Roland Berger and Manufacturers Alliance Foundation Release 2025 Report on Manufacturers Reevaluating Strategies Amid Geopolitical, Economic Volatility

Roland Berger in partnership with the Manufacturers Alliance Foundation released a report, "Navigating Uncertainty: The geopolitical impact on manufacturing trends in 2025,” finding that at a time marked by geopolitical tensions and trade and economic uncertainty, manufacturers are reassessing their strategies to navigate an increasingly volatile climate.

The study, the second in an in-depth research series looking at the evolving forces shaping the manufacturing sector, is based on a survey of more than 150 US-based manufacturing executives, as well as in-depth interviews with nearly two dozen CEOs, in sectors including machinery, computers and electronics, chemicals, food, plastics and rubber.

Stephen Gold, president of Manufacturers Alliance Foundation and president and CEO of Manufacturers Alliance shared, “Our latest research shows a sector grappling with complex challenges—ranging from policy uncertainty to talent shortages—but also uncovering opportunities to gain competitive advantage through technology, regionalization and agility.”

The research reveals a shift in mindset from long-term investment to risk management as companies adapt to heightened global instability.

Key Research Highlights

• Shift Toward Localization: Manufacturers are rethinking globalization. The current climate favors “capex-light” strategies, repurposing existing sites or forming regional partnerships, to localize operations efficiently.
• Changing Production Geography: Companies are increasingly turning to lower-risk markets like the UK and Japan over traditional low-cost hubs such as China and Mexico, favoring stability over cost savings.
• Talent as a Critical Pressure Point: 88% of executives expect workforce challenges to worsen due to geopolitical risk. In response, manufacturers are doubling down on workforce development, upskilling, and automation to build resilience.
• Accelerated Digitalization: Leaders in the industry are twice as likely to turn to digital tools as a strategic buffer against uncertainty, signaling a decisive move toward Industry 4.0.
• Rise of Customization: 72% of manufacturers are prioritizing product development to better match local demand, further supporting regionalization trends.
• Sustainability Takes a Limited Hit: While many foresee a pullback in sustainability investments due to geopolitical distractions, companies with sustainability embedded in their core offerings remain on their goals.

“Manufacturers are entering a new strategic era, one where geopolitical risk isn’t just influencing decisions, it’s rewriting the playbook,” says Michelle Drew Rodriguez, partner at Roland Berger. “Now more than ever, resilience, adaptability and regional relevance are the rising indicators of global manufacturing competitiveness.”

About Roland Berger

Roland Berger is one of the world's leading strategy consultancies with a wide-ranging service portfolio for all relevant industries and business functions. Founded in 1967, Roland Berger is headquartered in Munich. Renowned for its expertise in transformation, innovation across all sectors and performance improvement, the consultancy has set itself the goal of embedding sustainability in all its projects. Roland Berger's revenues stood at more than 1 billion euros in 2023. For more information, visit www.rolandberger.com.

About Manufacturers Alliance Foundation

Manufacturers Alliance Foundation is the 501(c)(3) partner of Manufacturers Alliance. The Alliance Foundation provides educational opportunities for the manufacturing community and its stakeholders through insights, events, and tools for today’s most critical business decisions. The Alliance Foundation focuses on talent, technology, digital transformation, and competitiveness. Learn more about the Alliance Foundation at www.manufacturersalliance.org/foundation.

About Manufacturers Alliance

Manufacturers Alliance powers leaders. We bring together an unparalleled network of manufacturing executives to advance their careers, grow their companies, and support the whole community. We accomplish our mission through peer communities, education, and business insights on the topics that matter most to the sector. In our 91st year, we continue to drive the manufacturing community to be smarter, faster, and better. Learn more at www.manufacturersalliance.org.

Media Contact

Stefan Lysak
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