FOR IMMEDIATE RELEASE
[New London, N.H., March 10, 2025] – A new manufacturing survey from executive search firm Stiles Associates highlights the significant impact of the recently implemented tariffs on manufacturers operating in the United States., Canada, China and Mexico – and how they’re on adjusting.
The survey of over 100 senior manufacturing executives found that 84% manufacture in the United States. Additionally, nearly 30% of respondents indicated they manufacture outside of the U.S. equally spread between Mexico, China and Canada.
With this kind of exposure, it’s not surprising that 80% reported increased production costs due to the tariffs. Among them, 41% cited significant cost increases, while 39% referenced moderate increases.
A range of counteractions
When asked what they plan to do in response to the impending tariffs, manufacturers are considering a wide range of options (see table below). However, the top three include passing costs on to customers (70%), diversifying their supply base (52%) and improving efficiency (40%). A little less than one-third of respondents plan on increasing U.S. domestic production.
“The data clearly anticipate that cost increases will be passed on to the customer in most cases,” said Stiles Associates CEO Jake Stiles. “While the rate of that increase may be tempered by improvements in efficiency and supply chain strategies.”
| How manufacturers are adjusting strategies | Responses |
| Pass on changing costs to customers | 70% |
| Diversify suppliers | 52% |
| Increase efficiency | 40% |
| Increase domestic production | 32% |
| Manufacture in countries not impacted by tariffs | 29% |
| Reduce workforce | 17% |
| No changes planned | 8% |
Demand for Lean thinking
Performance improvements are also in focus, with 58% of respondents planning to increase Lean strategies and tactics to counteract rising expenses. Nearly half of these respondents anticipate a significant increase in use of the Toyota-inspired production methodology.
“Any time we see margin pressure across the manufacturing sectors,” Stiles explained, “you can anticipate an elevated interest in Lean as a counteraction. This is no different. It’s still one of the most effective tools manufacturing organizations can deploy in times like these.”
Long-term outlook
Manufacturing executives are less sure on whether these tariffs will have a long-term effect on the competitiveness of the U.S. manufacturing sector – 42% believe tariffs will increase competitiveness, 39% will decrease and 19% don’t anticipate a significant change.
“These results confirm that manufacturers are adapting to the new trade landscape, but not without significant challenges,” Stiles Associates CEO Jake Stiles said. “Supply chain resilience, cost management and operational efficiency are now top priorities for manufacturing leaders.”
The survey was first sent on Wednesday, March 5 and responses were collected through Saturday, March 8, 2025.
Download the survey findings and full results.
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About Stiles Associates
Stiles Associates is the leading executive search firm in recruiting the top operations and transformation leadership in manufacturing, private equity, healthcare and professional services. With a deep understanding of Lean principles and methodologies, Stiles Associates excels in identifying and placing leaders who can drive significant operational improvements, enhance efficiency and foster a culture of continuous improvement. Serving a diverse range of industries and functional areas, Stiles Associates is dedicated to helping transform companies through strategic leadership placements. For more information, please visit www.Leanexecs.com.
Contact:
David Portney
Marketing Manager, Stiles Associates
Dportney@leanexecs.com
603-873-4240