At the 2025 CSIA Conference in San Diego, CA, economist Alex Chausovsky of The Bundy Group returned to the stage to deliver an engaging keynote address. A main focus of his presentation was sharing what system integrators need to know to navigate an increasingly unpredictable economic environment. Due to new economic pressures and geopolitical changes, now is the time for business leaders to plan intentionally, communicate proactively, and prepare their businesses for a range of outcomes.
With global conflicts, shifting alliances, and corporate entities taking a more active role in geopolitics, the economic landscape is anything but predictable. Despite these challenges, Chausovsky emphasized the importance of moving forward with a sense of confidence. “Together we will be able to figure it out, because we always have. And there really is no other option but to forge forward.”
Tariffs, Trade, and the Power of Preparation
One main challenge that is seen across the board, but especially in manufacturing, is the impact of new trade policies. Chausovsky explained how tariffs are increasingly being used as tools of geopolitical negotiation rather than purely economic policy.
Of particular concern to system integrators is the sudden and steep increase in tariffs on steel and aluminum, including imports from Canada. “If our goal is to bring manufacturing back to the U.S. and protect jobs, then penalizing the very materials our industrial economy relies on doesn’t add up.” Chausovsky encouraged business leaders to prepare for continued volatility by simulating scenarios and preparing for a variety of outcomes.
Communication as a Competitive Advantage
One actionable insight Chausovsky shared was simple: talk more—with both suppliers and customers. “Increase communication by at least 50% relative to your normal cadence,” he said. “If you’re connecting once a quarter, make it monthly. If monthly, aim for biweekly. That communication will serve as a protective moat around your business relationships.”
Chausovsky also emphasized the importance of transparency during uncertainty. Even if pricing or availability may shift due to tariffs or supply constraints, proactive communication builds trust and gives all parties more time to adapt.
A Balanced Economic Outlook
While some sectors of the economy have softened, Chausovsky cautioned against overreaction to small market changes, differentiating between a mild economic contraction and a full-fledged recession. He pointed to positive indicators including strong personal consumption, stable labor market performance, and improving industrial activity, indicating that integrators should not be afraid of a recession.
Chausovsky did acknowledge the importance of protecting profitability. “You’re not in business to grow revenue,” he said. “You’re in business to make a profit. Customers will push back on pricing, so focus on maintaining margins.”
Talent Remains a Top Concern
Despite slowing in certain parts of the economy, the labor market remains tight—particularly for specialized roles common in automation and integration. Positions in the industry are especially difficult to fill, with engineering unemployment rates around 1.7% and field service technicians below 1%.
Chausovsky advised companies to be strategic with compensation decisions, noting that the job-change premium still exists, albeit at a reduced level. “A job stayer might see a 5% increase. A job changer? Closer to 7.5% or more. That gap still matters.”
Final Thoughts: Plan Now, Move with Confidence
Chausovsky concluded his keynote with a reminder to prepare now—not react later. For system integrators and manufacturing leaders, that means staying informed, planning across scenarios, and embracing communication as a strategic tool.
“Volatility is the new normal,” Chausovsky said. “But this environment also creates opportunities for those who are ready to move when the time is right.”