May 13, 2025 - We polled 1,000 senior leaders of privately held companies spanning industry sectors across the nation to take stock of actions, concerns, and challenges in key areas including tech improvements and investments for manufacturing and distribution companies. Our 2025 Private Company Performance Report sheds light on the growth trends and challenges reported by our survey respondents.

Projections for Success

Manufacturing and distribution companies continue to predict that their most significant investments will come in new technologies, artificial intelligence, and ERP systems (58% of respondents in this year’s survey). This is no surprise as they are also projecting that the most important driving factor in their company’s success in the next 12 months will be these new investments, with stabilizing supply chains and hiring new talent as the next critical factors. We see these factors all being tied together as businesses are facing retirements from baby boomers (at both skilled and unskilled levels) and rapidly evolving supply chains existing within an ever-changing tariff landscape. All these factors are forcing companies to invest in new technology in their manufacturing, operational and finance functions.

The Role of ERP Systems

New ERP systems are allowing companies more flexibility in supply chains in real time, along with increased visibility and forecasting. AI and predictive analytics can analyze past data, market trends, and external factors to predict future demand more accurately. This is helping businesses plan production schedules and inventory levels more effectively. Adding the unpredictability of tariffs into the mix, we are seeing more and more companies evaluate their supplier relationships and renegotiate key terms and costs. These ERP systems can allow for better data sharing and communication across the supply chain, both for internal forecasting and with their suppliers and customers. Whether businesses are considering changing sourcing of products from Mexico, China, or other sources, the need for real time information that is flexible will enable faster decision-making and more responsive supply chain operations.

Looking Ahead

In thinking about what supply chains will look like in the future, we expect AI will play a larger role in helping manufacturers manage costs strategically. Both in simplifying basic tasks through the adoption of Microsoft co-pilot and Chat GPT throughout administrative functions, to much more significant AI adoption that will help industrial businesses rapidly think, create prototypes, make process improvements, and analyze narrowly defined problems rapidly, all of which will help with minimizing labor and managing costs.

Overall technological investments in digitizing warehouses and factories are being made to provide automated real-time alerts and analytics for production, and for shop floor and warehouse performance, all of which can help manufacturers pivot in the face of those workforce challenges. Data analytics that feed dashboards with set key performance indicators can enable management to be more flexible. Management teams that aren’t equipped with real-time dashboards and KPIs will be left behind as things are evolving quickly. Those with the best and most useful information will be able to adapt the fastest and thrive.

Citrin Cooperman’s Private Company Performance Report

Citrin Cooperman has been serving and advising middle-market, private companies and high net worth individuals for over 40 years and created an annual Private Company Performance Report to discuss what is top of mind for business leaders across the country. Access our report to discover valuable insights into the trends, opportunities, and challenges facing businesses today.

Access the 2025 Private Company Performance Report