Manufacturers cite widespread labor shortages, use of automation and AI to help

What you’ll learn:

70% of respondents in the U.S. stated that their organizations are impacted by a labor shortage.
49% plan to implement AI in the next two years (up slightly from 47% in 2024), with 33% already using it.
The 2025 poll revealed other widespread issues such as stubborn product recalls and safety incidents in plants and their consequences, such as damage to brand reputation.

Another new survey, this one the Pulse of Quality in Manufacturing poll from Hexagon division ETQ, showed that industrials globally are suffering widespread labor shortages, but as a result they are growing increasingly reliant on technologies—automation, AI, and predictive analytics, for example—designed to offset the worker deficits that also are yielding revenue and efficiency gains.

The second-annual survey by ETQ, acquired to bolster Hexagon’s manufacturing intelligence unit and a provider of software-as-a-service-based quality management system, environment, health, and safety, and compliance management software, also revealed a shift in the role of quality as a strategic revenue driver, according to a May 13 release from ETQ.

In line with last year’s inaugural Pulse of Quality in Manufacturing survey, the 2025 edition also revealed other widespread issues such as stubborn product recalls and safety incidents in plants and their consequences, such as damage to brand reputation; delayed product introductions; factory shutdowns; and personnel layoffs, according to ETQ.

“The results of our annual survey get to the heart of what’s happening on the frontlines, corner offices and supply chains of manufacturers across the globe,” stated Vick Vaishnavi, ETQ’s CEO.

“While this year’s … 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.”

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The ETQ survey was conducted in January and February on behalf of the Hexagon division by research firm Censuswide. The respondents were 752 quality leaders and related project managers at manufacturing companies across the U.S., the U.K. and Germany and were asked about quality trends, initiatives and status of quality in their organizations.

Industries represented in the survey include medium-to-large organizations in heavy manufacturing, electronics and appliances, medical device, pharma and life sciences, food and beverage, chemicals and agrosciences, logistics and distribution, transportation, automotive, aerospace, and defense.

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Below are other top findings from the ETQ survey:

70% of respondents in the U.S. stated that their organizations are impacted by a labor shortage.
88% said the labor shortage has had an impact on the quality of their products or services.
75% of respondents said their organizations had a product recall in the past five years (up from 73% in last year’s survey).
Out of those recalls, 48% said the cost to rectify each product recall ranged from $10 million to $50 million.
48% attributed their product recalls to problems in the supply chain.

AI investment on the rise

The survey yielded some notable findings about investment in artificial intelligence.

Of respondents, almost half—49%—plan to implement AI in the next two years (up slightly from 47% in 2024), with 33% already using it and only 1% of respondents citing no plans for AI adoption. Respondents cited the following uses for AI in their organizations:

Automating document processing (46%)
Automating core processes (47%)
Spotting defects on the factory floor (45%)
Predicting future trends (38%)

Also of the respondents, 60% cited plans for an increase in spending on quality in 2025. 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.

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Currently, 55% of respondents also reported that they use a quality management system to manage quality processes. Respondents stated that the top business drivers for investing in quality include increased revenue, increased compliance, stronger supply chains, and reduced risk.

On safety incidents, 41% of respondents (down from 48% in 2025) said they have 11 to 20 incidents in an average year. Respondents also cited plant injuries (27%) as the biggest impact on poor quality, after product recalls.