Once again in the Season of Surveys (called research). This one really serves to validate what we all suspect with even quick readings of current news. Tariffs must have an impact on the economy in general and agriculture and manufacturing specifically.
Agriculture impact is a byproduct of the economic war with China. The same now as in the first Trump administration. China retaliates where it can. And what it can is to stop buying American grain. As I drive around the northern Illinois suburbs of Chicago, I see just what I saw back home in rural western Ohio. Cornfields and soybean fields. The farmers typically alternate these crops. Federal mandates on adding corn alcohol to gasoline has helped support the corn price (I guess we don’t eat enough corn flakes for breakfast—go Tony!). China bought a significant amount of American soybeans. Brazil is this year’s supplier of choice. I wonder where the soybeans I see about to be harvested will go.
Stretching all the way back to the McKinley administration of the late 19th century, politicians have calculated that tariffs will make American manufacturers more competitive while supporting decent wages for working people. It’s actually never worked. Just like almost all economic theories. Somehow the market seems to screw over theories.
This survey (research) by Revalize looks at early results of Trump’s tariffs. This first note is a no-brainer. I’m just surprised that it’s only 85%. Are those other 15% asleep?
85% of manufacturers have adjusted supply chain strategies in response to tariffs and economic uncertainty.
Revalize, a developer of CAD, CPQ, and PLM software solutions for manufacturers, released new research revealing how geopolitical tensions, including tariffs, trade disputes, and ongoing military conflicts, are reshaping manufacturing strategies and operations. Manufacturers are more aggressively managing supply chain disruptions by adjusting rising production and compliance costs and accelerating investments in digital technologies to maintain a competitive edge amid increasing global uncertainty.
Revalize resulted from numerous acquisitions (TA Associates announces the formation of Revalize through the acquisition of five companies: AutoQuotes, Inc., Configure One, Inc., Engineered Software, Inc., FPX, LLC, and Lighting Analysts, Inc. They then added Attainia, BCA Technologies, LeadMethod, and MicroD) over the past four years. Interestingly, none of the executive team have a manufacturing background. All kind of VC/acquisition experience.
The report, Tariffs, Tech, and Turbulence: How Geopolitics Are Rewiring Manufacturing Operations and Strategy, surveyed 500 business leaders at companies in select manufacturing verticals across the United States, Switzerland, Austria, and Germany. It highlights three major areas of disruption:
- 85% of global manufacturers are restructuring supply chain strategies in response to geopolitical instability.
- More than half of global manufacturers (53%) are experiencing increased production costs due to recent geopolitical events.
- 50% of global respondents are facing higher overall costs linked to new tariffs and global compliance regulations.
Revalize’s research found that 1 in 5 international manufacturers have exited the U.S. market in the past year due to political and economic instability. This places the U.S. among the top three markets companies are withdrawing from, alongside China (22%) and Russia (30%). The impact is significant, with 54% of U.S. organizations reporting substantial revenue declines over the last 12 months, underscoring the widespread economic ripple effects of geopolitical disruption.
1 in 5 international manufacturers leaving the US, China, and Russia? I guess that leaves Europe as the place to go? Or are they just shrinking. I’ve seen automation companies gradually abandoning overseas markets over the past five years.
