Adopting new technologies (36%), developing new products (29%), and improving data security and data protection (26%) are top priorities for manufacturing organizations in 2025.

Manufacturing and engineering professionals are preparing for the future workforce by upskilling existing talent (39%) and encouraging continuous learning (37%).

Revalize has released new research about what manufacturing organizations are prioritizing in 2025, the challenges they’ll face, and what the future of the industry will look like. The report, titled “Smart Manufacturing 2025: Trends Shaping the Digital-First Era and Beyond,” surveyed 500 CPQ, PLM, engineering modeling, and simulation software decision-makers in the United States and Germany. It identified three key themes where manufacturing organizations will focus in 2025 and beyond – tools and talent; data security; and keeping up with new tech and the skills shortage. Overall, it found organizations will double down on investments in software and their manufacturing and engineering teams in 2025.

The manufacturing sector will play a major role in the future success of the economy, with the industry accounting for 13.6% of the global employed population and approximately 16% of the global GDP. Despite predicted ongoing growth, Revalize’s research found that manufacturing organizations will face several challenges in the next year as they navigate the rapidly changing technological landscape. Evolving technologies like AI, advanced robotics, and IoT, will change what a competitive advantage looks like moving forward, and companies will also need to retrain and upskill their workforces to adapt to new tools and conditions.

Additional key findings from the report include:

• Adoption of New Technologies: 91% of organizations plan to adopt new technologies, tools, or software in the next 12 months.
• Increased Budgets and Headcounts: 70% of respondents reported an increase in their organization’s software budget compared to last year, and 57% have increased their team’s headcount.
• AI Poses Both Challenges and Opportunities: Despite perceived challenges, 28% of respondents expect AI to have major impacts on the industry by 2050 – the most of any trend or technology surveyed – while 43% plan to adopt AI-powered quality control solutions.
• Sustainability Measures Set to Increase: Beyond increasing revenue or sales, 29% of respondents state that their organization plans to adopt sustainable technology this year. Additionally, 21% predict enhanced sustainability and green manufacturing will have the biggest impact on the manufacturing industry by 2050.

“The manufacturing industry stands on the brink of a transformative era driven by advanced technologies such as AI, Industry 4.0, and cloud-based solutions,” said Mike Sabin, CEO of Revalize. “While that’s exciting, we also recognize that manufacturers will continue to face challenges including supply chain disruptions, skilled labor shortages, and increasingly sophisticated security threats. At Revalize, we are committed to empowering businesses with the tools and insights they need to navigate this landscape, which is why we’re releasing this report to help shine a light on what the future of manufacturing will look like and what challenges organizations should prepare for in the years to come.”