2024 is drawing to a close, leaving a significant footprint on the global industrial landscape. This year has been characterised by a complex interplay of challenges and opportunities, shaped by technological innovations, economic pressures and changing market dynamics.

While companies have been affected by factors such as economic uncertainty, rising costs and persistent supply chain disruptions, they have also witnessed the emergence of transformative trends that helped reshape how they operate, innovate and compete.

This article aims to provide a comprehensive overview of the most relevant trends shaping the manufacturing industry in 2024. We will examine how companies have responded to global economic challenges and how they have harnessed new technologies, such as artificial intelligence, to improve efficiency, resilience and sustainability.

1. The impact of the global economy

2024 was a year of great economic uncertainty for the global manufacturing sector. Interest rates, inflation, political uncertainties and fears of a recession have created a climate of apprehension among industry leaders.

This instability has had a significant impact on business strategies, with companies forced to reassess their plans and adapt their operations to a rapidly changing economic environment.

Geopolitical tensions and trade wars have further aggravated the situation. Wars and instability in several areas of the world have created discontinuities in supply chains and increased raw material costs.

According to Fictiv's ‘2024 State of Manufacturing Report’, 89% of manufacturing leaders surveyed expressed concern about the possibility of escalating trade wars in the coming years.

The same report shows that 86% of respondents consider geopolitical tensions to be a determining factor in their long-term supply chain planning.

2. Resilience and adaptability

In this context of economic instability, resilience and adaptability have become essential qualities for manufacturing companies. The ability to adapt quickly to changes, reorganise supply chains and optimise production processes is crucial to survive and thrive in an increasingly volatile global market.

Deloitte Insights' “2025 Manufacturing Industry Outlook” highlights how manufacturers are prioritising investments in digital and data-driven foundations to drive innovation and address supply chain challenges.

The report by Fictiv, on the other hand, highlights that manufacturing and supply chain visibility is the number one business priority for the third year running, followed by resilience and adaptability.

Adopting new technologies, optimising processes and reorganising supply chains are just some of the tools companies are using to navigate uncertainty and seize opportunities in an ever-changing global market.

3. The rise of artificial intelligence in manufacturing

Artificial intelligence (AI) is rapidly transforming the manufacturing sector, offering companies new opportunities to improve efficiency, productivity and product quality. In 2024, AI adoption continued to grow, with companies investing in a range of applications, including:

• predictive maintenance: using sensors and machine learning algorithms to predict equipment failures, reducing unplanned downtime and maintenance costs;
• production process optimisation: analysing production data to identify inefficiencies and improve workflows, reducing waste and production costs;
• quality control: implementing machine vision systems and deep learning algorithms to identify product defects in real-time, improving quality and reducing scrap;
• supply chain management: using AI to forecast demand, optimise inventory and improve logistics planning.

However, the adoption of AI is not without its challenges. Some of the main challenges companies face include:

• lack of expertise: the lack of qualified personnel capable of developing, implementing and managing AI systems is a significant obstacle;
• integration with existing systems: integrating AI systems with the existing IT infrastructure can be complex and costly;
• data protection and IT security: the use of AI involves the collection and analysis of large amounts of data, which raises privacy and security concerns;
• high costs: implementing AI systems can be expensive, especially for small and medium-sized enterprises.

To overcome these challenges and exploit the full potential of AI, manufacturing companies must adopt a strategic approach that includes:

• targeted investment: focus on AI applications that offer a clear return on investment and are aligned with business objectives;
• skills development: invest in staff training to close the skills gap and create an AI-capable workforce;
• collaboration with technology partners: working with companies specialising in AI to access cutting-edge skills and technologies;
• creation of a data-driven culture: promote a corporate culture that values data and the use of AI for decision-making.

In an increasingly competitive global market, AI represents an unmissable opportunity for manufacturing companies wishing to stay ahead of the curve and ensure their long-term growth.

4. Sustainability

Despite economic challenges and workforce concerns, it is important to note that the priority of investment in sustainable production remains constant for the second year in a row for 42% of the respondents in the Fictiv study.

That said, the gap between sustainability aspirations and the reality of actual costs is a factor that has huge implications for the ability of companies to achieve their sustainability goals.

Although the importance of sustainability is increasing, companies still face the challenge of balancing sustainability and costs.

Concrete actions such as the integration of sustainability into corporate values and the development of formal plans, including standardised reporting templates, are key to progress.

The trends highlighted suggest that sustainability remains a significant priority for the manufacturing industry. However, striking a balance between sustainability goals and economic realities continues to be a key challenge.

5. Smart Operations

According to the report compiled by Deloitte Insights, 98% of respondents have started their digital transformation journey, up from 78% in 2019.

The key factors driving this transformation are cost optimisation, operational efficiency, product innovation and improved customer experience.

The analysis shows that manufacturing companies' technology investments accounted for 30% of their operating budgets in 2024, up from 23% in 2023. Cloud technologies, generative artificial intelligence and 5G are the top three technologies with the highest return on investment.

Several key technologies support these smart operations, including the following:

• manufacturing operations management and production execution systems: they connect the enterprise to the shop floor and provide visibility into data across the organisation;
• data architecture: a data architecture strategy that provides a single source of standardised real-time data that can be used by a variety of systems across the enterprise;
• 5G technologies: support data collection and communication. 34% of industrial product manufacturers plan to invest in 5G technology in the next one to three years;
• model-based enterprises: can support the digital thread increasing traceability along the value chains. 21% of industrial product manufacturers plan to invest in the model-based enterprise in the next one to three years;
• XR and AI: can help meet ongoing needs such as efficient workforce training, knowledge retention of retirees, and increasing human capabilities. Almost 30% of industrial product manufacturers plan to invest in XR technologies in the next one to three years, while more than 40% plan to invest in AI and machine learning.

Sources point to an evolution of the manufacturing sector towards a software-based industry, not only within the factory but also for connecting the company to products in the field.

Manufacturers are improving the digital connection to their products to collect data on utilisation and operational performance. This data can help improve the performance and maintainability of products.

6. Reshoring

Reshoring, i.e. the return of production activities to the home country, is emerging as an increasingly important strategic solution in the manufacturing sector. Initially seen as an ambitious goal to improve quality, service and speed of delivery, reshoring has taken on a key role in recent years, becoming a necessity to ensure business continuity in a context of global instability.

Indeed, the global supply chain disruptions that occurred in 2020 and subsequent years have highlighted the fragility of the previous sourcing model based on offshoring. Reshoring offers a solution to mitigate risks and ensure greater stability in the production and delivery of products.

It also aligns with the increased focus on sustainability and the environmental impact of manufacturing activities. Local production reduces transport distances, often resulting in lower CO2 emissions.

Another advantage of reshoring is the greater control over the quality of products and production processes that it provides. Geographical proximity facilitates supervision and collaboration with suppliers, ensuring high standards.

Finally, it contributes to the economic development of the regions where production activities are re-localised, creating new jobs and stimulating innovation.

7. 3D Printing

3D printing emerged in 2024 as a growing advanced manufacturing technology due to its numerous advantages for manufacturers.

In detail:

• prototyping: enables the rapid creation of prototypes, allowing manufacturers to test and refine designs efficiently;
• customisation: facilitates the production of customised parts according to specific customer requirements;
• maintenance and repair: can be used to produce spare parts on-site, reducing downtime and procurement costs.

For these main reasons, 3D printing is increasingly being adopted by manufacturers in various sectors, including aerospace, automotive, medical devices and consumer goods.

In the European Union, the number of European companies involved in advanced manufacturing, including 3D printing, more than doubled between 2009 and 2023.

8. Workers' safety and health

Worker safety and health have emerged as a constant priority in the manufacturing sector, emphasising the adoption of new approaches and technologies to ensure the well-being of the workforce.

According to ATS - Advanced Technology Services, employee safety should not be seen as a passing ‘trend’, but as a daily commitment. This proactive approach has led to the adoption of new technologies and methodologies to monitor and improve the health and safety of workers.

For example, some companies are implementing advanced systems to monitor the position, movements and even temperature of employees to:

• identify injury risks: movement analysis can help identify potentially dangerous postures or actions;
• detect illnesses at an early stage: temperature monitoring can signal the presence of fever or other symptoms, enabling timely intervention.

There is also a growing awareness among companies that investing in the safety and health of workers is not only an ethical issue but also a crucial factor for business success.

Indeed, a safe and healthy working environment reduces the risk of injuries and illnesses, resulting in lower costs associated with medical treatment, compensation and productivity losses. As a result, employees feel safer and more valued and are more motivated and productive.

Finally, a company that is committed to the safety and health of its employees enjoys a better reputation, attracting talent and strengthening customer confidence.

9. Shortage of skilled labour

The shortage of skilled labour is a significant problem that the manufacturing sector continues to face.

The demand for manufactured goods and the continued expansion of the manufacturing sector put a strain on the availability of skilled workers, leading to a shortage that limits the ability of companies to meet market demand.

This hinders the growth of manufacturing companies, preventing them from increasing their production capacity and realising their full potential.

What are the main causes of this skills shortage?

• Ageing workforce: the retirement of experienced workers creates a skills gap that is not easily filled by new entrants to the labour market.
• Lack of specific skills: companies increasingly demand workers with advanced technical and digital skills, but the education system fails to train enough people with such skills.
• Lack of attractiveness of the sector: the manufacturing sector is not always perceived as an attractive job option, especially by young people, due to factors such as wages, working conditions and perceived lack of job security.
• Demographic changes: demographic changes, such as a declining birth rate and an increasing elderly population, contribute to the reduction of the available workforce.

According to Deloitte, 1.9 million manufacturing jobs could remain vacant in the next 10 years if talent challenges are not addressed.

The following strategic actions need to be taken to address the skilled labour shortage:

• invest in training: companies must invest in the training of their employees, offering refresh and retraining programmes to develop the skills required by the market;
• collaborate with the education system: it is essential to create a synergy between the manufacturing sector and the education system to ensure that training programmes are aligned with the needs of the labour market;
• improve the attractiveness of the sector: companies must take steps to make the manufacturing sector more attractive to workers by improving working conditions, offering competitive wages and promoting career opportunities;
• adopt advanced technologies: automation and the use of digital technologies can help increase productivity and reduce dependence on unskilled labour;
• harnessing artificial intelligence: AI can be used to optimise personnel management, identify skills gaps and customise training paths;
• promoting diversity and inclusion: opening up to a wider talent pool, and promoting diversity and inclusion, can help reduce labour shortages.

All this is essential to ensure the long-term growth and competitiveness of the sector.

Conclusion

In sum, 2024 was a year of challenges and opportunities for the manufacturing sector. Economic uncertainties, global tensions and a shortage of skilled labour have put a strain on companies.

However, the push towards digital transformation, the adoption of advanced technologies such as AI and the increasing focus on sustainability have provided new avenues for growth and innovation.

Companies that have been able to adapt to this changing landscape and invest strategically have positioned themselves for future success.

Let’s see what awaits us in 2025.