From disruption to opportunity: Technology trends for manufacturers and distributors

Business Journals

7 days ago

We polled over 500 manufacturing and distribution business leaders to understand the trends, opportunities, and challenges this sector is experiencing today, including technology and tech skills. Citrin Cooperman's 2025 Manufacturing and Distribution Pulse Survey Report reveals important considerations in the adoption and implementation of advanced technologies for strategic advantages.
Business impact of present and future technologies
Manufacturing and distribution leaders share that the technologies and initiatives with the most business impact over the past three years are artificial intelligence (AI), cyber and data security, and business intelligence (BI), followed by internal systems integration work, external systems integration, and new enterprise resource planning (ERPs) systems. Looking forward, the most mentioned applications of technology and intelligence to remain competitive are 1) improving prediction of supply chain delays/cost changes and 2) gathering and analyzing customer data to better predict their behavior.
The AI adoption curve and most common uses today
Applying AI tools for business advantage is a work in progress for most and a learning process for all. Adoption rates vary, yet strides are being made. While only 1% do not use AI in their business at all, only a very small percentage, 7%, consider what they have done to date as 'mature adoption.'
While the manufacturing and distribution industry overall is exploring and implementing AI, the depth of adoption varies significantly when explored across company size. Mid-sized companies ($10M-$99.9M) are the most active in leveraging AI agents like GitHub, Microsoft Copilot, and ChatGPT for document creation, research, marketing, and client communications, with 43% mid-sized companies reporting such usage. Meanwhile, enterprises in the $250M-$499.9M range show strong emerging adoption, with up to 52% exploring more structured tools like Copilot.
Mature AI integration is most prevalent among companies with more than $1B in revenue, where 50% report comprehensive, mature AI adoption. Despite varying levels of maturity, AI is clearly on the radar for many manufacturing and distribution companies across all revenue sizes.
Technology workforce skills gap
Manufacturing and distribution leaders are clear about the value and purpose of their technology investments and initiatives, though 18% are not fully confident that they have the skilled talent to make the most of advanced technology. In order for companies to stay competitive moving forward, investing in their technology workforce should be top of mind. For more insights into how manufacturing and distribution companies are addressing this gap to keep up with increasingly sophisticated technology, access our report below.
The evolving technology landscape presents both significant opportunities and challenges for manufacturing and distribution companies. Business leaders should focus on building a technology roadmap aligned with business objectives, invest in developing their workforce's tech capabilities, and continuously evaluate their systems for improvements. Those that commit to thoughtful planning and talent development will be best positioned to turn emerging technologies into lasting business value.
Citrin Cooperman's Manufacturing and Distribution Industry Practice leverages specialized knowledge to provide a full range of professional services and industry insights, helping companies achieve their strategic objectives. Access our 2025 Manufacturing and Distribution Pulse Survey Report for greater insights into current industry issues and solutions successful business leaders are implementing.
'Citrin Cooperman' is the brand name under which Citrin Cooperman Advisors LLC and Citrin Cooperman & Company, LLP, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards.
Ryan Dailey is a partner in Citrin Cooperman's Audit and Attest Practice with over 13 years of experience. He provides a wide variety of accounting and audit services to both public and privately held companies with a focus on the manufacturing and distribution industry.