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Every year brings new challenges and opportunities for business owners. As 2025 begins, it’s a good idea to evaluate the previous year and look ahead to changes that might affect your industry.
Staying ahead of these shifts is the best way to stay competitive and maintain long-term success. Here are five things that could impact your company in 2025:
1. Tariffs
President Trump has promised to impose a 10% tariff on most foreign imports, with higher tariffs on Chinese and Mexican goods. Tariffs increase the cost of foreign-based products and incentivize consumers to switch to purchasing domestic products.
How tariffs impact your business depends on your industry, supply chain and trade resilience. U.S. companies that make their products domestically will likely benefit the most from these tariffs. For example, U.S.-based steel mills and aluminum producers could see an increased demand as foreign products become more expensive.
However, the tariffs could hurt companies that rely on imported raw materials, like automotive, technology and retail companies. These businesses might experience delays and increased costs that they’ll be forced to pass on to customers.
If you’re concerned your business will be negatively impacted by tariffs, there are proactive steps you can take. Start by diversifying your supply chain so you aren’t entirely reliant on any one region that might be impacted by tariffs. You can also re-evaluate your manufacturing process and explore switching from imported to domestically produced products.
2. Another port strike
The port strike ended on October 3, 2024, with the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) extending their contract until January 15, 2025. However, there’s the potential for another dockworker strike if the ILA and the USMX can’t reach an agreement in January.
A port strike will have a direct impact on most businesses, causing supply chain disruptions, increased costs and inventory shortages. Companies that can’t deliver their products on time could lose revenue and may be forced to temporarily lay off employees.
If you’re concerned about another port strike, you may want to build up an inventory buffer now. You can also start developing contingency plans for how you’ll respond to supply chain disruptions, like re-routing shipments or using alternative ports.
Related: The Port Strike Ended — Now What? Here’s How Small Businesses Can Prepare for Future Disruptions.
3. Rate changes
The Federal Reserve cut the Federal Funds rate twice in 2024, but it’s unclear what will happen in the coming year. If President Trump does impose tariffs and cut taxes, the Fed may be more cautious about reducing interest rates. Chairman Jerome Powell has been unwilling to speculate about any policies the new administration might adopt.
If the Federal Reserve lowers rates, businesses will benefit from cheaper financing and increased consumer spending. But if the Fed raises interest rates, this could make it harder for businesses to secure the financing they need.
If you anticipate needing to access a loan or line of credit this year, it may be a good idea to apply for financing now. That way, you’ll have access to the funds you need regardless of what happens with interest rates.
4. Minimum wage increases
Efforts to increase the minimum wage continue to pick up steam, and it’s set to rise in 23 different states this year. Illinois, Delaware and Rhode Island will increase the minimum wage to $15 per hour, while California and New Jersey will push it as high as $17.
Minimum wages affect companies of all sizes and will be particularly challenging for businesses operating across multiple regions. Look for a payroll system that automatically checks for changes to minimum wage laws to ensure your business remains compliant.
It may also be necessary to update your budget and hiring decisions to account for minimum wage increases. You can consider adjusting your pricing, improving efficiency or adjusting your staffing levels to account for these changes.
Related: Millions of Americans Are Getting a Pay Bump This Year. Here’s Where.
5. Pay transparency laws
Pay transparency laws require employers to disclose salary ranges in job postings and provide additional information about pay structure. Currently, 13 states and the District of Columbia have pay transparency laws in place, and five more have laws set to take effect in 2025. Companies that fail to cooperate with these laws could face hefty fines or lawsuits.
Pay transparency laws could have many positive effects on your organization. Transparent pay structures could help you attract top talent and increase trust among your employees. Research shows that 70% of companies listing pay ranges saw an increase in job applications, and 66% saw the quality of their applicants improve.
However, it will take time for companies to adjust their compensation strategies. If your business operates across several different states, it may be a good idea to implement the strictest requirements now.
You may also need to re-evaluate your company’s pay ranges to ensure they’re competitive. You should also be prepared to be held accountable for addressing any pay disparities.
