As economic pressures, global competition, and supply chain complexity persist, manufacturers are doubling down on smart technologies to improve productivity, efficiency, and competitiveness. According to Deloitte’s 2025 Smart Manufacturing Survey, the momentum behind smart manufacturing—also known as “smart factories”—continues to accelerate, with manufacturers making strategic investments in automation, data, and digital infrastructure.
In this blog, we break down the key findings from Deloitte’s report and what they mean for manufacturers navigating the road ahead.
Confidence in Smart Manufacturing Is Growing
Smart manufacturing is no longer viewed as a future goal—it’s now seen as a key driver of competitive advantage.
- 92% of manufacturers say smart manufacturing will be the main driver of competitiveness over the next three years, up 6% since 2019.
- Manufacturers primarily seek operational (49%) and financial (44%) benefits from smart manufacturing investments.
Tangible Results Are Being Achieved
Manufacturers that have already implemented smart technologies are reporting significant improvements in core business metrics:
- Production output: +10% to +20%
- Employee productivity: +7% to +20%
- Unlocked capacity: +10% to +15%
These results suggest that even modest levels of smart technology adoption can lead to substantial operational gains.
Budget Prioritisation Reflects Strategic Commitment
A strong majority of manufacturers are backing their digital ambitions with real investment:
- 78% are allocating more than 20% of their improvement budgets to smart manufacturing initiatives.
This financial commitment demonstrates a clear shift from experimentation to scale and impact.
Investment Priorities: Where the Money Is Going
When asked where they’ll be investing over the next 24 months, manufacturers revealed a mix of hardware and data-driven priorities:
- Factory automation hardware – 41%
- Data analytics – 40%
- Active sensors – 34%
- Vision systems – 28%
Notably, data analytics appears across multiple categories as both a solution and core system investment, reflecting its central role in driving intelligent operations.
Adoption of Core and Emerging Technologies
Technology adoption is widespread, but strategic focus is leaning towards core systems rather than bleeding-edge innovation. Current adoption rates:
- Cloud computing – 57%
- Data analytics – 57%
- Industrial IoT (IIoT) – 46%
- 5G – 42%
While interest in advanced technologies, such as AI, simulations, and robotics, remains, manufacturers are primarily investing in foundational digital infrastructure to enable broader smart factory capabilities. Top core systems being prioritised:
- Advanced production scheduling – 35%
- Execution systems (MES) – 33%
- Quality management systems – 28%
Building the Right Teams to Deliver Change
Transformation at this scale requires dedicated leadership and cross-functional coordination.
- 52% of manufacturers have created a central team or working group to lead smart manufacturing initiatives across their networks, factories, and IT/OT environments.
Ownership of these initiatives typically sits with:
- Operations leaders (COOs, Directors of Ops) – 51%
- Technology leaders (CTOs) – 38%
This highlights the importance of integrating both operational expertise and digital strategy to drive successful outcomes.
Final Thoughts
The Deloitte survey reinforces what many forward-thinking manufacturers already know: smart manufacturing is no longer a “nice to have”—it’s a must-have for driving performance, resilience, and long-term growth.
Whether you’re just beginning your digital transformation or scaling up existing initiatives, the key lies in aligning investment, leadership, and technology to your strategic goals.
For manufacturers looking to remain competitive in 2025 and beyond, the time to act is now.
About the Deloitte Report
All statistics noted in this report and its graphics are derived from Deloitte’s 2025 Smart Manufacturing Survey, conducted from August to September 2024. The survey included a total of 600 respondents. Percentages in this report and its charts may not add up to 100 due to rounding.
Respondents are executives from companies with an annual revenue of US$500 million or greater, more than 1,000 employees, and either headquarters or operations in the United States. Companies represented include consumer products, industrial products and construction, energy and chemicals, mining and metals, automotive, transportation, aviation, life sciences, and technology.
Read the full Deloitte report.
Credit - Deloitte Report Authors: Tim Gaus, United States | Michael Schlotterbeck, United States
