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ARTICLE · 13 MARCH 2025

Manufacturing Overview: Cost Pressures, Revenue Headwinds, And A Dynamic Tariff Landscape

AlixPartners Asia LLC
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Manufacturing businesses continue to face considerable cost pressures and revenue headwinds. Additionally, the recent tariff announcements have introduced a rapidly changing tariff landscape.

GlobalInternational Law
Parmesh Bhaskaran
Parmesh Bhaskaran
Steven Hilgendorf
Steven Hilgendorf
Nicolas Franzwa
Nicolas Franzwa
Xing Zhou
Xing Zhou
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PREAMBLE

This Manufacturing Overview report is a quarterly series designed to offer readers a concise evaluation of the current financial performance of manufacturers across industries and the underlying macro indicators and challenges influencing these firms. With this report, we aim to equip readers with strategies to proactively address and navigate the constantly evolving challenges faced by manufacturers.

QUARTERLY SUMMARY – Q4 2024

Manufacturers are facing continued cost pressures due to revenue slowdowns and increasing tariff volatility. To remain competitive, businesses must simplify operations, learn to be lean, leverage automation opportunities, and gain supply security. Manufacturers were able to show some resilience in gross margin through cost-cutting measures but need to navigate uncertain investment landscapes and evolving regulations. Businesses need to clearly define "how to win".

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