Reflections on Automation in 2025 – Navigating the New Frontier

Written by Shawn Gutierrez, CEO of AtomTech

As we kick off 2025, the landscape of automation is evolving at an unprecedented pace. I've received countless questions about the future of automation and its implications for manufacturers, integrators, and businesses across the globe. While I’m not a futurist, I’ve spent years working in this industry and navigating its unique challenges. Based on these experiences and the trends we see today, I’d like to share a vision for what may lie ahead.

Will Automation Truly Revolutionize Industries in 2025?

Absolutely – but not without challenges.

The promise of automation lies in its ability to increase efficiency, reduce costs, and address labor shortages. However, the reality of achieving these outcomes depends on navigating several obstacles: technology integration, workforce adaptation, and global supply chain disruptions.

Let’s break it down into three categories of automation adopters:

  1. Early adopters with turnkey solutions. These are businesses investing heavily in pre-engineered systems and AI-driven tools to streamline their operations. These companies are often pioneers, but their success hinges on integrating diverse technologies like robotics, SCADA, and vision systems into their workflows. In 2025, expect these early adopters to set the pace for innovation while facing ongoing challenges like supply chain bottlenecks and interoperability issues.

  1. Companies upgrading legacy systems. This group represents the majority of the market. They’re gradually phasing out older systems and integrating automation incrementally. While this approach mitigates upfront costs, it often leads to compatibility issues and requires significant retraining efforts. By 2025, the most successful of these companies will have found the balance between leveraging existing infrastructure and adopting cutting-edge technologies.

  1. Emerging businesses building automation from the ground up. These are companies using automation as the foundation of their business models. While their lack of legacy constraints offers flexibility, they often face steep learning curves and funding challenges. As these businesses scale, their ability to implement modular, scalable systems will define their success.

Will Supply Chain Disruptions Impact Automation Growth?

Yes – and resilience will be the defining theme.

In recent years, global supply chains have been upended by pandemics, geopolitical tensions, and material shortages. Automation companies are not immune to these challenges. Components like sensors, actuators, and controllers are often sourced internationally, meaning that delays in any link of the supply chain can derail projects.

To mitigate these risks, many businesses are embracing strategies like:

  • Localization of production. More manufacturers are bringing operations closer to home to avoid supply chain fragility. However, this shift is costly and time-consuming, requiring significant investment in domestic facilities.

  • Redundancy in supply chains. Companies are diversifying their suppliers and building relationships with multiple vendors to ensure continuity.

  • Stockpiling critical components. While this can temporarily alleviate shortages, it’s not a sustainable long-term solution.

By 2025, companies that prioritize supply chain resilience will likely outpace their competitors, but they’ll need to contend with higher upfront costs and longer ROI horizons.

Will Automation Eliminate Jobs or Create Opportunities?

Both – but the opportunity lies in adaptation.

Automation has always sparked fears of job displacement, and 2025 will be no exception. However, history shows us that automation doesn’t only eliminate jobs; it can also transform them. The rise of automation creates demand for skilled roles in programming, maintenance, and system design. Businesses that invest in upskilling their workforce will not only avoid layoffs but also gain a competitive edge.

For example:

  • Controls engineers and system integrators will play a critical role in adapting automation to real-world production environments.

  • Data analysts and AI specialists will become essential as companies leverage machine learning to optimize operations.

  • Technicians and operators will shift from manual labor to overseeing automated systems, requiring training in diagnostics and troubleshooting.

The key to thriving in 2025 will be embracing a culture of continuous learning and providing employees with the tools to evolve alongside automation.

Will Automation Bridge the Gap Between Global and Local Industries?

Not immediately, but the groundwork is being laid.

A growing number of offshore manufacturers are turning to local integrators for turnkey automation solutions, driven by challenges like travel restrictions and visa barriers. In 2025, automation will continue to be a bridge between global innovation and local execution. However, achieving this vision will require:

  • Standardizing protocols. Common frameworks for communication and control systems will be critical to integrating global and local technologies seamlessly.

  • Building trust. Local integrators will need to demonstrate their ability to deliver quality solutions that meet the expectations of international partners.

  • Effective Dialogue. Clear communication and mutual understanding will be key to fostering collaboration across borders.

What Will Automation Look Like in 2025?

The automation industry in 2025 will be defined by adaptability, resilience, and collaboration. Companies that thrive will be those that embrace new technologies while balancing the human element – retraining workers, building resilient supply chains, and fostering global partnerships. Automation isn’t just about machines and software; it’s about creating systems that drive growth, innovation, and opportunity for everyone involved.

The question isn’t whether automation will transform industries – it’s how quickly and effectively we’ll adapt to the changes ahead. For businesses, integrators, and manufacturers alike, the time to prepare is now.

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The SME's Guide to Automation: Understanding and Applying Key Archetypes

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AtomTalk Episode Two - Navigating 2025 Cost Challenges