We are also pleased to announce that William Dickhut of Geringhoff Distribution LP is the winner of a $100 Amazon gift card for participating in the survey. Congratulations, William!

Be sure to mark your calendars for October 26–28 and join us in New Orleans for the upcoming Marketing & Distribution Convention. We look forward to seeing you there!

by Cara Walton, Director of Manufacturing Marketing Intelligence at Wipfli

Key takeaways

• Wipfli’s Q1 manufacturing trends survey of more than 300 industry leaders found both optimism in the market and concern over rising costs.
• Manufacturing leaders report frustrations over tariffs, labor costs, inflation and price pass-throughs, but also expect revenues to rise and EBIT to go up or stay flat.
• As you assess your own Q1 performance, you should reevaluate your strategic plan, track your tariff exposure and do a deep dive into your sales process to look for opportunities to win more profitable jobs.

How are manufacturers tackling 2026 so far? Wipfli’s Q1 survey of more than 300 manufacturing leaders to identify key trends reveals a nuanced picture of an industry that’s optimistic but still navigating a period of intense change.

After enduring a rough 2025, manufacturers now express more confidence in the direction of their businesses. However, costs have also continued to rise, making cost containment a top priority over the next three quarters.

Keep reading to learn more about what manufacturers are saying and doing heading into Q2.

Who participated in Wipfli’s Q1 manufacturing trends survey?

Every quarter, Wipfli surveys hundreds of manufacturing leaders to learn more about the challenges and opportunities facing their businesses. For Q1 2026, we surveyed more than 300 leaders across a range of manufacturing process types, including:

• Metalforming
• Molding
• Die builder
• Gears
• Mold builder
• Fastener
• Machinery

The survey included manufacturers from industries like automotive, heavy truck, agriculture, defense, aerospace, medical and appliance. Participating firms varied in revenue from under $5 million to over $75 million.

The full results are only available to survey participants, but this article offers a high-level overview.

What key challenges are manufacturing industry leaders reporting after Q1 2026?

As we head towards the second quarter of 2026, manufacturers report that the cost of doing business remains a top concern. Tariffs, labor costs, pricing pressures and talent development are all straining margins, although some sectors are experiencing greater challenges than others.

Here’s more details on key challenges identified by the 300+ manufacturing leaders we surveyed:

• Higher cost of doing business: This was the top concern of manufacturers who participated in the survey. Contributing factors here include materials, wages and operating costs.
• Raw metal tariffs: Manufacturers specifically identified tariffs on raw materials as a major frustration factor. Uncertainty remains a huge factor here, with the recent Supreme Court ruling  imposed by the White House adding a new wrinkle to an already complicated situation.
• Continued inflation: Inflation has slowed from its pandemic-era peak, but continues to create challenges for manufacturing, with end consumers cutting back or even .
• Talent development: Labor challenges are nothing new, but this year, manufacturers face new pressures to adapt and upskill in response to an AI revolution that continues to ripple through the business world.
• Price pass-throughs: Businesses have been reluctant to pass the full cost of tariffs onto their customers to avoid spooking demand. But manufacturers are still eating those costs, with consumer-facing manufacturers often pushing their suppliers to take on some of the damage.

Other areas manufacturers report feeling concern include overseas competition, a potential recession and supply chain challenges.

Overall, manufacturers are more optimistic than they were a year ago

Despite a litany of challenges, most manufacturing leaders are optimistic. Fifty-four percent of executives who participated in the survey said they are optimistic, up from 40% a year ago. Most of the rest were ambivalent, with only 12% describing themselves as pessimistic.

Performance differs across industries

However, some industries have it easier than others. Leaders in marine, infrastructure, medical, commercial aerospace and defense largely reported that their firms are beating expectations, while automotive, appliance and packaging companies were more likely to share that they are missing performance targets.

Quote levels are up

Even some of the industries currently underperforming have reason for optimism. Quote levels are generally up from a year ago, including in automotive and packaging, as well as aerospace, defense, medical and infrastructure.

More manufacturers are hiring

Hiring rates have risen since last year. Less than 10% of manufacturers are planning to decrease hiring in 2026, either through no longer filling open positions or a reduction in force, which is less than 2025, which reflected 16% of manufacturers planning a decrease in hiring. Thirty-eight percent more firms report hiring for growth than did at this time last year.

Most leaders expect revenue to rise

Most manufacturing executives expect revenue to rise this year, with 38% projecting growth of 5-10% and 19% expecting to grow by 10% or more. Only 9% say their revenue will likely fall compared to 2025.

EBIT will largely stay flat or grow

Finally, EBIT will likely either stay flat or increase. Fifty-eight percent of leaders think their EBIT will remain the same, and another 32% are expecting improvement in EBIT.

What should you do next?

Visibility and adaptability are the keys to success. Your cost challenges won’t go away overnight and tariffs remain anyone’s guess, but if you have a clear understanding of what’s happening inside your business and are willing to adjust to meet the moment, you have a pathway to success.

Consider:

1. Assessing your strategic plan

You probably prepared one heading into 2026, but is it holding up? Review your existing strategic plan in light of your own Q1 results and make adjustments where needed.

2. Evaluate your tariff exposure

Tariffs will remain a factor for the next several years, as the White House has moved to impose new tariffs under different statutes after the Supreme Court struck down tariffs that relied on IEEPA. If your own materials costs are suffering, evaluate your supply chain to understand what countries you’re importing from so you can forecast your tariff exposure more accurately and consider possible alternatives.

3. Take another look at your sales process

Your sales process can offer a path to greater profitability. Do a deep dive into your existing process: study your top customers, consider whether you’re diversified enough and see which types of jobs earn you the most profit. Think about pricing too — if you have an idle press, for example, could you lower prices a little to create work for that machine?

How Wipfli can help

We advise manufacturers on improving performance, navigating change and growth. Let’s talk about the specific challenges you face and how we can help your business thrive. 

|Member since 2021

The Summit featured a wide range of educational sessions focused on today’s most pressing business challenges and opportunities. Topics included property and casualty risk management, practical applications of artificial intelligence, employment law updates, sales and marketing strategies, insurance trends, tariffs, and product distribution law. A dedicated technology track highlighted how digital tools are shaping both product development and internal operations.

Attendees also explored the supplier product showcase, where companies connected directly with potential partners and discovered new solutions to support their businesses. Throughout the event, networking remained a central focus, with ample opportunities to build relationships and exchange ideas with peers facing similar challenges.

Beyond the educational programming, participants enjoyed a variety of social and recreational activities, including a Topgolf networking event, welcome receptions, a spouse/guest program, Toyota and Alamo Group facility tours, and a lively farewell event featuring dueling pianos.

Mark your calendars for the Marketing & Distribution Convention October 26 – 28, 2026 at the New Orleans Marriott.
Stay tuned to the Shortliner for more information.

The report shows sales of agriculture tractors were down 9.1% while combine sales dropped 25.3% compared to March 2025.   AEM’s report also show a similar trend in Canadian sales. According to the data, Canadian sales of agricultural tractors fell 16.3% while combine sales dipped 60.6% compared to the year before.  

These numbers reflect the overall softness in the Ag economy,” said Curt Blades, senior vice president of industry sectors and product leadership at AEM. “Despite these declines in sales in 2026, the commitment to modernizing equipment and adopting innovative technologies remains strong, positioning the industry for long-term growth.”

Source:

The event featured a full day of activities, including an official ribbon cutting, catered lunch, live equipment demonstrations, and Bad Boy ride-and-drive experiences. Attendees also had the opportunity to explore new product and equipment line launches, take advantage of special event pricing, and register for door prizes and giveaways.

The ribbon cutting brought together DL Shortline General Manager Craig Harthoorn, owners Jim and Connie Hellbusch, Ben Hellbusch, David Hellbusch, and El Paso Mayor Thad Mool to celebrate the milestone and its significance for both the company and the local community. A video from the event can be viewed

The grand opening highlighted the strength and innovation of FEMA members and their ongoing commitment to serving customers across the industry.

FEMA congratulates DL Shortline on this important achievement and looks forward to their continued success.

| Member since 1983

The Supplier Board of Governors of the Farm Equipment Manufacturers Association announced new officers during the recent Supply Summit in San Antonio.

This board represents nearly 300 Supplier Associate Members—companies that provide raw materials, component parts, and services to farm equipment manufacturers.

Dalton Carr of Superior Gearbox was elected Chairman. Also stepping into leadership roles are Alex Mussa of SNA Manufacturing as Vice Chair, JC Hatton of Metal Parts and Equipment as Secretary, and James Williamson of Myers Spring Co., Inc. as Treasurer.

We also welcome newly elected board member Chris Brown of Haven Steel. Continuing their service are Lloyd Kettlehake of C&U Americas LLC; Chris Smith of Comer Industries; Marc Adams, FEMA Supplier Section Representative, of GBGI, Inc.; and Mary Sutton of Muir Omni Graphics, who graciously served two consecutive terms as Supplier Board Chair.

On behalf of FEMA, thank you to the entire Supplier Board for their time, leadership, and dedication.

FEMA has received reports of unauthorized third-party companies—commonly referred to as “hotel poachers”—contacting members and offering to book hotel accommodations on their behalf.

Please be advised: these solicitations are fraudulent and are not affiliated with FEMA.

These companies often present themselves as official partners and may request credit card or personal information. Engaging with them could put your financial information at risk and may result in invalid or nonexistent reservations.

To ensure a safe and seamless convention experience, please keep the following in mind:

• FEMA does not partner with third-party housing providers. We will never contact you directly to solicit hotel reservations.
• Official registration opens in July. At that time, members will receive a secure, direct link to register and provide their arrival and departure details.
• Hotel accommodations will be managed exclusively through FEMA. Reservations will be made on your behalf at the Marriott New Orleans.
• Protect your information. Do not share financial or personal details with anyone claiming to represent FEMA housing outside of official communications.

Please be aware: this is a SCAM. The FEMA office already has the information needed to secure your hotel reservation through your registration form. We do not work with any third-party companies for hotel bookings.

We strongly encourage members to disregard any unsolicited calls or emails related to hotel bookings for the convention and to wait for FEMA’s official registration announcement this summer.

If you receive a suspicious inquiry or have any questions, please contact the FEMA office at (314) 8978-2034 or via email at Sarah@FarmEquip.org.

Your security and experience are our top priorities, and we look forward to seeing you in New Orleans this October.

The Farm, Food, and National Security Act of 2026, introduced by Chairman Glenn “GT” Thompson, advanced out of committee with a 34–17 bipartisan vote and now moves to the full House for consideration.

Agricultural organizations across the industry — including commodity groups, farm credit institutions, livestock organizations, and conservation leaders — have largely welcomed the progress. Many emphasized the urgency of updating farm policy as producers face rising input costs, market volatility, supply chain disruptions, and tightening margins.

The proposed legislation includes updates aimed at strengthening the farm safety net, improving credit availability, supporting conservation programs, expanding market opportunities, and reinforcing the economic stability of rural America.

While broad support exists for moving the bill forward, several organizations noted that additional improvements may be needed as the legislation continues through the legislative process.

For the agriculture industry, the advancement of a bipartisan farm bill is a meaningful step toward providing the certainty and long-term policy stability producers, manufacturers, and rural communities depend on.

FEMA will continue monitoring developments as the bill moves through the House and Senate in the coming months.

Source:

Springer Studios, the production team for this project, is compiling real-world footage to include in the refreshed safety video. You can reference the original video to see the style and types of clips needed. Specifically, Springer Studios is looking for footage related to ag mower safety, including PPE, preparation, hook-ups, operating process, and safe usage.

“This is a great opportunity: your equipment and/or footage could be featured in a widely shared safety message that helps educate operators and promote safer practices across the industry,” said Sarah Stevener, FEMA Meetings Director.

If you have footage you’d like to contribute, contact Sarah@FarmEquip.org to receive the Dropbox submission link.

A strong listing isn’t just a formality—it helps other members, dealers, and industry partners find you, understand your capabilities, and connect with the right people on your team. We’ll also be maintaining and refreshing the directory annually, so getting the details right now creates a solid foundation that keeps your company visible and well-represented throughout the year.

What We Need From You

Please take a few minutes to review and update your company listing:

• Visit: farmequip.org/member-resources/directory-update/
• ID Number: Your Member ID
• Password: Your ZIP code

Once logged in, review each tab carefully and make updates as needed. Please pay special attention to:

• Personnel listings — Include key leaders and team members in production, engineering, R&D, technology, marketing, and sales, especially those who would benefit from targeted FEMA communications and invitations.
• Products and services — Confirm these reflect your current capabilities and offerings.

When you’re finished, click “Submit Directory Changes.”

Timing

Please complete your updates within the next 10 business days.

Optional Enhancements (Recommended)

To increase your visibility, you can also:

• Add your company logo to your directory listing
• Include links to your social media channels (Facebook, X/Twitter, LinkedIn, YouTube)

Questions?

If you need help at any point, please contact TKidd@farmequip.org or call (314) 878-2304.

Thank you again for your support of FEMA. We look forward to helping your team stay informed, connected, and competitive throughout the year.