3 Emerging Technologies Will Help Manufacturers Navigate 2025's Challenges
As manufacturers continue to set their 2025 objectives, many find themselves between opportunity and uncertainty. Shifting political landscapes, increasing pressure to meet sustainability goals, and aggressive timelines are reshaping the manufacturing industry in unprecedented ways. Coupled with an ongoing talent shortage and U.S. factories scrambling to find workers for the nearshoring boom, significant challenges may be on the horizon. But as Steve Ilmrud, Vice President of North America Operations at Hexagon Manufacturing Intelligence, writes, significant solutions are also on the horizon.
Steve Ilmrud, Vice President of North America Operations at Hexagon Manufacturing Intelligence
While significant obstacles might seem discouraging, emerging technologies like AI-driven design tools, digital twins, and solutions that break down manufacturing silos offer a beacon of light. These innovations don't just streamline operations -- they can empower manufacturers to adapt, innovate, and thrive during uncertain times.
By bridging silos, democratizing advanced tools, and enabling predictive insights, these technologies address workforce shortages, respond to fluctuating market demands, and help future-proof operations. Here's how they are equipping the industry to navigate what comes next.
Harnessing AI to Address Workforce Challenges
Artificial Intelligence (AI) has consistently been a hot topic in manufacturing, but sometimes for the wrong reasons. While some worry it will replace jobs, it's proving to be an important way to address talent shortages the industry continues to deal with. With approximately 24% of manufacturing workers aged 55 and over, now is the time to adopt AI.
AI tools can act as virtual assistants of sorts, offering valuable insights on complex processes to less experienced engineers. Similarly, Generative AI (GenAI) is already beginning to transform design by analyzing historical data and proposing the right solution.
For example, in thermal management, GenAI design tools allow engineers to model and test cooling plates digitally, reducing time-to-market and the need for physical samples. These tools don't just save time -- they help manufacturers stay competitive by boosting innovation and efficiency.
AI-powered simulation tools are also transforming how manufacturers test and optimize designs. By integrating physics-based simulations with GenAI, these tools enable manufacturers to predict performance, validate solutions, and refine designs virtually, drastically reducing prototyping costs and time. This democratization of advanced tools gives small and mid-sized manufacturers access to capabilities once reserved for larger enterprises, empowering smaller teams to compete effectively. As these technologies mature, expect adoption rates to soar in 2025.
Leveraging Digital Twins for Agility and Training
Digital twins -- virtual replicas of physical systems powered by real-time insights -- are no longer a luxury reserved for large manufacturers. Instead, they are becoming essential tools for manufacturers of all sizes, offering a way to adapt quickly to changing conditions and ensure resilience in uncertain times.
By enabling manufacturers to simulate and test scenarios virtually, digital twins reduce the costs of failed approaches and mitigate the risks of hastily implementing changes on the factory floor. For instance, digital twins can predict supply chain issues tied to workforce reallocation or shortages, helping manufacturers make better proactive decisions. Additionally, digital twins support predictive maintenance, reducing unexpected downtime and ensuring operations run smoothly.
These benefits extend to workforce training as well. By simulating real-world scenarios, they provide hands-on learning opportunities that accelerate knowledge transfer and empower employees to adapt. This is particularly important as experienced workers retire.
In 2025, manufacturers are likely to adopt digital twins in manageable ways, such as using a digital product passport to track a part's design, manufacturing details, and quality results. Creating digital twins of key processes to simulate workflows, identify inefficiencies, and optimize operations will also gain traction. Lastly, digital twins can deliver real-time performance insights for mission-critical, costly equipment, enabling better maintenance predictions and extending asset lifespans.
Using "Digital Thread" to Break Down Silos
A continuous challenge for manufacturers is integrating different technologies, especially as various teams rely on specific systems for quoting, design, production, and distribution. This lack of a seamless source of truth can lead to delays, miscommunication, and inefficiencies -- issues that become more distinct during uncertain times or talent shortages.
A "digital thread" approach can help by creating a unified flow of data across the entire manufacturing lifecycle. By connecting systems that once operated in a siloed environment, the digital thread improves collaboration across teams, helping manufacturers overcome challenges. For example, integrating quoting and design data directly with production systems reduces revisions and accelerates lead times. On the shop floor, connected workflows ensure operators have accurate, up-to-date information, minimizing errors and ensuring productivity stays on track.
When combined with AI, this also unlocks the potential of advanced analytics and predictive insights. Comprehensive datasets can fuel machine learning models, helping manufacturers streamline production, identify bottlenecks, and optimize resource allocation. The outcome is a more agile and competitive operation that is better equipped to adapt to shifting demands and new challenges.
In 2025, manufacturers can begin their digital thread journey by assessing their current systems to identify the biggest pain points where better data sharing could add fast value. Prioritizing high-impact areas-- such as connecting design and production workflows -- will set the stage for rapid improvements and long-term gains.
Turning Challenges into Opportunities
With persistent problems today and an uncertain future ahead, technology can help manufacturers prepare for almost anything. Tools like digital twins, AI-driven design processes, and better-connected manufacturing floors can do more than solve technical issues -- they can also address challenges like workforce shortages as the industry continues to grapple with them.
To stay ahead, manufacturers must take the first step: evaluate their current workflows and identify where digital solutions can deliver the most immediate benefits. By embracing the right tools, manufacturers can turn challenges into opportunities and build a more resilient, productive future.
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