Gartner Survey Shows 49% of Organizations Lack Confidence in Future Manufacturing Strategy

Nearly half of organizations lack confidence in their manufacturing strategy to deliver on business outcomes over the next three years, according to a survey from Gartner, Inc., a business and technology insights company.

The survey found that two-thirds of organizations are not pursuing the needed aggressive redesign of manufacturing operations to deliver on expectations for advanced automation, including the use of AI technologies and autonomous robots.

Gartner surveyed 128 leaders with responsibility for manufacturing or supply chain decisions in May 2025 to understand the drivers prompting manufacturers to reshape their strategies, identify the competitive characteristics needed to stay ahead, and explore future visions and strategies for manufacturing.

“CSCOs picture a near future of advanced automation where machines are involved in completing a majority of tasks, yet most operating models are not keeping pace to enable these strategic priorities,” said Simon Jacobson, VP Analyst in Gartner’s Supply Chain practice. "Leadership wants to embrace future capabilities to increase competitiveness, yet 66% of survey respondents say integrating supply chain and manufacturing is the most significant challenge for the next three years. This uncomfortable reality should motivate leaders to take more aggressive action to reinvent their operations."

The survey findings indicated that advanced automation that allows for minimal human oversight was ranked in the top three manufacturing capabilities driving competitive advantage over the next three years. Additionally, respondents expected the amount of manufacturing tasks machines will complete to increase significantly over the same period (see Figure 1).

Leading organizations are revamping their manufacturing operating models by aligning them to future-oriented capabilities and removing legacy roadblocks across value streams, governance and resources. Respondents reporting to the chief supply chain officer (CSCO) are 68% more likely to have stronger alignment, investment coordination, speed and agility, and integration with the supply chain than those reporting the chief operating officer (COO). 

One critical area where CSCOs can influence manufacturing capabilities is by aligning new governance models to enable future-ready capabilities in advanced automation technologies, including AI and robotics. Legacy organizational designs that overemphasize cost controls may now block the type of agility and responsiveness needed to capitalize on new opportunities.

Gartner recommends CSCOs take three actions to align governance models to enable future-ready manufacturing capabilities:

1. Reset expectations for plant managers: Plant leaders must be empowered to shift from command-and-control oversight to using AI for data-driven decision making and performance optimization. CSCOs need to address legacy mindsets, empower shop floor teams to make decentralized decisions, and provide targeted digital training.
2. Modernize/standardize production systems: CSCOs should enhance production systems by integrating emerging technologies, strengthening site integration, and building digital capabilities. CSCOs should coordinate capability building by aligning site initiatives with digitalization efforts, strengthen standards and accountability through KPIs and training, and empower shop floor teams to make faster, informed decisions supported by formal governance and targeted programs.
3. Reallocate decision rights: CSCOs should empower plant managers by moving decision authority closer to the point of execution, supported by advances in AI, robotics, and automation. This shift enables greater operational agility and responsiveness, but it also requires careful alignment of governance practices and workforce training to ensure effective collaboration between human and machine-led tasks.

Gartner clients can read more in Supply Chain Executive Report: Reimagining the Manufacturing Operating Model. Nonclients can learn more in the upcoming webinar: The Factory of the Future: Redefining Manufacturing’s Operating Model.

About Gartner AI Use Case Insights
Gartner AI Use Case Insights is an interactive tool that helps technology and business leaders efficiently discover, evaluate, and prioritize AI use cases to potentially pursue. Clients can search over 500 use cases (applications of AI in specific industries) and over 380 case studies (real world examples) based on industry, business function, and Gartner’s assessment of potential business value. Clients can access the interactive tool at https://tools.gartner.com/use-case-insights.