Cautious optimism, cautious approaches

Manufacturers entered 2025 with cautious optimism, but sentiment declined sharply in the second quarter, according to the 2025 Wipfli manufacturing benchmarking study released in August.

“Even in a tough environment, manufacturers are showing they can adapt,” said Laurie Harbour, Wipfli partner. “The key is to stay proactive — not reactive — and focus on what’s within your control.”

Some key takeaways:

Manufacturers’ debt-to-earnings ratios

46%

in a bankable position

23%

identify as somewhat bankable

31%

questionably bankable

Labor and SG&A costs 

37%

hiring for growth or open positions

38%

maintain current staffing

These numbers suggest a cautious approach, Wipfli analysts say, with many companies opting to avoid additional labor costs until economic conditions improve. “While some are hiring, it’s often out of necessity rather than growth,” Harbour says.

Second quarter capacity utilization 

Forecasted:

63%

Actuals:

53%

Wipfli analysts say this gap reflects a broader “wait-and-see” approach, as manufacturers delay new product launches and inventory increases.

Quote activity

Hit rates across all sectors:

11.2%

An increase in quoting, Wipfli says, suggests that customers are exploring reshoring options and testing new supplier relationships — but not necessarily committing to new orders.

12,000%

The year-over-year decline in U.S. manufacturing jobs between July 2024 and July 2025, according to an Aug. 1 report from the Bureau of Labor Statistics. President Donald Trump famously fired BLS head Erika McEntarfer following release of the report, calling it “rigged,” but industry experts say the statistics could signal a broader industry downturn.

214,573

Tons of cargo that passed through the Port of Green Bay in July, “a welcome uptick” in the eyes of Port Director Dean Haen, who says volumes of commodities such as wood pulp, cement and petroleum products show encouraging momentum and give him hope the port will “come close to matching last season’s tonnage.”

63%

Respondents to Sikich’s Manufacturing Industry Pulse survey who indicated “current and proposed tariffs” are a concern for their business — the largest issue indicated in the survey of executives released July 2025

39.9% 

The average rate of manufacturing employee turnover in the U.S. according to the Bureau of Labor Statistics, up from 30.6% in 2017