Manufacturers across North America are largely optimistic about future profit growth despite rising concerns about tariffs, according to a survey from Milwaukee-based advisory firm Wipfli.
After surveying about 300 manufacturing companies across the United States, Canada and Mexico last month, the firm found 55% of respondents are forecasting higher profits for 2025 than in 2024. Respondents in the survey predicted 2.7% revenue growth this year, even as they face an unstable outlook amid constantly shifting tariffs.
Laurie Harbour, a partner at Wipfli, says most manufacturers are starting off 2025 slow but “sentiment is generally trending up” and expects companies to gain momentum in the second half of this year and into 2026.
“Certain industries, such as aerospace, defense and industrial equipment, are better positioned for growth compared to agriculture and automotive,” Harbour said in a statement, adding manufacturers should “double down on real data” to create more realistic forecasts for this year.
Wipfli points to a “modest” increase in expectations around profits, revenue, utilization and backlog in the first quarter of this year over year-end 2024.
The survey also finds “key drivers of sentiment” are in line with previous years, as respondents grapple with the rising cost of operation, upward wage pressure, skilled labor challenges and more competition from countries where it’s cheaper to do business.
Meanwhile, 61% of respondents said tariffs imposed by the Trump administration would impact their business. The tariffs are already influencing respondents’ supply chain decisions, according to Wipfli, as some are pausing contracts, shifting to suppliers outside the U.S. and signaling greater interest in establishing domestic production.
Cara Walton, director at Wipfli, says flexibility and informed decisionmaking “will be key” to navigating the increasingly complex trade environment this year.
“Regardless of the type of manufacturing process, our data shows the industry expects an impact due to tariffs — both positive and negative,” she said.
Wipfli also says 40% of manufacturers report no change in their employee base, while 21% are “hiring for growth” and 4% are laying off workers. The survey found skilled labor shortages are ongoing despite this relative stability, though many respondents are “upskilling” current workers, investing in automation and focusing on efficiency rather than filling open jobs.
See the release.
