Middle market companies in the U.S. and Canada are increasingly turning to technology investments, stringent compliance measures, and outsourced services to navigate an evolving trade and tariff environment, according to a new report from RSM US LLP. The RSM Supply Chain Special Report 2025 indicates a strategic shift as businesses aim to optimize supply chains and adapt to regulatory changes.

Why it matters: For consulting firms, this signals a growing demand for expertise in supply chain technology implementation, regulatory navigation, and strategic outsourcing, particularly within the middle market. These companies are actively seeking solutions to build resilience and efficiency in their supply networks.

The big picture: The findings arrive after several years of significant supply chain disruptions that began in 2020. These challenges prompted many organizations, especially in the middle market, to re-evaluate and enhance their supply chain visibility and resilience. As new uncertainties, including potential tariff adjustments, emerge, the reliance on robust data and technology is becoming even more critical.

Key survey insights: The report, based on a March 2025 survey of 309 supply chain decision-makers and influencers from U.S. and Canadian companies with annual revenues between $10 million and $1 billion, reveals several key trends:

  • Top Priorities: Over the next 12 to 24 months, sustainability (defined broadly as supply chain resilience) and keeping up with compliance are the most critical concerns, with 56% of respondents rating each highly.

    • These are followed by inventory management, profit visibility, and risk management, each cited as highly important by 51% of respondents.
    • Notably, automation and cost reduction were ranked lower, with 44% considering them highly important.
  • Tech Investment: Despite 93% expressing confidence in their current data accuracy, a significant 91% agree they need to invest in technology to improve operational effectiveness.
  • AI Interest: Nearly nine in ten respondents (88%) are keen to explore how artificial intelligence (AI) can be deployed to enhance their supply chain success.
  • Tariff Preparedness: A majority (85%) feel very or somewhat prepared for potential new trade and tariff stances in the next six to 12 months. However, preparedness varies geographically, with 87% of U.S. respondents feeling prepared compared to 76% in Canada. The report acknowledges that the tariff landscape has seen significant changes since the survey was conducted.
What they're saying: "The pandemic forced businesses to improve supply chain data and have better information overall about where goods were coming from,” said Dr. Tu Nguyen, RSM Canada economist. "While things seem to be a lot better now, the current uncertainty in the trade environment could be another wake-up call for businesses that still don’t have the best transparency or visibility into their supply chain.”

Jake Winquist, RSM US management consulting principal, noted a shift in perspective: “Far more companies have started thinking about their supply chain as a strategic asset rather than a cost center. Supply chain disruptions happen to everyone, and companies see supply chain risk and resilience as priorities now.”

Digital Maturity Surprisingly High: Respondents reported a relatively advanced level of digital maturity in their supply chains:

  • Only 3% rated their maturity at Level 1 or 2 (manual or inconsistent data).
  • 28% are at Level 3 (big data solution, gathering from critical inputs).
  • A significant 47% claim Level 4 maturity (data from every function, automatically analyzed).
  • 21% report Level 5 (enterprise data unified to a single source of truth). These self-reported figures suggest a rapid acceleration in data utilization for supply chain visibility in recent years.
Looking ahead: The report suggests that supply chain decisions will continue to have significant implications for organizations' tax functions. For middle market companies, which may lack the extensive internal resources of larger enterprises, leveraging outsourced solutions and management consulting will be crucial for navigating the complexities of global supply chains and evolving regulations. The full RSM report delves deeper into sector-specific breakdowns, tariff perspectives, and tax optimization strategies.

View RSM Supply Chain Special Report 2025 here.

SOURCE: RSM US LLP

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