Research

2025 Manufacturing Industry Outlook

5 key trends shaping consumer and industrial product manufacturing in 2025

December 04, 2024

workers in hard hats looking at a tablet and clip board

The Trends Shaping Manufacturing in 2025

Building a Resilient Supply Chain
Manufacturers are adapting to labor shortages, geopolitical tensions, and potential tariffs with strategies like reshoring and automation.
Revitalizing M&A in Manufacturing
M&A activity in manufacturing is rebounding as companies pursue acquisitions to improve supply chain control and adopt advanced technologies.
Accelerating Smart Manufacturing
Digital transformation is gaining momentum as manufacturers address foundational challenges to prepare for future labor shortages.
Harnessing AI for Manufacturing Transformation
Manufacturers are shifting toward enterprise-wide AI strategies to improve operational efficiency and maintain competitiveness.
Strengthening Cybersecurity in Manufacturing Operations
Robust cybersecurity is essential as manufacturers protect vulnerable IT and OT systems from increasing threats.
BONUS: Sustainability’s Role in Driving Profitability
Sustainability is becoming a key driver of profitability for manufacturers as they balance short-term costs with long-term resilience, meet regulatory demands, and integrate environmental responsibility into their core strategies.

Strengthening Manufacturing for the Road Ahead

In 2025, manufacturing faces a pivotal moment. Supply chains are under strain from labor shortages, economic uncertainty, and shifting geopolitical dynamics, with new tariffs likely to reshape sourcing strategies and costs. This year, building resilience will mean rethinking supply chains, accelerating reshoring, and addressing continued workforce shortages.

Digital transformation remains a powerful solution, with smart manufacturing and AI poised to optimize operations and drive productivity. Yet, these advances bring cybersecurity risks, as manufacturers work to protect both IT and OT environments from new vulnerabilities. Meanwhile, sustainability fluctuates as a priority.

The challenges ahead bring real opportunities for those willing to act boldly. This outlook provides practical insights and strategies to meet this critical moment and shape a future where resilience and innovation drive lasting success. - Randal Kenworthy, Consumer & Industrial Products Practice Lead