Tariffs Emerge as Top Challenge for Foodservice Equipment Manufacturers
Tariffs ranked as the top business challenge for foodservice equipment manufacturers, according to the North American Association of Food Equipment Manufacturers' (NAFEM) new advocacy issues survey. In all, 91% of respondents reported negative impacts from tariffs, and 78% said they were passing costs on to customers.
Manufacturers appear to be taking a strategic approach to trade uncertainty. Seventy-three percent of manufacturers said they were investigating new or local suppliers, and 75% said they were reshoring or offshoring production to new countries. “Trade policy uncertainty and tariff exposure have become long-term strategic concerns that complicate forecasting and capital investment decisions,” NAFEM said.
The survey results represent a significant shift from the last time the survey was conducted in 2023. At that time, only 9% of respondents rated tariffs as their top business challenge, behind recruiting and retaining talent (37%) and regulations (30%). Over the past three years, recruiting and retaining talent has fallen to the fifth most significant concern and regulations have moved down to third, behind tariffs and shipping costs and delays.
Although it does not rank as highly as three years ago, manufacturers still reported significant regulatory compliance burdens. Eighty-five percent of respondents said regulations were limiting their ability to control costs, up from 62% in 2023, and 53% said they were making it more difficult to compete, up from 40%. If compliance burdens were reduced, 71% of manufacturers said they would redirect that money toward product development, 53% would invest it in capital spending, and 35% would increase hiring.
Even though conditions and economic pressures have changed, NAFEM noted that controlling costs, maintaining profit margins, and managing supply chain risks remained consistent challenges across both surveys.
More information on the 2025 NAFEM advocacy issues survey is available here.