President Donald Trumps trade announcement at the White House on April 2. Photographer: Chip Somodevilla/Getty Images via Bloomberg
Most U.S. manufacturers are upbeat about business operations as President Donald Trump’s tariff strategy forces a reshoring of operations and an expansion of supplier networks, according to a recent survey by Nationwide.
Eight in 10 manufacturing leaders said they expect positive business performance over the next 12 months, the data showed, with insurance agents uniquely positioned to help convert that confidence into long-term resilience by anticipating exposures and rethinking risk mitigation strategies.
“Many manufacturers are reshoring and expanding supplier networks to hedge against tariff volatility,” said Erika Melander, head of Nationwide’s national manufacturing practice.
“At the same time, they’re contending with labor shortages and technology-related risks—from integration hurdles to cybersecurity threats and potential product defects,” she added. “These shifts create a critical opportunity for agents to step in early, reassess coverage, strengthen business continuity plans and ensure protection strategies keep up with changing operations.”
While 64% of manufacturing leaders expect tariffs to positively impact their business over the next year, they remain concerned about the effects on raw material costs, profit margins and supplier availability, according to Nationwide.
Manufacturers respond with calculated steps to strengthen operations and reduce exposure:
- Sixty-four percent are expanding their supplier base.
- Fifty-two percent are frontloading inventory.
- Forty-eight percent have reviewed or updated their business continuity plans.
- Thirty-five percent report shifting to more U.S.-based suppliers due to trade uncertainty, with another 50% considering similar moves.
Meanwhile, many manufacturers are also leaning into AI technology to improve efficiency and stay competitive, according to the survey, with reported benefits from early AI adopters including improved forecasting, cost savings, product quality and supply chain agility.
Manufacturers are widely adopting digital tools to streamline operations, with:
- Ninety-one percent implementing inventory management technology.
- Eighty-three percent integrating Internet of Things (IoT) solutions.
- Eighty-three percent adopting predictive maintenance technology.
- Eighty-two percent using robotics for automation of physical tasks.
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