25 Manufacturing Facts That Spotlight the Future of U.S. Factories

The manufacturing industry is on the brink of a digital revolution. With technologies like automation, artificial intelligence and the Internet of Things (IoT), the sector is projected to grow exponentially. Global manufacturing output is expected to reach $44 trillion by 2030, fueled by advancements in smart manufacturing and sustainability efforts.

We rounded up 25 key manufacturing facts that highlight the current state of the industry and where it’s headed over the next decade. These stats provide insight into the challenges, innovations and opportunities shaping the future of manufacturing.

Manufacturing Industry Overview

98% of organizations now have some form of sustainability and ESG policy in place.

In the current economic climate, managers are increasingly looking for ways to optimize their operations and adopt a lean methodology, as exemplified by engineering legend Taiichi Ohno’s framework, the 5 Ms in manufacturing. To achieve this, 98 percent of manufacturers have implemented internal policies to make sure they meet their sustainability and environmental, social and governance (ESG) goals. This includes adopting smart manufacturing technologies to enhance quality, reduce costs and boost overall equipment effectiveness (OEE). 

Supply chain challenges persist post-COVID, with a 2% year-over-year decline in average delivery time for raw materials.

The average delivery time for raw materials dropped to 81 days by October 2024, representing a 2 percent year-over-year decline. With ongoing difficulties sourcing raw materials at scale, we are likely to see an uptick in partnerships between brands and original equipment manufacturers (OEMs). OEMs play a key role in stabilizing supply chains and ensuring access to necessary parts. A computerized maintenance management system (CMMS) can help manage these OEM partnerships, maximizing the value of these strategic relationships.

Women now make up 30% of the manufacturing industry’s workforce.

The most recent data from the U.S. Census Bureau reveals that women comprise about 30 percent of the entire sector’s workforce. This figure represents a considerable jump from previous decades. As manufacturing becomes increasingly tech-oriented, it’s likely we’ll see more women entering the field and making meaningful contributions to the manufacturing industry. The Manufacturing Institute’s 35 x 30 initiative aims to add half a million women to the industry’s workforce by 2030.

Annual investment in new manufacturing facilities hit a record high of $225 billion.

As of February 2024, annual investment in manufacturing had already hit an all-time high of $225 billion. This surge in private investment stems from bipartisan efforts in infrastructure and semiconductor production, along with initiatives to boost American-made clean energy and manufacturing. 

The manufacturing industry spends $222 billion each year on maintenance-related costs.

Industrial manufacturers lose $222 billion annually to maintenance-related costs, including the loss of revenue due to unplanned downtime. This number signals the need for a shift away from reactive maintenance toward a preventive maintenance program. Maintenance management software can facilitate this shift, helping manufacturers reduce costs while improving the reliability and efficiency of their operations. By minimizing breakdowns and the associated repair and downtime costs, manufacturers can recoup some of their losses and operate in a more sustainable way. 

Working in Manufacturing

The average hourly wage in the manufacturing industry is $34.

In 2023, U.S. manufacturing workers earned an average of $102,629 annually, including pay and benefits. Production and nonsupervisory workers saw their average hourly wages rise to $28.34 in December, reflecting a 5.2 percent increase over the year. For all manufacturing employees, average hourly earnings reached $34.60, up 4.1% year-over-year.

A $31 billion investment in clean-technology manufacturing facilities is expected to create 27,000 new jobs

A more than $31 billion investment in 192 clean-technology manufacturing facilities was announced throughout 2024, and these investments are expected to create close to 27,000 new jobs.

47% of employers in the manufacturing industry are adopting flexible work arrangements to increase retention.

A Deloitte study reported that 47 percent of respondents identified flexible work arrangements — such as flexible shifts, shift swapping and split shifts — as the most effective strategy for employee retention. This approach ranked second only to competitive employee benefit programs. For example, aerospace and defense company Northrop Grumman prioritizes work-life balance by offering a variety of flexible working options, including a four-day workweek, hybrid and remote work. And Siemens introduced a two- to three-day standard for remote work which they dubbed the “New Working Model.”

The manufacturing industry is expected to see an average of 933,000 job openings each year until 2032.

According to the U.S. Bureau of Labor Statistics, production occupations are expected to see an average of 933,000 job openings each year until 2032. This includes the manufacturing industry.

The number of employees in the manufacturing market is projected to reach 143 million in 2025. 

According to Statista, the manufacturing workforce is expected to see a compound annual growth rate of 1.72 percent between 2025 and 2029.

Industry Pain Points

The average age of industrial equipment in the U.S. is the highest it’s been since the 1940s. 

At Arconic Inc.’s Cleveland Works, a 1930s metal press, seized from Germany after World War II and a 1950s 50,000-ton press, recently renovated for $100 million, highlight the challenges of aging industrial equipment. Older machines often become less reliable, making proactive maintenance essential. By integrating CMMS software with sensors, manufacturers can monitor the health of their machinery in real time, detect potential failures, diagnose issues and schedule industrial preventive maintenance before breakdowns occur, extending the lifespan of essential equipment and reducing downtime. 

60% of manufacturers cited the inability to attract and retain employees as their top challenge.

According to data from the U.S. Bureau of Labor Statistics, the labor market stabilized throughout 2024. Production levels across the manufacturing industry have levelled out and employee turnover and labor shortages have steadily declined. However, manufacturers continue to face hiring challenges. Nearly 60 percent of manufacturers in the National Association of Manufacturers outlook survey for the third quarter of 2024 cited the inability to attract and retain employees as their top challenge.

A 25% tariff on imports from Canada and Mexico could pose threats to the supply chain for U.S. manufacturers.

President Donald Trump has announced plans to impose this tariff, along with a 10 percent tariff on imports from China as part of an agenda to boost U.S. manufacturing jobs. However, U.S. companies heavily depend on imported components and raw materials, making these tariffs a significant supply chain concern. Trump’s strategy aims to incentivize companies to build factories within the U.S., but its success will largely depend on the nation’s ability to attract and retain manufacturing talent, a long-standing challenge for the industry.

35% of manufacturers cited transportation and logistics costs as a primary business challenge.

Global supply chain issues continue to persist, plaguing manufacturers long after the height of the COVID-19 pandemic. Some of the reasons for this include geopolitical tensions, like militia attacks on cargo containers in the Red Sea. Environmental factors are also at play. Drought conditions led to low water levels in the Panama Canal, causing delivery delays and contributing to the rising cost of goods and raw materials. With shippers claiming limited vessel capacity and the looming threat of dockworker strikes in the U.S., it would seem that manufacturers certainly have cause for concern.

The cost for manufacturers to comply with federal regulations amounts to roughly $350 billion a year. 

Recent research from NAM shows that federal regulations cost over $3 trillion annually, with manufacturers spending around $350 billion each year to comply. Over 99 percent of manufacturers surveyed believe it’s important for the new administration to reduce the regulatory burden on manufacturers, with 65.7 percent considering it extremely important.

Techʼs Influence on the Manufacturing Industry

83% of manufacturers say digital transformation is driven by adversity. 

Amid recent supply chain struggles and other challenges, the manufacturing industry is set to lead in digital transformation, followed by the renewable energy and chemical sectors. In fact, 83 percent of manufacturers report that these obstacles are the primary motivators driving them to adopt technology in search of effective solutions.

86% of organizations are already using some type of digital technology.

In Deloitte’s Future of the Digital Customer Experience survey, more than 80 percent of respondents reported that their company is currently using or plans to invest in digital technologies. The technology referred to included CRM systems, cloud computing, Internet of Things (IoT) as well as robotics and automation. A 2022 Plant Engineering survey shows that 59 percent of organizations use maintenance software like Coast to manage their maintenance and repairs. Among the respondents, 39 percent use enterprise asset management software and 19 percent use plant floor or manufacturing execution software.

Manufacturers predict that the industrial metaverse could lead to a 12% gain in labor productivity.

A recent Deloitte study reveals that 86 percent of manufacturing executives view smart factory solutions as the key drivers of competitiveness over the next five years. Nearly 80 percent believe that the metaverse will transform R&D, design and innovation, enabling new product strategies. Digital solutions are expected to transform operations, supply chain and customer experiences and could lead to a 12 percent gain in labor productivity, presenting a welcome solution to ongoing labor shortages. 

67% of companies in the industrial manufacturing sector have an ongoing smart factory initiative.

The rise of Internet of Things (IoT) in manufacturing is transforming production lines into smart, efficient systems that automate processes and optimize resources. This year, digital factories will be key to innovation, with 67 percent of manufacturers already in transformation. The integration of information technology (IT) in operational technology (OT) environments together with new as-a-service offerings will be key to maintaining a competitive edge. 

22% of manufacturers say improving cybersecurity measures will be among their top business goals over the next three years.

For the first time, manufacturers have ranked cybersecurity among their top five external risks. With over 71 percent of all ransomware attacks on industrial organizations focused on manufacturing, the need for cybersecurity awareness and effective risk mitigation is on the rise. Twenty-five percent of manufacturers say they are already investing in cybersecurity solutions, and 22 percent of manufacturers say improving cybersecurity measures will be among their top business goals over the next three years.

Future of Manufacturing

85% of manufacturers expect production to increase over the next 12 months.

In general, the U.S. manufacturing sector is optimistic about the year ahead. According to Dave Glennon, partner and manufacturing industry leader at Eide Bailly, much of this growth will result from a shift toward data-driven decision-making backed by technology. Going forward, he expects more manufacturers to adopt a more holistic mindset that considers every step of the manufacturing process and a push toward smart operations.

Investment in cleantech reached a record $71 billion in the third quarter of 2024.

Cleantech investment hit a record $71 billion in Q3 2024, driven by unprecedented growth in the retail and manufacturing sectors. Sixty percent of the projects that are planned to be carried out with this investment are set to begin operations within the next four years. 

94% of manufacturers expect to use smart manufacturing technology to hire more workers or repurpose workers to new or different roles. 

Manufacturers point to a lack of skilled workers as their primary barrier to staying ahead of the competition. A whopping 94 percent believe that adopting smart technology will help them maintain or grow their workforce despite recruitment challenges, boosting their competitive advantage.

80% of manufacturers say that preventing tax increases will be vital for the success of the industry. 

Manufacturers are urging Congress to prevent scheduled tax increases. In 2025, key tax reform provisions will expire, raising costs across the manufacturing supply chain and adding significant strain for businesses. Nearly 80 percent of respondents to the latest NAM Manufacturers Outlook Survey agree that it is crucial for Congress and the new administration to block these increases. Critical policies include the immediate expensing of R&D, pro-growth interest deductibility for business loans and 100 percent full expensing for capital purchases. 

Focus on green energy initiatives drives growth, with Intel planning to invest over $100 billion in semiconductor manufacturing, research and development.

The Inflation Reduction Act (IRA), Bipartisan Infrastructure Law (BIL), and CHIPS and Science Act (CHIPS Act) are fueling investments in domestic manufacturing for semiconductors, EV batteries, wind turbines and other clean power applications. Leveraging CHIPS Act support, Intel plans to invest over $100 billion in semiconductor manufacturing, research and development, expanding facilities and creating new jobs.

The Road Ahead: Opportunities Amid Uncertainty

The manufacturing industry is poised for tremendous growth, but it won’t be without its challenges. Rising costs, shifting regulations and geopolitical uncertainties will challenge the industry in 2025, while consumer spending and unemployment trends could further impact demand. 

By embracing digital transformation and innovative service models, manufacturers can carve out a place for themselves in an increasingly competitive market and meet the growing demand for efficient, low-emission products.