In a recent Industrial Media poll, manufacturing and engineering professionals were asked, “What is most likely to represent the highest risk for your company over the next 3–5 years?”
Of the four possible responses, 42% said that failing to keep up with new technology poses the greatest risk. Cybersecurity breaches followed at 20%, while delays in approving new product designs accounted for 18%.
Industrial Media's manufacturing poll results.Industrial Media
These results highlight how closely technology advancement is tied to both opportunity and risk. Many factors influence a company’s ability to keep pace with emerging tools and systems, each bringing its own financial and operational challenges.
According to an October 2024 report from CFO Dive, eight out of ten companies struggle to keep up with rapid technological change. More than half (56%) said they lack the budget to do so. The costs add up quickly, spanning software, hardware and employee training, each an essential, yet expensive, piece of the puzzle.
Integration challenges add another layer of difficulty. As noted by Nerds Support in a May 2024 blog, older legacy systems often must be merged with new technologies, creating a complex and costly process. When systems don’t communicate effectively, data can become trapped in silos within departments, limiting visibility and efficiency.
Time pressures make these challenges even harder to manage. As Automation Distribution pointed out in a November 2023 post, ongoing production demands leave little room to research, test and implement new solutions, further slowing digital adoption.
Meanwhile, cybersecurity threats remain ever-present. Morefield has warned that as manufacturers add connected devices such as IoT sensors, they also increase their exposure to potential attacks.
But technology alone isn’t the only barrier. Human constraints also play a role. A June 2025 article from the World Economic Forum highlighted a widening skills gap in manufacturing and engineering; one that’s creating a mismatch between available workers and the skills employers need. As of September 2025, about 555,000 people were unemployed in manufacturing, according to the Bureau of Labor Statistics. Yet even with those numbers, competition for skilled talent remains intense.
Some of this disconnect stems from tools that don’t effectively serve frontline workers. When systems are built for engineers but not for the people using them daily, adoption and productivity both suffer.
Are Manufacturers Hiring, Firing or Freezing?
Another Industrial Media poll explored current labor conditions, asking professionals: “Which of the following best describes your company’s current labor situation?” Results showed that 52% of respondents said their company is hiring, 34% reported a hiring freeze, and 15% said their company is cutting jobs.
Industrial Media's manufacturing poll results.Industrial Media
As Industrial Equipment News recently reported, this mix of hiring and freezes has led to what KPMG Chief Economist Diane Swonk calls a “jobless boom.” Major companies across industries have announced large-scale layoffs, even as the broader economy appears stable.
This has contributed to what many describe as a “No Hire” market. With unemployment hovering around 4.3%, the economy shows a split between those securely employed and those struggling to find work. Economists attribute this trend to a combination of tariff uncertainty and the rapid rise of artificial intelligence. While AI investment surges, higher interest rates continue to dampen growth in sectors like manufacturing.
