Top 5 trends: What every manufacturer needs to do to succeed in 2025
The global manufacturing industry is poised for significant growth, with output projected to reach an impressive $49.3 trillion by 2025, driven by a compound annual growth rate (CAGR) of 1.88%. Additionally, the number of enterprises in the sector is expected to increase to 5.43 million.
This rapid expansion presents both challenges and opportunities. Staying ahead requires a proactive approach, strategic planning, and a willingness to adapt. Whether you’re navigating new technologies, optimizing processes, or meeting shifting customer demands, there are critical steps every manufacturer should take to succeed in 2025. Here’s what you need to focus on for long-term growth and success.
Trend 1 Stay Agile and Plan for Change
The pace of change in manufacturing is accelerating, making agility essential for success. Adapting quickly to market shifts, technological advancements, and unforeseen challenges is what sets industry leaders apart.
Develop contingency plans for potential disruptions, monitor industry trends, and foster a culture of innovation within your organization. Businesses that remain flexible and embrace change are better positioned to thrive in uncertain times.
Trend 2 Adopt Advanced Manufacturing Technology
Technology is central to modern manufacturing, with automation becoming key to staying competitive. Research shows that 63% of manufacturers are already using technology to automate tasks, and another 30% plan to expand automation through software by 2025. Tools like Artificial Intelligence (AI), the Internet of Things (IoT), and automation are transforming operations by improving efficiency, reducing waste, and enhancing productivity.
AI enables smarter operations by driving predictive analytics, quality control, and workflow optimization. IoT connects machines, sensors, and systems, allowing real-time data sharing, performance tracking, and predictive maintenance to minimize downtime. Additive manufacturing (3D printing) supports low-volume production and on-demand parts replacement, while advanced robotics automate complex tasks and enhance workplace safety. Additionally, digital twins—virtual replicas of physical assets—allow manufacturers to simulate and optimize operations in real time.
Embracing these technologies is no longer optional. They empower manufacturers to streamline processes, deliver higher-quality products, and remain resilient in a fast-evolving market, ensuring long-term success.
Trend 3 Strengthen Supply Chain Resilience
Supply chain disruptions have been a wake-up call for manufacturers worldwide. In 2025, a flexible and resilient supply chain will be critical. Unexpected events, whether geopolitical issues or natural disasters, can throw production off course.
Additionally, supply chain efficiency is becoming a competitive necessity. With the average delivery time for raw materials dropping—a 2% year-over-year decline—manufacturers must focus on streamlining their operations to meet tighter timelines and growing customer expectations.
Diversify your supplier base to avoid over-reliance on a single source. Use digital tools to monitor your supply chain in real time, enabling quick responses to disruptions. Building strong relationships with suppliers can also help ensure smoother operations during uncertain times.
Trend 4 Sustainability and ESG Initiatives
Manufacturing accounts for nearly 20% of global emissions, making sustainability a defining factor for success in 2025. Customers, regulators, and investors expect businesses to take meaningful steps to reduce their environmental impact. Manufacturers that fail to prioritize sustainability risk losing market share and facing stricter penalties.
Start by assessing your operations for areas to improve. Energy-efficient machinery, waste reduction programs, and renewable energy adoption are great first steps. Implementing sustainable practices not only reduces costs but also enhances your reputation with eco-conscious consumers and partners.
Trend 5 Collaborate with Strategic Partners
No manufacturer succeeds alone. Building strong partnerships with technology providers, suppliers, and other stakeholders can help you innovate faster and achieve your goals.
For example, collaborating with technology experts can provide you with the tools and insights needed to implement advanced systems. Similarly, maintaining close relationships with suppliers ensures smoother coordination and better resource availability.
Partner with Kingslake for Success
For over three decades, Kingslake has empowered Sri Lanka’s leading manufacturers with innovative IT solutions to boost throughput, automate workflows, and reduce costs. Our solutions address key challenges in manufacturing, including supply chain disruptions, capacity constraints, and automation needs.
We offer cutting-edge tools like Infor SyteLine, a SaaS-based ERP tailored for manufacturers; Infor WMS, a Tier-1 warehouse management solution; and Siemens Opcenter APS, an advanced planning and scheduling tool to optimize production.
Prepare for 2025 with Kingslake’s expertise and solutions to ensure your business thrives in a rapidly evolving world. Let us help you drive efficiency, innovation, and success.
