Manufacturers coordinate supply chain and operational strategies due to economic uncertainty

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Jacksonville, Fla., September 16, 2025 – Revalize, the world leader in CAD, CPQ and PLM software solutions for manufacturers, has revealed that geopolitical tensions such as tariffs, trade disputes and ongoing military conflicts are restructuring their manufacturing strategies and operations. Manufacturers are more proactively managing supply chain disruptions by adjusting the increased costs of production and compliance, accelerating investment in digital technologies to stay competitive, and maintaining global uncertainty.

Reports, tariffs, technology, turbulence: How geopolitics rewires manufacturing operations and strategies, surveying 500 business leaders in manufacturing companies in the US, Switzerland, Austria and Germany. It highlights three main areas of confusion.

85% of global manufacturers are restructuring their supply chain strategies in response to geopolitical instability. More than half (53%) of global manufacturers have experienced an increase in production costs due to recent geopolitical events. 50% of respondents worldwide face high overall costs associated with new tariffs and global compliance regulations.

To maintain profit margins, more than half (52%) of global manufacturers (52%) have actively reduced their dependence on suppliers in high-wage regions, indicating a major shift towards regionalization and supply chain diversification. A Revalize study found that political and economic instability led to one in five international manufacturers leaving the US market over the past year. This makes the US one of the top three markets where companies are withdrawing, along with China (22%) and Russia (30%). This impact is significant, with 54% of US organizations reporting significant revenue declines over the past 12 months, highlighting the widespread economic ripple effect of geopolitical disruption.


To further protect profitability, manufacturers are accelerating their digital transformation efforts, with AI playing a central role. Over half of global respondents have adopted AI to enhance supply chain and inventory management (51%), optimize operational processes (50%), and show a broader shift towards data-driven efficiency and agility.


Additional important findings from the report include:

Procurement strategies evolve amid geopolitical pressures: 48% of global manufacturers diversify their bases and reduce reliance on single-national sourcing, while 44% implement more strategic sourcing to reduce risk and increase resilience. Increased production costs will drive the transition to high-tech suppliers. 47% of global manufacturers prioritize suppliers with highly technical capabilities to stay competitive. Adopting AI to challenge the data and infrastructure gap: 55% of global organizations report integration challenges posed by unstructured data, siloed systems, and legacy infrastructure. Manufacturers preparing for long-term disruption: If economic uncertainty continues, 52% plan to diversify their supply chains more, 41% aim to strengthen supplier relationship management, 37% intend to invest in new technologies, and 36% are investing in production localization.

“We’re committed to providing a range of services to our customers,” said Mike Sabin, CEO of Revalize. “From tariffs to supply chain uncertainty, these challenges force leaders to make difficult decisions that impact operations and strategies for long-term growth. When reevaluated, our goal is to support manufacturers through this complex environment by providing tools, technologies and guidance that need to be confident in responding and staying on the curve.”

About Revalize

Founded in 2021, Revalize helps manufacturing to better design, model, develop and sell, delivering greater results across the manufacturing value chain. With its industry-leading portfolio of CPQ, PLM and design solutions, Revalize offers a more efficient route from ideas to cash. Revalize is a portfolio company of Ta Associates and Hg.

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