As 2025 begins, distributors across the United States and Canada are voicing significant concerns regarding the economic landscape. A recent survey conducted in early January 2025 gathered over 250 responses from distribution executives, revealing that tariffs and trade policy are at the forefront of their worries. Economic uncertainty, inflation, and rising costs are also critical issues impacting their operations [1a2a9dae].
The survey highlights the impact of tariffs on pricing and supply chains, which has become a pressing concern for many in the distribution sector. Executives expressed difficulties in planning due to unclear policies and unpredictable economic conditions, with macroeconomic risks such as interest rate volatility and inflation further complicating their outlook [1a2a9dae].
Political instability is another significant factor affecting distributor confidence, as many respondents are apprehensive about the implications of the new administration's policies on the U.S. economy and manufacturing sector. This sentiment is echoed by concerns over hiring qualified employees, which continues to be a challenge amid the ongoing talent and workforce issues [1a2a9dae].
In a broader context, these concerns align with findings from The Conference Board's survey of CEOs, where 46% of respondents identified recession as their top economic worry, alongside geopolitical tensions and supply chain disruptions [19e1903d]. The intertwining of these issues paints a complex picture for distributors as they navigate the challenges of a volatile economic environment while striving to maintain profitability and operational efficiency.
Overall, the insights from both surveys underscore a shared sentiment of caution among business leaders as they prepare for the uncertainties that lie ahead in 2025.