Frontier Technologies in Industrial Operations 2025

The next leap: reinventing industrial operations through frontier technologies1 Manufacturers face a complex operating environment with growing challenges: –Cost competitiveness: Rising labour costs, supply chain disruptions and international competition necessitate improved efficiency and lowered structural costs. –Labour shortages: More than 2.1 million manufacturing jobs are projected to remain unfilled in the US alone until 2030,2 driving workforce risks and productivity challenges. –Customer demands: Consumers’ expectations for greater customization and faster delivery drive the need for more flexible production systems and better demand forecasting. –Geopolitical dynamics: Tariffs and fragmented production across multiple geographies hinder economies of scale, leading to greater complexity in supply chains, dispersed know- how and increased risks. –Sustainability: To meet decarbonization goals, it’s crucial to optimize energy and resource use while reducing emissions through robust supply chain management. Addressing these challenges requires a shift in operational excellence, breakthrough innovation, structural optimization, supply chain diversification and investment in regional manufacturing clusters.Preparing for the challenges ahead requires operational transformation driven by frontier technologies. Frontier Technologies in Industrial Operations 7