Manufacturing executives surveyed by the Institute for Supply Management expect their 2025 annual revenues to increase throughout the year, with expansion accelerating in the second half.

ISM shared the results of its December 2024 Supply Chain Planning Forecast — formerly known as the Semiannual Economic Forecast — on Dec. 16, which showed that U.S. purchasing and supply executives expect the U.S. economy to improve in 2025, with revenues in manufacturing and services to grow at a faster rate than when polled in mid-2024.

The survey’s manufacturing executives collectively indicated that they expect 2025 revenue to increase by 4.2% vs. 2024, with 60% of ISM respondents expecting revenue gains. That’d be a significant improvement over the 0.8% growth reported for 2024. Meanwhile, services revenues are likewise projected to rise 3.9% in 2025 (3.7% in 2024).

More granularly among manufacturing respondents:

• Manufacturing employment is anticipated to rise 0.8% in manufacturing in 2025
• Production capacity is expected to increase by 4% in 2025 vs. a 1.7% rise in 2024
• Prices paid are expected to increase by 3% in 2025 vs. a 3% increase in 2024

16 of 18 manufacturing industries reported projected revenue increase for 2025 in ISM’s report, listed in order: Computer & Electronic Products; Machinery; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Transportation Equipment; Miscellaneous Manufacturing; Paper Products; Primary Metals; Plastics & Rubber Products; Chemical Products; Nonmetallic Mineral Products; Wood Products; Printing & Related Support Activities; Furniture & Related Products; and Fabricated Metal Products.

“Manufacturing’s purchasing and supply executives expect to see overall growth in 2025,” ISM Manufacturing Business Survey Committee CPSM and Chair Timothy Fiore said in the release. “They are optimistic about overall business prospects for the first half of 2025 and more excited about faster growth in the second half. According to the ISM Report On Business, manufacturing grew for 28 consecutive months from June 2020 through September 2022, was unchanged in October and dipped into contraction in November 2022. The index has remained in contraction since, except for a reading of 50.3 percent in March 2024.”

To read more about the survey findings, click here.