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As market dynamics become less predictable, the manufacturing industry is increasingly leaning on artificial intelligence (AI) to help enhance demand forecasting accuracy, streamline supply chain processes, and support operations. According to a 2024 report from the National Association of Manufacturers, AI is used widely across the industry. The majority of manufacturers (72%) said they’re investing in Manufacturing 4.0 technology — such as AI — to reduce costs and improve operational efficiency.

But while AI helps manufacturers drive productivity, it also introduces significant risk. Manufacturing organizations must establish guardrails to mitigate these risks and facilitate safe and responsible AI use.

Risk #1: Poor Data Quality

Manufacturing organizations collect vast amounts of data from Internet of Things (IoT) devices throughout their supply chain and facilities, which they use to inform business decisions. Those that don’t 

As proud members of BDO USA Alliance, we’re pleased to provide this comprehensive resource to help businesses navigate the year ahead with confidence.

2025 Predictions: Manufacturing Industry Trends to Know

Five predictions for the year ahead that will help manufacturers unlock opportunity

Are manufacturers ready for sweeping supply chain and trade policy changes? What about strengthening their data foundation? Will companies leverage their internal data to inform where they place strategic bets?

BDO’s 2025 manufacturing industry predictions delve into these questions and more to help industry executives navigate key trends we forecast ahead.  Whether manufacturers are planning to invest in better data infrastructure, address workforce gaps, or prepare for policy changes under a new presidential administration, they will need to know the challenges — and opportunities — that are going to reshape the industry.

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