More than Half of Manufacturing Executives Maintain Optimism Amid Economic and Technological Shifts, According to Latest Sikich Report

Sikich Industry Pulse Survey Reveals 84% Expect AI to Become Standard Within Five Years

CHICAGO–(BUSINESS WIRE)–Sikich, a Chicago-based leading global technology-enabled professional services company, has released its latest findings from the Sikich Industry Pulse survey, which captures real-time insights from U.S. manufacturing and distribution executives. Conducted throughout the year, the survey reflects executive sentiment on key industry and economic trends, offering a timely view into the direction of the manufacturing sector.

• Read the 2025 Volume 1 Manufacturing Pulse Survey: Cautious Optimism Amid Economic and Technological Evolution

Despite ongoing economic uncertainty, more than half (56%) of U.S. manufacturing executives report moderate optimism about their business prospects over the next six months. This marks a slight year-over-year increase and remains above the three-year average. Thirty-two percent still report consistent or increasing demand suggesting opportunities for strategic investment.

While overall optimism remains steady, executives continue to navigate significant challenges. The most frequently cited concerns include current and proposed tariffs (63%), the geopolitical climate (43%), and the national political environment (36%).

To address the impact of tariffs, 67% of executives are passing increased costs on to customers, while 43% are actively adjusting their supply chains. In response to broader economic uncertainty and in an effort to protect profit margins, manufacturers are taking decisive action: 56% are raising prices, 46% are implementing cost-cutting measures, and 40% have paused hiring.

“In times of uncertainty, it’s easy for leaders to hesitate, but those who take decisive action will gain a competitive edge. The manufacturing sector has always been adaptable, and today’s disruptions are opening doors to smarter operations, cleaner technologies and accelerated innovation. Rather than bracing for change, manufacturers should see this as a moment to lead and shape what comes next,” said Jerry Murphy, Principal & Manufacturing Services Leader at Sikich.

The survey also examined where respondents stand on the future of artificial intelligence and robotics. AI is top of mind for manufacturers, yet the competitive landscape remains wide open. For manufacturers willing to move from exploration to execution, this moment presents a clear opportunity to gain a competitive edge.

While AI dominates industry conversations, only 1% of companies have expanded AI across multiple functions, while 39% are in the research-only phase and 25% are not exploring AI at all. Despite this, 84% of executives believe AI will be standard in manufacturing within five years. The average trust score in AI for decision-making is currently 4.44 out of 10. Barriers to adoption include lack of use cases (32%), internal IT support (26%) and cost (22%).

On the other hand, executives are seeing the most immediate disruption coming from advanced robotics (54%), followed by the industrial internet of things (18%) and augmented or virtual reality (10%).

“These findings reflect the early stages of a major shift in manufacturing,” said Ray Beste, Principal AI Strategist at Sikich. “The real opportunity lies in closing the gap between exploration and execution. Companies already applying AI in focused areas like sales and operations are seeing measurable results. To fully realize AI’s potential, manufacturers need to move beyond experimentation and adopt an ‘AI-first’ approach to how they design and run their operations.”

To view the full results from the 2025 Volume 1 Sikich Manufacturing Industry Pulse survey, visit: https://www.sikich.com/industries/manufacturing/manufacturing-industry-pulse/.

About Sikich

Sikich is a Chicago-based global company specializing in technology-enabled professional services. With approximately 2,000 employees, Sikich draws on a diverse portfolio of technology solutions to deliver transformative digital strategies. From corporations and not-for-profits to state and local governments and federal agencies, Sikich clients utilize a broad spectrum of services and products to help them improve performance and achieve long-term, strategic goals.

Sikich practices in an alternative practice structure in accordance with the AICPA Professional Code of Conduct and applicable law, regulations, and professional standards. Sikich CPA LLC is a licensed CPA firm that provides audit and attest services to its clients, and Sikich LLC and its subsidiaries provide tax and business advisory services to its clients. Sikich CPA LLC has a contractual arrangement with Sikich LLC under which Sikich LLC supports Sikich CPA LLC’s performance of its professional services. Sikich LLC and its subsidiaries are not licensed CPA firms.

“Sikich” is the brand name under which Sikich CPA LLC and Sikich LLC provide professional services. The entities under the Sikich brand are independently owned and are not liable for the services provided by any other entity providing services under the Sikich brand. The use of the terms “our company”, “we” and “us” and other similar terms denote the alternative practice structure of Sikich CPA LLC and Sikich LLC.

Contacts

Media Contacts:
Stefanie Murphy

Senior Director, Corporate Communications

(331) 702-8964

stefanie.murphy@sikich.com

Alexa Stewart

Public Relations Specialist

(331) 229-5267

alexa.stewart@sikich.com