Manufacturers: Why You Need to Invest in Marketing During a Recession

Uncertainty clouds the economic future as American manufacturers face 2026. A recession may be looming — or perhaps it’s already here.

Key metrics indicate that the U.S. manufacturing sector is slowing. American manufacturing lost 78,000 jobs in 2025 through September, according to the U.S. Department of Labor. The ISM Manufacturing PMI, a key indicator for the industrial sector, has been below the 50 mark for seven months, which signals contraction in manufacturing. And a shifting tariff policy has added to the uncertainty facing manufacturers, while contributing to supply chain disruptions and rising costs for raw materials.

So in the current situation and the foggy future ahead, what’s a manufacturer to do?

The history of business tells this tale over and over again: companies that invest strategically during downturns are the organizations that slingshot out of recessions with larger market share and a brighter future.

Again and again, studies show that the organizations that invest in marketing during periods of uncertainty emerge stronger and leave their competition behind.

• 1930s—The Great Depression: While cereal maker Post slashed its ad budget during the Great Depression, its competitor Kellogg’s doubled down—especially in the emerging medium of radio. The result: Kellogg’s leadership in the cereal category has lasted almost a century.
• 1979—American Business Press: In 1979, the ABP published a study that examined advertising performance in the 1974-1975 downturn. The research found that advertisers that maintained spending during downturns retained outperformed those who went dark and were ultimately well-positioned for post-recession growth.
• 1986—McGraw-Hill: A landmark study of 600 companies from 16 different industries revealed that firms that kept advertising during the early 1980s recession saw 256% higher sales than those who cut budgets.
• 2010—Harvard Business Review: An empirical study of 4,700 companies showed that organizations that balanced cost-cutting with smart marketing and R&D investment achieved 13% sales growth and 12% profit growth after the Great Recession.
• 2019—Bain & Co.: Bain & Co. analyzed almost 3,900 companies worldwide and found that recessions were inflection points: Companies that strategically invested in marketing, M&A, and innovation during downturns emerged stronger and had positioned themselves to triple their enterprise value relative to competitors over the next decade.

The lesson for manufacturers is clear. Don’t go into a marketing shell when uncertainty appears. Manufacturers investing in marketing now as a recession looms to build your business into a juggernaut for the inevitable recovery.

To learn more about how you can leverage your marketing to strengthen your business, download the ebook, “The Marketing Opportunity 2026: AI Is an Inflection Point for Industrial Marketers.”