May 2025 Volume 7

INDUSTRY NEWS

Tariffs Affect Profit Expectations Analysts further analyzed how tariffs could potentially impact profit expectations by industry. U.S.-based companies were more optimistic about profit increases, especially in consumer products, packaging, and aerospace. Some manufacturers expect that with the tariff on Canada, Mexico, and other global tariffs more production will move to U.S. shops, thus increasing production and profitability.

This was calculated by breaking out any company that said they were based in the U.S. and then looking at the company’s response for profit change and primary industry. Each primary industry was looked at separately from each other to sum to 100% responding with their expected profit change.

When compared to an analysis of all respondents (other countries include Canada, Mexico, Italy, Portugal, and China), we see where the impact differs. The biggest difference between all respondents and U.S. respondents in the other industries** section, aerospace, and appliance. Manufacturers in the U.S. that largely compete with Canada, Mexico, or LCCs are predicting higher levels of demand for U.S.-manufactured parts, especially within consumer products, aerospace, and appliance.

**Others include Construction, HVAC, Architectural, Electronics, Transportation, Printing, Rail, Solar, Utilities, Miscellaneous Industries, Home & Office, Electrical, Sports/Recreational. Heavy Truck, Infrastructure, Telecom/Electronics, Marine, Lawn/Garden. Defense, Material Handling.

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