as Lutnick pushes bigger investments 'Wrecking ball to the economy': Why stagflation fears are rising US automakers make mad dash to persuade Trump to temper tariffs Tesla car sales in France, Sweden drop to lowest first-quarter in four years Trump targets ticket scalping, fees with new executive order Yahoo Finance's Josh Schafer reports: Read more here. Gold (GC=F) has continued a record run after setting a new high for the fourth day in a row on Tuesday. Concerns over the economic impact of President Donald Trump's tariffs due on April 2 have pushed demand for safe-haven assets. Reuters reports: Read more here. Economic data: Job openings (February); ISM Manufacturing Index (March); S&P Global US manufacturing PMI, (March final) Earnings: No notable earnings releases. Here are some of the biggest stories you may have missed overnight and early this morning: Trump aides propose 20% tariffs on most US imports: WaPo Gold hits record as Trump's trade threats fan haven demand Why Trump's 'Liberation Day' is an improbable gamble US chip grants in limbo as Lutnick pushes bigger investments 'Wrecking ball to the economy': Why stagflation fears are rising US automakers make mad dash to persuade Trump to temper tariffs Tesla car sales in France, Sweden drop to lowest first-quarter in four years Trump targets ticket scalping, fees with new executive order Yahoo Finance's Josh Schafer reports: Read more here. Gold (GC=F) has continued a record run after setting a new high for the fourth day in a row on Tuesday. Concerns over the economic impact of President Donald Trump's tariffs due on April 2 have pushed demand for safe-haven assets. Reuters reports: Read more here. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
As Trump tariffs arrive, companies brace for more uncertainty
By David Gaffen (Reuters) - Business executives have been in a state of limbo over Donald Trump's fluctuating plans to impose major tariffs since he took office in January. Tuesday's announcement does not end that uncertainty. U.S. President Trump announced Tuesday he would impose 25% tariffs on the nation's two largest trade partners, Canada and Mexico, a move that economists expect will add to costs for U.S. companies that will bear the cost of those tariffs. The prospect of major levies on foreign imports has dominated corporate America's discussions this year. Since the beginning of 2025, more than 750 of the largest U.S. companies have discussed the topic either at investor events or on earnings conference calls, according to LSEG data. In recent weeks some companies raced to get ahead of tariffs with pre-ordering of goods, but executives have until now been taking a wait-and-see approach on investments and expenditures, as Trump has altered his plans for tariffs several times since re-taking office. While Tuesday's announcement adds some clarity, it isn't the end of the story. Trump has already promised additional tariffs on the European Union and investigations into copper and lumber imports that result in levies on those goods. In addition, other nations have vowed retaliation after trying to negotiate with Trump that could threaten global trade further. "The uncertainty continues," said David Young, an executive with the Conference Board, a global business group. "There are decisions being postponed and delayed ... there very much is a degree of paralysis." Executives have tried to assuage investors that they will be able to mitigate or pass on the additional costs, but some have also expressed their frustration with the White House's numerous shifts on policy. "As regards tariffs, I think your guess is good as mine. Things keep on changing day by day," Hilton Schlosberg, co-CEO of Monster Beverage, told analysts on a company earnings call on February 27. UNDERMINING CONFIDENCE The uncertainty has undermined business and consumer confidence in recent weeks, after initially improving after Trump's re-election. The ISM Manufacturing Index, a major index of manufacturer sentiment, showed a sharp spike in inflation expectations in February, with suppliers citing tariffs numerous times. U.S. consumer confidence fell to an eight-month low in February as inflation expectations spiked. Major retailers Walmart and Lowe's warned of slower demand. "It's uncertainty that's kind of fueling customer angst," Autodesk CEO Andrew Anagnost told investors. "That's the thing that we want to move past. We want to move to certainty (in) policy ... uncertainty is not something that our customers want to work through." In Trump's first term, he concentrated on combating what his administration viewed as predatory behavior by China in the world trade market. He has already imposed a 10% tariff on Chinese goods, with an additional 10% set for Tuesday, and is threatening port entry fees on Chinese-built ships. But he has also taken aim at Canada and Mexico to address his charges that they have not tried to deal with cross-border fentanyl smuggling or migrant immigration. The United States imports $900 billion of goods a year from Canada and Mexico. The three countries have highly integrated supply chains in the automotive industry, where parts can cross borders several times in the manufacturing process, and substantial cross-border trade in industrial goods, aerospace, agriculture and energy. Trump's advisors and supporters have said their goal is to bring more manufacturing to the United States to reduce the country's record trade deficit. "While (they are) inflationary and might hurt in the short term, tariffs are going to be good for American jobs in the long run," said Justus Parmar, CEO of Fortuna Investments. Some companies have said they could shift some manufacturing to the United States, including Honda and Pfizer, but that could add to costs. Others pre-ordered in January in advance of heavy tariffs, but suppliers interviewed by Reuters say that's a short-term strategy at best, as they would prefer not to hold extra inventories due to uncertainty around demand. "It's a tremendous waste of resources," said Pat D'Eramo, chief executive of Canadian auto supplier Martinrea. "I'd much rather be working on ways to reduce my costs so we can be more competitive." (Reporting By David Gaffen; additional reporting by Kalea Hall in Detroit and Seher Dareen in Bengaluru; Editing by Peter Henderson and Nick Zieminski)
Yahoo
04-03-2025
- Business
- Yahoo
As Trump tariffs arrive, companies brace for more uncertainty
By David Gaffen (Reuters) - Business executives have been in a state of limbo over Donald Trump's fluctuating plans to impose major tariffs since he took office in January. Tuesday's announcement does not end that uncertainty. U.S. President Trump announced Tuesday he would impose 25% tariffs on the nation's two largest trade partners, Canada and Mexico, a move that economists expect will add to costs for U.S. companies that will bear the cost of those tariffs. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The prospect of major levies on foreign imports has dominated corporate America's discussions this year. Since the beginning of 2025, more than 750 of the largest U.S. companies have discussed the topic either at investor events or on earnings conference calls, according to LSEG data. In recent weeks some companies raced to get ahead of tariffs with pre-ordering of goods, but executives have until now been taking a wait-and-see approach on investments and expenditures, as Trump has altered his plans for tariffs several times since re-taking office. While Tuesday's announcement adds some clarity, it isn't the end of the story. Trump has already promised additional tariffs on the European Union and investigations into copper and lumber imports that result in levies on those goods. In addition, other nations have vowed retaliation after trying to negotiate with Trump that could threaten global trade further. "The uncertainty continues," said David Young, an executive with the Conference Board, a global business group. "There are decisions being postponed and delayed ... there very much is a degree of paralysis." Executives have tried to assuage investors that they will be able to mitigate or pass on the additional costs, but some have also expressed their frustration with the White House's numerous shifts on policy. "As regards tariffs, I think your guess is good as mine. Things keep on changing day by day," Hilton Schlosberg, co-CEO of Monster Beverage, told analysts on a company earnings call on February 27. UNDERMINING CONFIDENCE The uncertainty has undermined business and consumer confidence in recent weeks, after initially improving after Trump's re-election. The ISM Manufacturing Index, a major index of manufacturer sentiment, showed a sharp spike in inflation expectations in February, with suppliers citing tariffs numerous times. U.S. consumer confidence fell to an eight-month low in February as inflation expectations spiked. Major retailers Walmart and Lowe's warned of slower demand. "It's uncertainty that's kind of fueling customer angst," Autodesk CEO Andrew Anagnost told investors. "That's the thing that we want to move past. We want to move to certainty (in) policy ... uncertainty is not something that our customers want to work through." In Trump's first term, he concentrated on combating what his administration viewed as predatory behavior by China in the world trade market. He has already imposed a 10% tariff on Chinese goods, with an additional 10% set for Tuesday, and is threatening port entry fees on Chinese-built ships. But he has also taken aim at Canada and Mexico to address his charges that they have not tried to deal with cross-border fentanyl smuggling or migrant immigration. The United States imports $900 billion of goods a year from Canada and Mexico. The three countries have highly integrated supply chains in the automotive industry, where parts can cross borders several times in the manufacturing process, and substantial cross-border trade in industrial goods, aerospace, agriculture and energy. Trump's advisors and supporters have said their goal is to bring more manufacturing to the United States to reduce the country's record trade deficit. "While (they are) inflationary and might hurt in the short term, tariffs are going to be good for American jobs in the long run," said Justus Parmar, CEO of Fortuna Investments. Some companies have said they could shift some manufacturing to the United States, including Honda and Pfizer, but that could add to costs. Others pre-ordered in January in advance of heavy tariffs, but suppliers interviewed by Reuters say that's a short-term strategy at best, as they would prefer not to hold extra inventories due to uncertainty around demand. "It's a tremendous waste of resources," said Pat D'Eramo, chief executive of Canadian auto supplier Martinrea. "I'd much rather be working on ways to reduce my costs so we can be more competitive." (Reporting By David Gaffen; additional reporting by Kalea Hall in Detroit and Seher Dareen in Bengaluru; Editing by Peter Henderson and Nick Zieminski)
