Process, Distribution & Logistics Consulting NAICS 541614

May 20, 2025 - Execs at Large US Businesses Bearish on 2025

• Large US businesses have an increasingly pessimistic outlook on their financial fortunes for the rest of 2025, with 60% of executives saying they expect their companies’ performance to be flat or even shrink during the year, according to a recent report from Sentry Insurance. The survey of more than 1,000 C-level US executives found that 82% of large business leaders were more stressed than last year, 15% higher than small businesses. Almost half of respondents, 45%, cite supply chain problems brought on by tariffs as their biggest concern, followed by economic uncertainty (39%) and inflation (34%). To counter, large businesses have responded by cutting logistics and transportation staff, asking current employees to work longer hours, and delaying infrastructure improvements until costs are more manageable.
• The US Census Bureau reported new orders for US manufactured goods increased by $9.8 billion in January 2025, a reprieve that could be brief if the Trump administration’s massive tariff plans are ever fully implemented. It is a 1.7% increase over the previous month. Shipments of manufactured goods pushed higher for the third consecutive month to a total of $592 billion - a 0.4% increase over December. Both figures can be used as proxies for the overall demand of the manufacturing sector and new orders and shipments for goods usually spike around the holidays. Manufacturing logistics consulting services stands to be in high demand going into 2025 with the US government engaging in high-profile and economically disruptive trade and tariff disputes with Mexico, China, and Canada.

• While the raw materials shortages that posed headwinds for manufacturers during the pandemic are just a bad memory for some, challenges remain, according to Supply Chain Management Review. The growth of data centers and electricity generation capacity needed to power AI has given rise to shortages of some types of electrical and electronic components. Industrial production of electrical equipment used to generate and distribute electricity is now 25% higher than in 2017. The proportion of US computer and electronic products manufacturers that cite raw materials as an impediment to capacity utilization has been rising since the end of 2023, according to US Census data. Manufacturing sector observers are likely to follow any fluctuations in factory capacity utilization closely. Rises in capacity utilization would likely indicate stronger demand but might also signal future raw material shortages, especially among industries already experiencing procurement delays.
• According to a recent Gartner survey of sourcing and procurement leaders, supply disruptions, such as natural disasters and transportation problems, remain the leading risk that could impede procurement operations. A third of respondents ranked macroeconomic factors, such as inflation and economic downturns, as their second most significant risk. At 32% of respondents, geopolitical trends (tariffs, regulatory changes) and compliance issues (regulatory and contractual risks) were tied for the third most significant procurement challenges. Other leading risks included supplier capability and capacity (30% of respondents), cyberattacks and data security (29%), and procurement talent capabilities (24%).