Turbulent. Uncertain. Apprehensive. Any of those could sum up the current mood in manufacturing. But there are strategies and technologies manufacturing leaders can leverage for more control, resilience, and productivity.
Manufacturing is used to volatility, but the tariff situation is unique in that it’s less about new obstacles (a la Covid), and more about exacerbating the industry’s pre-existing problems.
From capacity issues and material costs to supply chain disruptions and workforce struggles, tariffs and the ambiguity they bring are adding fuel to manufacturing’s biggest and most long-standing fires.
Tariff To-Do Lists
Manufacturing is a diverse industry, which means every area may have its own challenges and headwinds, but there are several tariff-amplifying production challenges all verticals need to address right now:
- Firefighting and poor cross-functional collaboration
- Inefficient capacity management
- High cost of materials and product waste
- Unplanned downtime and production disruption
- Misaligned business/production objectives
Focus on What You Can Control
Manufacturing leaders should focus on what’s within their control: operational efficiency and productivity. This means making strategic decisions with a 20-year horizon, not reactive 20-hour firefighting.
Technology companies and manufacturers have been developing solutions to these challenges for years, accelerated by COVID supply chain disruptions. This foundation is creating the conditions for reshoring to be possible and practical.
Manufacturing leaders should focus on what’s within their control: operational efficiency and productivity. This means making strategic decisions with a 20-year horizon, not reactive 20-hour firefighting.
Three Key Priorities for Manufacturing Leaders
1. Focus on the Workforce
Building a skilled talent pipeline requires coordinated efforts from the government, NGOs, and private investment. But manufacturers need solutions now:
- Cross-Training: Share best practices across sites and develop collaborative work approaches
- AI-Enabled Teams: Equip workers with AI tools that can predict failures and provide guidance, making jobs safer and more productive
- Digital Initiatives: Champion digital adoption with clear use cases and celebrate wins to drive further implementation
Current workers need a force multiplier, and the next generation of workers needs to see manufacturing as a cutting-edge, technology-driven field where they’ll work with advanced technologies.
2. Productivity Investment
Running better production lines and maximizing site output makes AI the cornerstone of competitiveness:
- Machine Health: Predictive maintenance solutions that improve reliability and performance and create the data foundation of any AI-driven factory
- Process Optimization: Implement solutions that provide real-time recommendations to reduce waste and energy usage
- Shadow Capacity: Leverage new technologies to increase productivity in existing factories
To put this in perspective: Vietnam alone employs over 12 million people in manufacturing, almost the equivalent of the US manufacturing workforce. Even moving a fraction of production stateside requires major advances in productivity and automation.
3. Integration and Interoperability
Creating a connected manufacturing ecosystem avoids isolated solutions while leveraging existing investments:
- Systems Integration: Ensure AI solutions work with current management systems and connect reliably across all sites
- Data Unification: Break down barriers between teams by creating “one version of the truth” about plant floor operations
- Scaling Approach: “Think big, start small, scale quickly” to manage transformation effectively
Manufacturing is complex, with thousands of variables affecting outcomes— it’s too much for any individual to comprehend. Integrated teams using data and AI insights can achieve tremendous results through new means of collaboration.
Time to Act, Not Hesitate
This is a crucial window for manufacturing leaders to create a foundation for resilience, agility, and productivity. Many industrial companies have already invested in technologies that will serve them well during these uncertain times.
Leaders should double down on smart manufacturing capabilities, putting production insights and data directly into the hands of site-level teams. This approach will enable companies across all sectors to identify and act on opportunities regardless of how tariff policies evolve.
The future of manufacturing in the US is being shaped now—not by policy debates, but by the innovative companies already implementing these transformative approaches.
Want to learn more tariff tips from manufacturing experts? Check out the webinar Tariff-ied: Turn Uncertainty Into Agility
