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Labor Shortages Meet Automation: Why May 2025 Is the Turning Point for U.S. Factories

by Bryan Hellman
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May 1st has long been known as International Workers’ Day — a time to honor the industrial workforce that built and powered the modern world. But in 2025, that workforce is shrinking fast. Across the U.S., manufacturers are struggling to fill skilled roles. Technicians are aging out. Fewer young people are entering trades. And amid rising labor costs and economic uncertainty, factories are being forced to answer one critical question:

How do you keep production moving when you can’t find the people to run it?

The answer, increasingly, is automation.

No longer just a buzzword or capital expense on the wishlist, automation is now a lifeline. From smart drives and PLCs to remote diagnostics and integrated systems, manufacturers are modernizing not because they want to — but because they have to.

In this post, we’ll explore why May 2025 represents a major turning point in U.S. industrial strategy. You’ll see how labor shortages are accelerating automation upgrades — and learn how your plant can take practical steps to stay competitive without adding headcount.

1. The State of the U.S. Industrial Workforce in 2025

It’s not just your plant. Across the country, manufacturers are facing the same frustrating reality: the skilled labor pool is drying up.

In 2025, nearly one in four U.S. manufacturing workers is over the age of 55. Thousands of experienced technicians, electricians, and controls specialists are retiring — and there aren’t enough new workers entering the pipeline to replace them. Trade school enrollment has declined for years, and even companies offering competitive wages are struggling to attract qualified candidates.

According to NAM (National Association of Manufacturers), over 600,000 manufacturing jobs remain unfilled as of this quarter. And the jobs that are filled? Many are relying on overworked teams covering more ground than ever. Maintenance delays are growing. Downtime is more frequent. Burnout is setting in.

At the same time, wages for skilled labor are rising fast — squeezing already tight factory budgets. Many facilities are also dealing with added pressure from rising material costs and volatile supply chains.

In short: manufacturers are being asked to do more with less. And in this environment, old-school, labor-heavy operations just don’t cut it anymore.

2. Why Automation Is Filling the Gap

When people aren’t available, machines have to do more — and that’s exactly what’s happening across U.S. factories in 2025.

Automation is no longer viewed as a future investment. It’s a present-day solution. From variable frequency drives (VFDs) and PLCs to HMIs and smart sensors, manufacturers are turning to technology that can take over routine tasks, reduce maintenance hours, and help smaller teams accomplish more.

Take the PowerFlex 525, for example — a drive that not only controls motor speed and torque, but also offers built-in I/O, motion control features, and diagnostics. When installed correctly, it can replace manual speed adjustments, reduce the need for external logic components, and provide feedback that helps technicians catch issues before they cause downtime.

Automation also allows for:

  • Remote monitoring: Engineers can diagnose and resolve issues without being on-site.
  • Standardized processes: Reducing dependence on operator experience or tribal knowledge.
  • Predictive maintenance: Using data to schedule service before failures happen.

One food processing plant recently automated its conveyor system with networked VFDs and saved over 20 technician hours per week — without hiring a single new employee.

3. The May 2025 Wake-Up Call

So why is May 2025 such a pivotal moment for U.S. manufacturing?

It’s not just the labor shortage — it’s everything converging at once.

Factories are facing aging equipment, rising wages, volatile tariffs, and tighter production schedules. Many are operating with just-in-time inventories and limited staff, which means any disruption — whether from an unfilled maintenance position or a drive failure — hits harder than ever.

Meanwhile, global supply chains haven’t fully stabilized. Many OEMs are backlogged, and lead times for automation parts can stretch from weeks to months. That’s leaving facilities with a tough choice: modernize proactively or risk extended downtime when aging systems fail.

For many manufacturers, this May is the breaking point. They’re realizing that reactive maintenance isn’t sustainable — and that holding off on upgrades until “next year” could cost far more in lost production than a smart retrofit today.

What’s shifting is the mindset: automation isn’t being driven by innovation alone, but by necessity. May 2025 is when forward-thinking factories stop waiting and start building the systems they need to survive and scale — with or without a full staff.

4. 3 Steps to Begin Automating Around Labor Gaps

  1. Identify High-Maintenance Equipment: Look at machines that cause the most downtime or require frequent manual intervention. These are prime targets for drives, sensors, and controls.
  2. Prioritize Drop-In Replacements: You don’t need to redesign your system. Drives like the PowerFlex 525 offer modern functionality with minimal rewiring and setup time.
  3. Lean on Expert Partners: Work with a supplier that stocks what you need and knows how to support automation. That’s where Industrial Automation Co. comes in.

5. Featured Products That Help You Automate Without Hiring

🌀 Allen-Bradley PowerFlex 525 Drives

Browse All PowerFlex 525 Drives

🧠 Allen-Bradley 1756 ControlLogix Series

Browse All 1756 ControlLogix Modules

Conclusion: May 2025 Marks a Shift — Will Your Factory Keep Up?

On May 1st, we honor the workforce that built the foundation of modern industry. But in 2025, honoring that legacy means adapting to a new reality: fewer hands on deck, higher stakes on the floor, and smarter machines stepping up to fill the gap.

Labor shortages aren't going away — but your factory doesn't have to fall behind.

By upgrading legacy systems, integrating flexible motor control, and centralizing your automation architecture, you can reduce downtime, lighten the load on your team, and keep production running without scrambling to hire.

At Industrial Automation Co., we help manufacturers across the country modernize without overhauling. Whether you're looking for a drop-in drive replacement or planning a phased migration to smarter systems, we’ve got the parts, support, and insight to help you move forward — fast.

🔧 Let’s Automate Smarter — Together

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