U.S. manufacturers overwhelmingly agree that automation is essential for long-term competitiveness, yet adoption at scale remains limited. The 2025 State of the Market report, created by Industry Week in collaboration with Vention, surveyed over 250 manufacturing leaders to create a data-driven analysis of automation’s impact, implementation challenges, and future trajectory within the manufacturing sector. Drawing on findings from this new survey, we break down what makes automation projects succeed—and what holds them back.
These five statistics reveal the limitations of traditional automation and the opportunities presented by cloud-based platforms and AI.
1. Only 37% of Manufacturers Have Automated at Scale
Despite 92 percent calling automation critical for competitiveness, fewer than four in ten have achieved significant or full adoption. This overturns the usual belief that automation is held back primarily by cost. The data suggests the gap is at the execution level, since most manufacturers value automation and have access to capital for projects with demonstrated ROI. What is missing is a clear path to automation, which the traditional project-based model is poorly equipped to deliver.
As cloud-based automation platforms mature, scaling automation will become easier for most manufacturers. Modular technologies, integrated software environments, and streamlined deployment processes are already helping large enterprises scale across multiple regions. A common library of design components, repeatable programs, and built-in AI to address the automation talent shortage will define the next phase of automation.
2. Half of Manufacturers Find Technology Discovery Challenging
The rise of collaborative robotics, computer vision systems, and simulation software has made automation more capable, but it has also made the landscape more fragmented than ever. It is no surprise that at least half of manufacturers now see navigating this expanding technology landscape as their primary barrier to automation.
Diversity of solutions is not necessarily a bad development in the long run. However, scaling automation at the enterprise level requires a common framework for design, software, and modular hardware. Increasingly, automation platforms are becoming the ideal starting point for projects to be conceived, designed, and procured. This approach provides built-in compatibility that reduces the cognitive burden on automation teams. AI-based validations and simulations will also make the process more intuitive for manufacturers planning to scale.
3. 39% Cite Lack of Internal Automation Expertise as a Major Challenge
The talent shortage is one of the most underestimated contributors to stalled automation programs. Nearly four in ten manufacturers report insufficient expertise to design, deploy, or maintain automation systems. This shortage affects organizations of all sizes, including large enterprises with established Advanced Manufacturing Teams (AMT). Automation has simply outpaced the availability of specialists, extending the skilled worker shortage into the very solution meant to address it.
The next generation of automation platforms is helping close this capability gap. Low-code and no-code interfaces, drag-and-drop design tools, and physics-based simulation with built-in AI assistance now allow anyone on the shop floor to program a robot.
As platforms such as Vention become more widely adopted, more manufacturing teams will gain access to automation that is easier to deploy, helping them scale beyond isolated pilots.
4. One-Third of Automation Systems Fail to Perform as Expected
One of the most surprising findings in the 2025 report is that nearly one-third of automation projects do not perform as expected. Given that most automation investments are driven by savings and efficiency targets, this number is especially significant. It is also important to view this alongside overall satisfaction, since nearly 80 percent of manufacturers report positive outcomes from their recent automation projects. The root cause of this mismatch lies in incomplete scoping, errors in prioritization, and insufficient de-risking during design and validation phases.
Industries with high mix production, tight tolerances, or frequent changeovers feel this most acutely. A system that performs well on paper but cannot handle real-world variability can undermine the credibility of an entire automation program.
To close this gap, manufacturers are turning to physics-accurate simulation environments that validate cycles, forces, collisions, and throughput scenarios before a single dollar is spent. This mirrors practices in aerospace and automotive, where digital twins became essential to managing complexity.
However, these tools alone cannot solve the challenge of selecting and prioritizing the right opportunities. Developing an objective, economically grounded framework for prioritization may become a determining factor in automation success.
5. One-third of Automation Project Affected By Cost Overruns
Cost overruns affect 32 percent of manufacturers, creating a credibility problem that extends beyond individual projects. When executives see budgets balloon unexpectedly, future automation initiatives face increased scrutiny and reduced funding.
A similar pattern played out in enterprise software procurement over the past decade. Organizations moved away from bespoke development with uncertain timelines toward SaaS platforms with standardized components, transparent pricing, and clear total cost of ownership.
Manufacturing automation is now undergoing the same transition. Businesses are increasingly seeking standardized component libraries, early scoping tools that surface hidden costs, and unified platforms that eliminate multi-vendor interface risks.
From Barriers to Building Blocks
The 2025 State of the Market Report shows a sector that is not resistant to automation but constrained by outdated approaches. The commitment to automation is clear: 73 percent plan to increase investments over the next three years, and 46 percent are specifically targeting robotics and automation. When you look into the investment to be made in the next 24 months, manufacturers are directing resources toward new equipment (61%), employee training and education (55%), robotics and automation (46%), and artificial intelligence (45%). However, technology selection, integration complexity, talent constraints, performance uncertainty, and cost predictability all continue to limit adoption.
The next automation unlock hinges on the industry’s ability to find credible ways to address these limitations. With the use of modular hardware, integrated hardware and software platforms, physics-based simulation, and AI-supported deployment the future of manufacturing will belong to those who adopt these modern technologies .
