Throughout 2024, manufacturers were on a high-speed journey packed with technological advancements. That pace is set to continue in 2025 as ERP systems continue to transform the way manufacturers operate. An ERP strategy to optimize the potential of the innovations on offer is critical for manufacturers across the globe.
The following five evolving tech trends will inform manufacturers’ ERP strategies in 2025.
- Getting strategic with AI
AI is expected to see an annual growth rate of 36.6% from 2023 to 2030, and it is inevitable that AI and machine learning will be integrated deep into manufacturers’ ERP systems – and their strategies – as they develop. AI-driven ERP deployments will completely transform how manufacturers run in 2025 and beyond. These technologies facilitate enhanced decision-making processes, advanced predictive analytics and the automation of repetitive jobs.There’s no doubt that AI is infusing ERP systems with unparalleled capabilities. Generative AI will increase these gains in business agility, further connecting dots across the manufacturing operation to identify and recommend process efficiencies and deliver new insights. The integration of AI extends to quality control, supply chain management and product optimization, automating tasks and ensuring that manufacturers can respond swiftly to market demands and maintain high standards of quality. - The rise of smart manufacturing
Smart factories are becoming the backbone of modern manufacturing. With the global smart factory market set to grow at more than 10% annually, reaching $400 billion this year, it’s a true game-changer for manufacturers.With interconnected systems, AI-driven automation and IoT-enabled devices, manufacturers are entering a new phase of efficiency and automation. An effective ERP strategy will help to leverage AI and machine learning so that manufacturers can better analyze real-time data to streamline processes, cut down on waste and boost overall productivity. IoT sensors also enable predictive maintenance, thereby extending the lifetime of machines and reducing downtime. - Customization: An imperative for 2025
As manufacturers review their ERP strategies for the road ahead, the imperative for customization has never been greater. By finetuning and optimizing their ERP systems to meet their particular requirements, manufacturers will benefit from a complete perspective of operations while addressing the evolving demands of modernization.Effective customization helps manufacturers ensure their staff on the factory floor have the tools they need to complete tasks as efficiently as possible. This improves integration across various business processes and boosts overall operational efficiency, both of which are cornerstones of ERP strategies in 2025. - Sustainable business and circular economies
Sustainability is no longer an option but a mandate for manufacturers, and green business is good business. Manufacturers that switch to using more durable and reusable products reduce their dependence on increasingly scarce and expensive raw materials. Most pressing of all, though, is the need to keep pace with changing customer demands, as green credentials are increasingly a key factor in buying decisions.More environmentally friendly and sustainable business practices must therefore be a priority in manufacturers’ ERP strategies throughout 2025. The development of circular economies – where the focus is on reusing materials and recycling resources in a closed loop system to reduce waste and minimize environmental footprint – should be a core focus for manufacturers.ERP systems act as the enabling technology that allows manufacturers to embed sustainability into their day-to-day operations and long-term strategies. They provide the necessary tools to monitor, manage and report on sustainable practices, making them indispensable for manufacturers looking to thrive in an increasingly environmentally conscious and regulated business landscape.
- Resilience in the age of uncertainty
Ongoing conflicts in regions such as Ukraine and the Middle East, alongside economic uncertainty, disruptive climate change events and fluctuating market conditions, are all creating challenges for manufacturers. This environment calls for resilience, which means developing an ERP strategy to respond to the unexpected, pivoting swiftly when conditions make it necessary.With its predictive capability, technology like AI is sure to play a role. But so, too, is the adoption of agile practices, including dynamic supply chains and flexible workforce management. ERP systems help manufacturers become more resilient by improving their planning and decision-making capabilities. A well thought-out ERP strategy can help identify and anticipate disruptions, improve supply chain processes, integrate data and streamline processes. By offering flexible solutions, ERP providers enable manufacturers to adapt to changing market conditions and customer requirements more effectively.
Adapting to a rapidly evolving landscape
As we move through 2025, it’s clear that manufacturers need ERP strategies capable of adapting to a rapidly evolving landscape. From leveraging GenAI to embracing sustainability and enhancing customer experiences, the trends shaping the future are both exciting and transformative. By staying proactive and building resilience in the face of uncertainty, manufacturers can position themselves to not only survive but thrive, this year and into the future.
