Top trends shaping the manufacturing industry in 2025

Manufacturers in 2025 must embrace digital transformation and adapt to Industry 4.0 to stay competitive in an increasingly interconnected landscape, according to RSM Canada’s latest industry outlook.

Key trends identified by RSM include automation and smart manufacturing, with businesses using data-driven decision models to enhance operations. The growing adoption of generative AI for predictive maintenance, supply chain optimization and quality control is poised to revolutionize the sector.

Cybersecurity remains a critical concern, as manufacturers face rising threats, with 28 per cent of middle-market executives reporting data breaches in the past year. Strengthening protections for critical assets will become a competitive advantage.

Global supply chain agility is another priority, with digitization helping companies respond to disruptions and adapt to new trade policies. Supply chain resilience, particularly in light of potential U.S. tariffs, is increasingly vital.

The battle for skilled talent is intensifying as new technologies demand a more adaptable workforce. Manufacturers will need to invest in upskilling and creative talent retention strategies.

Economic pressures, including rising costs and shifting financial policies, will require manufacturers to optimize operations while navigating an evolving global financial landscape.

Finally, sustainability and decarbonization will remain top priorities, as manufacturers seek to capitalize on government incentives for clean technology and energy transitions, aligning with environmental, social and governance (ESG) goals.