Smart manufacturing is fast becoming a strategic imperative for industrial leaders in the United States, according to Deloitte’s 2025 Smart Manufacturing Survey.
Conducted between August and September 2024 and involving 600 senior executives from large manufacturing firms, the study shows that 92% of respondents view smart manufacturing as the primary driver of competitiveness over the next three years. This shows an increase of 6 percentage points (PP) since 2019. About 85% of respondents are convinced that smart manufacturing will reshape production processes, boost agility, and attract top talent to the sector.
Performance gains drive growing investment appetite
Companies already implementing smart manufacturing are seeing clear performance benefits, the report notes. On average, manufacturers reported 10% to 20% improvements in production output, 7% to 20% gains in employee productivity, and up to 15% more capacity unlocked.
Nearly half of the executives identified operational benefits as the primary reason for adopting these initiatives, while 44% highlighted financial gains. Reflecting this optimism, 78% of respondents said they are dedicating over 20% of their improvement budgets to smart manufacturing, and 88% expect investments to remain steady or rise in the coming year. Manufacturers are focusing on process and physical automation and on synchronizing factory operations to drive these improvements.
Efforts to modernize factories include significant spending on automation equipment, sensors, and vision systems. Cloud computing, data analytics, and industrial IoT are widely used, with 57% of firms using cloud solutions and 46% deploying IIoT. Adoption of unified data models and common architectural standards is growing, helping firms manage data more effectively and respond quickly to operational needs.
Even so, the report suggests many manufacturers are still developing their artificial intelligence (AI) capabilities. Only 29% have adopted AI or machine learning at scale, while 24% have begun using generative AI. Pilot projects are underway, showing cautious but growing interest in applying AI to decision-making processes.
Navigating risks and workforce needs
While the benefits are clear, scaling smart manufacturing comes with challenges. 65% of executives cited operational risk as a top concern, including disruptions to business and potential financial losses from failed projects.
Cybersecurity is also a pressing challenge, with 91% of manufacturers reporting at least one cybersecurity breach in the past year, according to Deloitte’s 2024 Global Future of Cyber survey. Meanwhile, the talent shortage looms large with the sector expected to need 3.8 million new workers by 2033. In response, 48% of companies have introduced training programs for smart manufacturing, but Deloitte’s survey suggests human capital remains the least developed area.
The talent gap extends beyond the factory floor, with many companies struggling to fill information technology (IT), OT, and data science roles. As a result, around 70% of manufacturers are turning to third-party providers to meet their cybersecurity and data demands.
Inside manufacturing firms, efforts to manage this transformation are evolving. More than half of respondents have established dedicated teams to drive smart manufacturing initiatives, while 45% are focusing on building communication processes to help employees and customers adapt to these changes.
Leadership for these initiatives often cuts across departments, with around half of the respondents saying that operations heads, including Chief Operating Officers (COO), are spearheading efforts. Technology leaders, such as Chief Technology Officers (CTO), take the lead in about 38% of cases.
What began as an aspirational idea in 2017 has become a practical roadmap for boosting competitiveness, Deloitte’s report concludes. Smart manufacturing is no longer about chasing the latest technology trend, it is about targeted investments in data, core systems, and workforce development to unlock operational and financial value.
Smart manufacturing efforts in AM
Deloitte’s findings resonate with the adoption of data-driven 3D printing and digital factory solutions, which bring agility and resilience to modern manufacturing.
For example, Hexagon’s Digital Factory unveiled at the Farnborough International Air Show 2024, allows manufacturers to create digital replicas of their factory floors and integrate digital twins of machinery, optimizing layouts and workflows. Developed through Hexagon’s Manufacturing Intelligence division, it combines 3D metrology technology with cloud-based collaboration tools to enable remote monitoring, decision-making, and smarter operations.
The system promises substantial savings through reduced planning errors and streamlined production agility, while also minimizing the need for on-site training and travel. Designed to integrate with existing workflows and compatible with popular CAD and BIM software, Digital Factory creates a data-driven manufacturing environment that supports the shift to smarter, more sustainable factories.
In 2020, Quality assurance (QA) software developer Sigma Labs partnered with advanced manufacturing firm IN4.OS to build “Smart Factories of the Future,” integrating DMG MORI’s LASERTEC metal 3D printers and Sigma’s PrintRite3D technology to ensure high-quality production. These cyber-physical facilities aim to provide defense and aerospace firms with scalable, location-agnostic, industry 4.0 manufacturing for mission-critical parts.
In this setup, the software developer’s PrintRite3D QA software allowed for unified quality control and flexible machine integration, while remote monitoring offered enhanced flexibility and resilience. According to IN4.OS CEO R J Singh, PrintRite3D is essential for making additive manufacturing mainstream and reliable for critical production, working seamlessly with DMG MORI’s advanced systems in these smart factories.
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Featured image shows that executives agree smart manufacturing will boost competitiveness and transform production. Image via Deloitte.
