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Tariff Pressures Hit Manufacturing Margins, But Few Are Reshoring

Tariff Pressures Hit Manufacturing Margins, But Few Are Reshoring

May 13, 2025
A new survey of 500 industrial execs reveals how tariffs are impacting jobs, pricing, and planning across sectors—and why most aren’t bringing production back to the U.S.

There’s been a lot of back-and-forth on tariffs—in conversation and in policy—making it tough to navigate cleanly. But manufacturers and industrial businesses are finding a way. They have to. There’s no room for hemming and hawing in this climate.

Still, getting a clear picture of how tariff changes are actually affecting plant operations has been difficult. To help close that gap, Plant-Tours.com surveyed 500 industrial executives across manufacturing, construction, transportation, and warehousing. The results offer a clearer, ground-level view into how companies are adapting, from workforce and sourcing decisions to long-term strategy and operational planning.

Tariff Impact on Manufacturing Operations

More than half (55%) of manufacturing leaders say tariffs have cut into their margins by 10 to 15%. And to cope, 45% have trimmed headcount. Most aren’t absorbing the blow but instead, passing added costs directly to customers. Despite government incentives, reshoring remains rare.

Nearly 60% say the media underreports the real impact, with many ranking inflation as a bigger issue than tariffs.

Industry and Regional Shakeups

Construction firms saw the biggest surprise cost jumps (59%) and customer loss (16%). Manufacturers reported more quality issues during supplier transitions. Regionally, the Midwest emerged as the hardest-hit area, with half of the respondents there reporting a negative outlook.

And here’s one that sticks: 70% of veteran business leaders are pessimistic about the long-term effects of tariffs.

Any Bright Spots?

A minority—about 30%—say tariffs have delivered unexpected upsides, like stronger customer loyalty or a more resilient supply chain. 

For most, the path forward is one of ongoing adaptation, not easy wins.

Explore the full 2025 Tariff Impact Report from Plant-Tours.com for a deeper dive into sector-specific data and strategic responses.