The manufacturing sector is experiencing a profound change as businesses face unprecedented challenges like volatile markets, fragile supply chains, and workforce shortages, with rising sustainability demands. To succeed in this landscape, manufacturers must embrace adaptability as a strategic priority.
Tech Mahindra’s report, The New Era of Adaptive Manufacturing, explores how enterprises worldwide are changing their operations by harnessing advanced technologies, especially AI and automation, to remain competitive during times of disruption, uncertainty, and constant change.
The report looks into digital manufacturing, the use of artificial intelligence (AI), workforce skills, and strong supply chains. It highlights key trends that are shaping the future of the industry.
Manikantan NS, who leads the Manufacturing Service Line at Tech Mahindra, said, “Manufacturers are dealing with rising costs, weak supply chains, and a shortage of skilled workers. This research shows that being adaptable and using AI is crucial for staying strong and competitive. At Tech Mahindra, we help companies adopt adaptive manufacturing strategies that focus on returns on investments. We integrate technology, skilled people, and sustainability to help them build smart and future-ready businesses.”
Key Findings from The New Era of Adaptive Manufacturing
1. Adaptability is now universal. Nearly every manufacturer surveyed, 99%, is actively reconfiguring its operations to cope with fast-changing markets, customer expectations, and demand swings. The era of rigid, assembly-line thinking is giving way to flexible, data-driven production models.
2. AI is becoming the industry’s “central nervous system.” 72% of companies are already deploying AI across their operations. From predictive maintenance to real-time production adjustments, it’s the glue that holds modern factories together.
3. Generative AI is gaining serious traction. What started as a buzzword is now a practical tool: 62% of manufacturers are investing in generative AI for design, simulation, and process optimization. The move signals a shift from reactive analytics to proactive innovation—factories that don’t just respond but imagine.
4. Workforce gaps are being bridged by technology. A striking 84% of respondents believe AI and automation are essential to solving workforce shortages. Rather than replacing people, the technology is increasingly being used to augment human skills, transfer knowledge, and allow workers to focus on higher-value tasks.
5. Supply chains remain fragile. Only 19% of companies feel their supply chains are truly resilient. But there’s a clear differentiator: firms investing more than 15% of their IT budgets in AI report far stronger resilience. In other words, tech spending is directly linked to survival in volatile times.
6. Sustainability is now mainstream. Once treated as a side initiative, sustainability has become central to operations. 98% of manufacturers are embedding eco-friendly practices into production.
The main takeaway from Tech Mahindra’s report on Adaptive Manufacturing is simple: the factories of the future won’t just be about being big or having a lot of machines. Instead, their success will depend on how well they can change and respond to new challenges.
Businesses that focus on being adaptable would be able to face unexpected challenges, would be quicker to come up with new ideas, and would be better suited to meet the demands of a world that values both speed and responsibility.
Note: The report is based on a survey of 690 senior leaders from large manufacturing companies in the Americas, Europe, and Asia-Pacific. It shows that businesses are focusing on being adaptable, sustainable, and smart throughout their production processes.
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