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CFO Brew // Morning Brew // Update
Rising input costs for manufacturers call for savvier pricing methods.
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Happy Monday. It’s one month (minus one day) until taxes are due. Start collecting those W2s and daydreaming about what to do with your refund.

In this issue:

Package deal

Gnarly deadline

Perception counts

Demi Lawrence, Jesse Klein, Paige McGlauflin

STRATEGY

Photo collage of different sizes of Coca-Cola containers, from small mini cans, to glass bottles, to plastic liter bottles.

Illustration: Morning Brew Design, Photos: Adobe Stock

As tariffs and inflation continue their metaphorical stand-off with the economy, a more-literal rise in inputs for manufacturers does not bode well for hopes of preserving profit margins anytime soon.

The costs of goods and materials rose an average of 8% for manufacturers last year, according to a Liberty Street Economics survey from the Federal Reserve Bank of New York. Recent data from the Bureau of Labor Statistics shows prices for US producers rose 0.5% in January, which is more than what Wall Street analysts expected and higher than the December reading.

On top of that, global manufacturing input costs for February rose sharply, according to S&P Global’s purchasing managers’ index, with higher labor costs, supply chain challenges, and US tariffs all contributing.

Manufacturers are feeling added pressure to absorb these costs, and simply passing the cost directly to consumers via price increases isn’t always the way anymore, according to Matt Suggett, a partner at commercial and pricing consultancy firm Simon-Kucher.

Keep reading.DL

Presented By Pulley

COMPLIANCE

President Trump Continues His Emissions War With California

Chanon Kanjanavasoontara/Getty Images

There’s a new date to circle on your CFO calendar: August 10. That’s the official deadline for the largest companies doing business in California to file their first greenhouse gas emissions reports under the state’s new climate disclosure laws.

The California Air Resources Board (CARB) locked in the date after voting in the approved regulations on February 26. Under SB 253, any company pulling in more than $1 billion in annual revenue and doing business in California must disclose its Scope 1 and 2 emissions. Scope 1 emissions are released by the direct actions of a company. Scope 2 includes the emissions from any energy a company buys. Scope 3 emissions disclosures, from a company’s supply chain, won’t kick in until 2027.

The August 10 deadline was expected, according to Miranda Mair, the manager for carbon advising at Engie Impact. CARB pushed it back from an originally proposed June deadline. But it will creep up on companies quickly, Mair said, especially when CFOs need to factor in four to six weeks for verification.

The regulations clarified the term “doing business in California” to align with the California Revenue and Taxation Code. According to the code, it means “actively engaging in any transaction for the purpose of financial or pecuniary gain or profit.”

Keep reading.JK

RISK MANAGEMENT

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Anna Kim

Unlike Joan Jett, employers should give a damn ’bout their reputation.

Corporate reputation was long dismissed as a soft metric, only to be considered in crises. But that perception is changing. Recent research finds that company reputation, including workplace reputation, can boost financial performance.

A recent analysis by PR and communications firm Burson of more than 60 publicly traded companies between October 2024 and October 2025 found that an organization’s reputation created, on average, an extra 4.78% in annual shareholder return value. The firm estimated that reputation drives an extra $7 trillion in value for publicly traded companies globally.

According to Corey duBrowa, Burson’s global CEO and a former communications executive at companies including Google, Salesforce, and Starbucks, the research proves reputation isn’t something companies can afford to just focus on when they’re in trouble.

Keep reading on HR Brew.PM

Together With PwC

MARKET FORCES

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Francis Scialabba

Today’s top finance reads.

Stat: $50 billion a week. That’s how much the US has been borrowing for the past five months, according to the Congressional Budget Office. During that period, the federal deficit grew by $1 trillion. (Yahoo Finance)

Quote: “If the macroeconomy is not functioning properly, even AI companies cannot achieve massive profits.”—Joseph Stiglitz, Columbia University professor (MSN)

Read: The University of Chicago, better known for churning out Nobel-winning economists, is chasing its first-ever national basketball title. (the Wall Street Journal)

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