I attended some sessions in June at Hexagon’s conference where surveys about manufacturing executives attitudes and concerns were voiced. Later, this report from Hexagon was released specifically regarding hiring. This survey reinforces everything I’m hearing about workforce challenges in the US.
- Workforce development is lagging: Only 8% feel confident in their reskilling efforts, despite a looming 2M+ talent gap.
- Outdated tech is costing talent: 72% say their current systems are a deterrent to recruiting and retaining employees, especially younger talent.
- Reshoring is hitting a labor wall: Nearly 1 in 3 say staffing issues could delay or derail reshoring altogether.
- AI and automation aren’t optional anymore: 53% are increasing investments here, not just for efficiency, but as a workaround for hiring constraints.
From the release:
While 31% of manufacturers plan to boost reshoring due to tariffs, 28% believe talent shortages could slow or significantly delay those efforts, and only 8% believe they are doing enough to reskill the workforce
The 2025 America’s State of Manufacturing Report, commissioned by Hexagon and conducted by Dynata, surveyed professionals of all levels across the U.S. manufacturing workforce. The research found that 60% believe their companies are doing enough to improve the manufacturing industry’s image with new talent, even with predicted shortages. Half are very confident the U.S. workforce can meet the demands of the next five years, yet 28% believe workforce challenges will slow or significantly limit reshoring efforts. Further, they are running up against a critical barrier: 72% say outdated technology is preventing them from attracting and retaining workers.
“Manufacturers are making bold moves to modernize, but our data shows they must move faster on tech adoption and workforce development, to meet a moment defined by economic uncertainty, labor shortages, and reshoring,” said Paul Rogers, President, Americas and Asia Pacific, Hexagon’s Manufacturing Intelligence division. “Outdated technology isn’t just an operational hurdle; it reinforces the perception that manufacturing isn’t a forward-looking, modern career choice. Tools like AI and digital twins can help democratize manufacturing and give more workers a new perspective, but lasting change requires more than innovation. It demands reskilling, breaking old stigmas, and rebranding the industry as one built for America’s future.”
At the same time, uncertainty is top of mind—56% cite tariffs as their biggest business pressure, even ahead of inflation and supply chain disruptions. Despite this, 31% plan to increase reshoring investments in response to shifting trade policy.
Nearly all manufacturers (92%) have already begun investing in AI. Contrary to popular belief, nearly two-thirds (65%) say AI will help them either maintain (43%) or grow (22%) their workforce. Just 18% believe it will lead to headcount reductions.
