Industrial companies in the US struggled with uncertainty in trade policies throughout the year. However, the picture turned positive in the last quarter as the effects of tariffs diminished and firms adapted to the new system.
Compared to the first half, heavy industry, engine manufacturers, and construction equipment firms balanced strong demand with cost cuts and price increases.
Illinois Tool Works CFO Michael Larsen said, “Tariffs are no longer the main issue.”According to Reuters data, the total estimated loss for global companies in financial statements released by the end of October was $7 billion. This figure is well below the $16 billion level of the previous quarter.
US industrial giants are experiencing their strongest revenue growth since the first quarter of 2023: 6.3% year-over-year growth. For example, Caterpillar showed strong performance by narrowing its tariff cost estimate from $1.5–$1.8 billion to $1.6–$1.75 billion.
Logistics giants like UPS and FedEx maintained their revenues through cost-cutting measures despite the removal of tax exemptions in e-commerce.
However, UPS has cut 48,000 jobs during this process. The situation is different in Europe. Manufacturers such as SKF, HIAB, and Volkswagen are facing weak demand and reduced orders due to high US tariffs. The automotive sector, in particular, is experiencing billions of dollars in losses. According to Yale Budget Lab data, the average US tariff rate is at 18%, the highest in the last 90 years. Experts say that with a decrease in tariff pressure, the industrial sector could achieve a more stable outlook in 2025. The automotive sector, in particular, is experiencing billions of dollars in losses.
