Manufacturing executives are maintaining a cautiously positive outlook despite a backdrop of global and domestic uncertainty, according to new data from professional services firm Sikich.
Executives rated their confidence in business prospects over the next six months at an average of 6.85 on a 10-point scale, a slight year-over-year increase and above the three-year average. More than half (56%) placed their sentiment in the seven-to-eight range, suggesting steady but measured optimism.
Confidence Tempered by Policy and Geopolitical Concerns
Tariffs and policy volatility remain key sources of anxiety. Sixty-three percent of executives cited current and proposed tariffs as their top concern, followed by the geopolitical climate (43%) and the U.S. political environment (36%).
“With many headlines focused on uncertainty, executives are lured into a state of indecision,” said Jerry Murphy, principal, and manufacturing services leader at Sikich. “The manufacturing industry is resilient, and executives that choose to act will reap the rewards. Disruption has created several opportunities for a competitive edge by encouraging smarter supply chains, cleaner processes, and faster, tech-driven growth.”
Companies Move to Protect Margins
Many manufacturers have taken steps to defend margins amid persistent inflation and trade pressures. The most common actions involve raising prices and tightening cost structures.
When asked how they are responding to tariffs, 67% said they are passing additional costs on to customers, while 43% are restructuring supply chains to reduce exposure. 30% said they are absorbing higher costs or not making changes, indicating differing strategies to balance competitiveness and customer relationships.
AI Adoption Remains in Early Stages
Artificial intelligence (AI) continues to dominate industry discussion, but actual implementation remains limited. Only 1% of executives said they have expanded AI across multiple business functions. Another 25% said they are not currently pursuing AI initiatives, while 39% remain in the research phase.
Most manufacturers have yet to expose their workforce to technology. Seventy-six percent said fewer than one in ten employees are training on or using AI tools. Among early adopters, the most common uses are sales and customer service (65%), finance and administration (35%), and process optimization (23%). Companies using AI in these areas report lower customer acquisition costs, reduced manual workloads, and faster decision-making.
“Most manufacturing executives are still in the research phase, which is typical when industries confront major technological change,” said Ray Beste, principal AI strategist at Sikich. “The opportunity lies between exploration and implementation. Companies that move now are seeing measurable efficiency gains.”
Executives expressed limited confidence in AI’s decision-making capabilities, rating their trust at an average of 4.44 out of 10. However, 84% expect AI to become standard in manufacturing within five years. A separate National Association of Manufacturers Q2 2025 survey found 90% of companies plan to prioritize digital transformation in the next year.
Robotics Seen as Next Major Shift
When asked which technologies will have the most immediate impact, 54% of executives pointed to advanced robotics and collaborative robots, followed by industrial internet-of-things applications (18%) and augmented or virtual reality (10%). The data suggests that many firms see near-term returns in automation and robotics rather than in fully digital or AI-driven systems.
The survey reflects an industry adapting to uncertainty while cautiously investing in technology and efficiency. Many leaders are balancing defensive moves—such as price adjustments and supply chain changes—with exploratory efforts in automation and AI.
Sikich, which employs more than 1,900 professionals, ranks among the largest accounting and advisory firms in the United States. The firm provides technology-enabled consulting, tax, and audit services to corporations, government entities, and nonprofit organizations.
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