Top Five Industrial Trends

April 2025

This report highlights key trends in the global industrial sector in 2025. Rising geopolitical tensions and potential trade disruptions are creating more uncertainty for businesses, encouraging further production reshoring efforts. To deal with cost pressures and labour market challenges, companies are expected to invest more in automation and workforce upskilling. AI tools are also forecast to improve in 2025 and start bringing efficiency gains for manufacturers.

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Key Findings

Supply chain disruptions to persist, adding uncertainty

Geopolitical tensions continue to disrupt the manufacturing sector. It will remain crucial to continue supply chain diversification efforts and increase the operational resilience of existing production networks. This may also present new growth opportunities to emerging economies as they attract new investment.

Focus on localised production networks grows

High production concentration of critical goods and rising economic tensions are further accelerating production reshoring efforts. Production reshoring can provide new growth opportunities for B2B suppliers in both emerging and developed economies.

Cost pressures encourage further automation

Persistent cost pressures are forecast to spark a new wave of production automation, as companies allocate a greater share of their investment budgets to efficiency enhancement tools. Successful strategies can help companies to improve profit margins and gain greater market share.

Workforce upskilling will be critical for future success

Companies will face a shrinking labour pool and a rising skills shortage over the next decade. Investment in training, more flexible work conditions and reviews of production networks will be critical for companies when preparing for future growth.

Greater value from AI tools anticipated

AI tools are forecast to transition from a hyped technology to real-world applications in 2025. Manufacturing companies, facing many pressures across supply chains, are predicted to integrate AI tools into their production networks, supply chain tracking and sales systems.

Our expert’s view of industrial sector in 2025
Key findings
Global manufacturing sector faces more uncertainty in 2025
Top five trends in industrial sector
Top five trends uncovered
Rising economic uncertainty adds new pressures on the manufacturing sector
Case study: Alcoa plans to review aluminium supply to avoid disruptions
Production efficiency tools can help to better navigate supply chain challenges
Production reshoring efforts present new growth opportunities for countries
Case study: Tata Electronics helps to strengthen Apple’s supply chain in India
Production reshoring to create new sales opportunities in emerging Asian markets
Persistent cost pressures drive the need to improve production efficiency
Case study: Fernco improves factory productivity thanks to new tools
The need to improve efficiency will create stronger demand for production tools
Ageing population and growing skills gap will require more flexibility from companies
Case study: Toyota aims to retain older workers for longer
Upskilling and retaining workers for longer will be critical in solving labour market issues
AI tools expected to trickle down to manufacturing sector in 2025
Case study: Ducab uses AI platform to streamline supplier selection process
AI tools promise to improve production and sales processes
Future implications
Opportunities for growth
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