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| Dustin Siggins |
The blizzard of tariff threats coming out of the White House has many communicators concerned that reduced corporate profits could mean fewer contracts for agencies and tighter budgets for in-house teams.
“Tariffs threaten to disrupt production capabilities, increase costs for businesses and consumers and create global supply chain problems,” said Stephanie Roberts, Head of Global Communications for manufacturing company Hitachi Industrial Equipment Systems Co. Ltd. “From executives to employees, our entire company is concerned about the impact of tariffs.”
However, a number of global economic reports—as well as insights from industry insiders—indicate that while tariffs are concerning, there’s a lot more good news out there for the overall economy and, especially, the communications sector.
U.S. economy on the rise
“Profitability and cash on hand are up,” economist Mike Feuz told me in December. “Combine that with further inflationary easing, lower interest rates and increased consumer spending in the next six months, and the second half of 2025 will be exceptionally strong.”
This news is a breath of fresh air after three years of corporate belt-tightening that forced in-house teams to do more with less and put agencies in low or no-growth periods. The IMF report strengthened Feuz’s analysis with a prediction that U.S. real GDP will increase by 2.7 percent in 2025, the fastest growth among advanced economies. The report also said anticipated deregulation by the Trump administration and a likely extension of the 2017 tax cuts could significantly improve these numbers.
And while the IMF report does acknowledge the tariff factor, a Deloitte report indicates that the blanket threats promised during the presidential campaign are unlikely to become reality. Early evidence from the Trump administration seems to have validated this theory, as tariffs have been used as negotiating tools rather than sledgehammers.
Corporations recognize the value of comms.
When economies shrink or markets are uncertain, the marketing and branding budget is one of the first to go. This is especially the case for public relations, which is often seen as a “nice to have” rather than a necessary part of company strategy.
But as the global and U.S. economy grows, DHR Global Managing Partner Jessica Bayer said companies are investing more in communications. “Communications overhiring in 2021 and 2022 led to a slowdown for the next two years,” she said. “The last few months, however, have seen the creation of many new executive-level communications roles. Combined with an expected surge in IPOs and M&As and board requests for communicators in the boardroom, this indicates positive momentum for the communications function.”
Bayer’s experience matches several corporate executive surveys published since the middle of 2024. The first, published over the summer, showed increased respect for Chief Communications Officers among the C-Suite. Instead of being siloed, CCOs were being asked to integrate the communications function across many departments.
And executives know they need the integration because they’re scared of volatility in the global economy. A survey published by The Weber Shandwick Collective shows that just 17 percent of corporate executives are “very confident” that their communications team can handle wars, violent incidents and attacks from political leaders. Eight out of 10 executives said their teams are “somewhat equipped.”
You don’t have to read between the lines to see that executives know their teams need more resources. That’s why at least 41 percent of executives intend to increase their internal philanthropic- and citizenship-oriented communications, 31 percent plan an increase for external comms and just 10 percent plan a decrease, according to the Conference Board. This is especially true for DEI-related communications, the needle that corporations have been threading for years.
Agencies seeing the same trend
Like many agencies, mine had a tough 2024. But we’ve seen a shift that’s accelerating with the return of two old clients and the onboarding of three new ones, along with interest from several significant prospects.
And we’re not alone.
“Despite recent big agency layoffs and some national trends, we’re seeing great momentum in the heartland,” said Candor President Ally Glavas. “Clients are hungry for more affordable and agile agencies that can meet them in the moment. We’ve already added two FTEs since the start of the year and our pipeline doesn’t indicate we’ll be slowing down growth anytime soon.”
Notably co-Founder Carin Warner, whose company “had a solid 2024” due to industry diversification, said the same thing. “Since December, we have seen a consistent increase in new business and prospect interest in virtually all sectors—from AI to CPG. Additionally, we have had to delay start dates for several new clients because we are so busy. We are therefore bullish about our agency’s prospects in 2025.”
Even the economic uncertainty of tariffs, global conflicts and AI may benefit the communications functions. “There is a palpable feeling that impactful changes are afoot on a massive scale,” said Red Banyan CEO Evan Nierman. “These changes are domestic and international, economic and military, technology and political—and none have simple solutions. We are hearing from a lot of companies that know meeting those challenges requires investing in effective and forward-looking communications.”
Good times are ahead
2024 was just as hard on those looking for work as it was for those seeking budget to hire and expand their teams. A former client’s PR point person landed a job earlier this month at a major bank, and PR freelancer Jake Ciccarelli said several months of silence from potential employers ended in January.
“I’ve applied for dozens of jobs since September. Things were stalled until the New Year, when the spigot opened,” he told me. “I’m in the interview process for five jobs across multiple verticals, including three in communications.”
Senior roles, of course, fill more slowly. But that’s also a good sign, said KC Partners Founder Brooke Kruger.
“The communications hiring market has picked up, with many more open positions than there were at this time last year,” she told me. “We expect this trend to continue in 2025 as companies expand and continue to invest in communications, though the hiring process is often longer because companies are taking their time to hire in a competitive market.”
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Dustin Siggins is a former Capitol Hill journalist and Founder of the public affairs and PR firm Proven Media Solutions.
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