Leading Expectations into 2025
The latest CEO business outlook highlights the increasing need for manufacturers to adapt in response to major industry shifts. Newly introduced as a topic—and taking the number one concern among manufacturing CEOs—was “expected changes in tariffs.” This bumped down the still top-of-mind issue of general economic and global market volatility, while cyber threats moved to third place.
Top 6 Hot Topics for the January 2025 Business Survey
Source: Manufacturers Alliance CEO survey, January 2025.
Manufacturing CEOs remain attuned to the latest and most pressing threats while keeping additional concerns in mind. Over the past year, our surveys have tracked the rise and decline—or rather, the replacement—of key issues by emerging challenges. Consistently, economic and global market volatility have remained a top concern, only falling to the second spot when tariff changes were introduced in January 2025.
Other issues have had a more dramatic journey, with “commodity and raw material prices” and “commercial, trade, and political issues specific to China” swinging from lower concern to higher concern and settling in the mid-range for now. Additional areas of note include “talent recruitment and retention for professional positions” and “talent recruitment and retention for shop floors,” both of which ranked as top concerns at the end of 2023 and into 2024 but now sit at slots #8 and #10 for January 2025.
6 Concerns & How They Trended from October 2023 – January 2025
Source: Manufacturers Alliance CEO surveys, 2023 - 2025.
Sixty-three percent of CEOs maintain a general expectation of business expansion in 2025, the same percentage who forecasted expansion at the end of 2024. However, slightly more CEOs foresee business contractions at 15% (up from 9%).
Company Outlook for 2025 Compared to 2024
Source: Manufacturers Alliance CEO survey, January 2025.
Changing Course: Sourcing Adaptations Planned
The majority of manufacturing CEOs are actively relocating or planning to relocate their sourcing efforts to reduce risk or improve efficiency. Only 22% have no plans to relocate, and 4% remain uncertain. Currently, Mexico and the EU are the top sourcing regions for raw materials and components, accounting for 15% and 13%, respectively. China remains a primary source for 11% of respondents, while the majority are sourcing elsewhere. Among companies planning relocations, Mexico, India, and Southeast Asia are the top destinations, with geopolitical factors—such as risk and government incentives/disincentives—playing a key role in decision-making.
Moving or Relocating Sourcing to Reduce Risk or Increase Efficiency
Top Relocation Destinations
Primary Relocation Drivers
Source: Manufacturers Alliance CEO survey, January 2025.
Keeping pace with sourcing and relocation shifts, many manufacturers plan to invest in infrastructure and facilities, with 64% expecting to increase investment by more than 10%. This marks a 9% increase from the end of 2024. Similarly, investments in technology and automation are growing, with only 10% of respondents making a modest increase—compared to nearly a third in previous surveys. On the other hand, sustainability initiatives are not seeing higher capital allocations; 100% of respondents plan to invest no more than a 5% increase from 2024 levels, compared to 18% who aimed for increases greater than 5% at the end of 2024.
Capital Investment Plans for 2025
Source: Manufacturers Alliance CEO survey, January 2025.
Economic Data for Manufacturers
Check out our Economic Indicators dashboard for economics, production, and talent data that manufacturers care most about.
