A more sober reality

Talking points about tariffs and their longer-run benefits don’t change the situation on the ground today. Facing market dislocations and rising prices for much of what they buy, leadership teams across the industrial sector are having to make tough choices. The headlines below pick on the auto industry but a September PMI that showed 67% of the manufacturing sector contracted last month strongly suggests many other executives are in the thick of it, too.

— Geert De Lombaerde
 

• GM delays second shift at Kansas plant, lays off 900

• Michigan auto parts maker pivots facility plans due to tariffs

• A recovery in the freight market, and equipment demand, remains just over the horizon
 

ROI on the AI

Another 67% stat: In KPMG’s new Global CEO Outlook, two-thirds of leaders said they anticipate a return on their investment in AI projects in one to three years. That’s a massive jump from 12 months ago and it wouldn’t surprise us to see that payoff period get shorter still in the near future.
 

• How BASF, Dow and others are speeding up R&D with AI and robotics

• A lack of AI governance is putting organizations everywhere at serious risk
 

“People are saying it out loud now,
and they weren’t saying it before.”

Staying on the AI theme, that’s Grant Thornton’s Dana Lance
commenting on C-suites’ change in attitude about the opportunity
to prune headcount as AI embeds itself in their organizations.
 

Finding the proper perspective

The combination of tariff uncertainty, the rewiring (again) of supply chains and the emergence of AI makes for quite the leadership knot to untie. Keeping an eye on the big picture will be key—as will looking after your labor resources.
 

• The path to being a strategic thinker with a system perspective

• Survey says employers are underprepared for greater union activity
 

-19.4%

Hackett Associates’ December forecast
for U.S. import cargo volumes compared to a year ago

Caveat emptor on noisy economic data ahead. This seemingly shocking stat
requires two qualifiers: Firstly, tariff changes prodded many importers
to ship ahead of the usual peak season at the expense of what
remains of 2025. Secondly, last year’s December was unusually strong
because many firms were spooked by the threat of port strikes.
 

• Monthly imports are expected to drop while tariffs continue to rise
 

What’s ahead for this newsletter

Hello readers,

We have exciting changes in store for this newsletter as part of a broader initiative from EndeavorB2B, our parent company. In mid-November, we will launch a set of newsletters that will empower B2B leaders to make better decisions. Market Moves Strategy will transition into ExecutiveEDGE, a newsletter combining a macro view of what’s essential with a micro focus on how to transform key takeaways into actionable steps.

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