Every quarter, AlixPartners releases the Manufacturing Overview, a data-driven analysis of the state of global manufacturing.
Manufacturers continue to experience slow revenue growth with weaker margins, increased inventory levels, and lower capacity utilization (YoY capacity utilization is down in the US, Germany, and China). However, tariff mitigation efforts may have ensured business continuity, as certain regions are beginning to show stabilization. Meanwhile, increased productivity gains driven by automation are beginning to appear. It is yet to be seen if this is the new normal for manufacturers, and expectations on target margins may need recalibration.
Please read the full report for further insights into the extent of these challenges and the strategies manufacturers are creating to combat them.
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