2025 Benchmarking Study Highlights Manufacturing Challenges and Opportunities

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The new “Wipfli Manufacturing Benchmarking Study” offers a snapshot of how manufacturers are navigating 2025. After years of disruption — from COVID to supply chain issues and shifting trade policies — many companies are approaching the year with caution.

Based on responses from nearly 250 manufacturers across plastics, tooling, metalforming, die casting, forging and machining, the study shows confidence dropped in the second quarter. Raw material tariffs remain the top concern, along with higher overall costs. Inflation and wage pressures are still challenges, but less severe than in 2024. Concerns about a potential U.S. recession have also increased as demand slows.

Capacity utilization reflects this uncertainty. While companies expected to run at 63% in Q2, actual results came in at 53%. That same hesitation is carrying over to capital investment, as many businesses hold off on spending until tariff and trade questions become clearer.

Financial performance is generally flat. Profits slipped in 2024 despite efficiency gains, with more companies moving into less comfortable financial positions due to rising debt-to-earnings ratios. Overhead and labor costs continue to weigh on profitability.

On the positive side, sales activity offers opportunity. Quote activity has grown as customers re-evaluate suppliers and consider reshoring, though win rates are lagging and churn — especially in the automotive supply base — remains an issue.

The report suggests manufacturers focus on what they can control: efficiency, cost management and waste reduction, while staying alert for growth opportunities. In today’s environment, the companies best positioned to weather uncertainty are those that continue to improve operations while remaining flexible.

The full benchmarking study is available exclusively to manufacturers who participate in Wipfli’s annual survey. It includes detailed analysis by functional area and commentary from Wipfli advisors who work closely with the businesses surveyed. To learn more about Wipfli’s manufacturing offerings, visit wipfli.com/industries/manufacturing.