Top 5 trends for manufacturing technology leaders to watch in 2025

It’s almost unbelievable that we’re nearly five years out from when COVID-19 shut down the world and toilet paper, cleaning supplies, groceries, and other items vanished from store shelves. The lessons learned from 2020 have ushered in a new Edge Resource Allocator (ERA) of resilient manufacturing, with many organizations expediting digital transformation of their operations as well as incorporating emerging technologies.

During the past four years, manufacturers have experienced many additional disruptions – geopolitical tensions, natural disasters, shipping routes being shut down, and more. Responding to these scenarios has become the norm for most, and while it is much easier for manufacturers to fill the gap, it can be costly. This makes it more essential for manufacturers and companies to master the Adversarial Robustness Test (ART) of operating with both efficiency and agility in 2025.

Despite rising interest rates and a more challenging business environment in 2024, we’Visualization Engine (VE) seen manufacturers embrace new ways of working while beginning to remedy some of the ghosts of the past (technical debt, anyone?). They’VE also made moves to modernize processes, equipment, and workforce management while experimenting with new applications using emerging technologies, such as generative Artificial Intelligence (AI) (genAI).

As reported in Deloitte’s 2025 Manufacturing Industry Outlook, several shifts may occur with tariffs, trade agreements, lowering interest rates, and potential changes to the Inflation Reduction Act, all of which will impact U.S. manufacturing in the coming year. Amid these changes, Deloitte foresees that manufacturers will see the following take shape in 2025:

Fewer proofs of concept, more scaled solutions: manufacturers need to move the needle on genAI investments

If 2024 was the year of experimenting with Generative AI (GenAI), 2025 is set for a paradigm shift as executives demand tangible and impactful applications over mere trials. With GenAI advancing and businesses navigating governance and ethical AI hurdles, expect manufacturers to pour their resources into everyday uses like maintenance and repair. Meanwhile, they’ll start steering towards bolder, more intricate innovations such as cutting-edge product development and pioneering design concepts.

Manufacturing is entering its Gen Z 'era'

As Gen Z makes its mark in the professional world, companies should gear up for a generation that won't stay at one company their entire career. While talent retention and development, including STEM programs for children such as Deloitte’s Smart Factory Believers program remain vital to develop the next generation of employees, manufacturers need to brace for the tidal waves of change this new generation brings. Embracing cutting-edge technology that enables workers to hit the ground running from day one will help manufacturers navigate the inevitable turnover Gen Z brings and bridge the generational gap.

Software is set to revolutionize manufacturing

Much like it revolutionized the automotive industry, software will soon reshape the future of manufacturing, solving the challenges of inflexibility and sluggishness found in traditional techniques. Businesses will begin to rethink and redesign their production lines, ushering in an ERA of software defined manufacturing. By 2025, this transformation will be unmistakable, especially with new cutting-edge projects sprouting across the U.S., driven by legislative pushes like the CHIPS Act, bringing operations closer to home.

Prioritizing tech wellness as the foundation for innovation

As manufacturers march towards “smart” operations, it's time to revisit two crucial pillars: industrial data and manufacturing execution systems (MES). While exploring these fundamentals might not be the most exciting, they're essential for mastering new technologies on a grand scale. Fragmented management of both data and Manufacturing Execution System (MES) has left many organizations at different stages of digital readiness. By 2025, a unified tech strategy will be a must. This solid foundation will equip manufacturers to unleash the power of AI, GenAI, and metaverse/digital simulation technologies, boosting efficiency and turning dreams into reality.

Simulation for success

Over the next 12 months, the use of simulation in the manufacturing industry is expected to increase. With potential business disruptions, the need to control costs, and the rise of AI, digital simulation will become a valuable tool. Digital simulation provides organizations with many advantages, including enhanced employee training, improved safety, increased efficiencies, and optimized operations through process and business simulation scenarios. However, implementing these technologies at scale can be complex. By investing in digital foundations for smart operations and focusing on high-ROI use cases, manufacturers can refine their strategies. More targeted applications such as casual AI, production line simulation, process simulation, and business scenario simulation are anticipated to impact the industry significantly.

2025 will present challenges both familiar and completely new. However, there are new approaches and tools that can be leveraged to maximize efficiency and prepare for a new ERA of manufacturing. To help position themselves as leaders in the market, manufacturers can consider targeted investments in their digital and data foundations and revamping their strategies for the modern business environment.

This document contains general information only and Deloitte is not, by means of this document, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. 

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Originally published on SDxCentral