In 2025, everyone is navigating a much more complex and volatile landscape and the Manufacturing sector is arguably the hardest hit. Tariffs, geo-political instability, supply chain turbulence. The list goes on. We are glad we ship electrons rather than molecules. Good luck out there.
So, based on trends in tech, economics, geopolitics, and society, here are 10 major strategic risks and mitigation approaches that every business CxO needs to be thinking about as part of their strategic plan. Check out our full download of more risks and 30+ mitigation strategies & tracking KPIs further down.
| Risk | Mitigation Strategy 1 | Mitigation Strategy 1 KPI |
|---|---|---|
| Supply Chain Disruption | Diversify supplier base | Number of qualified suppliers per critical component |
| Technological Obsolescence | Invest in smart manufacturing technologies | Number of smart technologies implemented |
| Cybersecurity Threats (Manufacturing Systems) | Conduct regular OT cybersecurity audits | Number of cybersecurity vulnerabilities detected |
| Labor Shortages | Develop apprenticeship and training programs | Number of apprentices and trainees hired |
| Regulatory and Quality Compliance | Implement ISO and industry certifications (e.g., ISO 9001) | Certification audit pass rate |
| Geopolitical and Trade Instability | Monitor trade policies and tariffs | Number of tariff impact assessments conducted |
| Environmental and Sustainability Risks | Implement green manufacturing initiatives | Percentage of operations powered by renewable energy |
| Changing Customer Demands | Implement mass customization capabilities | Number of customized products delivered |
| Production Innovation Stagnation | Invest in manufacturing R&D centers | R&D investment as a % of revenue |
| Financial Instability (Cost Volatility) | Lock in long-term supplier contracts | Percentage of critical materials under long-term contracts |
| Equipment Downtime Risks | Implement predictive maintenance programs | Equipment uptime percentage |
If you’d like to download this and another 30+ mitigiation strategies with suggested Risk Management KPIs to track progress then download your Manufacturing Sector Strategic Risks, Mitigations and KPIs..
Secret sauce for any Manufacturing CxO
If you'd like to see how to easily manage & track all of this then....
