Key forces are set to shape the year ahead, from steady economic growth and controlled inflation to the transformative role of AI in business and strategic pricing actions. Mike Slavin, Business Consultant at Vendavo, explores how global events and evolving business strategies might impact your bottom line, plus gives you a roadmap for navigating uncertainty and seizing opportunities in 2025.
As the calendar flips to 2025, business leaders are bracing for another year of twists and turns in the global economy. The events of 2024, marked by persistent uncertainty and cautious optimism, set the stage for what could be a pivotal year ahead.
From evolving geopolitical landscapes to the accelerating adoption of AI in business, there’s no shortage of trends to keep an eye on.
There are big economic forces already shaping 2025, including inflation, global trade policies, and the shift toward more strategic, agile pricing actions. Whether you’re planning your next move or simply looking to stay informed, understanding these trends will be essential to navigating the year ahead with confidence.
1. Continued economic uncertainty
Uncertainty was a big theme throughout 2024. It’s something most people anticipated, and it definitely came to pass. Looking ahead to 2025, there are even more unknowns. With a new U.S. administration coming in, questions are already swirling. Will we see new tariffs? What impact will ongoing global conflicts have? And could we finally see resolutions to some of them?
All this uncertainty tends to make businesses cautious about spending, but there’s good news: Experts aren’t really talking about a recession. In 2024, recession concerns were all over the place. Some predicted a widespread downturn, while others thought it would only affect specific industries.
Now, the outlook for 2025 is more optimistic. Economists are expecting steady growth — around 2% for the U.S. and about 1% for Europe, though that could change depending on factors like tariffs and geopolitical events.
2. Inflation
There was a lot of concern about inflation in 2024, but it seems the Federal Reserve now has it under control. This means that interest rates are likely going to continue to fall, which is good for the economy.
But back to the whole tariff thing: If there are tariffs, we may be in trouble in terms of economic stability. It’s tough to say what’s going to happen, but it appears inflation should generally be under control in 2025.
3. Increased use of AI and machine learning for data analysis and optimization
2025 will likely see continued and increased use of AI and machine learning for data analysis and optimization. Expectations will continue to grow as far as what AI can do for businesses. A lot of them know they need AI, but they’re not quite sure what that means. We need to consider how that’s going to impact pricing strategy and overall businesses – and it’s more than just putting that “AI spin” on it.
When AI first hit the news, you would look at a lot of companies’ websites and basically everything had been rebranded. It wasn’t just “opportunity management,” but “AI-driven opportunity management.” We’re all getting a little better at caring what that means rather than just making sure an AI label is in place, and we’ll see even more of that in 2025.
4. Strategic pricing actions
Another thing that was common in 2024 was the idea of shifting toward more strategic pricing actions. Everyone got to put in across-the-board price increases back when there was a spike in inflation, and that worked for a little while. But a lot of businesses either couldn’t do that in 2024 or focused on small increases of 2% or 3%.
We’ve since moved away from that, and there will be little-to-no stomach for across-the-board pricing actions up and down the supply chain. Customers will push back on that, which means the companies working to raise prices will need to be agile. They’re going to need systems and capabilities that support that agility so they can make a strategic price increase and carry out very targeted pricing actions.
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How Vendavo Can Help
There will be a lot to watch in 2025. The key takeaway here is that things will likely shift very fast, so businesses will need analytics tools to help them quickly understand what’s going on.
Something like Vendavo’s Margin Bridge Analyzer, which is very good at period-over period-analysis, so you don’t miss something crucial and leave money on the table.
You don’t want to be caught not knowing what’s going on, and then get to the end of the quarter and start to panic. Get the necessary tools and partnerships for success in place now before it’s too late.
If you’re looking for a growth and profitability partner, Vendavo has been powering the profit transformations of global manufacturers and distributors for more than 25 years. A successful profit transformation requires unified pricing, selling, and rebate management – and that’s what Vendavo does best.
If you’re ready to start your profit transformation with AI-powered solutions you can trust, reach out today to speak with an expert about your business needs.