85% of manufacturers have adjusted supply chain strategies in response to tariffs and economic uncertainty.
Revalize, a worldwide leader in CAD, CPQ, and PLM software solutions for manufacturers, released new research revealing how geopolitical tensions, including tariffs, trade disputes, and ongoing military conflicts, are reshaping manufacturing strategies and operations. Manufacturers are more aggressively managing supply chain disruptions by adjusting rising production and compliance costs and accelerating investments in digital technologies to maintain a competitive edge amid increasing global uncertainty.
The report, Tariffs, Tech, and Turbulence: How Geopolitics Are Rewiring Manufacturing Operations and Strategy, surveyed 500 business leaders at companies in select manufacturing verticals across the United States, Switzerland, Austria, and Germany. It highlights three major areas of disruption:
- 85% of global manufacturers are restructuring supply chain strategies in response to geopolitical instability.
- More than half of global manufacturers (53%) are experiencing increased production costs due to recent geopolitical events.
- 50% of global respondents are facing higher overall costs linked to new tariffs and global compliance regulations.
In an effort to maintain profit margins, more than half (52%) of global manufacturers have actively reduced their reliance on suppliers in high-tariff regions, signaling a major shift toward regionalization and supply chain diversification. Revalize’s research found that 1 in 5 international manufacturers have exited the U.S. market in the past year due to political and economic instability. This places the U.S. among the top three markets companies are withdrawing from, alongside China (22%) and Russia (30%). The impact is significant, with 54% of U.S. organizations reporting substantial revenue declines over the last 12 months, underscoring the widespread economic ripple effects of geopolitical disruption.
To further protect profitability, manufacturers are accelerating digital transformation efforts, with AI playing a central role. Over half of global respondents are adopting AI to enhance supply chain and inventory management (51%) and optimize operational processes (50%), signaling a broader shift toward data-driven efficiency and agility.
Additional key findings from the report include:
- Sourcing strategies are evolving amid geopolitical pressures
- Rising production costs are driving a shift to tech-enabled suppliers
- AI adoption is being challenged by data and infrastructure gaps
- Manufacturers are preparing for long-term disruption
“Manufacturers are under intense pressure as global instability and shifting trade policies have created a new and more complicated playing field,” said Mike Sabin, CEO of Revalize. “From tariffs to supply chain uncertainty, these challenges are forcing leaders to make difficult decisions that impact operations and strategies for long-term growth. At Revalize, our goal is to support manufacturers through this complex environment by providing them the tools, technology, and guidance they need to respond with confidence and stay ahead of the curve.”
To read the full report, visit here.
Note to Editors:
Revalize commissioned TEAM LEWIS Research to survey 500 business leaders (senior manager level and higher) at companies in select manufacturing verticals with 100+ employees in the United States, Switzerland, Austria, and Germany (200 respondents in the US, 300 respondents in the DACH region).
The included verticals were Industrial Manufacturing, High Tech, Automotive, Aerospace & Defense, Machinery, Electronics, Consumer Goods, Food & Beverage, Pharmaceuticals, Building Materials, Commercial Construction, Power Generation, Test & Measurement Equipment, and Fluid Handling.
The survey was fielded from August 7 to 18, 2025. Respondents were recruited by OpinionRoute, a global market research panel provider who is committed to ensuring data integrity.
