Looking ahead: the manufacturing outlook for 2025

Manufacturing companies in 2025 are facing changes in technology, economics, and politics that shape the industry. What does this mean for your manufacturing business, and how can you continue to navigate this transformative time? Read on!

1. Increase in smart manufacturing

“Smart manufacturing” is set to grow in 2025. According to Deloitte’s 2023 Digital Maturity Index 98% of 800 companies have started their digital transformation journeys. They used this information to inform their production that smart manufacturing (and smart operations in manufacturing) will continue to grow this year. Let’s pause. What is “smart manufacturing”? It’s a mindset, group of tools, technology, and data to make manufacturing faster, easier, cheaper, more efficient, or more sustainable. Smart manufacturing improves products and enables workers to be more productive. For example, artificial intelligence (AI) and IoT (Internet of Things – such as controls to monitor compressed air systems) can collect data at each step in the manufacturing process. Workers can review this information to improve every stage of manufacturing.

2. Resilient supply chains

The supply chain challenges that started during the COVID-19 pandemic continue. Weather, labor relations problems, and more continue to present supply chain challenges. The Deloitte 2025 Global Manufacturing Outlook revealed that 53% of manufacturers expect supply chain disruptions to remain a major issue over the next few years. As a result, companies will continue to invest in supply chain resilience strategies, focusing on diversification, nearshoring (or moving supply chains to the U.S.), and automation to mitigate risks.

3. Rise in 3D printing (additive manufacturing)

Additive manufacturing (3D printing) has come a long way in recent years. According to Grand View Research, the global 3D printing market is expected to grow at a compound annual growth rate of 23.5% from 2024 to 2030 to reach USD 88,281.2 million by 2030. Why is it expected to grow and how does it help manufacturing? This technology allows manufacturers to create complex parts on-demand, which reduces waste, lowers costs, and shortens production times. And companies are providing local production support. In some industries (such as aerospace and automotive), 3D printing is already being used to create lightweight parts that would be impossible to manufacture using traditional methods. As the technology improves, expect to see it being applied in even more sectors, including medical devices, electronics, and consumer goods.

4. Shifting global manufacturing

Manufacturing will continue to shift in response to political, economic, and environmental factors. An unknown as Trump comes back into the White House in January of 2025 are tariffs and partnerships with countries such as China and India. According to PwC, by 2025, 70% of global manufacturers have indicated they would alter supply chains to reduce dependency on China. Regardless, North America’s reshoring efforts are expected to intensify, driven by rising wages in Asia and the desire for greater supply chain security. The National Association of Manufacturers (NAM) reports that reshoring brought nearly 350,000 jobs back to the U.S. in 2021, and that trend is expected to continue.

5. Skills gap

Finally, manufacturing skills gaps remain a pressing issue. As technology advances and manufacturing processes become more complex, the demand for skilled workers in areas like robotics, AI, and data analysis will only increase. The Manufacturing Institute estimates that by 2025, there will be 2.1 million unfilled manufacturing jobs in the U.S. alone, mainly due to a shortage of skilled workers. To address this, manufacturers are investing more in training programs, partnerships with universities, and upskilling their existing workforce. This emphasis on skill development will be crucial to ensuring that manufacturers have the talent they need to thrive in 2025 and beyond.

Elevated manufacturing

The outlook for manufacturing in 2025 is both exciting and challenging. Companies are embracing new technologies, managing sustainability initiatives, and more to stay competitive in an ever-changing market. In the years to come, manufacturers that adapt to these trends and continue to innovate will be the ones that lead market share. Whether you’re a manufacturer or simply an industry observer, it’s clear that 2025 will be a pivotal year for the sector. Elevated can help with your manufacturing challenges. We may not be able to solve training issues, but we specialize in helping make your company resilient to supply chain issues. With stock agreements and our ability to work with varied suppliers of trusted brands, we ensure you can continue making your manufacturing process better.