At the 2025 Maintenance Heroes Summit, Kevin Bowers, VP of Research at the Association for Manufacturing Technology, shared an insider’s view of the economic and technological forces reshaping maintenance and operations. With more than 25 years of manufacturing experience, Bowers unpacked data-driven insights on growth, industry challenges, and the innovations redefining how teams prepare for the future.
Manufacturing is growing, but cautiously
Despite economic headwinds, the U.S. manufacturing sector continues to show resilience. Real GDP growth remains positive, and consumer spending coupled with industrial production are holding steady. However, optimism among manufacturers has dipped; only 55% of respondents in NAM’s Q2 2025 Outlook Survey reported confidence in their company’s trajectory, down from nearly 70% earlier in the year.
Pressures on the industry
Manufacturers face mounting challenges: trade uncertainties, rising raw material costs, and a cooling labor market. Inflation continues to impact both wages and input costs, while tariffs and tax policies add complexity to global operations.
Key industry trends
Bowers highlighted several themes shaping the next era of maintenance and operations:
- Automation with impact: Productivity has been rising again as automation is deployed alongside—not instead of—skilled workers.
- Government investment: Military and infrastructure projects are boosting demand for advanced manufacturing technology.
- Industry-specific shifts: Medical equipment, aerospace, and electrical infrastructure stand out as sectors facing capacity constraints and heightened demand.
Forecasts point to volatility
Economic forecasts suggest mixed signals ahead. Machinery demand is expected to grow in 2025, dip in 2026, and rebound sharply in 2027. Cutting tools are projected to see slight contraction before modest recovery. This volatility underscores the importance of proactive planning in maintenance and operations.
The tariff and tax landscape
Tariffs remain disruptive, with 90% of manufacturers reporting higher input costs as a direct result. Still, many are adapting by reshaping supply chains and passing costs to customers. On the tax front, new provisions—such as permanent pass-through deductions, extended bonus depreciation, and expanded R&D expensing—offer relief and long-term planning opportunities for manufacturers.
Takeaway: Prepare for complexity
The future of maintenance and operations will be defined by resilience. As Bowers emphasized, success requires balancing automation and workforce, navigating policy headwinds, and positioning for sector-specific opportunities. For maintenance leaders, staying informed and adaptable is the key to thriving in this era of uncertainty.