Approximately 1 in 5 international manufacturers have exited the U.S. market in the past year due to political and economic instability, according to new research from software solutions provider Revalize. This places the U.S. among the top three markets companies are withdrawing from, alongside China (22%) and Russia (30%).
Revalize's report, "Tariffs, Tech and Turbulence: How Geopolitics Are Rewiring Manufacturing Operations and Strategy," surveyed 500 business leaders at companies in select manufacturing verticals across the U.S., Switzerland, Austria and Germany.
The findings revealed how geopolitical tensions, including tariffs, trade disputes and ongoing military conflicts are reshaping manufacturing strategies and operations. The report also suggested that manufacturers are more aggressively managing supply chain disruptions by adjusting rising production and compliance costs and accelerating investments in digital technologies.
"Manufacturers are under intense pressure as global instability and shifting trade policies have created a new and more complicated playing field,” Revalize CEO Mike Sabin said. "From tariffs to supply chain uncertainty, these challenges are forcing leaders to make difficult decisions that impact operations and strategies for long-term growth."
The research highlighted three major areas of disruption:
- 85% of global manufacturers are restructuring supply chain strategies in response to geopolitical instability.
- More than half of global manufacturers (53%) are experiencing increased production costs due to recent geopolitical events.
- 50% of global respondents are facing higher overall costs linked to new tariffs and global compliance regulations.
In an effort to maintain profit margins, more than half (52%) of global manufacturers have actively reduced their reliance on suppliers in high-tariff regions, signaling a major shift toward regionalization and supply chain diversification.
Regarding international manufacturers leaving the U.S. market, 54% of U.S. organizations reporting substantial revenue declines over the last 12 months.
To further protect profitability, manufacturers are accelerating digital transformation efforts, with AI playing a central role. Over half of global respondents are adopting AI to enhance supply chain and inventory management (51%) and optimize operational processes (50%).
Additional key findings from the report:
- 48% of global manufacturers have diversified their supplier base or reduced dependence on single-country sourcing, while 44% are implementing more strategic sourcing.
- 47% of global manufacturers are prioritizing suppliers with advanced technology capabilities.
- 55% of global organizations report integration challenges caused by unstructured data, siloed systems and legacy infrastructure.
- If economic uncertainty persists, 52% plan to further diversify supply chains, 41% aim to strengthen supplier relationship management, 37% intend to invest in new technologies and 36% are exploring localization of production.
