The “Tariffs and Turbulence” report, which surveyed hundreds of manufacturing leaders across the state, found that one-third of all Ohio manufacturers reported a direct impact on their sales, either positive or negative, within the last six months.
The Breakdown: Losses are Deeper
While the overall numbers of “winners” and “losers” appear close, a deeper analysis shows the damage is more profound for the companies negatively affected:
* 18% of manufacturers reported a loss in sales due to tariffs.
* 15% of manufacturers reported an increase in sales due to tariffs.
Critically, the size of the average loss was nearly double the average gain. Companies that saw a decline reported an average sales hit of 16%, while those that benefited saw an average increase of only 9%.
“Tariffs are fundamentally reshaping the economics of manufacturing in Ohio,” said Ethan Karp, President and CEO of MAGNET. “The bad currently outweighs the good. The challenge is that a 16% loss for an input-dependent company can be catastrophic, while a 9% gain for a protected sector might not fully offset the resulting market instability.”
Key Takeaways from the Report:
* Rising Input Costs: Beyond direct sales impact, approximately 40% of firms reported that rising raw material costs—often a direct or secondary consequence of tariffs—were holding back their growth.
* Economic Uncertainty: The survey highlighted that economic uncertainty, driven by unpredictable trade policies, now rivals the long-standing issue of workforce shortages as the top barrier to expansion.
* Reshoring Remains Slow: Despite the goal of tariffs to spur domestic production, the report indicated that reshoring efforts are modest, with only 9% of manufacturers bringing production back to the U.S.
The mixed results underscore the complexity of tariff policies, which act as a tax on imports. They can shield domestic producers of raw materials, such as the state’s large steel industry, giving them a competitive advantage. However, they raise costs for “downstream” manufacturers who rely on those imported materials or components to make finished products, like automotive parts suppliers and construction equipment companies.
Despite the turbulence, Ohio manufacturers remain resilient. Two-thirds of surveyed companies still project growth for 2026, indicating an industry defined by cautious optimism and an expectation that they will adapt to the new global trade reality.