Why U.S. Manufacturers Are Turning to Automation in 2025: Solving Labor, Cost, and Supply Chain Challenges

The Urgency to Automate Has Never Been Greater
In 2025, the case for automation in U.S. manufacturing isn’t theoretical—it’s urgent.
Trade pressures, workforce gaps, and rising production costs have converged, forcing industrial companies to act. From large-scale factories to small production lines, manufacturers are now investing heavily in automation to boost efficiency and survive and grow in a high-risk economic climate.

Automation is more than a fix for those who get ahead—it’s a strategic advantage. This article explains why so many U.S. manufacturers are automating right now, what technologies they’re using, and how you can follow their lead.

Labor Shortages Are Getting Worse—Automation Is the Relief Valve
Skilled labor in the manufacturing sector remains in short supply. The National Association of Manufacturers reports that more than 2.1 million jobs in the U.S. industrial workforce are expected to go unfilled by 2030. In 2025, that crunch is already impacting productivity and profitability.

To make matters worse, the cost of attracting and retaining skilled technicians continues to rise. Training cycles are long, and the talent pipeline isn’t keeping up.

Automation allows manufacturers to:

• Reduce reliance on human labor for repetitive or hazardous tasks

• Maintain output even with leaner crews

• Improve accuracy and uptime through precision-driven systems

• Reallocate skilled workers to higher-value, oversight-oriented roles

💡 Stat to consider: According to a Deloitte study, 64% of manufacturers say that automation has helped them reduce time-to-market and address talent gaps.

Rising Costs Are Driving Smarter Operations
Controlling expenses is critical as fluctuating material prices and tariffs raise input costs. Automation enables companies to scale without scaling costs.

Here’s how smart automation supports lean manufacturing:

• Drives (like PowerFlex 525 and 755) optimize motor speed to reduce energy waste

• Modular PLCs simplify system architecture and reduce programming overhead

• HMIs help operators manage processes intuitively and reduce training time

• Sensors and data logging tools offer real-time insights for reducing downtime, scrap, and rework

💡 Pro Tip: According to the U.S. Department of Energy, manufacturers using smart VFDs and motion control systems can lower energy use by up to 30%.

Reshoring & Automation Go Hand in Hand
With the fragility of global supply chains exposed over the past several years—and tariffs raising the cost of imported goods—manufacturers are bringing operations back to the U.S. But reshoring without automation isn’t sustainable.
Domestic labor costs are significantly higher than in offshore markets. Manufacturers are combining reshoring efforts with smart technology investments to remain cost-competitive while improving lead times and quality.

Why automation makes reshoring viable:

• Reduces the labor intensity of high-mix, low-volume production

• Enables factories to scale without proportional increases in headcount

• Increases throughput and consistency across shifts, lines, and locations

• Aligns with U.S. safety and compliance standards out of the box

💡 Industry insight: A 2025 Kearney survey found that over 60% of manufacturers reshoring operations also invest in automation upgrades during the same project cycle.

The Automation Tech Stack Manufacturers Are Prioritizing in 2025
Automation is more accessible than ever. Modern hardware and software platforms are designed to be modular, affordable, and quick to deploy—even in legacy facilities.

Here are the top technologies we see manufacturers implementing right now:
1. Smart Drives
Variable-frequency drives, like the Allen-Bradley PowerFlex series, are helping plants control motor speeds with precision, reduce energy use, and extend equipment life.

2. Modular PLCs
Platforms like CompactLogix and Siemens S7 offer flexibility, fast integration, and scalability—ideal for growing operations or those modernizing line by line.

3. HMIs and Edge Devices
Touchscreen interfaces like PanelView Plus and industrial PCs enable real-time control and monitoring, often with remote access and cloud connectivity.

4. IIoT-Ready Sensors & Analytics
From vibration and temperature monitoring to digital twin visualization, manufacturers are capturing more data and using it to drive better decisions faster.

Automation Is More Than a Fix—It’s a Long-Term Competitive Advantage
In 2025, automation will be more than a temporary solution to economic pressure. It will become the foundation of a smarter, more resilient manufacturing economy.

The manufacturers investing in automation today are:

• Outperforming competitors with faster response times and greater flexibility

• Reducing risk by building supply chain visibility and in-house capabilities

• Improving margins through data-driven insights and energy-efficient systems

• Positioning for growth by freeing up people to focus on innovation, not repetition

💡 Bottom line: If you're not automating, you're falling behind the manufacturers who are.

Conclusion: Now Is the Time to Automate Smarter
U.S. manufacturers are navigating one of the most complex operating environments in decades. But they’re not just surviving—they’re evolving.

By investing in automation, your facility can:

• Adapt to reshoring and trade pressures

• Maintain output despite labor challenges

• Reduce operational costs through intelligent controls

• Gain real-time insights that drive smart decisions

2025 is not the year to wait—it’s the year to automate.

Looking to modernize your operations?

At Industrial Automation Co, we help manufacturers:

✅ Replace legacy drives, PLCs, HMIs, and control systems
✅ Source new and refurbished automation parts—fast
✅ Ship products same-day and offer expert part-matching support

Let’s build smarter, more resilient factories—together.