More competition and economic instability may lead to less confidence and investment among manufacturing leaders

• C-suite leaders in the manufacturing sector have a positive growth outlook (95% – one point less than in 2024).
• Economic uncertainty (41%), energy prices/shortages (36%) and increased competition (31%) are the top two factors expected to hold back growth.
• Economic factors (35%) and energy prices (32%) are the top trends most likely to have the biggest impact on organisations in this sector and only 36% are very confident they can manage them.
• The proportion of businesses boosting investment fell eight points from 69% in 2024 to 62% this year.
• To tackle these challenges, leaders in the sector are prioritising transforming company IT and new technology (41%), revising talent recruitment and retention strategies (31%) and restructuring/cost reduction (29%).

Read the latest C-suite findings in the manufacturing sector

The firm’s latest C-suite barometer indicated a positive growth outlook for 2025 and reveals the strategic priorities leaders were planning, to tackle some of the top trends expected to hold back growth and have the biggest impact on businesses in the sector.

Optimism for 2025 remained high for the second consecutive year, with over nine in ten executives in the sector expecting more growth. There does seem to be some variation in growth strategies however, as results showed 43% citing organic growth, followed by 25% confirming strategic alliances and joint ventures, and 23% stated private equity or alternative funding were seen as the most important growth sources for businesses.

Dr. Frank Jungblut, Partner and Head of Manufacturing, Forvis Mazars Group, comments: “While this year's C-suite barometer results reveal a high proportion of executives in the manufacturing sector expect growth, we can see certain factors are already influencing the initial optimism. Notably, an increasingly competitive market is reducing margins, while economic and political volatility adds a further layer of risk to business plans. Such uncertainty is leading some clients to adopt a watch-and-wait approach until these market conditions impacting the sector change.”

Geopolitical tension (30%) and supply chain challenges (29%) followed economic factors (35%), energy prices (32%) and increased competition (31%) as the external trends expected to have the biggest impact on organisations in the sector. Executives reported being far less confident in dealing with geopolitical tension/instability, social unrest and economic trends (such as inflation and higher costs of living) than they are with new models of work and the emergence of new technologies.

Jungblut explains: “Manufacturing companies will experience ongoing turbulence and need to revise or rely on their strategies to prepare for what’s next as instability from worldwide challenges, geopolitical tensions and economic uncertainty is unlikely to stabilise for some time. Executives need to be selective but also confident in the investments that they make around emerging technology. This could help them overcome the challenges and achieve the growth potential that is there in the market.”

Transforming company IT/tech was highlighted as the top strategic priority for C-suite leaders this year (43%), surpassing reviewing supply chains, operations and procurement processes as last year’s strategic priority, which is now fourth place on the list. This change highlights how the sector felt more optimistic a few years after the supply chain and logistical challenges of the pandemic.

Moreover, executives in the sector indicated that speed/complexity of implementation (44%), confidence in ROI (40%), and security protocols and regulatory compliance (38%) were the top three barriers to digital implementation. Now, just below half (47%) of executives in the sector believe that GenAI will have a major impact on their organisation, compared to 64% last year. Of those who use GenAI, more executives indicated they use it for internal processes (76%) than commercial products/services (71%).

Notably, most (84%) businesses are planning some level of international expansion in the next five years, but it’s obvious why this doesn’t appear as a top strategic priority for leaders in the sector this year. The U.S. did originally come out as the top destination targeted. Yet, this is likely to shift as tariff and trade restrictions continue to be increasing challenges with a major impact on this sector particularly.

The C-suite barometer found that some manufacturing executives indicated trade policy, sanctions and other impacts on exports as key consequential challenges from 2024 elections, which saw major government changes across the globe in 2025 and the impact of those changes is still being experienced today. Ongoing tariff negotiations and trade instability will also likely impact business growth, decisions and the strategic priorities topping the C-suite agenda in the future.

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About the study    

The C-suite barometer: outlook 2025 examines the views, challenges, and strategic priorities of today’s C-suite leaders around the world. This independent research was conducted between 28 September and 23 October 2024 and captures the views of 1,706 C-suite leaders at for-profit organisations with annual revenues of over $1million across more than 35 countries. Insights from 237 participants in the manufacturing sector were considered for the development of the barometer’s manufacturing sector report.

Press contacts 

Heather McMaster, Group Head of PR and Content 
Heather.McMaster@mazars.co.uk / +44 (0) 20 7063 4165 

Rosa Mejia Banks, Group PR and Content Officer 
Rosa.Mejia-Banks@mazars.co.uk / +44 (0) 20 7063 4934