Let's talk about what businesses need to watch for in 2025 now that the US has a new president in the White House. Trust me, there's a lot to keep an eye on!
First up, supply chains are in for quite a shake-up. The big push to bring manufacturing closer to home - US and Mexico - means it's not just American companies that need to pay attention. With President Trump's proposed blanket tariff on most imports and potential additional duties required on Chinese goods, these changes are going to ripple across the globe. Companies need to rethink their sourcing strategies very seriously. The tricky part? Many businesses are only watching their direct suppliers, but the real risks often hide in those deeper supplier relationships - the suppliers of their suppliers, if you will.
Speaking of risks, let's get real about what's happening globally. With on-going geopolitical conflicts, organizations need to think beyond just trade relationships. What we're seeing now is a need to break down silos between procurement and risk management within supply chain teams. The old way of managing risks in isolation just doesn't cut it anymore. Companies need to become more elastic and leverage their collective intelligence to better predict and prevent disruptions.
Additionally, the massive surge in extreme weather is forcing companies to overhaul their business continuity plans. Last year the US was hit with 27 separate weather or climate-related disasters, each resulting in at least $1 billion in damages (as reported by the NOAA.) And it's unclear just how long-lasting the devastating impacts and costs of the catastrophic Los Angeles fires will be felt in the coming months.
It's not just about having a backup plan anymore - it's about having a backup for your backup.
On the environmental and safety front, things are getting interesting. While federal rules are loosening, don't count on a free-for-all. I do expect state regulations, especially along the coasts, are likely to keep strong environmental and worker safety protections in place. For EHS managers, this means staying sharp on compliance at both levels and focusing more on workplace safety programs and environmental monitoring.
Similarly, investors and customers are pushing harder than ever for real environmental action despite any potential regulatory adjustments. The PFAS challenge, for example, isn't going away - if anything, it's gaining more attention. Companies are racing to understand their exposure to these "forever chemicals" and develop remediation strategies. Why? Because the financial and reputational risks of ignoring PFAS are just too high to chance it. I anticipate the energy sector is going to be buzzing with activity. There's a big push coming for more domestic oil and gas production, similar to what we saw pre-2020. But here's the catch - companies will need to balance this growth with heightened scrutiny on industrial hygiene and worker safety, especially with the potential declaration of a national energy emergency to boost production. This could mean faster project approvals but also increased responsibility to maintain rigorous safety standards.
The sustainability scene also cannot be overlooked. Despite the expected rollback of the EPA's vehicle emissions rules and EV mandates, coupled with the withdrawal from the Paris Agreement (aka the Paris Climate Accords), US organizations operating globally will still need to contend with international carbon reporting regulations to continue to be an organization in good standing.
And let's not forget about cybersecurity - it's the elephant in the room that keeps getting bigger. With more manufacturing moving closer to home, companies are realizing their digital infrastructure needs a serious upgrade. We're talking about protecting not just company secrets, but entire networks. The days of treating cybersecurity as just an IT problem are definitely over.
Want my advice? Don't wait for changes to hit - start planning now. Remember: despite any policy shifts, market demands for sustainable and responsible business practices aren't going anywhere.
Stay flexible, keep your operations safe, and think long-term.
