Manufacturers plan price hikes over reshoring to combat tariff effects

Core Insights - Tariffs and trade policies are a primary concern for manufacturers, impacting decision-making and capital expenditures [3][4] - The Supreme Court's review of tariff legality is fostering optimism among manufacturers for more clarity in trade policies [5] - A significant majority of manufacturers plan to pass on cost increases due to tariffs to consumers [6][8] Group 1: Impact of Tariffs - Manufacturers have halted large capital expenditures and hiring plans due to uncertainty surrounding tariffs [4] - 86% of manufacturers intend to pass on at least some cost increases to consumers, with raw material price increases averaging 5.4% for 2025 [6] - 64% of manufacturers do not plan to bring production back to the U.S. to avoid tariff costs, as it remains cheaper to offshore or diversify [7] Group 2: Pricing Strategies - 32% of manufacturing leaders plan to pass on all tariff-related cost increases into sales prices, while 42% will use a combination of price hikes and margin absorption [8] - Only 6% of manufacturers believe tariffs will not affect their costs, indicating a widespread expectation of increased pricing [8] - Just 36% of manufacturers are actively seeking to reshore production to the U.S. to mitigate tariff impacts [8]