Supply chain managers are optimistic about conditions in 2025. In the December 2024 ISM Supply Chain Planning Forecast, released on Dec. 16, 60% of respondents expect revenues to be greater in 2025 than in 2024. And 16 of the 18 manufacturing industries expect revenue improvement in 2025.
"Manufacturing's purchasing and supply executives expect to see overall growth in 2025," said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee, in a statement. "They are optimistic about overall business prospects for the first half of 2025 and more excited about faster growth in the second half.
ISM's panel of purchasing and supply executives expects a 4.2% net increase in overall revenues for 2025, compared to a 0.8 percentage point increase reported for 2024.
The Business Survey Panel predicts that prices paid for raw materials will increase 3% during the first five months of the year, with an overall increase of 3% for 2025. Overall, prices 2025 prices are expected to increase 3%.
Other survey highlights include:
Capital expenditures are expected to increase by 5.2% in the manufacturing sector (after a 5.6% increase in 2024).
In 2025, employment is expected to grow by 0.8% in manufacturing, while labor and benefit costs are expected to increase an average of 3.3%.
Respondents also expect the U.S. dollar to strengthen against the currencies of seven major trading partners in 2025.
U.S. export growth is expected in 2025.
