December 20, 2024
Future-Focused Growth: What’s Top of Mind for Manufacturing CIOs in 2025
Reinvention, renovation and resilience.
Macroeconomic challenges are expected to cast a long shadow into 2025. In a survey earlier this year, Gartner cites 61% of CEOs anticipate continued inflation and low growth in the new year. In turn, many organizations will focus on resetting their strategies to achieve the sustainable growth and transformation that has eluded recent years. Prioritizing investments that ensure operational resilience, foster innovation and enable long-term scalability will be key.
Here’s the reality — where manufacturers choose to allocate their technology budgets will determine their ability to overcome headwinds and outperform competitors. Reinvention, renovation and resilience are the means by which that growth and transformation will be achieved.
The Rising Role of Data and AI
Artificial intelligence (AI) will no longer be an “optional” innovation in manufacturing — it is fundamental. Applications imbued with AI will become pervasive, transforming everything from assembly lines to supply chains. But this promising AI-driven future demands significant groundwork, starting with data governance.
To truly capitalize on AI, manufacturers must ensure their underlying data is clean, actionable and secure. Robust data governance frameworks — combined with scalable, cloud-enabled infrastructures — are crucial to making AI integrations practical and impactful. Proper data protocols allow manufacturers to leverage predictive analytics for better decision-making, optimize machinery operations with real-time insights, and personalize customer experiences at scale.
AI deployments should not just work with today’s technology stacks but must anticipate tomorrow’s needs. Thus, CIOs will also be charged with balancing innovation and long-term adaptability while maximizing value from their current ecosystem to avoid overextension.
IT, OT Collaboration — A Strategic Imperative
The decades-long chasm between information technology (IT) and operational technology (OT) systems is narrowing. For manufacturers, IT/OT integration is no longer aspirational; it’s essential. Bridging IT and OT fosters streamlined operations, improved quality control and predictive maintenance capabilities — all of which will increasingly depend on AI.
However, integration doesn’t solely happen through technology; it requires cross-functional collaboration. This demands a clear alignment between IT and business leaders, ensuring that technology initiatives are aligned with operational goals. CIOs must focus on building a united technology roadmap that cuts through organizational silos and promotes shared accountability for outcomes.
Showing measurable ROI for IT/OT investments, particularly when introducing cutting-edge solutions such as AI or Internet of Things (IoT)-enabled devices, will be critical. By delivering tangible value — whether through reduced downtime, faster production cycles or enhanced worker safety — CIOs can foster greater organizational buy-in for future projects.
Addressing the Manufacturing Skills Gap
The move toward AI, automation and cloud-native operations requires a workforce equipped with advanced technical skills — and those skills can be hard to find.
Manufacturers must prioritize upskilling and reskilling programs to develop their workforce internally. This includes creating tailored training programs for current employees, leveraging hands-on simulations, and utilizing augmented (AR) and virtual reality (VR) for training in high-risk environments. Partnerships with academic institutions and technical programs can also help foster pipelines of talent ready to tackle Industry 4.0 challenges.
Strategic technology experts like CDW will also play a critical role in augmenting expertise and bridging skill gaps. Dedicated expertise in deploying, managing and optimizing emerging technologies will be key in accelerating progress where hiring and training have limitations.
Security, Sustainability and Compliance
Security and compliance are always top of mind, but sustainability concerns and initiatives continue to rise.
Upcoming regulatory requirements, including climate-related disclosures and new SEC regulations, will push manufacturers to rethink the energy consumption and carbon footprint of their operations. Meanwhile, AI — despite its many efficiencies — brings added energy demands that manufacturers will have to reconcile with their sustainability goals.
From a security and compliance perspective, the interconnected nature of IT/OT systems can create vulnerabilities if not managed properly. It’s incumbent upon CIOs to fund strategies for reducing cybersecurity risks by adopting zero-trust frameworks, frequent patching schedules and comprehensive risk assessments of supply chain partners.
Leading Through Strategy
The forward-thinking manufacturing CIO knows that tomorrow’s success is determined by today’s decisions. By investing strategically in digital transformation — with a focus on AI-readiness, IT/OT integration and sustainability — manufacturers aim to create leaner, smarter and more agile organizations that can thrive regardless of external pressures.
At its heart, the role of technology in manufacturing isn’t just about modernizing processes or implementing tools — it’s about ensuring the resilience of businesses and empowering growth in an unpredictable world. The future may be complex, but the CIO who embraces reinvention, renovation, and resilience will lead their organization boldly into it.