How Geopolitics Are Rewiring Manufacturing Operations Learn more
September 16, 2025

New Revalize Research Finds U.S. Among Top 3 Markets Global Manufacturers Are Exiting Amid Tariffs and Economic Uncertainty 

A presentation slide showing Revalize research finding the U.S. is among the top 3 markets global manufacturers are leaving due to tariffs and economic uncertainty.

JACKSONVILLE, Fla. – September 16, 2025 – Revalize, a worldwide leader in CAD, CPQ, and PLM software solutions for manufacturers, released new research revealing how geopolitical tensions, including tariffs, trade disputes, and ongoing military conflicts, are reshaping manufacturing strategies and operations. Manufacturers are more aggressively managing supply chain disruptions by adjusting rising production and compliance costs and accelerating investments in digital technologies to maintain a competitive edge amid increasing global uncertainty.

The report, Tariffs, Tech, and Turbulence: How Geopolitics Are Rewiring Manufacturing Operations and Strategy, surveyed 500 business leaders at companies in select manufacturing verticals across the United States, Switzerland, Austria, and Germany. It highlights three major areas of disruption:
  • 85% of global manufacturers are restructuring supply chain strategies in response to geopolitical instability.
  • More than half of global manufacturers (53%) are experiencing increased production costs due to recent geopolitical events.
  • 50% of global respondents are facing higher costs linked to new tariffs and global compliance regulations.
In an effort to maintain profit margins, more than half (52%) of global manufacturers have actively reduced their reliance on suppliers in high-tariff regions, signaling a major shift toward regionalization and supply chain diversification. Revalize’s research found that 1 in 5 international manufacturers have exited the U.S. market in the past year due to political and economic instability. This places the U.S. among the top three markets companies are withdrawing from, alongside China (22%) and Russia (30%). The impact is significant, with 54% of U.S. organizations reporting substantial revenue declines over the last 12 months, underscoring the widespread economic ripple effects of geopolitical disruption.

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

Additional key findings from the report include:
  • Sourcing Strategies Evolve Amid Geopolitical Pressures: 48% of global manufacturers have diversified their supplier base or reduced dependence on single-country sourcing, while 44% are implementing more strategic sourcing to mitigate risks and increase resilience.
  • Rising Production Costs Drive Shift to Tech-Enabled Suppliers: 47% of global manufacturers are prioritizing suppliers with advanced technology capabilities to remain competitive.
  • AI Adoption Challenged by Data and Infrastructure Gaps: 55% of global organizations report integration challenges caused by unstructured data, siloed systems, and legacy infrastructure.
  • Manufacturers Preparing for Long-Term Disruption: If economic uncertainty persists, 52% plan to further diversify supply chains, 41% aim to strengthen supplier relationship management, 37% intend to invest in new technologies, and 36% are exploring localization of production.
“Manufacturers are under intense pressure as global instability and shifting trade policies have created a new and more complicated playing field,” said Mike Sabin, CEO of Revalize.
“From tariffs to supply chain uncertainty, these challenges are forcing leaders to make difficult decisions that impact operations and strategies for long-term growth. At Revalize, our goal is to support manufacturers through this complex environment by providing them the tools, technology, and guidance they need to respond with confidence and stay ahead of the curve.”
To read the full report, visit: https://revalizesoftware.com/jduff/pipe-flo-manufacturing-report-2026/

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About Revalize

Founded in 2021, Revalize is the premier idea-to-cash solution on a journey to reshape the future of manufacturing – powering greater outcomes for businesses who design, model, develop and sell, with a portfolio of industry-leading CAD, PLM, and CPQ solutions. The Company serves more than 15,000 customers across the globe. Revalize is a portfolio company of TA Associates and Hg. Learn more at www.revalizesoftware.com.

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