Manufacturing, Supply Chain Leaders Concerned About Trump Trade Policies

Digital manufacturing platform Fictiv today announced the results of its "10th Annual State of Manufacturing & Supply Chain Report."

The company surveyed 254 senior manufacturing and supply chain leaders to glean insight into mounting concerns regarding evolving U.S. trade policies, preventing supply chain disruptions and scaling innovation, AI and sustainability.

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According to the report, some 96% of respondents have concerns over the impact that President Donald Trump's trade policies will have on supply chains. The chief among them is the potential toll tariffs will have on costs and profitability (57% of respondents), followed by the administration's renewed emphasis on bringing manufacturing back to the U.S. (53%).

Manufacturing leaders are also fearful that tariffs will drive business uncertainty (48%), impact efforts to prioritize nearshoring (37%) and create a China+1 strategy (32%). Only 4% of professionals surveyed said they had no concerns about Trump's policies, and 93% think trade wars will likely escalate in the next few years.

About 68% of leaders are prioritizing onshoring as a key supply chain strategy in 2025, especially in markets that require complex parts at scale, like medical technology, electric vehicles and clean energy. Still, 77% of manufacturing and supply chain pros say a lack of resources, namely labor and money, is severely limiting their ability to manage supply chains effectively.

Sustainability remains top of mind as 95% of professionals say weather and extreme climate events are impacting their 2025 supply chain strategy. Some 91% have sustainability initiatives and the governance in place to drive those goals forward.

Finally, the tech topic on top of everybody's minds, AI. Nearly 95% of industry pros say they use AI for manufacturing and supply chain operations, including inventory management and product design. More than half (56%) say AI is the leading trend shaping the company's 2025 strategy. Economic headwinds came in second at 53%. Increasing competition and labor costs/shortages tied for a distant third place at 41%.

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WEBVTTX-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:000:00.349 --> 00:05.349Digital manufacturing platform Victiv todayannounced the results of its 10th annual state00:05.349 --> 00:07.539of manufacturing and supply chain report.00:08.149 --> 00:14.409The company surveyed 254 senior manufacturingand supply chain leaders to glean insight into00:14.409 --> 00:20.379mounting concerns regarding evolving US tradepolicies, preventing supply chain disruptions,00:20.659 --> 00:23.889and scaling innovation, AI and sustainability.00:24.110 --> 00:29.600According to the report, some 96% ofrespondents have concerns over the impact00:29.600 --> 00:33.540President Donald Trump's trade policies willhave on supply chains.00:33.990 --> 00:39.000The chief among them is the potential tolltariffs will have on costs and profitability,00:39.299 --> 00:44.380which accounted for about 57% of respondentsfollowed by the administration's renewed00:44.380 --> 00:48.849emphasis on bringing manufacturing back to theUS, 53%.00:49.139 --> 00:54.580Manufacturing leaders are also fearful thattariffs will drive business uncertainty and00:54.580 --> 00:58.430impact efforts to prioritize near shoring aswell as create a.00:58.604 --> 01:00.115China plus one strategy.01:00.325 --> 01:04.995Only 4% of professionals surveyed said they hadno concerns about Trump's policies,01:05.205 --> 01:11.154and 93% think trade wars will likely escalatein the next few years.01:11.464 --> 01:17.555About 68% of leaders are prioritizing onshoringas a key supply chain strategy in 2025,01:17.855 --> 01:22.434especially in markets that require complexparts at scale like medical technology,01:22.644 --> 01:24.730electric.Vehicles and clean energy.01:25.029 --> 01:29.830Still, 77% of manufacturing and supply chainpros say a lack of resources,01:29.949 --> 01:34.830namely labor and money, is severely limitingtheir ability to manage supply chains01:34.830 --> 01:38.510effectively.Sustainability remains top of mind as 95% of01:38.510 --> 01:43.949professionals say weather and extreme climateevents are impacting their 2025 supply chain01:43.949 --> 01:47.629strategy.Some 91% have initiatives and the.01:47.745 --> 01:51.525Governance in place to drive thesesustainability goals forward.01:51.705 --> 01:54.605Finally, the tech on top of everybody's mind,AI.01:54.815 --> 02:00.714Nearly 95% of industry pros say they use AI formanufacturing and supply chain operations,02:00.934 --> 02:03.364including inventory management and productdesign.02:03.775 --> 02:09.365More than half say AI is the leading trendshaping the company's 2025 strategy.02:09.615 --> 02:12.175Economic headwinds came in second.02:12.740 --> 02:18.509Increasing competition and labor costs andshortages tied for a distant 3rd place.02:18.720 --> 02:21.279I'm David Manti.This is manufacturing now.