Widespread challenges confront the heavy manufacturing sector, including a persistent labor shortage and recalls, according to an annual, global survey by ETQ, part of Hexagon. Fielded in January/February 2025, the survey asked 752 quality leaders and related project managers at manufacturing firms across the U.S., the U.K., and Germany about the quality trends, initiatives and current state of quality in their organizations.

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. Other issues that continue to plague manufacturers are 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. 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.

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. Seventy-five percent 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. 

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. Fifty-two percent of respondents reported that they are already using AI; and 41% plan to implement it in the next two years. Applications for AI include automating document processing (52%), automating core processes (43%), spotting defects on the factory floor (57%) and predicting future trends (55%).