2025 Top 10 Trends and Priorities for Manufacturing - Non-Durable Goods

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Top Priorities for 2025

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01

Initiate strategic business-IT synergy

The Challenge

Navigate complex IT-business alignment in manufacturing.

Complex operational requirements and rapid technological advancements hinder the manufacturing industry from aligning IT strategy with business objectives. Additionally, building strong relationships with stakeholders and balancing short-term demands with long-term goals adds to the difficulty.

Why It Matters

Drive growth and competitiveness through IT business relationship management.

Effective and strategic alignment of IT strategies with business objectives is crucial to address operational complexities, leverage new technologies, and foster collaboration across departments, ultimately supporting growth and competitiveness.

The Solution

Understand business needs

Grasp the organization's objectives and challenges to develop IT strategies aligned with business goals. This involves gaining a deep understanding of both technological capabilities and business objectives.

Collaborate with stakeholders

Foster open communication and collaboration with departments to ensure IT initiatives meet business priorities. Build strong relationships with stakeholders across various departments with the help of a business relationship manager.

02

Strengthen cybersecurity practices

The Challenge

Navigate the ever-evolving and complex cyber threat landscape.

Cybersecurity is an ongoing mission, not a static checkbox. AI advancements are fueling an evolving threat landscape that poses significant risks, including financial losses, regulatory fines, and damage to organizational reputation.

Why It Matters

Safeguard information and organizational resilience.

High-profile incidents prompt stakeholders to scrutinize data safety and the effectiveness of security measures. Breaches challenge organizational resilience, process efficacy, technological strength, and overall security awareness, making it essential to remain vigilant and adaptable.

The Solution

Establish and execute a systematic cybersecurity strategy

Develop a thorough cybersecurity strategy, actively identifying threats, vulnerabilities, and potential consequences to make informed decisions on control measures.

Enhance visibility and understanding of cybersecurity posture

Collaborate to enhance visibility and understanding of the company's cybersecurity posture and risk exposure, taking proactive measures to strengthen defenses.

03

Adopt Industry 4.0/5.0

The Challenge

Overcome barriers to technological transformation.

The global manufacturing sector is transforming with Industry 4.0 and the emerging Industry 5.0 standard, which emphasize interconnected data-driven environments and human-machine collaboration. Key hurdles include high technology implementation costs, a shortage of skilled labor, and managing vast data volumes. Additionally, fluctuating economic conditions and regulatory requirements for non-durable goods add to these challenges.

Why It Matters

Foster growth, innovation, and sustainability.

As the industry progresses into Industry 5.0 adoption, the integration of AI, machine learning (ML), and human talent is crucial for businesses aiming to foster growth, innovation, and sustainability. CIOs are pivotal in steering their organizations through these complexities, ensuring that manufacturing processes are efficient, sustainable, and competitive.

The Solution

Develop strategic partnerships

Engage with research institutions and participate in industry consortiums to drive a culture of continuous learning and innovation, fostering strategic partnerships with key and emerging technology providers.

Engage in joint R&D initiatives

Conduct joint R&D initiatives with vendors to help experiment with Smart Manufacturing 5.0 technologies. These advanced manufacturing capabilities are key differentiators for forward-thinking companies.

04

Embrace demand planning technologies

The Challenge

Conquer legacy system roadblocks.

Traditional tools like legacy systems and basic spreadsheets are inadequate for modern demand planning because they struggle with extensive data processing, fail to capture emerging opportunities, and often include planner bias. Additionally, traditional ERP systems lack the flexibility required for testing and adjusting forecasts.

Why It Matters

Secure the future of manufacturing.

Effective demand planning is crucial for both top-line and bottom-line performance. It ensures optimal production planning, appropriate inventory levels, and minimized supply chain costs. Adopting advanced demand planning technologies and strategies is essential to handle future disruptions and maintain competitiveness in a volatile market.

The Solution

Embrace specialized demand planning systems

Adopt specialized and fit-for-purpose systems designed to handle the complexities of modern demand planning, including extensive data processing and capturing emerging opportunities. Moving away from traditional tools enables more accurate and reliable demand forecasts.

Implement a comprehensive planning philosophy

Integrate advanced demand planning systems with a robust performance management framework. This approach allows organizations to simulate various scenarios and adapt to demand fluctuations more accurately.

05

Effectively integrate AI and generative AI

The Challenge

Overcome the complexities of AI and generative AI.

The potential for AI in manufacturing is vast, especially with the advent of Industry 4.0/5.0 and the integration of IoT sensors in manufacturing equipment. As factories generate more data than ever, AI is becoming crucial in enhancing operational efficiency. However, the implementation of these technologies is difficult due to their cost and the lack of data quality, technical expertise, and interoperability with existing systems. Additionally, managing ethical and regulatory compliance and cultural shifts to foster this type of innovation is challenging.

Why It Matters

Revolutionize efficiency and innovation in manufacturing.

Full commitment to AI integration is essential to improve manufacturing processes and competitiveness to avoid falling behind in a rapidly advancing technology landscape. Generative AI is transforming the manufacturing sector by offering tools that augment human capabilities and automate routine tasks, allowing more focus on strategic activities.

The Solution

Be a pioneer and implement AI initiatives early

Pioneers who implement AI initiatives first will be the ones who see the greatest gains as they will have a significant impact on the industry. Be a pioneer and not a laggard by implementing AI where you can as soon as possible.

Use generative AI for enhanced decision-making

Leverage Gen AI to analyze vast amounts of data, generate optimized solutions, and enhance decision-making processes, unlocking new opportunities for growth, efficiency, and innovation.

06

Unlock the potential of intelligent automation

The Challenge

Adopt automation for augmentation.

The strategic application of intelligent automation (IA) offers a way to enhance human capabilities and enable organizations to adapt quickly and dynamically to adjust and maintain production and service delivery operations during disruptions or fluctuations in supply and demand. However, due to the complexity of integrating new technologies with existing systems and ensuring high-quality data, IA is challenging to implement. The need for robust security and governance practices further complicates this process.

Why It Matters

Enhance human capabilities and efficiencies.

Autonomous manufacturing technologies, with AI, robotics, IoT, and advanced sensors, are revolutionizing the industry, allowing for real-time data analysis and decision-making as well as minimizing human intervention. By using as-a-service models, these advanced technologies are now accessible to all manufacturers, promising significant improvements across various dimensions such as efficiency, customization, and sustainability.

The Solution

Accelerate modernization efforts

Manufacturing is experiencing a transformational impact where the acceleration of modernization efforts and IT/OT convergence is critical to exploit the benefits of transformation.

Master the evolving technology ecosystem

Stay updated on the latest advancements and understand how to effectively integrate them within the business. This will be required to have a strong command of the evolving and expanding ecosystem of technologies for IA and autonomous operations.

07

Achieve sustainability and compliance excellence

The Challenge

Meet complex sustainability and compliance demands.

As global production expands, the complexity of products, processes, and supply chains increases. This necessitates rigorous standards for sourcing raw materials – whether onshore or offshore – and ensuring product safety. Companies are increasingly required to secure certifications for safety, sustainability, and compliance, which involves extensive due diligence, implementation, and maintenance.

Why It Matters

Build trust and ensure longevity.

Improving sustainability and compliance is essential for businesses to meet regulatory demands and consumer expectations. It ensures product safety, traceability, and environmental friendliness, which are critical for building trust and maintaining a positive brand reputation. This strategic focus ensures businesses can stay ahead of regulations, reduce greenhouse gas emissions, and transition to a circular economy, ultimately ensuring longevity and sustainable growth.

The Solution

Implement holistic product tracking and tracing

Ensure products meet rigorous standards for safety and compliance, providing end-to-end visibility and transparency by implementing technologies for holistic product tracking and tracing across the supply chain.

Invest in sustainable innovations

Reduce greenhouse gas emissions and turn to innovations that enable renewable energy, carbon capture and utilization, and the development of sustainable materials. Investing in these technologies supports a shift from a traditional linear production model to a circular economy, promoting sustainability and environmental responsibility.

08

Master supply chain visibility

The Challenge

Navigate supply chain complexities.

Geopolitical dynamics and economic implications are creating new supply chain challenges. Businesses need to prioritize supply chain visibility and optimization. Despite this being the most complex role within an organization, there are tools available that provide end-to-end visibility and enable rapid, if not real-time, decision-making.

Why It Matters

Transform visibility into business victory.

Improving supply chain visibility enables businesses to navigate the complexities of the modern supply chain. It allows for rapid decision-making, enhances transparency, and provides a competitive advantage. This strategic focus ensures that businesses can respond swiftly to disruptions and maintain a resilient supply chain.

The Solution

Centralize information with supply chain control towers

A modern supply chain control tower serves as a central hub of information, providing an overarching view into and across the supply chain. It considers the state of the supply chain, the infrastructure supporting supply chain operations, and the financials across the entire global supply chain network. This centralized approach ensures all data is accessible and actionable.

Use advanced technologies for enhanced visibility

Enable the organization to simulate entire internal and external supply chain processes, providing end-to-end visibility. The most comprehensive supply chain control towers use advanced capabilities such as analytics, AI, and telescopic digital twins to enable rapid decision-making and effective supply chain management.

09

Excel in talent, governance, and stakeholder success

The Challenge

Bridge talent and governance gaps.

While manufacturing is confident in core processes, there is a need to enhance security, risk management, and talent recruitment and retention. Effective governance in operational technology is crucial, especially with aging equipment and cybersecurity risks. Additionally, alignment with organizational culture and leadership expectations is required to avoid frustration and failure among stakeholders.

Why It Matters

Enable organizational agility and resilience.

Improving talent management, governance, and stakeholder satisfaction is essential for businesses to navigate the complexities of modern manufacturing. It ensures organizations can attract and retain top talent, maintain robust security and risk management practices, and align IT initiatives with organizational culture and leadership expectations. This enables businesses to respond to changes quickly, maintain a resilient workforce, and achieve long-term success.

The Solution

Strategically develop and acquire talent

Prioritize retraining and recruitment to ensure agility and the adoption of new technologies. This involves implementing strategic talent development programs and acquiring top talent to enhance security and risk management practices.

Build effective governance into operational technology

Implement robust governance frameworks to address cybersecurity risks and navigate regulatory demands. This involves adopting advanced technologies and strategies to ensure that operational technology is secure, compliant, and capable of supporting modern manufacturing processes.

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  • Learn about attracting and retaining talent and how it affects both your organization as a whole and IT specifically, including challenges and opportunities.
Benchmarking Report: A Cross-Industry Comparison of IT Stakeholder Satisfaction

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  • Every industry has unique characteristics that can hamper progress or facilitate success in satisfying IT stakeholders. Reimagine your strategy by shifting the definition of who your peers really are.
  • Discover which industries achieve high stakeholder satisfaction across 13 core IT services.
  • Learn the characteristics that different industries have that can help or hinder IT success.
  • Understand what your industry has in common with others that you can leverage to improve stakeholder satisfaction and overcome your own institutional barriers.
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  • Understand important focus areas to address and insights into how your team compares with other Durable Goods Manufacturing IT organizations.
Durable Goods Manufacturing IT Staffing Benchmarking Report

Durable Goods Manufacturing IT Staffing Benchmarking Report

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  • By taking the IT Staffing Assessment diagnostic and participating in our unique IT Spend benchmarking, you will gain critical information to position your team to be seen as strategic.
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Durable Goods Manufacturing IT Management & Governance Benchmarking Report

  • Understanding your IT team’s perception of what’s important and how well they’re doing is central to identifying strengths, weaknesses, and potential misalignments with business priorities and expectations.
  • Learn about how IT departments in your industry assess the importance and effectiveness of 45 IT processes to gauge your own alignment and identify select processes for targeted improvement.
10

Master digital transformation

The Challenge

Manage the impact and pressure of the technological revolution.

Manufacturing firms face market uncertainty, volatility, and rapid technological advances that require a unified view of business capabilities, initiatives, investments, and strategies to deliver value from their digital transformations. CIOs also face continuous pressure to keep core IT functions running while accelerating technology adoption and understanding the long-term business impacts of emerging trends.

Why It Matters

Innovate or fall behind.

Digital transformation is essential to remain competitive and relevant in a rapidly changing market. Adopting a business-aligned IT digital strategy is crucial to maintaining operational efficiency, fostering growth, and staying ahead of disruptive trends. This strategic focus enables businesses to leverage advanced technologies, streamline operations, and drive innovation, fostering a culture of growth.

The Solution

Enable business productivity and growth

Implement advanced technologies and processes that enhance operational efficiency, and drive innovation by aligning IT strategies with business goals. Then, prioritize business-aligned IT initiatives to achieve sustainable growth and maintain a competitive edge.

Run an effective IT operation

Invest in a robust IT infrastructure, enhancing cybersecurity measures and optimizing IT operations to support business objectives and ensuring that core IT functions run smoothly while adopting new technologies and processes.

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