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Automation

A Look at How Smart Manufacturing Is Addressing Operational, Economic Challenges

For its 10th annual State of Smart Manufacturing Report, Rockwell Automation surveyed 1,560 manufacturing leaders about the internal and external challenges they face and how they’re using technology to address them.

By Alyse Thompson-Richards, Editor in Chief
From the editor
September 18, 2025

The term “smart manufacturing” covers a multitude of technologies and strategies, but what does it mean to the people and organizations actually doing the manufacturing? And how are they using it to overcome challenges? Rockwell Automation aims to find out.

For its 10th annual State of Smart Manufacturing Report, the company, with help from Sapio Research, surveyed 1,560 manufacturing leaders from 17 countries. Nearly 3 in 5 (58%) work with companies generating more than $1 billion in revenue. About one-tenth (8%) of respondents were from CPG companies.

Respondents point to several internal and external obstacles that hamper competitiveness. For the third year, manufacturers say inflation is the biggest external obstacle, but workforce issues, supply chain disruptions and cybersecurity also made the list.

Internally, manufacturing professionals across job roles cite five major concerns:

  1. Deploying and integrating new technology
  2. Balancing quality and profitable growth
  3. Integrating smart manufacturing technology
  4. Internal budget constraints
  5. Attracting employees with desired skillsets

With these concerns in mind, 81% of manufacturers are accelerating their digital transformation. However, Rockwell Automation zeroed in on cybersecurity and quality.

Specifically, nearly half (49%) of surveyed manufacturers are planning to use artificial intelligence and machine learning (AI/ML) in the next 12 months to support cybersecurity — up from 40% last year. Additionally, 38% say they are using data for cybersecurity protection, up from 31% in 2024.

Almost half (48%) of manufacturers say they plan to use AI/ML to improve quality — but it goes beyond that. Improving quality, safety and efficiency with AI/ML can support their sustainability goals.

As manufacturers contend with increasing costs, labor concerns and escalating cybersecurity threats, they must turn to technology to improve speed, productivity and reliability — and remain competitive under demanding economic conditions. It’s encouraging to see many manufacturers are doing just that, and it is likely next year’s results will indicate even more adoption.

KEYWORDS: AI/ML cybersecurity research smart manufacturing

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Alyse thompson richards
Alyse Thompson-Richards has held many positions with BNP Media, first serving as an intern at Candy Industry in summer 2012. She joined Candy Industry's staff full time as associate editor in August 2016 after a few years at newspapers in West-Central Illinois. Alyse has since served on Cannabis Products Insider and joined FOOD ENGINEERING in 2024. She has bachelor’s degrees in journalism and Spanish from Western Illinois University. Image courtesy of Thompson-Richards

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