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ARTICLE · 17 SEPTEMBER 2025

Manufacturing Overview: Low Capacity Utilization Meets Potential Tariff Stabilization

Every quarter, AlixPartners releases the Manufacturing Overview, a data-driven analysis of the state of global manufacturing.

United KingdomInternational Law
Parmesh Bhaskaran
Parmesh Bhaskaran
Steven Hilgendorf
Steven Hilgendorf
Nicolas Franzwa
Nicolas Franzwa
Xing Zhou
Xing Zhou
Ignatius Tong
Ignatius Tong
Michael  Mo
Michael Mo
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Every quarter, AlixPartners releases the Manufacturing Overview, a data-driven analysis of the state of global manufacturing. 

Manufacturers continue to experience slow revenue growth with weaker margins, increased inventory levels, and lower capacity utilization (YoY capacity utilization is down in the US, Germany, and China). However, tariff mitigation efforts may have ensured business continuity, as certain regions are beginning to show stabilization. Meanwhile, increased productivity gains driven by automation are beginning to appear. It is yet to be seen if this is the new normal for manufacturers, and expectations on target margins may need recalibration. 

Please read the full report for further insights into the extent of these challenges and the strategies manufacturers are creating to combat them. 

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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