Manufacturer Outlook: Making the Most of the Current Murky Economy

by Diane M. Calabrese | Published January 2025

 

 

Realistic but not pessimistic. That sums up the outlook of manufacturers determined to make the most of an economy that is and not an economy they wish we had.

The most positive way to characterize the current economic climate, as we write in early November 2025, is murky.

Even within a hazy environment, clear-eyed vision helps. The manufacturers who share their views here see clearly through the undeniable clouds.

“It’s hard, very hard, to remain positive,” says Dave Thiesse, vice president of commercialization at Mi-T-M Corporation in Peosta, IA. “The uncertainty of the economy and the ‘shoot-from-the-hip’ decisions that are being made globally really make running a successful company difficult.”

Still, Thiesse sees a bright side when equilibrium returns. “Stability will be king, and I think we all welcome that day.”

Indeed, we will. For now, it’s about navigating what is—the metaphorical waves— that make stability difficult.

“Being flexible is the only way to manage through these murky times,” says Thiesse. “Creating an environment that allows you to pivot as demands change or decisions are made in the federal government is the key to survival.”

Opportunities continue to arise for products of all kinds even during difficult economic periods. A manufacturer must be ready to seize and capitalize on them.

How can a manufacturer be best prepared? “Diversity,” says Thiesse.

“Diversity in product types, go-to-market strategies, and channels of distribution create stronger manufacturers and allow them to weather the storm that is upon us,” explains Thiesse.

A sustained commitment to research and development (R&D) is essential. And Thiesse’s company is committed to R&D.

“Product development has never stopped, not during the pandemic and definitely not now,” says Thiesse. “New processes and the products that come with their development will be critical to our success.”

In fact, Thiesse sees cause for optimism not only in the dedication to innovation but also in the ways that certain sectors already show signs of stabilizing (and growing). Conditions in the agricultural sector offer a reason to be optimistic, for instance.

“Agriculture impacts almost every segment of business, and I feel that we are through the worst,” says Thiesse. “The optimism I have is that we are well positioned to take advantage of the business when it comes back.”

Thiesse’s appraisal fits the realistic outlook that serves as a foundation for dealing with what is. (Wishing things away never works.)

Many factors can contribute to a strong foundation from which to keep building and updating. Employees with a shared vision are part of the foundation.

“During times like this, keeping morale at a high level is very difficult,” says Thiesse. “Because we are an ESOP [employee stock ownership plan] organization, the willingness to roll up our sleeves and do what it takes to be successful is in our DNA.”

 

Living with Fluctuations

Predictability for manufacturing—and other sectors of industry—derives from acknowledging that fluctuations are integral parts of the business cycle. There’s never a time when a manufacturer can expect a smooth course.

Neither can a manufacturer always anticipate where or when the next challenge will arise. From changes in customer sentiment to supply chain interruptions and abrupt escalation in fuel prices, anything can happen.

“Uncertainty is nothing new in manufacturing; it’s part of the landscape,” says Scott Hansen, president of Alkota Cleaning Systems Inc. in Alcester, SD. “The key is flexibility backed by solid fundamentals.”

What’s the scope of fundamentals? “We’ve learned that staying close to customers, maintaining operational discipline, and being willing to adjust quickly when markets shift are essentials that get you through,” says Hansen.

It’s about controlling what can be controlled. “Whether it’s tariffs, supply chain challenges, or changing demand, you can’t control the waves; but you can control the way you steer through them,” says Hansen.

Be ready to grab opportunities. “Prepared manufacturers are those who will succeed,” says Hansen. “When opportunity knocks, whether it’s a new market, a new niche application, or a shift in technology, you want to be ready to respond.”

Through the greatest complexity in a situation, it is possible to retain one’s balance. “Every year brings unpredictability–that’s the constant,” says Hansen.

“The best way to stay positive is to focus on what you can build,” explains Hansen. “When you see uncertainty as opportunity rather than threat, it shifts the entire mindset of the organization.”

There are reasons for optimism, always. And that certainly includes at the beginning of 2026.

“Despite challenges, there is a renewed appreciation for quality, reliability, and American-made production,” says Hansen. “Customers want long-term solutions, not quick fixes, and that plays to our strengths.”

Working with customers to provide the solutions they require—customization to the fullest extent possible—does more than enable a manufacturer to adapt to fluctuations. The closer the tie to customers, the more a manufacturer can extract the possibilities or opportunities from the fluctuations.

There’s a lot of energy in waves, both the physical and the metaphorical ones.

 

The Way of the World

Take off rose-colored or any otherwise tinted lenses to make the most of what’s ahead in 2026. See the world as it is.

“Expect that there have always been volatile economic and/or societal challenges,” says Jeff Theis, president and CEO of ProPulse, a Schieffer Company, located in Peosta IA. “It is the way of the world.”

Acknowledge any negatives but resolve to forge ahead despite them.

“The main way I view the challenges of economic downturn is to always be focused on growth,” says Theis. “An individual company’s growth can outpace or at least offset general economic downturns.”

To assess what’s possible, know what’s already in place.

“First, I think if one defines the word ‘manufacturer’ as a company that makes goods for sale,” says Theis. “That means various processes are employed to effect change to components and/or finished products.”

Processes are not simply initiated and then forgotten. “All processes must be reviewed regularly, deconstructed, and then reconstructed for improvements,” explains Theis.

Improvements span a huge area. “They can be new features or options, different methods for cost reduction, different materials that may reduce costs, etc.,” says Theis.

And Theis’s company most assuredly will forge ahead. “Our company will continue the process of robotic assembly in manufacturing and back-room automation as main tenets of ongoing improvement to remain and improve overall competitiveness.”

The ongoing improvement is just one dimension. “Further additions to our product range that are ancillary to our core product range are anticipated as well,” explains Theis.

Searching for the predictable may be misplaced energy at this juncture. But the course of manufacturing has never been truly predictable.

“In the 45 years I have been in the business of high-pressure cleaning and hydraulics, there have been numerous crises,” says Theis, and he gives us a list.

“High inflation of the 1970s, currency fluctuation, government changes, tax increases, six significant recessions, including the ‘great recession of 2008,’ interest rate acceleration, social upheaval, multiple regional military conflicts, unrestricted immigration, a pandemic, supply chain interruption, increased government debt, and the like,” explains Theis. That’s quite a collection of crises, all of which proved navigable.

How does a manufacturer meet each crisis? “Largely, an adept manufacturer has found ways to cope and grow by taking advantage of increased efficiencies, global supply chain integration, digital transformation, faster communications, and transport,” says Theis.

“Today we see strange occurrences with tariffs, but we also see incentives for manufacturers to come onshore in certain areas,” explains Theis. That kind of matching of negative and positive makes him optimistic.

“The past proves there is always an ongoing ‘ying and yang’ even if it is often out of balance, and I think those lessons learned can be applied to the future,” says Theis. “In any event, the focus requires anticipating choppy waters and finding ways to compensate for those by contingency planning and always, always, pushing for improvement and growth.”

Readiness is a must. “New products, new features, new processes, and new markets are some ways of offsetting volatility,” says Theis.

 

Listening to the Customers

Maximum connectivity of everyone and everything in the digital world means that manufacturers can gain lots of insight into what customers would like to find in products they buy. The standards—durability, longevity, minimal downtime—still apply.

Yet in addition to the universal wants of customers, there are some refinements manufacturers should consider, or refinements about which they should at least talk to customers.

Before going over the top with digital components, a manufacturer should be sure digital components that can turn equipment on remotely or a built-in tracker is what customers want.

Yes, it might be possible to start heating water while walking back to a truck for an ancillary. But is it safe? And do trackers really help locate stolen equipment, or are they simply disabled by thieves?

Contract cleaners don’t want to go back to mops and buckets of hot water, but digital components where analog would do should be considered carefully by manufacturers. That is at least until AI allows digital components to repair themselves.