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Introduction

The manufacturing sector is facing significant challenges as documented in the latest ETQ Pulse of Quality in Manufacturing Survey. Conducted by ETQ, part of Hexagon, this annual survey provides insights into the global manufacturing landscape, particularly emphasizing the continuous labor shortages and the expanding role of automation and AI in addressing these issues.

Key Findings from the Survey

The 2025 survey, which involved 752 quality leaders and project managers from manufacturing firms in the United States, the United Kingdom, and Germany, has unveiled several critical findings:

1. Labor Shortage Continues: A substantial 70% of U.S. respondents indicated that their organizations are experiencing labor shortages. Notably, 88% claim this scarcity affects the quality of their products and services significantly. This trend highlights an urgent need for innovative solutions within the manufacturing workforce.

2. High Product Recall Rates: Despite ongoing vigilance and oversight, the issue of product recalls remains prevalent. The survey noted that 75% of companies surveyed had to manage product recalls within the last five years, a slight increase from previous surveys. Recalls are often costly, with almost half reporting expenses of $10 million to $49.99 million for rectification efforts.

3. Rise of AI in Manufacturing: The adoption of artificial intelligence (AI) in manufacturing practices is on the rise. About 49% of respondents expressed plans to implement AI technology within the next two years, an increase from 47% in 2024. Current applications of AI include automating document processing and core processes, detecting defects, and forecasting future trends. This demonstrates a clear shift towards reliance on technology within the manufacturing sector.

4. Increased Investment in Quality Initiatives: The commitment to quality improvement initiatives is strengthening, with 60% of participants planning to increase their total expenditure on quality management in 2025. Investments will focus on areas such as generative AI, automated quality management, and analytics tools, reflecting a proactive approach to quality assurance as a critical business driver.

5. Safety Incidents Decline: A positive development observed is the declining number of safety incidents. Approximately 41% of respondents reported experiencing 11 to 20 safety incidents annually, a drop from 48% in 2024. Despite this, plant injuries remain a primary concern affecting product quality.

Conclusion

Vick Vaishnavi, the CEO of ETQ, noted, "While the survey underscores ongoing challenges within the industry, it also highlights a transformative shift where quality is viewed as a pivotal contributor to revenue generation rather than merely a tactical process." This transition illustrates the growing recognition of quality management as an integral aspect of business strategy, especially as manufacturers grapple with labor shortages and operational inefficiencies.

As the manufacturing landscape evolves, it is evident that quality management intertwined with advanced technologies like AI is not just a choice but a necessity for companies aiming to thrive amidst ongoing challenges. The findings of the ETQ Pulse of Quality in Manufacturing 2025 survey serve as a crucial reminder for manufacturers to adapt their approaches to ensure sustained growth and resilience in an increasingly competitive market.