June 9, 2025 - Citrin Cooperman’s 2025 Manufacturing and Distribution Pulse Survey Report highlights key insights reported by leaders in the industrial products subsector. While some industrial products companies are reporting growth, most of that growth remains moderate, reflecting the underlying pressure on profitability. Despite headwinds facing the subsector, companies are strategically planning for growth by embracing technology, expanding facilities, and investing in workforce stabilization. This article highlights the key challenges, emerging strengths, and opportunities shaping the future for industrial products companies.

Key Challenges and Emerging Concerns

Industrial products business leaders note three main challenges facing their industry:

• Rising interest rates (26%)
• High cost of capital (25%)
• E-commerce pressures (24%)

These issues are reflected in the slowing of overall revenue growth, with most industrial products companies reporting ‘no growth’ or ‘modest growth’ over the last year. Additionally, the industry is being shaken by trade policy shifts impacting their supply chains. Seventy-seven percent of industrial products leaders anticipate tariffs to continue to impact their business in the latter half of 2025. Twenty-six percent note they are exploring reshoring or nearshoring to the U.S., but capital investment requirements and U.S. labor costs are substantial barriers.

Strengths and Growth Momentum

Despite economic uncertainty, industrial products companies that are excelling are doing so by remaining agile. Thirty-seven percent of respondents noted that they opened new facilities in the last year and 54% are managing product costs by increasing in-house manufacturing of their products. Business leaders note that the key to future growth includes entering new markets, stabilizing their workforce, and introducing new products. Industrial products companies who are able to excel in these areas will position themselves to be at the forefront of the industry.

The Road Ahead

While rising costs, labor constraints, and global trade uncertainties pose challenges, industrial products companies are identifying the right tools, technologies, and operational strategies to remain competitive. Those that can align internal capabilities with external demand will be best poised to capitalize on the next wave of industrial innovation and growth.

Citrin Cooperman’s Manufacturing and Distribution Pulse Survey Report

Citrin Cooperman’s Industrial Products Industry Practice is a core focus of our Manufacturing and Distribution Industry Practice. Our team of professionals provides innovative, actionable solutions to assist companies with achieving their strategic vision. Explore how this subsector compares to the full industry by accessing the 2025 Manufacturing and Distribution Survey Report.

Access the 2025 Manufacturing and Distribution Pulse Survey Report