Nearly half of organisations are uncertain that their current manufacturing strategies will deliver on business outcomes over the next three years, according to a new survey by American research and advisory firm Gartner, Inc.
The survey found that 49 per cent of respondents lack confidence in their manufacturing strategies, while two-thirds are not pursuing the aggressive redesigns needed to meet expectations for advanced automation, including AI-driven technologies and autonomous robots.
Gartner surveyed 128 leaders responsible for manufacturing and supply chain decisions in May 2025 to examine what is driving manufacturers to reshape their operations and identify the capabilities needed to stay competitive in the coming years.
“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, Vice President Analyst in Gartner’s Supply Chain practice.
“Leadership wants to embrace future capabilities to increase competitiveness, yet 66 per cent 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.”
According to Gartner, advanced automation that allows minimal human oversight ranked among the top three manufacturing capabilities expected to drive competitive advantage in the next three years.
Respondents also anticipated a rise in the number of manufacturing tasks performed by machines over the same period.
Gartner noted the research highlighted that leading organisations are overhauling their operating models to align with future-oriented capabilities while removing legacy barriers in governance, value streams, and resources.
Gartner’s findings indicated that respondents reporting to chief supply chain officers (CSCOs) were 68 per cent more likely to demonstrate stronger alignment, investment coordination, and integration with the supply chain than those reporting to chief operating officers (COOs).
Jacobson said one area of opportunity lies in modernising governance models to support the adoption of advanced automation technologies such as AI and robotics.
Gartner recommends that CSCOs take three actions to prepare manufacturing governance for future-ready capabilities: reset expectations for plant managers, modernise and standardise production systems, and reallocate decision rights closer to the point of execution.
The report advised that plant managers should transition from traditional command-and-control oversight toward data-driven decision-making using AI tools.
CSCOs are encouraged to empower decentralised teams, align site-level initiatives with digitalisation efforts, and ensure that decision authority is supported by robust governance and workforce training.
More insights are available in Gartner’s Supply Chain Executive Report: Reimagining the Manufacturing Operating Model. Nonclients can access further discussion in the upcoming webinar, The Factory of the Future: Redefining Manufacturing’s Operating Model.
