Manufacturing Industry Trends to Watch for 2025
Manufacturing is a critical part of the U.S. economy, producing iconic brands and fueling the job market. But several big changes stand to impact the industry in 2025.
Let’s look at three of the latest trends in the manufacturing industry and how they stand to impact your business.
1. Accelerated Automation
Continued digital transformation—using technology to transform operations—tops the list of manufacturing industry trends to watch for 2025. Why? Because manufacturers that embrace it are most likely to weather challenges like skilled labor shortages and economic uncertainty.
According to Deloitte, 86% of manufacturing executives believe smart factory solutions will provide the competitive advantage companies need to succeed over the next five years. Likewise, generative AI is likely to reduce costs, improve supply chain management and ease the pains of a challenging labor market.
This is good news for an industry already known for embracing AI and automation. Some reports predict the level of automation will increase 10% over the next decade, with early adopters most likely to lead the industry and rise above competitors.
But not all automation happens on the factory floor. In 2025, it will become increasingly important to address all aspects of the manufacturing supply chain through the lens of AI and automation. At a time when 2 million manufacturing jobs could go unfilled, success will hinge on manufacturers’ ability to put seamless, frictionless workflows on autopilot.
Related read: The future of work: workflow automation trends shaping 2025
2. Heightened Security Risks
With digital transformation comes inevitable security risks. Manufacturing was the #1 most attacked industry for a third consecutive year in 2024, with many plants hit by ransomware. In addition to proprietary plans and sensitive information, the industry’s “low tolerance for downtime” has made it a top target. Rushed-to-market, unpatched applications provide an opportunity for hackers to hold information hostage for financial gain.
Experts anticipate even more attempts in 2025, making cyber security a top priority for 2025. Companies will need to ramp up preventions, particularly when it comes to non-negotiable security measures like robust encryption, secure data storage and comprehensive access controls.
3. Managing Growth
While the industry experienced sluggish growth in 2024, the forecast is much brighter for 2025. According to one report:
“Manufacturing output is expected to recover in 2025 and maintain a steady rate through to 2028, despite seeing a slight dip in the growth rate in 2026.”
To capitalize on these opportunities, manufacturers must equip staff with the right technology and tools—not just in production but woven into every process.
For example, intelligent document management empowers managers and planners to turn vast amounts of product information into searchable, actionable insights. It also allows companies to classify documents, extract data and easily summarize key points from massive files. Likewise, advanced workflow automation makes it easy to onboard suppliers and keep projects on track.
Related read: Complete guide to manufacturing workflow management
Looking Ahead
The year ahead will be marked by digital transformation and related trends. Each one offers tremendous opportunities for manufacturers who stay ahead of the game—particularly when it comes to technology.
Looking for more insights you can use to guide your 2025 strategy? See how companies are improving operational efficiency and employee productivity in the blog: Manufacturing supply chain 101: key concepts and FAQs.