2025 Smart Manufacturing and Operations Survey by Deloitte: Summary & Key Insights
Deloitte’s 2025 Smart Manufacturing and Operations Survey, based on a poll of 600 senior executives from large manufacturers, reveals that smart manufacturing has transitioned from an aspirational goal to a competitive imperative, driving significant operational and financial benefits. The manufacturing industry is undergoing rapid transformation with data, automation and connectivity reshaping the foundations of production. While the momentum behind digital transformation continues to grow with high levels of investment and recognized value, manufacturers face many challenges, particularly in managing operational risks, addressing a widening talent gap and ensuring robust cybersecurity as they scale their initiatives from pilot to enterprise-wide execution. Let’s check out the key insights from this report.
Key Insights:
1. 92% of manufacturers surveyed believe smart manufacturing will be the main driver for competitiveness over the next three years, a 6 percentage point increase since 2019.
2. 85% of respondents believe their smart manufacturing initiatives will transform how products are made, improve agility, and attract new talent.
3. Manufacturers are reporting 10% to 20% improvements in production output from smart technology implementation.
4. Manufacturers are reporting 7% to 20% gains in employee productivity.
5. Up to 15% in unlocked capacity is being realized by companies implementing smart technologies.
6. 78% of manufacturers are allocating over 20% of their overall improvement budget to smart manufacturing initiatives.
7. 88% of respondents expect their smart manufacturing investments to increase or hold steady in the coming year.
8. Process automation is ranked as the first or second priority investment for 46% of respondents over the next two years.
9. Physical automation is ranked as the first or second priority investment for 37% of respondents.
10. Factory synchronization is ranked as the first or second priority investment for 24% of respondents.
11. 57% of manufacturers are currently using Cloud computing, 57% are currently using Data analytics, 46% are using Industrial IoT (IIoT) and 42% are using 5G technologies.
12. Only 29% of firms have adopted AI or machine learning at scale.
13. Advanced production scheduling is a top-two priority system for investment for 35% of respondents.
14. Manufacturing Execution Systems (MES) is a top-two priority system for investment for 33% of respondents.
15. Quality management systems is a top-two priority system for investment for 28% of respondents.
16. 51% of surveyed companies report that smart manufacturing initiatives are led by operations leaders (e.g., COOs, Directors of Ops).
17. 38% of initiatives are led by technology executives (e.g., CTOs), 52% of manufacturers have established a central team or working group to lead smart manufacturing initiatives.
18. 65% of executives consider operational risk (including business disruption and loss from failed initiatives) to be one of the biggest concerns.
19. 48% of respondents report moderate to significant challenges in filling production and operations management roles.
20. 46% report moderate to significant challenges in filling planning and scheduling roles.
21. 35% of respondents cited “adapting workers to the Factory of the Future” as a top workforce concern.
22. 48% of respondents reported having a smart manufacturing training and adoption standard in place.
23. Human capital was ranked at the lowest technological maturity level of all smart manufacturing categories surveyed.
24. 68% of companies have conducted a cybersecurity maturity or risk assessment in the last year.
25. Manufacturers dedicate an average of 15.74% of their IT budgets to protecting digital operations.
26. Roughly 70% of manufacturers are outsourcing key roles in OT, IT, analytics, and cybersecurity to third-party providers.
Conclusion:
The 2025 Smart Manufacturing Survey highlights that manufacturers are strongly committed to digital transformation, evidenced by increasing investment and tangible returns in production output and employee productivity. Smart manufacturing is decisively viewed as the primary engine of future competitiveness. However, the path to a fully scaled smart factory is complicated by significant hurdles like operational complexity, the imperative to manage cybersecurity and business disruption risks and the critical need to address the human capital gap. To successfully navigate this era of transformation, manufacturers must not only continue strategic investments in technologies and automation but also prioritize workforce upskilling, talent attraction and the development of secure data and operating environments. The future competitive advantage belongs to those who can effectively integrate technology, talent, and strategic leadership across their operations.
Check out the full report here.