NAFEM Survey Reveals Top Issues Impacting Manufacturers

Tariffs have grown to become the No. 1 business challenge for foodservice equipment and supplies manufacturers, according to a 2026 NAFEM survey. Regulatory compliance burdens also remain a substantial challenge, which NAFEM pointed to in its 2023 survey.

Volatility is no longer a short-term disruption for manufacturers but a structural business condition, NAFEM states in the release.

The 2023 survey showed manufacturers dealing with post-pandemic disruptions such as lead times, shipping delays and material shortages. They reacted by absorbing higher costs and implementing short-term price increases. In 2026, manufacturers are still using these methods, NAFEM says, but the approach is more strategic. They’re diversifying suppliers, exploring nearshoring and reshoring options, and formalizing contingency plans to better manage uncertainty.

Graphic courtesy of NAFEM.

Overall, NAFEM surveyed nearly 400 member companies from Jan. 20 to Feb. 3, and the results represent an 11% response rate. NAFEM points to the following key findings from its 2026 survey:

• 91% of respondents report tariffs have negatively impacted their businesses
• 78% have passed on tariff-related costs to customers
• 73% are investigating new or local suppliers
• 75% are exploring nearshoring and reshoring options

In 2023, 9% of respondents rated tariffs the highest business challenge, far behind recruiting/retaining talent (37%) and regulations (30%).

Related to regulatory compliance burdens, NAFEM points to the following findings:

• 85% say compliance is limiting their ability to control costs, versus 62% in 2023
• 53% report compliance is making it more difficult to compete versus 40% in 2023
• 47% say these burdens are impacting growth, versus 54% in 2023
• Today, if manufacturers could reduce this burden, they would redirect spending to product development (71%), capital investments (53%) and hiring (35%). In 2023, respondents would have purchased new equipment (58%), hire (34%) and increase wages/benefits (32%).

“This data provides important insights into the state of many NAFEM member companies and the challenges these businesses face,” says Charlie Souhrada, CFSP, NAFEM vice president of regulatory and technical affairs, in the release. “The results show an ongoing evolution of business pressures and sheds light on the ways these companies are adapting strategies and practices to address these concerns.”

NAFEM recently brought together its members in New Orleans for its 2026 Executive Summit, where it seated new board members.