Executive Perspectives on Top Risks for the Near- and Long-Term: Manufacturing and Distribution Industry Group Results

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screenshot of the first page of Executive Perspectives on Top Risks for the Near- and Long-Term Manufacturing and Distribution Industry Group Results
By
Protiviti

Managing Top Manufacturing and Distribution Industry Risks

This report highlights critical challenges faced by manufacturers and distributors in navigating an increasingly complex global landscape, based on the results of Protiviti’s 13th annual Executive Perspectives on Top Risks Survey. Economic uncertainty, inflationary pressures and regulatory ambiguity dominate near-term risks, with workforce shortages emerging as a major internal concern due to an aging workforce, tightening immigration policies, and rising labor costs. Technological disruption is reshaping the industry, with advancements like AI, IoT and "dark factories" enabling new competitors while demanding significant investment from established firms. Operational vulnerabilities persist, driven by supply chain disruptions, cybersecurity threats and reliance on third-party suppliers. Long-term risks are categorized into macroeconomic, strategic and operational dimensions, with talent availability, economic conditions and trade policy shifts leading concerns. 

Strategic risks include the rapid pace of disruptive innovations and heightened ESG expectations, while operational risks focus on supply chain uncertainties and cyber threats linked to increased automation and IoT usage. Industry leaders emphasize the importance of proactive strategies, including workforce development, automation, predictive analytics and sustainability efforts, to mitigate risks and maintain competitiveness. The survey underscores the need for agility and forward-thinking leadership as manufacturers face evolving challenges over the next decade. Investments in Industry 4.0 technologies and regionalized supply chains are highlighted as potential solutions to enhance resilience and secure a competitive edge in an era of rapid transformation and uncertainty.