Manufacturers should use digital tools to make work more intuitive, productive and engaging.
Key takeaways
Manufacturers evaluating capital plans should weigh how the QPP provision can unlock tax savings.
Aerospace firms should be strategic about how to integrate AI and robotics into operations.
Manufacturing trend #1: Aerospace manufacturing in 2025: Shifting landscape boosts midsize companies
Aerospace manufacturers find themselves at a critical inflection point that may give middle market companies in this sector a boost. The post-pandemic rebound is accelerating, fueled by surging demand for commercial jets, renewed defense spending, and sweeping sustainability and cybersecurity mandates. Yet persistent labor shortages, regulatory friction and global supply chain constraints are forcing companies to reinvent their operating models.
Data indicates that, amid these factors, middle market aerospace manufacturers that are small enough to leverage localized sourcing and not rely on global scale may have an edge over their larger counterparts. But sector leaders at midsize companies will still need to be strategic about tapping into this opportunity, which will require embracing digital transformation, diversifying sourcing and investing in innovation.
Manufacturing trend #2: Revitalizing U.S. manufacturing: Tax law’s QPP could fuel industrial growth
In an era defined by global uncertainty, supply chain disruption and intensifying competition, American manufacturers face a pivotal moment. The passage of the 2025 One Big Beautiful Bill Act (OBBBA) signals a bold shift in U.S. industrial policy and directly addresses the capital constraints and strategic hesitations hindering domestic reinvestment. A key element of this legislation for manufacturers is the qualified production property (QPP) provision, a powerful new incentive designed to lower the after-tax cost of capital for industrial investments and unlock a new wave of modernization.
Manufacturing trend #3: Adapting for the future: Workforce transformation strategies for manufacturers
The convergence of retiring baby boomers, a shrinking pool of skilled workers, rising wages, and pressures from immigration and trade policies is creating a perfect storm for manufacturers looking to optimize their workforce. To remain competitive, manufacturers need to prioritize workforce transformation strategies that embrace digital tools and other innovative approaches in order to attract and retain talent, adapt to changing workforce dynamics, and protect profits.
2025 Economic and policy updates
Will a new administration work in your favor or bring new challenges?
Our team offers insights to help you navigate the months ahead.
Subscribe to Manufacturing Insights
Sign up to receive our monthly tax, accounting and operational information ranging from tips for addressing daily challenges to strategic and long-term planning initiatives.
