Regardless of size, inflation and recession will take their toll on manufacturers through cost increases (mainly increased raw material costs, followed by freight and transportation costs, wages and salaries, and energy costs), contract constraints, labor shifts, and input issues. This in turn will affect inventory and capital purchases. And higher prices will make it harder to compete and remain profitable.
While it’s been a nightmare for some manufacturers during the last couple years to even put a product together, the demand has been very high, and everything that’s made gets sold. Now, couple those same high production costs with a decline in demand due to a recession, and you’ve got manufacturers very concerned.