Key takeaways from Rockwell Automation’s 2025 State of Smart Manufacturing Report
Like most things in our universe, change is the only constant in the manufacturing industry. That’s why it’s no surprise that the responses from over 1,500 global manufacturing leaders in Rockwell Automation’s 10th Annual State of Smart Manufacturing Report reveal a manufacturing industry in flux.
Do you know how smart manufacturing trends have changed in the last year?
Based on the smart manufacturing report, these are the 10 biggest changes that are affecting how manufacturers think, invest and operate.
1. AI Moves from Pilot to Priority
Last year, many respondents were still exploring how to use AI in manufacturing. Now, it’s a strategic necessity. In the 2024 SoSM report, 83 percent of respondents said they planned to use GenAI. In 2025, 95 percent of manufacturers have either invested in or plan to invest in AI/ML and Generative or Causal AI within five years. That’s a major leap in adoption.
95% have either invested in or plan to invest in AI/ML and GenAI or Causal AI in next five years.
– 2025 Smart Manufacturing Report
2. Cybersecurity Becomes a Top-Tier Concern
Manufacturing is the most targeted industry for ransomware attacks, while construction and wholesale trade jumped up to number four and five respectively. That’s probably why cybersecurity jumped to the #2 external obstacle to growth - up from fifth place last year. More manufacturers are investing in AI/ML for cybersecurity while placing a higher priority on cybersecurity skills when hiring. In fact, 49 percent plan to use AI/ML for cybersecurity, up from 40% the year before.
3. Quality Takes the Lead as an AI Use Case
What else are manufacturers using AI/ML for? A few years ago, predictive maintenance was the top use case for AI. Now, quality control is the #1 use case for AI/ML, as half of respondents plan to use AI for quality in the next 12 months. SaaS tools like Rockwell Automation’s FactoryTalk Analytics VisionAI are helping manufacturers automate quality inspections with quicker, more reliable results.
In addition to quality and cybersecurity, other top AI/ML use cases include process optimization, robotics and logistics.
4. Cloud/SaaS and AI Dominate Investment Strategy
With so many use cases, it should be no surprise that Cloud/SaaS and AI are now the top two technology investments. Only 44 percent of collected data is being used effectively by respondents, and these tools help them translate manufacturing data into smarter decisions.
5. Integrating New Technology Presents Challenges
Investing in new technologies like SaaS and AI isn’t without its challenges though. Workforce challenges like attracting skilled employees were the top obstacle last year. Now, deploying and integrating new technology is the biggest hurdle for manufacturers, as digitization and cybersecurity become more of a focus.
6. Leadership Focus Turns to Change Management
What makes technology adoption so difficult? Implementing new technology means getting people on board too. 30 percent of manufacturers said resistance to change and effectively managing people/resources are now their top leadership challenges. This reflects a shift in leadership priorities from tech implementation to human adoption and cultural transformation.
7. Labor Shortage Strategy Shifts to Upskilling
One way to make technology adoption easier is upskilling the workforce. That’s why manufacturers are overcoming the industrial workforce shortage by repurposing and retraining workers instead of replacing them.
Solutions like digitizing manufacturing data, automation training, augmented reality and collaborative robots can help workers do their job more efficiently, which is why 41 percent of manufacturers are introducing AI and automation to fill skills gaps, and 48 percent plan to repurpose or hire more workers.
8. Generative and Causal AI are Driving ROI
Using AI is no longer niche, and it’s starting to get results. 15 percent of respondents say casual and generative AI have delivered the biggest ROI in the past year, and their use is expanding beyond content generation into decision-making and process optimization.
9. Supply Chain Strategy Gets Smarter
Supply chain disruption being a top concern isn’t anything new, but how manufacturers are overcoming supply challenges is. A third of manufacturers are using AI/ML to optimize logistics and are increasingly reshoring operations to reduce risk and improve responsiveness.
10. Sustainability is Now Efficiency-Driven
Is sustainability in manufacturing more of an environmental consideration or a business consideration? Trick question – it’s both. Manufacturers are pursuing sustainability not just for compliance or branding, but to improve efficiency. 55 percent say efficiency is the top reason for sustainability efforts. That’s up 14% from last year.
CREATE WHAT’S NEXT
Now that you know what has changed in smart manufacturing, how do you see what’s next? Join us at Automation Fair 2025 November 17-20 in Chicago. With inspiration, first-hand experiences, learning and connections, this year’s Automation Fair has everything you need to Create What’s Next.