Dean Dorton brings together economic, tax, technology, and industry perspectives to examine the developments shaping the manufacturing landscape.
Manufacturers are entering 2027 amid a changing economic and regulatory environment, with developments in trade policy, workforce conditions, technology and tax compliance creating new considerations for business leaders. Understanding how these factors intersect—and what they mean for operational performance, profitability and long-term planning—is increasingly important.
These issues were at the center of Dean Dorton’s Manufacturing Matters: Economic, Tax and Technology Insights for 2027 webinar. Bringing together economic, legal, insurance, technology, and tax perspectives, the discussion examined trends influencing the manufacturing sector and the decisions manufacturers should consider as they plan for the year ahead.
Contributors included Jim Tencza, Assurance Director and Manufacturing Industry Leader at Dean Dorton; Jay Hawkins, Senior Economist at The PNC Financial Services Group; Nancy Magoteaux, Partner at Bricker Graydon Wyatt; Jeremy Riddle, Managing Director at Higginbotham; Ed McGillis, Associate Director of Data & AI Consulting at Dean Dorton; Jay Fischbein, Managing Director of Tax at Dean Dorton; and Kiersten Gaudet, Associate Director of Tax at Dean Dorton.
The following recap highlights key insights from the discussion, along with important economic, operational and tax considerations for manufacturers navigating an evolving business environment.
Economic Outlook: Navigating Growth, Inflation and Workforce Conditions
Jay Hawkins opened the discussion with an economic outlook focused on the forces shaping the broader U.S. economy and their implications for manufacturers. While economic conditions have remained resilient in several areas, businesses continue to navigate uncertainty tied to inflation, interest rates, labor market conditions and trade policy.
The U.S. economy has demonstrated relative strength compared with other major global economies. However, that resilience does not mean manufacturers are operating without pressure. Interest rates remain elevated, and while the labor market has shown signs of stabilizing, hiring activity has softened. Wage growth has also moderated, creating a more complex environment for employers balancing labor costs with workforce needs.
Consumer spending remains another important consideration. Hawkins noted that consumers have relied on savings to support spending, but that trend cannot continue indefinitely if spending outpaces income growth. Slower disposable income growth and changes in employment conditions could influence demand across the economy.
Inflation also remains a consideration for business planning. After progress in bringing inflation down, some of that progress reversed in 2025. The outlook presented during the webinar pointed to continued inflation pressures before a potential moderation in core inflation.
For manufacturers, these economic conditions reinforce the importance of disciplined forecasting and scenario planning. Decisions involving capital investment, inventory, pricing, staffing and expansion should account for a range of potential economic outcomes rather than rely on a single forecast.
The manufacturing outlook offered some encouraging indicators. The sector had expanded during the first nine months of 2026, with production and new orders showing improvement. Manufacturing industrial production had also moved above its pre-pandemic level in May 2026, with further growth expected through 2027. Forecasts also pointed to slightly stronger manufacturing employment, moderating wage growth and accelerating productivity.
Taken together, these indicators suggest opportunities for manufacturers, but the ability to capitalize on them will depend on how effectively businesses manage costs, workforce capacity and investment decisions.
Manufacturing Operations, Risk and Technology: Connecting Strategy to Execution
The discussion then turned to the operational challenges and opportunities facing manufacturers. Nancy Magoteaux, Jeremy Riddle and Ed McGillis brought perspectives spanning legal considerations, insurance and risk management, and data and artificial intelligence.
Manufacturers operate in an environment where operational decisions can have implications across multiple areas of the business. Changes in technology, supply chains, workforce practices and regulatory expectations can introduce new risks while also creating opportunities to improve performance.
One important consideration is how manufacturers evaluate and manage risk as their businesses evolve. Risk management should extend beyond insurance coverage and compliance to include a broader understanding of operational exposures, contractual obligations, supply chain dependencies and business continuity. As manufacturers adopt new technologies and expand operations, those risks can change, making regular evaluation important.
Technology was another central theme. Data and artificial intelligence offer manufacturers opportunities to improve visibility, support decision-making and streamline processes. However, realizing value from these tools requires more than adopting new technology. Organizations need reliable data, clearly defined business objectives and an understanding of how technology fits into existing workflows.
For manufacturers considering AI, the most effective starting point is often identifying a specific business challenge. Opportunities may include improving access to operational information, reducing manual processes, supporting forecasting and strengthening decision-making. The value comes from applying technology to meaningful business needs—not simply implementing tools because they are available.
These considerations are interconnected. Technology investments can affect risk exposure, data security and internal controls, while operational changes may create new insurance, contractual or compliance considerations. A coordinated approach helps manufacturers evaluate decisions more comprehensively and avoid treating each issue as an isolated concern.
Sales and Use Tax Compliance: Keeping Pace with Business Growth
As manufacturers expand into new markets, add products or change how they source and distribute materials, sales and use tax compliance can become increasingly complex.
Kiersten Gaudet addressed several common areas of exposure, including expanding nexus obligations, manufacturing exemptions, exemption certificates, overlooked use tax and multistate compliance.
Nexus requirements can change as a business grows, particularly when operations, employees, inventory or sales activity extend into additional states. Manufacturers may find that their tax obligations evolve as their business footprint changes, making it important to regularly evaluate where registration, collection and filing requirements apply.
Manufacturing exemptions can also create complexity. While many states offer exemptions for qualifying machinery, equipment, materials and other purchases used in manufacturing, the rules and requirements vary by jurisdiction. Understanding which purchases qualify—and maintaining the appropriate documentation—is essential.
Exemption certificates require ongoing attention as well. Incomplete, outdated or missing certificates can create exposure during an audit. At the same time, use tax obligations may be overlooked when tax is not properly charged on taxable purchases.
For manufacturers operating across multiple states, these issues can quickly become difficult to manage through manual processes. Regular reviews of taxability, exemption documentation, purchasing practices and filing obligations can help identify gaps before they become larger problems.
As businesses grow, manufacturers should consider whether their existing compliance processes can support increased transaction volume and geographic complexity. Automation and well-defined processes can improve consistency, reduce manual effort and provide greater visibility into compliance responsibilities.
Tariffs and Trade Policy: Understanding Direct and Indirect Impacts
Trade policy continues to create uncertainty for manufacturers, particularly those with international suppliers, imported materials or complex supply chains. Jay Fischbein provided an overview of the tariff developments discussed during the webinar, including changes to the legal framework and the potential implications for importers.
The discussion reviewed several major developments in 2026. Following the February 20 U.S. Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), certain previously paid duties may qualify for refunds. In response to the ruling, Section 122 tariffs were implemented for a 150-day period beginning in February 2026, applying a 10% tariff to certain products. Following the expiration of those tariffs in July, new Section 301 tariffs were introduced, applying 10% or 12.5% tariffs to certain goods and countries. Additional measures under Sections 338 and 232 have also targeted specific countries and products.
For manufacturers, the impact of these changes extends beyond the tariff rate itself. Import costs can influence pricing, supplier relationships, sourcing decisions and overall margins. Businesses should understand which products and materials are affected and evaluate how changes in trade policy may influence their cost structure.
Fischbein also discussed the Consolidated Administration and Processing of Entries (CAPE) tool, which is now operational within the Automated Commercial Environment (ACE). The tool is designed to streamline IEEPA tariff refund requests and allows eligible parties to submit batch requests covering multiple entries, with up to 9,999 entries in a single request. Only the importer of record or the broker that filed the original entry may submit a refund request.
The webinar reviewed the rollout of the refund process in phases:
- Phase 1, launched April 20, 2026: Covers certain unliquidated entries and certain entries within 80 days of liquidation.
- Phase 2, launched June 29, 2026: Expanded the initial scope to include certain entries that had been filed but flagged for reconciliation.
- Phase 3, launched October 6, 2026: Began processing certain finally liquidated entries for importers of record with a pending case before the Court of International Trade.
The process for other entries finally liquidated, including those without a pending Court of International Trade claim, remained unclear at the time of the webinar.
Manufacturers should also consider whether they have been affected indirectly by IEEPA tariffs. Even when a business is not the importer of record, suppliers may have passed through tariff costs. Reviewing supplier invoices and contract language, asking whether suppliers received related refunds, and evaluating whether credits may be appropriate can help businesses understand their potential exposure. Any reimbursement should not be assumed to be automatic.
These developments reinforce the importance of maintaining visibility into the supply chain and understanding how trade policy affects both direct import costs and supplier pricing.
Continuing the Conversation
The issues explored during Manufacturing Matters illustrate how closely connected the economic, operational, technology and tax considerations facing manufacturers have become. Decisions in one area can have implications across the business, making it increasingly important for leaders to take a broader view of risk, performance and long-term strategy.
As manufacturers look toward 2027, several priorities stand out: maintaining flexibility in financial and operational planning, evaluating technology investments against meaningful business needs, keeping pace with evolving compliance obligations, and understanding the direct and indirect effects of trade policy.
Staying informed is an important first step. Equally important is evaluating how these developments apply to an individual organization’s operations, financial position and strategic objectives.
Dean Dorton appreciates the perspectives shared by the webinar contributors and the opportunity to bring together expertise across disciplines for a discussion focused on the challenges and opportunities ahead for manufacturers.
Missed the Webinar?
If you weren’t able to join us live, there’s still an opportunity to hear from our panel of experts. Watch Manufacturing Matters on demand for insights into the key trends, challenges and opportunities shaping the manufacturing industry.
