The Smart Manufacturing Shift: 5 Trends Every Manufacturer Should Know

A recent global survey of more than 1,500 leaders in manufacturing worldwide has shed light on the biggest industry obstacles and how manufacturers around the world are actively using smart manufacturing technology at scale to tackle their greatest challenges and remain competitive. The results of this survey make up the 11th Annual State of Smart Manufacturing Report.

This year, 62% of survey respondents were decision-makers, an increase from last year. Their responses reveal an industry operating under sustained pressure, where global risks are accelerating the urgency for transformation. Even among organizations not yet adopting smart manufacturing, 70% plan to invest in the next 12 months, signaling strong forward momentum.

Now entering the execution era

This year's findings show manufacturers aren’t just adopting technology to navigate complexity as the market continues to introduce new challenges – they are mastering how they execute it. They are building operations that anticipate conditions, automate decisions, and unlock real-time insight.

“What stands out in this year’s results is not the pressures we face, but the response.,” says Blake Moret, Chairman and CEO of Rockwell Automation. “Leaders are no longer treating digital transformation as an initiative, but as the operating system of the modern industrial enterprise. Across eleven years of this report, we’ve watched transformation evolve from pilots to strategic priority. This year marks a shift from adoption to execution.”

Where does your team rank in these key areas from this year’s report?

1. Digital transformation: 90% of manufacturers say they need digital transformation to stay competitive. The findings of this year’s report are clear: Digital transformation is now a baseline requirement. The data shows fewer respondents were in pilot mode and more respondents are now actively using smart manufacturing technology at scale. This proves integrated technology, paired with empowered people, isn’t just an advantage, it’s the defining characteristic of industry leadership. Where are you at in your digital maturation? What are your biggest priorities and how can smart manufacturing technology help? 
2. Quality: 46% of manufacturers indicated quality remains a top outcome targeted by transformation efforts. It has become increasingly complex to manage quality and stay current on compliance in today’s world. In fact, survey respondents ranked product quality as a top challenge to outpacing competition in the next year. Manufacturers in this year’s report indicated that quality remains a core driver for digital transformation and investing in smart manufacturing technologies like digital QMS and MES software. How are you managing quality today? Have you explored how new technologies like AI can help?
3. Workforce: 40% of manufacturers reported their workforce was reskilled last year. For the fifth year in a row, manufacturers identified workforce shortages and skills gaps among the top obstacles they are facing in this year’s report. The workforce is transforming in real-time, making reskilling essential and not just an aspirational initiative. According to this report from Gartner®, 84% of organizations intend to invest in the development of connected factory worker strategies in the next year. However, most manufacturers still rely on manual processes to create and maintain digital work instructions. Embedding AI technology in digital work instructions can help address these issues, helping transform existing operational assets into structured, interactive, and standardized instructions automatically. How do you reskill workers today? Are you exploring connected factory worker strategies?
4. Artificial Intelligence (AI): 48% of manufacturers rank AI/ML as the top outcome driver. AI delivers the biggest business outcomes. According to this year’s report, nearly half of manufacturers surveyed ranked AI and machine learning (ML) as the top outcome driver over the next 5 years. AI is identified as a potential solution for many challenges that manufacturers are facing, but for many, fast-moving technologies like AI and ML can feel disruptive. Taking steps to be ready for AI will be essential for shifting to more elastic solutions that are designed for what manufacturers need today: autonomy, interoperability, distributed intelligence and AI-driven operations. Are you using AI today? Have you explored how AI could support your business goals?
5. Data: 43% of collected data is used effectively. Data remains the bottleneck blocking scale. But the real competitive divide is not data collection; it’s the ability to connect, contextualize, and act on data across systems. When data flows reliably across operations, decisions accelerate, performance improves and competitive advantage follows. For example, discover how AI-enabled MES and QMS solutions can deliver faster problem-solving, higher quality and more resilient operations. Are you getting the most out of your data? What steps can you take to promote the reliable flow of data across your operations?

Plan to start your journey