REGIONAL REPORT
The Cloud Gate metal sculpture in Chicago( Lance Anderson, Unsplash).
Top eight manufacturing trends
Digital technologies are helping manufacturers to improve their bottom line and work towards sustainability goals while navigating economic and regulatory challenges. The National Association of Manufacturers in the U. S. has compiled the top eight manufacturing trends for 2025 from member surveys, studies and feedback.
1. Incorporating smart factories as business imperatives: Manufacturers will continue to get better at leveraging digital technology and vast amounts of data to develop factories that intuitively respond to customer and market needs. enhance efficiency while maintaining compliance with various regulatory requirements,” said the report.
Moreover, the rapid advancement in technology and the growing emphasis on innovation have spurred the industry’ s growth, as contract manufacturers are increasingly adopting automation and advanced manufacturing techniques to meet the diverse needs of their customers.
The North America contract manufacturing services market is characterised by a highly competitive and fragmented landscape, with a diverse range of players catering to industries such as electronics, automotive, healthcare and consumer goods.
“ As companies seek to reduce costs, improve production efficiency and focus on core competencies, there is a growing shift toward outsourcing manufacturing. This trend is particularly prevalent in sectors requiring specialised expertise, such as precision electronics, medical devices and automotive parts, where contract manufacturers offer tailored solutions to meet the increasingly complex demands of these industries,” commented Grand View Research.
“ The market is also witnessing a surge in technological innovation, with contract manufacturers adopting automation, robotics and artificial intelligence( AI) to enhance productivity and reduce operational costs. Additionally, the need for faster time-tomarket, customisation and low-volume production is pushing the demand for flexible, high-quality contract manufacturing solutions. Manufacturers are investing in smart manufacturing technologies, including the integration of the Internet of Things( IoT), cloud-based platforms and data analytics, to optimise operations and improve product quality while minimizing waste and downtime,” it continued.
As competition intensifies, companies in North America are focusing on differentiation through product innovation and sustainability initiatives. The push for greener manufacturing processes, driven by both regulatory requirements and consumer demand for environmentally responsible products, is prompting contract manufacturers to adopt energy-efficient systems, reduce waste and embrace eco-friendly materials.
“ Regulatory compliance remains a crucial factor in the industry, with companies needing to adhere to stringent safety, environmental and quality standards, such as those enforced by the FDA in the U. S. and other regional authorities. These factors are propelling the market forward, as contract manufacturers continue to innovate and adapt to the changing needs of their clients in a rapidly evolving global marketplace,” added Grand View Research.
As competition intensifies, companies in North America are focusing on differentiation through product innovation and sustainability initiatives
2. Positioning sustainability efforts as differentiators: Manufacturers should be ready for changing customer requirements, new regulations and environmental, social and governance issues. Sustainability should be viewed as an opportunity for differentiation, innovation and the creation of new business models.
3. Creating comprehensive digital transformation strategies: In 2025, the focus will be on the Internet of Things— connected devices, AI and machine learning, 5G, cybersecurity and data privacy— as well as developing a tech-savvy workforce that can make the most of these technologies. Manufacturers need to be aware of all the opportunities that come with digital transformation as well as the risks and costs.
4. Continuing focus on supply chain resiliency: Manufacturers will need to take steps to strengthen their supply chains, guard against volatility and increase transparency. In 2025, resilience strategies will include investing in digital tools, enhancing data and analytics and adding redundancies.
Image: Shutterstock. com.
5. Enabling innovation in manufacturing: Innovation in manufacturing in 2025 will be essential to increasing competitiveness, guarding against economic uncertainty, enhancing sustainability, strengthening the supply chain and more. Many manufacturers will be looking to new technology and AI to unlock innovations.
6. Implementing AI and preparing the future workforce: As manufacturers increasingly adopt AI and other new technology, they will need to consider how these technologies will affect their workforce, including hiring, training and upskilling.
7. Embracing the importance of data: Data offers huge potential for manufacturers to increase efficiency, reduce costs, conduct predictive maintenance, improve quality control, optimise the supply chain and more. In 2025, more manufacturers will focus on building data infrastructure. They will also need to create a corporate strategy for data governance.
8. Exploring energy options to power new technologies: Manufacturers must plan for the energy demands of Manufacturing 4.0 in 2025 and beyond, as well as future growth and expansion. n
36 | ismr. net | ISMR September 2025