Industrial Buyer Pulse
Q3 2025
A quarterly research initiative capturing the evolving perspectives of industrial buyers across North America.
Dear reader,
Industrial markets are moving faster. Buyers are navigating new realities, including shifting tariff regimes and geopolitical uncertainty, while simultaneously rethinking how they discover, evaluate, and purchase from suppliers. Digital channels now dominate the buying journey; with AI-enabled research, e-procurement portals, and self-serve quoting compressing evaluation cycles and raising the bar for industrial customer experience. In parallel, fluctuations in supply chain resiliency post-pandemic are fueling changes in how manufacturers prove reliability and compete on lead times, quality, and service.
At the center of this change sits the industrial buyer. Their expectations are evolving. How they buy is changing. And their reliance on salespeople—or propensity to engage with them at all—has shifted. Brand preference is becoming a function of transparency and trust as much as price and performance, with relationships playing a different role in purchasing than what many manufacturers have been used to. And while trade events and peer recommendations remain powerful, increasingly those interactions are amplified and validated online.
In an effort to provide insights and considerations for manufacturers serving industrial categories, we are launching the Industrial Buyer Pulse presented by Kula Partners—a quarterly research initiative that views the market through a buyer-first lens. Each wave tracks momentum across four focus areas that, together, help predict revenue and pipeline outcomes: Buying Confidence, Research & Supplier Selection, Digital Buying Enablement, and Supply Chain Health & Risk.
Participants include operations leaders, engineering/technical buyers, and procurement professionals. While the numbers will change quarter to quarter, the lens will not: we trend a consistent set of KPIs so executives can distinguish noise from signal, and we pair those metrics with practical guidance for marketing and sales teams tasked with converting sentiment into revenue.
What you’ll find in the pages that follow is intentionally action-oriented. Our aim is simple: to provide an always-current, decision-grade readout of industrial buying behaviour that helps manufacturers focus resources where they will matter most.
We welcome your feedback and collaboration as we grow the breadth and depth of the Industrial Buyer Pulse in future waves.
Carman PiriePrincipal, Kula Partners
Carman PiriePrincipal, Kula PartnersKey Findings
- Buyer confidence is in high gear in the second half of 2025 despite looming economic uncertainty.While economic uncertainty tops the list of potential causes of capex delays, 88% of industrial buyers still believe their capex budgets will grow in the next 90 days. Downside sentiment is practically non-existent, with no statistically significant expectations of large capex budget reductions and only 2% of industrial buyers expecting a modest budget decrease.
- The stage is set before sales is at the table.Industrial buyers are bypassing sales with 82% shortlisting suppliers for a major purchase before speaking with them. 85% of buyers report using AI to research suppliers, with SMEs leading the way in AI adoption. However, despite widespread AI usage, supplier websites still dominate as the first place buyers look when researching suppliers—with almost twice as many respondents preferring them over in-person trade events.
- Industrial buyers are ready for advanced self-serve.Just over 77% of industrial buyers report obtaining pricing or lead time information via self-serve digital tools, showing that buyers are choosing to remain anonymous long into the buying journey. Indeed, many are even willing to complete the entire journey online, with 80% of industrial buyers indicating a willingness to place a ≥50K e-commerce order.
- While tariff uncertainty remains high, supply chain fears have dramatically subsided vs what manufacturers experienced during the pandemic.Strong safety stock levels and high supplier confidence have placed supply chain concerns firmly in the rear view mirror. Shortages ranked well down the list of operations disrupters in the previous quarter, with 94% of industrial buyers indicating they’re confident primary suppliers will meet promised delivery times in the next quarter.
Buyer Confidence
Capital budget optimism is high, but perception and size matter
Respondents across the board are confident that capex budgets will increase in the second half of 2025, which may be due in part to a relatively flat start to the year.
88% of all respondents reported capital budgets increasing significantly or somewhat over the next six months; however, optimism and behaviour depend on who you talk to and the size of the company.
Thinking about the next six months, how do you expect your plant’s capital-expenditure budget to change?
| Response | % |
|---|---|
| Increase | 88.0% |
| No Change | 10.0% |
| Decrease | 2.0% |
* To quantify respondents’ expectations regarding their capital expenditure over the next six months we’ve translated the original five-point Likert scale into a numerical index ranging from negative one, indicating a significant decrease, to positive one, indicating a significant increase, with zero representing no change. By averaging these values, the index provides a straightforward measure of overall sentiment, where a positive score suggests optimism and a negative score suggests pessimism.
Job title strongly shapes outlook
An individual’s job title and department greatly influence their outlook and confidence. C-Level executives, VPs, and Directors exhibit a higher degree of optimism (over 93% reporting increases) than managers (81%), indicating that optimism can be a function of one’s position rather than just market conditions.
Budget Change by Job Title
| Job Title | % Increase | % No Change | % Decrease |
|---|---|---|---|
| C-Level or VP | 93% | ~5% | ~2% |
| Director | 94% | ~6% | 0% |
| Manager | 81% | ~11% | ~8% |
Department lens influences confidence
Similarly, departmental roles play a crucial part, with Operations staff appearing more cautious (21% reporting no change or decrease) compared to the strong optimism seen in Procurement and Supply Chain departments. This divergence highlights the necessity of tailoring messaging to different members of the buying committee.
Budget Change by Department
| Department | % Increase |
|---|---|
| Executive Leadership | 95% |
| Operations | 79% |
| Procurement | 95% |
| Supply Chain/Logistics | 91% |
Company size shapes pace, not just optimism
Optimism was also not uniform across all company sizes; smaller firms are significantly more bullish (92% reporting increases) compared to larger firms (77%). This inverse relationship between company size and budget optimism suggests that while buyers are generally ready to spend, smaller businesses are prepared to move much faster.
Budget Change by Company Size
| Company Size | % Increase |
|---|---|
| Small | 92% |
| Medium | 87% |
| Large | 77% |
Top factor most likely to delay capital purchases
Economic uncertainty and supply chain risks are the top concerns that could delay upcoming purchases. These concerns had no significant variability and were consistent regardless of company size or who was being asked the question.
Which ONE factor is most likely to delay or cancel planned capital purchases in the next six months?
| Factor | % |
|---|---|
| Economic uncertainty | 34% |
| Supply-chain risks | 31% |
| Internal cash-flow constraints | 13% |
| Labour shortages | 11% |
| Technology readiness | 5% |
| Environmental / regulatory hurdles | 5% |
| Other | 1% |
Considerable capex urgency
When do you expect to commit funds for your next major capital purchase?
| Timeframe | % |
|---|---|
| Within 30 days | 12% |
| 31–60 days | 38% |
| 61–90 days | 35% |
| More than 90 days | 14% |
| No spend planned | 1% |
However, smaller firms demonstrate a markedly faster purchasing cycle, with 18% initiating purchases within 30 days, compared to a mere 3% of larger firms. While businesses generally anticipate investments, smaller enterprises are poised for much quicker action.
Funds Commitment by Company Size
| Company Size | Within 30 days | 31-60 days | 61-90 days | More than 90 days | No spend planned |
|---|---|---|---|---|---|
| Small | 18% | 40% | 31% | 11% | 0% |
| Medium | 10% | 38% | 39% | 13% | 0% |
| Large | 3% | 19% | 45% | 29% | 3% |
Research & Selection
Shortlists are being made before sales is involved in the conversation
82% of respondents said that during their most recent significant purchase, they had placed suppliers on shortlists before speaking with them live (phone, video or in-person).
This trend, however, is not uniform across all roles; managers are notably less likely to place suppliers on shortlists pre-contact (32% do not) compared to directors and executives.
Suppliers Placed on Shortlist Pre-Contact (Yes) by Job Title
| Job Title | % Pre-Contact Shortlisting (Yes) |
|---|---|
| C-Level or VP | 90% |
| Director | 93% |
| Manager | 68% |
Departmental differences are also pronounced, with Procurement (95%) and Supply Chain (91%) reporting placing suppliers on shortlists before speaking with them in person, while Operations lags significantly at 66%.
Suppliers Placed on Shortlist Pre-Contact (Yes) by Department
| Department | % Yes |
|---|---|
| Executive Leadership | 90% |
| Operations | 66% |
| Procurement | 95% |
| Supply Chain/Logistics | 91% |
Your website is your first impression—but trade shows show staying power
Your website is your first impression—but the long history of trade shows for industrial buying is showing some staying power.
Q. What was the first source of information you used when researching that purchase?
| Source | % |
|---|---|
| Supplier website | 31% |
| Industry event/trade show | 17% |
| Peer/colleague referral | 14% |
| Distributor/channel portal | 12% |
| General Web Search | 11% |
| Trade-media site/blog | 7% |
| AI assistant/Gen-AI search | 6% |
| Social network | 2% |
| Other | 1% |
The choice of information sources for buyers is heavily influenced by their specific roles within an organization, leading to a fragmented research landscape.
Supplier websites (31%) and industry events (17%) are prominent initial research points, preferences diverge significantly across departments.
Supply Chain professionals often prioritize peer recommendations and trade shows, concurrently exhibiting the highest rates of AI tool usage. Executives, on the other hand, predominantly rely on supplier websites and general web searches. Procurement teams tend to gravitate towards direct supplier materials, whereas Operations staff utilize a more diverse array of channels.
These departmental differences are statistically significant (p=0.005), highlighting the absence of a universal approach to information gathering.
Information Source by Department
| Department | Supplier Website | Industry Event | Peer Referral | Distributor Portal | General Web | Trade Media | AI/Gen AI | Social |
|---|---|---|---|---|---|---|---|---|
| Executive Leadership | 35% | 14% | 11% | 11% | 16% | 5% | 5% | 3% |
| Operations | 28% | 19% | 15% | 13% | 8% | 8% | 6% | 3% |
| Procurement | 36% | 15% | 10% | 14% | 10% | 8% | 5% | 2% |
| Supply Chain/Logistics | 22% | 20% | 19% | 10% | 8% | 7% | 11% | 3% |
Despite having more research tools than ever, peer referrals remain highly influential
Q. How influential were peer or colleague referrals in choosing your final supplier?
| Response | % |
|---|---|
| Influential | 85.1% |
| Neutral | 11.9% |
| Not Influential | 3.0% |
This reliance on peer recommendations, however, varies with company size; large companies are notably less influenced (71%) compared to small and medium-sized firms (87–89%).
Peer Influence by Company Size
| Company Size | % Influential | % Neutral | % Not Influential |
|---|---|---|---|
| Small | 87% | ~10% | ~3% |
| Medium | 89% | ~9% | ~2% |
| Large | 71% | ~17% | ~12% |
The impact of peer referrals is particularly pronounced within Procurement and Supply Chain departments, where over 94% report being influenced.
Peer Influence by Department
| Department | % Influential | % Neutral | % Not Influential |
|---|---|---|---|
| Executive Leadership | 87% | ~10% | ~3% |
| Operations | 76% | ~14% | ~10% |
| Procurement | 94% | ~6% | 0% |
| Supply Chain/Logistics | 91% | ~4% | ~5% |
Digital Buying Enablement
Industrial buyers are bought into AI, with SMEs leading the way
When asked if they had used AI tools to research industrial suppliers in the past 90 days, 85% of survey respondents said yes. This adoption, however, is not uniform across all organizational segments. Smaller firms are notably more engaged with AI (91%) compared to larger enterprises (58%).
AI Use to Research Industrial Suppliers in Past 90 Days by Company Size
| Company Size | % Using AI |
|---|---|
| Small | 91% |
| Medium | 87% |
| Large | 58% |
Furthermore, a clear hierarchy of adoption exists by job title, with executives and directors enthusiastically embracing AI for industrial supplier research (over 90% usage), while managers lag considerably at 76%.
AI Use to Research Industrial Suppliers in Past 90 Days by Job Title
| Job Title | % Yes |
|---|---|
| C-Level or VP | 90% |
| Director | 93% |
| Manager | 76% |
Departmentally, this disparity is even more pronounced, as 0% of executives reported no AI usage for industrial supplier research, contrasted with 27% of Operations staff who indicated they do not use AI, revealing a highly significant departmental variation.
AI Use to Research Industrial Suppliers in Past 90 Days by Department
| Department | % Yes |
|---|---|
| Executive Leadership | 100% |
| Operations | 73% |
| Procurement | 91% |
| Supply Chain/Logistics | 95% |
Digital self-service is driving pipeline
In the past 90 days, have you obtained a price or lead-time quote directly through a supplier’s digital tool without talking to sales?
77% Yes
Big-ticket industrial e-commerce is here
If the right supplier offered it, how likely is your team to place an order of US $50 000 or more entirely online today?
| Response | % |
|---|---|
| Likely | 80.8% |
| Unsure | 13.1% |
| Unlikely | 6.1% |
However, a notable disparity exists among job titles; managers are less certain about large online orders (20% unsure) compared to executives (less than 10%), indicating a significant job title effect.
Supply Chain Health & Risks
Logistics disruptions: a broad but evolving pattern
Freight costs proved most challenging for SMEs in the last quarter, likely driven by tariff fluctuations. For large industrials, more than half of respondents reported regulatory and border disruptions in the last 90-days.
Logistics disruptions are a widespread concern, affecting businesses universally rather than being confined to specific company sizes, job levels, or departments. The most frequently cited issues include high freight costs (56%), regulatory changes (49%), customs and border delays (43%), and carrier capacity shortages (36%).
Which up to THREE logistics-related challenges caused the most disruption to your operations in the past quarter?
| Disruption | % |
|---|---|
| High Freight Costs | 56% |
| Regulatory Changes | 49% |
| Customs/Border Delays | 43% |
| Carrier Capacity Shortages | 36% |
| Geopolitical Risk | 30% |
| Port/Rail Congestion | 28% |
Safety stock of critical inputs is providing some buffer
Approximately how many weeks of safety stock do you currently hold for your most critical production items?
# of Weeks
# of Weeks
# of Weeks
# of Weeks
Confidence in primary suppliers is remarkably high
Confidence in the ability of primary suppliers to deliver is remarkably high, with no respondents reporting significant concerns for the next quarter.
How confident are you that your PRIMARY suppliers will meet promised delivery times over the next three months?
| Response | % |
|---|---|
| Very Confident | 41% |
| Somewhat Confident | 53% |
| Neutral | 5% |
| Somewhat or Very Doubtful | 0% |
Therefore, in a market where basic reliability is a given, differentiation will no longer stem from merely meeting delivery expectations.
About this Study
The data presented in this Buyer Pulse survey was collected in July 2025 via an online survey administered by InnovateMR, which implemented the following data quality measures in collection:
- Panel controls: fraud-prevention, digital fingerprinting, geo-verification, attention checks, and speed-trap removal.
- Screening: respondents confirmed (a) involvement in evaluating or purchasing production-critical goods/services in the prior 12 months and (b) familiarity with current supplier selection processes.
- Cleaning: de-duplication, straight-line and inconsistent-logic removal prior to analysis.
- Weighting: results are reported unweighted unless noted; small imbalances by role/industry were reviewed and deemed immaterial to the directional conclusions.
Respondents were selected via a double-opt-in B2B panel with the following profile:
- Role/Function: senior practitioners with direct influence over supplier selection and purchasing decisions, including Operations/Plant leadership, Engineering & technical buyers, and Procurement/Supply-Chain managers.
- Industry: North American manufacturing (e.g., industrial equipment, automotive, aerospace, food & beverage, specialty chemicals, metals, electronics).
- Company size: mix of small, mid-market and enterprise manufacturers (sub-US$100M to 1B+ revenue).
- Geography: United States and Canada.
All responses are aggregated and anonymized. No personally identifiable information (PII) or company-identifying information is disclosed. The study adhered to applicable standards for research privacy and consent, including panel partner policies and relevant data-protection regulations.
With a total sample size of 263 respondents, there is a 95% chance that the real value is +/- 5.87% of the measured value (assuming p=.6).
The survey was administered in English and took approximately 10–12 minutes to complete. The instrument combined trended anchors with a small set of rotating spotlights to keep the pulse fresh while preserving comparability wave-over-wave.
Anchors (tracked every wave)
- Buying Confidence
- Thinking about the next six months, how do you expect your plant’s capital-expenditure budget to change? = Average score of 5pt Likert scale of decrease significantly (−1), decrease somewhat (−.5), no change (0), increase somewhat (.5), increase significantly (1).
- Research & Selection
- During your most recent significant purchase, did you place ANY supplier on your shortlist before speaking with them live (phone, video or in-person)? = % who placed any supplier on a shortlist before live contact.
- Digital Buying Enablement
- In the past 90 days, have you used any AI-based tools (e.g., chatbots, Gen-AI summaries, comparison agents) to research industrial suppliers? = % who used AI/chatbots/agents during supplier research (past 90 days).
- Supply-Chain Health
- Which up to THREE logistics-related challenges caused the most disruption to your operations in the past quarter? = % selecting each disruption factor (multi-select).
Additional KPIs reported this wave
Capex Urgency, Top Delay Factor, First Information Source, Peer-Referral Influence, Self-Serve Quote Usage, Likelihood to place ≥US$50k online, Average/Median Weeks of Safety Stock, Delivery Confidence.
Things to note when reading this report
- All 263 respondents answered every question, so n=263 for all charts and graphs.
- Rounding: Data are shown to one decimal place where relevant; columns may not sum to 100% due to rounding and multi-select questions.
- Quarter-over-quarter deltas will be introduced beginning with Wave 2 (Q4 2025).
- Segment cuts (e.g. role, industry, company size) are provided where statistically robust; smaller bases are noted.
For questions regarding methodology or custom segment analyses, please contact research@kulapartners.com.