Manufacturers are accelerating smart manufacturing programs and rethinking workforce needs as AI, cloud, and cybersecurity rise in priority. According to Help Net Security, citing Rockwell Automation’s 10th Annual State of Smart Manufacturing Report, more than half of manufacturers are piloting initiatives and one in five have scaled deployments, while another fifth plan new investments.
AI, data, and cloud take center stage
As energy costs recede as a top concern, cybersecurity risks, competition, and workforce challenges are moving up the agenda alongside inflation and economic uncertainty. Manufacturers are seeking integrated solutions that blend automation, AI, and secure systems from edge to cloud to maintain uptime, reduce cyber and compliance exposure, and build operational resilience.
Within the next 12 months, 50% of surveyed manufacturers plan to use AI and ML for quality control. Cloud and SaaS platforms, together with AI, continue to be the leading technology investment areas, followed by cybersecurity and quality management. While organizations are collecting more data than ever, only 44% is being used effectively, highlighting the gap between data gathering and actionable insight.
Turning data into resilience
Many manufacturers are leveraging data to shore up security and continuity: 37% are using information from technology, processes, and devices to protect against cyber threats, and 29% apply analytics to monitor supply chain risks. Blake Moret, CEO of Rockwell Automation, said, “In the next 12 months, AI and ML will shape quality control, cybersecurity, and process optimization, ensuring we can take full advantage of accurate, timely data.”
Workforce skills and supply chain strategies
Dynamic market conditions, internal and external obstacles, and tight margins are pushing companies to find smarter ways to manage supply chains. Twenty-eight percent are actively evaluating critical suppliers to respond to external risks, prompting fresh considerations around sourcing, pricing, and overall costs. A large majority of respondents said these challenges are speeding up digital transformation.
Manufacturers continue to cite a shortage of skilled workers as a key competitive hurdle. To address the skills gap and labor shortages, 41% are turning to AI, ML, and automation. The shift to smart manufacturing is increasing demand for employees with AI and cybersecurity expertise, alongside strong problem-solving and critical thinking abilities. Process optimization ranks among the top planned AI and ML use cases in the coming year, with decision makers expecting time savings by 2027 as manual work decreases and staff focus shifts to higher-value tasks.
Cybersecurity has climbed to the second-highest external obstacle to growth. Nearly half of manufacturers (49%) plan to use AI and ML for cybersecurity, up from 40% in 2024. In parallel, 38% are using data from technology and processes to protect against cyber threats, up from 31% last year.
