Additionally, data show skilled labor shortage remains a top concern for manufacturers
TUSTIN, Calif. – February 11, 2025– Syspro, a global ERP software provider for manufacturing and distribution, has released new research showing that manufacturers are eager to adopt smart technologies such as AI, automation, and IIoT, but still face major deployment challenges. The findings combine insights from a poll of 128 manufacturers at the Fall 2024 SPARK Customer Roadshow, an October 2024 trends webinar survey, and more than 360 data points from executive interviews conducted with Frost & Sullivan.
Major findings from the three research surveys include:
Complex manufacturing companies are beginning to embrace smart technologies
Many complex manufacturing companies are moving past concerns about high upfront costs and internal resistance to change and are now actively adopting smart technologies. Adoption focus today includes automation and robotics (37%), AI and machine learning (19%), and industrial internet of things (IIoT) technologies (18%). Many are doing so as part of broader smart factory initiatives to modernize operations.
Looking ahead to 2025, manufacturers say their top digital transformation priorities are:
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Implementing AI and automation (40%).
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Enhancing digital integration and real-time insights (29%).
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Managing costs while adopting new technologies (24%).
China is currently ahead of the curve, with just under half (45%) of Chinese manufacturers having already adopted emerging smart manufacturing technologies.
Most manufacturers have plans for AI
Forty percent of respondents ranked AI and automation as their number one digital transformation priority. Overall, 80% are either already committing resources to AI or planning to do so in the near term.
Key AI adoption signals include:
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12% have deployed AI (distinct from machine learning) or are actively in the process of deploying it.
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57% are actively researching AI use cases.
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11% plan to deploy AI within the next 12 months.
These patterns align with findings from the Manufacturing Leadership Council, which reports that AI initiatives form part of the digital transformation strategies of 78% of manufacturers.
Manufacturers face significant technical hurdles that impede adoption of new technologies
Almost one in three (30%) say they have difficulty integrating new technology, while 15% say outdated systems are creating inefficiencies, and another 15% suffer from limited scalability to meet future needs.
Manufacturers face difficulty providing real-time data and analytics
Another significant challenge manufacturing leaders face is the inability to obtain real-time data so they can make quick, data-driven decisions (40%). Analytics can provide a solution to this problem, but only 23% have made implementing analytics a key technology priority for the coming year. Additionally, almost one-quarter (24%) are not using any kind of analytics at all.
Skilled labor shortage remains a serious challenge for manufacturers
When asked about the biggest challenges they expect to face in 2025, manufacturers highlighted:
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Attracting and retaining a skilled workforce (30%).
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Supply chain disruptions (23%).
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Cybersecurity (12%).
These findings are consistent with National Association of Manufacturers data showing that 71% of manufacturing companies struggle to attract and retain employees.
“Manufacturers clearly see smart technology as the key to overcoming workforce shortages and supply chain disruptions. However, adoption is still challenging,” said Kelly Kucera, Senior Vice President of Global Marketing at Syspro Americas. “Syspro’s ERP solutions are designed to simplify this transition, providing the flexibility and integration needed for real-world manufacturing environments.”
To explore the findings in more detail, Syspro will host a webinar, “Global Complex Manufacturing Outlook 2025,” with Gavin Verreyne (Senior Vice President, Professional Services, Syspro), Kelly Kucera (Senior Vice President, Global Marketing, Syspro), and Hendrik Malan (CEO and Partner, Frost & Sullivan) on February 19 at 8:00 AM PT. Register here: Global Complex Manufacturing Outlook 2025 Event Details | Modern Machine Shop
The full Frost & Sullivan research report, “Complex Manufacturing Trends and Opportunities,” is also available for download for those wanting deeper insight into how complex manufacturers are approaching smart technologies and digital transformation: Complex Manufacturing Trends and Opportunities | Syspro US
About Syspro
Syspro is a global software provider specializing in key manufacturing and distribution industries. For more than 40 years, Syspro has focused on addressing industry‑specific needs and enabling customers to adapt and grow. Its scalable solution can be deployed in the cloud, on‑premise, or in a hybrid model and accessed via the web on any device to give customers flexibility and choice.
With more than 15,000 customers in over 60 countries across six continents, Syspro remains committed to helping partners and customers secure a digital future by aligning its evolving solutions with industry trends and emerging technologies.
Press Contact:
Erin Schlee
Sr. Manager, Customer Marketing & Communications
Syspro Americas Erin.Schlee@Syspro.com
(714) 437-1000
