Exploring Key Manufacturing Industry Trends: Innovation, Automation, and Sustainability leading the way in 2025

7 mins read

To mark the first 2025 issue of Machinery, we look back at the key trends that drove the industry forward in 2024, and predict those that will hold significance in this new year.

Industry experts name automation, sustainability and productivity as the key manufacturing trends of 2024
Industry experts name automation, sustainability and productivity as the key manufacturing trends of 2024 - AdobeStock

Reflecting on 2024 in full, it’s fair to say that the manufacturing industry faced a number of challenges throughout the year.

Increasing demands, a growing skills gap, and an unprecedented pace of technological change, for instance, have all forced businesses to become more reactive than ever. Adapting to a change of pace and expectations, particularly in the face and wake of a new UK Government at the end of 2024, was imperative.

A lot of firms, across all sectors and of all sizes, have likely faced the feeling of uncertainty this year, considering their current and future plans alike.

Despite this, though, innovation was still able to rise to the top – with industry naming automation, productivity and the push for sustainability as the top trends driving this growth.

In a deep dive into 2024, and to gain the perspective of leaders in the industry it serves, Machinery magazine heard from Asif Moghal, Director of Design and Manufacturing at Autodesk, Alan Mucklow Managing Director of UK & National Distributors at Yamazaki Mazak UK Ltd, and Tony Pennington, Managing Director of Ceratizit UK & Ireland.

AUTOMATION 

The adoption of automation software - largely driven by artificial intelligence (AI), collaborative robots (cobots) and Internet of Things (IoT) integration - has been widespread in the manufacturing industry.

More and more companies are utilsing digital twins, automated machines and cloud manufacturing software solutions – to name a few – in the name of increased efficiency, speed and overall throughput.

“This year, manufacturers have had to realign and reimagine their supply chains in real time,” said Moghal, a Director at global software company Autodesk. “And Automation has been a key focus for manufacturers, particularly as the demand for faster time-to-market grows.

“To stay competitive and deliver products quickly, integrating automation into the product development process is a practical strategy for optimising resources and increasing efficiency by removing as many non-value add tasks as possible. Significant advancements in manufacturing and factory-level automation tools are already transforming the industry, streamlining operations, and boosting productivity.”

According to Seagate Technology’s Rethink Data report, 68 per cent of current data available for automation and insight goes unused by companies because its ‘disconnected’ and sequestered in different tools, files or silos.

To help tackle this issue, Autodesk is developing its Design and Make Platform for manufacturing specifically: a central environment for data, closely coupled with Autodesk AI to augment creativity, automate workflow’s tedious tasks, and analyse project data to yield predictive insights that can benefit businesses.

“The Autodesk Fusion industry cloud connects capabilities, data, people, and processes across the entire product development lifecycle,” Moghal explained.

Speaking from a machine tool production perspective, Yamazaki Mazak UK has also had automation at the forefront of its growth in 2024.

Increased automation driven by low-volume, high-mix manufacturing that puts a premium on fast setup changeovers, integrated systems, testing, verification and additional processing was a key driver over the last year, the company said, and a trend that isn’t going anywhere anytime soon.

Autodesk

“Manufacturers who can help machine users tick those boxes are in a strong position, which is why we continue to invest in sourcing and providing the best automation systems on the market. With recent budget changes to National Insurance raising the cost of employment it is likely that this trend will continue,” explained Mucklow, Mazak’s Managing Director of UK & National Distributors.

“To be able to better support customers we have upskilled our project management team and are looking to bring more people into our application support team.

“Alongside this, we have grown our automation offering with TA and MA robots and developed our new Ai control, our next generation of MAZATROL Smooth CNC control that combines AI for automatic parts programming and optimising cutting conditions to remove spindle vibration, with digital twinning to improve accuracy and reduce setup time, along with easy setup of automation such as robots.”

Mazak’s automation solutions range from simple robot machine tending through to complex 5-axis component and fixturing, to its flagship PALLETECH Multi-Tasking solution. Like many in the machinery sector, it believes that turnkey automation systems can dramatically improve machine utilisation, productivity, and overall profitability.

SUSTAINABILITY

Intrinsically linked with automation in the push for more efficient design and construction, and also at the forefront of 2024 manufacturing trends, was sustainability.

Businesses across the board are under increasing pressure to become more sustainable, as we move closer to the UK’s net zero target of 2050 – of course, with a staging post of reducing direct and indirect emissions by 67 per cent from 2018 levels, by 2035.

In the manufacturing industry in particular, sustainability seems to be reaching almost all aspects of production – from more eco-conscious design and process, to waste management and recyclability.

For example, Ceratizit UK & Ireland, a leader in cutting tools and hard material solutions, has demonstrated its commitment to more sustainable practices by setting itself the goal of becoming the sustainability leader for the cutting tool industry by 2025.

To achieve this, the company said that they have already implemented an array of sustainability measures along the entire value chain.

“To reduce the mining of virgin raw materials, our mission is to reduce the share of raw materials remaining in the carbide production chain to less than 5 per cent by 2030, based on scrap recycling rates of sintered products,” said Pennington.

“In 2024 we have helped our customers drive towards a sustainable future by offering our in house recycling service for all our 350+ vending customers. With this service we offer a 10 per cent premium over the current market scrap rate and collect the scrap at the same time as replenishing the vending machines with tools, hence adding no extra carbon miles. The scrap is then fed back into our own production and the cycle continues.”

Ceratizit UK & Ireland

Reflecting this commitment, the company named its ProACT series of solid carbide milling tools as its standout product of the year for 2024.

The universal solid carbide milling cutters are made from a more sustainable carbide, and boast a next-gen performance coating and sophisticated geometric features, to ensure the highest performance and tool life while also prioritising a more eco-conscious design.

“Designed to handle any application and suitable for a wide range of materials, our new S-Cut series has even more to offer,” said [ ] “Made from CT-GS20Y – our most sustainable carbide grade currently available – this series helps to be resource-efficient due to being made from 99 per cent reprocessed raw materials, while achieving an incredible boost in performance due to the latest geometry and coating technologies.”

Echoing the sentiment, Autodesk said that the software industry is wholly committed to reaching its net zero goals.

“What’s clear is that leaders believe in sustainability for short- and long-term business success. This rings true in our research, where 84 per cent of leaders see their company’s sustainability initiatives as a key part of its business growth strategy over the next three years,” added Moghal.

“In addition to a rise in small manufacturers leading with sustainability as a USP, we’re seeing more businesses look for opportunities make better material choices and reduce waste, as well as optimising energy consumption across their machines and factories.”

PRODUCTIVITY

As always, productivity was a key trend over the last year. The efficiency and output of a manufacturing process, in relation to the resources invested by the company – namely, labour, time, energy and materials – is, of course, often the main driver for all businesses decisions, automation and sustainability practises included.

Investment in the latest technology, like automated machines and software programs, can streamline processes, reduce labour intensive tasks, minimise errors and increase overall quality and productivity.

And, again, sustainable practises – in terms of supply chain management, waste reduction and emissions reductions – can also contribute to better efficiency and output.

“We’re finding that the market is getting much more selective on machine quality,” said Mazak’s Mucklow. “Machine users want technology that can help with their challenges, namely energy consumption, the cost of obtaining skills, three-shift working and integrating automation systems. High specification and high quality machines at competitive prices can deliver this.”

In the face of the skills crisis, and to ensure that the manufacturing workforce can keep up with the widespread investment in new technology, the industry has also begun a significant investment in training, re-training and upskilling – recognising that productivity improves with investment in its people.

“Indeed, with production engineering teams reducing in numbers due to an aging workforce and well-documented skills shortage, the market is looking for more support from its technology providers in key areas, such as application support, engineering support and project management capability,” Mucklow added.

Mazak

LOOKING AHEAD TO 2025 

Already on such a strong course, the adoption of AI and automation technology will inevitably continue to grow in this new year, further enhancing operational efficiency and productivity.

As it did in 2024, AI-driven automation is set to streamline processes, reduce downtime, and improve quality control, only allowing manufacturers to further optimise their operations and respond dynamically to market demands.

“The workforce’s potential will continue to evolve, emphasising higher-skilled jobs in AI management and robotics, necessitating investment in training programmes and collaboration between industry and academia,” Moghal predicts.

“In addition, manufacturers will continue focusing on breaking down data silos across the business. This approach will set the foundation for leveraging both general and AI-powered technologies effectively in the future. Indeed, according to a recent Make UK report in collaboration with Autodesk, 75 per cent of manufacturers in the UK plan to increase their investment in AI in the next year.”

Despite investment, manufacturers are set to face challenges related to rising costs, including labour, materials, and energy. As such, businesses should be prepared to look to advanced technologies – again, like AI and automation – to increase efficiency and reduce waste.

In terms of sectors, Mucklow predicts that: “The aerospace, power generation and medical industries will remain strong. We will continue to see a significant amount of reshoring due to global political uncertainties, and the subcontract market will remain robust. My message to those looking to take advantage in the sectors that have growth potential is that technology, that improves manufacturing techniques, will lead to greater competitiveness.”

Ultimately, as remained true in 2024 and despite the many challenges that the manufacturing sector continues to face, innovation will prevail as a key trend for 2025.

Fuelled by the latest technology, fresh employees, increased training and new processes, manufacturers will continue to create more efficient, sustainable, customisable cutting-edge products. As always, the new will progress through, and companies will continue to enhance their product design, development cycles and business models to create a culture of innovation.