Labor shortage still beleaguers heavy manufacturing
Widespread challenges confront the heavy manufacturing sector, including a persistent labor shortage, according to an annual, global survey by ETQ, part of Hexagon.
The ETQ Pulse of Quality in Manufacturingrevealed the additional challenges of a growing reliance on automation, AI, and predictive analytics to help offset the shortage.
In a major shift from last year’s survey, respondents also stated that quality has become a strategic driver to corporate revenue and business growth.
In line with last year’s survey, the ETQ Pulse of Quality in Manufacturing 2025 also revealed issues that continue to plague manufacturers around the world, including stubborn product recalls and safety incidents in the plant – and their consequences, such as damage to brand reputation, delayed product introductions, plant shutdowns and personnel lay-offs.
“The results of our annual survey get to the heart of what’s happening on the frontlines, corner offices and supply chains of industrial manufacturers across the globe,” said ETQ CEO Vick Vaishnavi. “While this year’s ETQ Pulse of Quality in Manufacturing survey revealed challenges that don’t appear to be abating anytime soon, the study exposed some very encouraging trends. Virtually all mid-to-large-sized manufacturers are relying on automation – from quality management systems and software to AI and predictive analytics, to help them achieve their quality goals and overcome these challenges. In doing so, quality is becoming elevated as a key corporate revenue driver instead of a tactical measure to improve efficiency.”
Censuswide conducted the survey on behalf of ETQ. In January/February 2025, 752 quality leaders and related project managers at manufacturing firms across the U.S., the U.K., and Germany were asked about the quality trends, initiatives and current state of quality in their organizations.
Below are the key findings from the survey across the heavy manufacturing sector:
A persistent labor shortage is impacting most manufacturers
Eighty-four percent of respondents in the U.S. stated that their organizations are impacted by a labor shortage, with 92% revealing that the labor shortage has had an impact on the quality of their products or services.
Product recalls remain stubbornly high despite vigilance and oversight
Eighty-seven percent of respondents said their organization had a product recall in the past five years. Out of those recalls, 57% said the cost to rectify each product recall ranged from $10 million -to- $49.99 million.
AI investment is on the rise in manufacturing
Fifty-two percent of respondents to this year’s survey are already using AI; and 41% plan to implement it in the next two years. Respondents cited the following applications for AI in their organizations:
- Automating document processing (52%)
- Automating core processes (43%)
- Spotting defects on the factory floor (57%)
- Predicting future trends (55%)
Investment in quality Initiatives is increasing in 2025
Seventy-five% of respondents cited plans for an increase in total spend on quality in 2025. The tools and programs they will invest in include generative AI, automated quality management tools, human resources and staffing, predictive quality analytics, workforce connectivity solutions and lights out/autonomous operations.
Currently, 76% of respondents use an electronic quality management system to manage quality processes. Respondents stated that the top business drivers for investing in quality include increased revenue, improved compliance, a stronger supply chain, lower costs and reduced risk.
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