Thermoforming Report

With the first quarter in the books and uncertainty all around, what does the rest of the year look like for manufacturing? 

A recent article from Forbes, “Six Signals From The Factory Floor About Where Manufacturing Is Headed” highlights a few key points worth unpacking.  While the data reflects a snapshot of Ohio manufacturing, what I’m seeing in the field suggests these signals are playing out nationally.

Not every insight will apply to every business. But I’d expect at least a few will hit close to home.

“Right now, the picture is clear: despite the headwinds, manufacturers are holding steady under pressure. CEOs aren’t retreating, they’re recalibrating.” (Forbes)

Signal One

Revenue Growth Has Slowed But Manufacturers Are Still Planning to Grow in Size

One stat stood out immediately: “Seventy percent of manufacturers expect to grow headcount in the year ahead.”

That tells you everything you need to know about how leaders are thinking right now. Yes, there’s volatility. Yes, revenue has softened. But this industry has been through enough cycles to know what comes next.

No one wants to get caught flat-footed when demand turns.

Another key point: 60% are focused on selling more to existing customers – not chasing new ones. In uncertain markets, reliability wins. The companies that can deliver consistently will have the advantage when things tighten – and when they open back up again.

Signal Two

Uncertainty Is Now a Major Business Constraint

“Manufacturing leaders have always managed economic cycles. What feels different today is how unpredictable the environment has become.”

That uncertainty is changing how companies allocate capital. Investments that might have gone toward expansion or new product development are being redirected toward operational resilience – automation, cybersecurity, process improvement.

That tracks with what I’ve seen over the past couple of years. Many companies made significant capital investments – both in thin and heavy gauge manufacturing. At the same time, especially through late ’24 and into ’25, we saw a major push to build out sales teams across industries.

Now the focus is shifting.

It’s less about adding more – and more about getting everything already in place to perform. New equipment. New people. Existing processes. All of it needs to run at a high level as sales demand starts to return.

Signal Three

Tariffs Are Reshaping Supply Chains, but Unevenly

Tariffs continue to be one of the most unpredictable variables in the economic system.

What stands out here is how uneven the impact is: “Those impacted negatively by tariffs are affected more intensely than those who are helped by them.”

That aligns with reality.

There’s no switch you can flip to suddenly reshore production or rework complicated supply chains. These are long-cycle adjustments. The data reinforces what most manufacturers already know: adaptation is happening – but it is incremental, not immediate.

Signal Four

Innovation Is Moving Closer to the Shop Floor

“Instead, innovation is concentrating inside the plant. 74% of companies are innovating production processes. 72% are innovating production technology.”

Innovation hasn’t stopped – it’s just moved. It’s not about new product development and major launches. The focus now is inside the plant: process improvements, production technology, efficiency gains.

You see it in the work happening every day – stronger engineering teams, increased focus on operational excellence, MES implementations, data acquisition, and better visibility into performance.

We’ve talked about this in previous Thermoforming Reports and Blog Posts. The companies putting the right tools in place – and training their teams to use them – are building the foundation now for what comes next.

Signal Five

AI Is Showing Up As A Power Tool, Not A Magic Wand

“Manufacturers are experimenting with advanced technologies, but adoption is moving slowly.”

This one should not surprise anyone. AI is being tested. It’s gaining traction. But adoption is measured – and for good reason.

Implementing new technology in a manufacturing environment is hard. It takes time. It takes trust. And it takes people who know how to use it. Progress is happening – but where it should: in practical applications. Incremental improvements. Real use cases.

“AI isn’t transforming factories overnight. It’s improving them piece by piece.” And none of it scales without the right talent in place.

Signal Six

The Labor Shortage Has Changed Shape

“The constraint is no longer just headcount. It’s digital capability.”

We’ve been banging this drum for a while – and it’s only becoming more relevant. The issue isn’t just finding people anymore – it’s finding the right people.

“Retention is becoming the new recruitment. The fastest way to strengthen a workforce right now isn’t posting another job opening. It’s keeping the skilled people already on the floor and building their digital skills.”

I don’t think that could be more succinct or powerful! And I couldn’t agree more. If you’re not already investing here, you’re behind. It’s that simple.

Final Thoughts: A New Operating Reality

The article closes with a point worth sitting on: “uncertainty isn’t going away.” It’s becoming part of the operating environment – something to manage alongside safety, quality, and cost.

That’s an interesting way to frame it.

Early in my career at Kimberly-Clark, I was taught the five pillars of manufacturing: Safety, Quality, People (instead of “Delivery” which is commonly used), Productivity, and Cost. [KC intentionally reordered the traditional ‘SQCDP’ to align with their values.]

So, where does the Uncertainty fit? You could argue that for the Forbes author, it becomes another variable to manage: SQPPCU. But I’d take it a step further.

The real shift isn’t uncertainty – it’s Resilience.

That’s what’s separating companies right now. The ability to adjust. To stay steady. To keep moving when conditions aren’t favorable… or even known.

If we’re redefining the pillars, maybe it looks something like this: PSQPCR – starting with People, and building Resilience into the system from the ground up.

Get that part right, and everything else follows.

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