By Alex Leclerc, CEO of Poka

Introduction: The Uncertainty of Trade Policy

Talk about tariffs has introduced a level of economic uncertainty that is particularly disruptive to manufacturers and industrial organizations. The unpredictability surrounding trade agreements, tariffs and potential retaliatory measures from other countries forces manufacturers to operate in a state of hesitation. Companies—especially those with global supply chains—find themselves unable to commit to long-term investments because they don’t know what the next policy change will bring.

A clear example of this impact can be seen in Toyota’s media statement, where they expressed concerns about how tariffs on imported automobiles and parts could ultimately hurt both consumers and the industry. This sentiment is echoed across the manufacturing sector. Tariffs not only increase costs but also introduce instability, leading many organizations to freeze their investments. If manufacturers don’t know what’s going to happen, they pause expansion, delay new projects and avoid commitments that could be undone by a sudden shift in policy.

Beyond investment freezes, economic uncertainty affects employee morale and engagement. When businesses hold back on expansion or restructuring, employees worry about their future. This climate of insecurity can lead to reduced productivity and lower overall engagement levels. However, amidst these challenges, opportunities still exist. The most digitally mature companies—those that have embraced automation, data-driven decision-making and connected worker platforms—are in the best position to adapt, survive and thrive.

At Poka, we understand the strategic importance of being able to pivot quickly. The ability to remain agile in this changing landscape will separate industry leaders from those who struggle to keep up.

Change Management: The Key to Navigating Uncertainty

One of the biggest lessons from ongoing tariff disputes is the necessity of strong change management strategies. Companies that are slow to adapt will face significant challenges, while those that embrace digital transformation and workforce empowerment will have more options at their disposal. Simply put, if you’re not digitally mature, you have fewer options for managing disruption.

Relocating production when necessary and when possible is one way to avoid the impact of tariffs. But moving machinery is the easy part—finding skilled workers to operate that machinery is far more challenging. This is where connected worker platforms play a crucial role. Ensuring that knowledge is accessible, training is efficient and communication is seamless allows manufacturers to respond to changes with minimal disruption.

Over-communication is a fundamental principle in effective change management. Platforms like Poka facilitate real-time updates, ensuring that employees remain informed and engaged, even during uncertain times. This transparency is critical for maintaining morale and fostering a culture of resilience.

Poka also supports rapid onboarding for new hires, with digital work instructions that can be easily translated into multiple languages. This capability is particularly valuable when organizations must shift operations across borders or quickly scale up production in response to demand.

Another essential component of navigating change is providing employees with the right tools to support their success. Digital platforms empower workers by giving them instant access to knowledge, troubleshooting resources and performance insights. At Poka, we believe that a CEO should always have a clear pulse on the shop floor, and connected worker solutions make that possible. When employees feel supported and engaged, they are more likely to embrace change rather than resist it.

How to Adapt: Strategies for Thriving Under Uncertainty

For manufacturers, adaptation means implementing strategies that reduce costs, optimize productivity and maintain quality—all while preparing for future growth. Here’s how businesses can position themselves for success:

Reducing Costs and Doing More with Less

Operational Efficiency

Manufacturers need to find ways to streamline processes and reduce waste without sacrificing quality. An ill-equipped workforce can drive massive quality and yield losses, with significant impact on the bottom line. Data-driven manufacturing allows companies to analyze inefficiencies and make smarter decisions.

Workforce Optimization

With labor shortages already being a pressing issue, and U.S. immigration policies applying further pressure, companies must leverage digital tools to ensure critical knowledge is captured and accessible to employees. This prevents operational disruptions when skilled workers leave or transition roles. It will also improve onboarding and new employee time to value, which are critical metrics for success in new or growing factories.

Maintaining Quality and Yield

Even in turbulent times, manufacturers cannot afford to let product quality suffer. A connected workforce ensures that best practices and standard operating procedures are consistently followed, reducing the risk of defects and compliance issues. While labor is an important line on the balance sheet, the impact of raw material loss and re-work cannot be understated, meaning manufacturers have to maintain their quality standards and yield outputs through rapid change and uncertainty.

Leveraging AI

As companies face rising production costs due to tariffs, investing in artificial intelligence can help offset labor expenses while improving productivity. AI-powered content conversion, multilingual transcription and search support your workforce with the tools and information they need, when they need it most - especially if your developing a new workforce across borders.

Preparing for Growth

While tariffs and trade instability create short-term challenges, manufacturers must remain ready for the moment that the pendulum swings toward rapid or long-term growth. Businesses that invest in adaptability will be best positioned to seize new opportunities once conditions stabilize. Here’s how companies can prepare for expansion:

Relocating Work Effort and Skills Transfer

As production shifts between countries, manufacturers must ensure that knowledge transfer happens smoothly. Connected worker solutions like Poka make it possible to document best practices and share them instantly across the globe. Companies that fail to retain institutional knowledge will struggle to ramp up new operations efficiently.

Rapidly Ramping Up New Employees

Whether due to increased production demand or the need to expand operations, manufacturers must be able to onboard new workers quickly. Digital training solutions, standardized work instructions and real-time communication tools enable employees to become productive in a fraction of the time traditional training methods require.

Supporting New Facilities

As businesses navigate economic uncertainty, they may find themselves needing to establish new production sites to avoid tariffs or optimize logistics. Connected worker platforms ensure that these facilities can get up and running with minimal delays, providing immediate access to training, resources, and real-time communication.

Diversifying Supply Chains

Companies that rely too heavily on a single country for materials or production may find themselves at greater risk when tariffs or trade restrictions change. A diversified supply chain strategy, supported by digital visibility tools, can help mitigate risks and ensure continued production.

Building a Resilient Workforce

Beyond technology, investing in workforce resilience is crucial. Companies should focus on upskilling employees, fostering a culture of adaptability and providing ongoing training to prepare workers for changing industry demands.

Conclusion: Building Resilience Through Digital Maturity

Tariff threats have demonstrated the importance of agility in the face of economic uncertainty. Manufacturers that hesitate to invest in digital transformation and workforce empowerment will find themselves at a disadvantage, while those that embrace innovation will be well-equipped to navigate the shifting landscape.

For manufacturers, this presents an opportunity to position themselves as reliable partners for companies seeking stability. By leveraging connected worker solutions, businesses can remain adaptable, ensuring that they are prepared for whatever comes next. The key to long-term success lies in creating a culture of continuous learning, leveraging technology for greater efficiency and embracing a data-driven approach to manufacturing operations.

At Poka, we believe that the future belongs to those who are ready to adapt. By prioritizing workforce engagement, digital knowledge sharing, and operational agility, manufacturers can not only survive economic uncertainty but thrive in the years ahead. The companies that recognize change as an opportunity, rather than a challenge, will be the ones leading the way in the next era of global manufacturing.

Tariffs and the Challenge of Economic Uncertainty: A CEO's Perspective