Trade, Regulations, Outsourcing, Forecasting: The Issues Shaping the Election for Industrial Products Companies

A reason for this could be IP companies tend to operate on longer investment cycles than other industries, with projects and capital outlays planned over many years. As a result, a single election cycle may not drastically affect their long-term strategies. Instead, their focus may be more centered on managing broader business challenges, such as reinventing their business models and decarbonization.

Outsourcing

Another area IP leaders seem less concerned about than other industries is outsourcing. 62% of IP respondents say the outcome of the election will affect their company's business decisions around outsourcing either somewhat or to a great extent (compared to 68% for all industries).

Executives in the IP sector might feel more safeguarded from election-induced changes in outsourcing policies than leaders in other industries given that both major political parties historically support domestic manufacturing and supply chain resilience.

Preparing for Tomorrow

As much as we wish we could, we can’t predict the future. But what we can do is monitor for any potential changes and take action to prepare our business.

Here are few ways to keep your business nimble leading up to potential policy changes:

• Exercise a deep understanding of potential policy shifts: Analyze how different election outcomes could alter trade policies, including tariffs, trade agreements, and sanctions.
• Maintain supply chain resilience: Evaluate existing supply chains to confirm they can withstand potential disruptions caused by changes in trade policy.
• Stay focused on cost management: Assess how shifts in trade policy might affect the cost of raw materials and components, as well as planning strategies to mitigate any negative impacts.
• Monitor regulatory changes for operational impact: Stay updated on potential new regulations or changes to existing ones that could affect operations.
• Evaluate strategic partnerships: Consider the need to diversify suppliers or form strategic partnerships to reduce dependency on any single source or region.
• Brace for post-election market shifts: Prepare for possible fluctuations in market conditions that could arise from political and economic changes following the election.
• Strategize for different election scenarios: Develop contingency plans to address various election outcomes and their potential impact on business operations.

While the future remains uncertain, what is clear is the importance for IP companies to remain agile and focused on the future. By performing the steps outlined above, IP leaders can position their organizations to navigate the complexities of the post-election landscape and continue driving forward in an ever-evolving industry.