Recent pronouncements around changing tariff policies have introduced a new level of economic uncertainty to manufacturers and industrial organizations, drawing uncomfortable attention to the unpredictability surrounding trade agreements, tariffs and potential retaliatory measures from other countries and forcing manufacturers to operate in a state of hesitation.
Companies—especially those with global supply chains—are finding themselves unable to commit to long-term investments because they don’t know what the next policy change will bring. This extends right down to the factory level for manufacturers and will impact their ability to attract, retain, and upskill employees on the shop floor.
The power to remain agile in this changing landscape will separate industry leaders from those who struggle to keep up. Here’s how connected worker technology can help manufacturers adapt to new processes and thrive under uncertainty, even during trade policy instability.
The uncertainty of trade policy impacting all areas of the manufacturing supply chain
Tariffs not only increase costs but also introduce instability, leading many organizations to freeze their investments. If manufacturers don’t know what’s going to happen, they pause expansion, delay new projects and avoid commitments that could be undone by a sudden shift in policy.
Beyond investment freezes, economic uncertainty impacts employee morale and engagement. When businesses hold back on expansion or restructuring, employees worry about their future. This climate of insecurity can lead to reduced productivity and lower overall engagement levels. However, amidst these challenges, opportunities still exist. The most digitally mature companies – those that have embraced automation, data-driven decision-making and connected worker platforms – are in the best position to adapt, survive and thrive.
Change management: The key to navigating uncertainty
One of the biggest lessons from ongoing tariff disputes is the necessity of strong change management strategies. Companies that are slow to adapt will face significant challenges, while those that embrace digital transformation and workforce empowerment will have more options at their disposal. Simply put, if you’re not digitally mature, you have fewer options for managing disruption.
Relocating production when necessary and when possible is one way to avoid the impact of tariffs. But moving machinery is the easy part—finding skilled workers to operate that machinery is far more challenging. This is where connected worker platforms play a crucial role. Ensuring that knowledge is accessible, training is efficient, and communication is seamless allows manufacturers to respond to changes with minimal disruption.
Survival of the fittest. New processes and technologies help manufacturers to thrive under uncertainty
There are Top 3 ways that technology can help manufacturers adapt to new processes and thrive even amid external pressures such as tariffs.
Put employees front and center. With labor shortages already being a pressing issue, and U.S. immigration policies applying further pressure, companies must leverage digital tools to ensure critical knowledge is captured and accessible to new employees. This prevents operational disruptions when skilled workers leave or transition roles. It will also improve onboarding and new employee time to value, which are critical metrics for success in new or growing factories.
As companies face rising production costs due to tariffs, investing in artificial intelligence can help offset labor expenses while improving productivity. AI-powered content conversion, multilingual transcription and search support your workforce with the tools and information they need, when they need it most, especially if a manufacturer is developing a new workforce across borders.
Beyond technology, investing in workforce resilience is crucial. Companies should focus on upskilling employees, fostering a culture of adaptability and providing ongoing training to prepare workers for changing industry demands.
Prepare for growth and expansion. While tariffs and trade instability create short-term challenges, manufacturers must remain ready for the moment that the pendulum swings toward rapid or long-term growth. Businesses that invest in adaptability will be best positioned to seize new opportunities once conditions stabilize.
As businesses navigate economic uncertainty, they may find themselves needing to establish new production sites to avoid tariffs or optimize logistics. Connected worker platforms ensure that these facilities can get up and running with minimal delays, providing immediate access to training, resources, and real-time communication.
As production shifts between countries, manufacturers must ensure that knowledge transfer happens smoothly. Connected worker solutions make it possible to document best practices and share them instantly across the globe. Companies that fail to retain institutional knowledge will struggle to ramp up new operations efficiently.
Whether due to increased production demand or the need to expand operations, manufacturers must be able to onboard new workers quickly. Digital training solutions, standardized work instructions and real-time communication tools enable employees
Maintain product quality. Manufacturers need to find ways to streamline processes and reduce waste without sacrificing quality. An ill-equipped workforce can drive massive quality and yield losses, with significant impact on the bottom line. Data-driven manufacturing allows companies to analyze inefficiencies and make smarter decisions.
Even in turbulent times, manufacturers cannot afford to let product quality suffer. A connected workforce ensures that best practices and standard operating procedures are consistently followed, reducing the risk of defects and compliance issues. While labor is an important line on the balance sheet, the impact of raw material loss and re-work cannot be understated, meaning manufacturers have to maintain their quality standards and yield outputs through rapid change and uncertainty.
Where does connected worker technology come in?
Over-communication is a fundamental principle in effective change management. Advanced connected worker technology will facilitate real-time updates, to ensure that employees remain informed and engaged, even during uncertain times. This transparency is critical to maintain morale and foster a culture of resilience.
Connected worker platforms will also support rapid onboarding for new hires using digital work instructions that can be easily translated into multiple languages. This capability is particularly valuable when organizations must shift operations across borders or quickly scale up production in response to demand.
Another essential component of navigating change is providing employees with the right tools to support their success. Digital platforms empower workers by giving them instant access to knowledge, troubleshooting resources and performance insights. A CEO should always have a clear pulse on the shop floor, and connected worker solutions make that possible. When employees feel supported and engaged, they are more likely to embrace change rather than resist it.