The ETQ Pulse of Quality in Manufacturing survey released by ETQ, part of Hexagon, reveals widespread challenges confronting manufacturers across a variety of sectors, including a persistent labor shortage, as well as a growing reliance on automation, AI and predictive analytics.
“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,” says Vick Vaishnavi, CEO, ETQ. “While this year’s ETQ Pulse of Quality in Manufacturing 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.”
Key takeaways:
· 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, as opposed to a more tactical process.
· The study also revealed issues that continue to plague manufacturers around the world, including stubborn 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.
· 70% of respondents stated that their organizations are impacted by a labor shortage, with 88% revealing that the labor shortage has had an impact on the quality of their products or services.
· 75% of respondents said their organization had a product recall in the past five years (up from 73% in the 2024 survey). Out of those recalls, 48% said the cost to rectify each product recall ranged from $10-49.99 million. And 48% attributed their product recalls to problems in the supply chain.
· 49% of respondents plan to implement AI in the next two years (up from 47% in 2024), with 33% already using it and only 1% of respondents citing no plans for AI adoption. Respondents cited the following applications for AI in their organizations; automating document processing (46%); automating core processes (47%); spotting defects on the factory floor (45%); and predicting future trends (38%).
· 60% 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, 55% of respondents 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, a stronger supply chain, reduced costs and reduced risk.
· 41% of respondents (down from 48% in 2025) said they have 11-to-20 safety incidents in an average year. Respondents also cited plant injuries (27%) as the biggest impact on poor quality, after product recalls.
