Operational efficiency emerged as the top strategic priority for manufacturers heading into the end of 2025, far outpacing cost cutting or innovation, according to the Sikich Manufacturing Industry Pulse survey.
On a scale of one to 10, the average confidence score for business prospects over the next six months is 7.27, a 6% increase from May 2025 and the highest optimism recorded since the survey’s inception eight years ago in 2017.
More than half of respondents report consistent or increasing customer demand, and 81% expect revenue growth this year, signaling opportunities for targeted investments in capacity, supply chain optimization and technology enhancements.
“Manufacturers continue to demonstrate remarkable adaptability in the face of change. This year’s survey highlights not only growing optimism, but also a clear shift toward investing in people, technology and more efficient operations. It’s encouraging to see leaders taking practical steps to strengthen their businesses and position themselves for long-term success,” says Jerry Murphy, principal and manufacturing services leader at Sikich.
Key takeaways:
· More than half of manufacturers plan major investments in new equipment and automation over the next 6-12 months, signaling that digital transformation is moving from theory to action. Additionally, 30% plan to invest in talent development and 28% in AI or data analytics, as companies seek real-time insights to improve decision-making, forecasting and productivity. AI adoption continues to gain traction, with many manufacturers determining where it can maximize value.
· Additionally, finding and developing qualified talent remains a challenge for manufacturers, alongside inflation and tariffs. Nevertheless, 58% of respondents expect to increase headcount in the next year, driven primarily by demand.
· Manufacturers are focused on strengthening their foundations, modernizing processes and positioning for sustainable growth as they navigate ongoing industry changes.
