What 350 Component Manufacturers Revealed About Their Automation Journey

While everyone discusses the future of smart manufacturing, most companies are still grappling with a fundamental question: How do you actually choose the right software to get there? In this latest industry study by Sandvik Manufacturing Solutions and EY-Parthenon teams, 350 component manufacturers across aerospace, automotive, medical, and other critical sectors were surveyed to uncover the real priorities driving software adoption in 2025. What they discovered challenges conventional wisdom about how manufacturers approach technology investments—and reveals game-changing trends that forward-thinking companies are already acting on.



What Are the Most Important Factors When Selecting Manufacturing Software in 2025?

Based on a survey of 350 component manufacturers, software quality and accuracy rank as the #1 selection criteria, followed by service support and ease of use. Manufacturers are prioritizing reliable, well-supported solutions over lower-cost options—especially critical given today’s skilled labor shortage.

Two Critical Findings That Will Shape the Industry

• Finding #1: The Real Priorities Behind Manufacturing Software Decisions
  

Research revealed that manufacturers who focus on software quality and robust support see better ROI than those chasing the cheapest option. With 65% of successful manufacturers prioritizing accuracy and ease of use over competitive pricing, the winners are investing in solutions that actually work—especially critical when you’re already struggling to find skilled operators who can hit the ground running.

• Finding #2: AI is About to Transform CAD/CAM Workflows
  

Feature recognition in CAD files and AI-guided programming are emerging as the top AI use cases, with manufacturers recognizing these technologies can dramatically reduce time-to-market and response times for quotations. As one aerospace manufacturer noted: “This would enable us to avoid starting from scratch every time, being especially beneficial given our ‘high-mix, low-volume’ production.”

The Complete Intelligence Report

These insights barely scratch the surface. Our comprehensive analysis reveals:

• Integration priorities: CAM-to-simulation connections deliver the highest ROI, driven by manufacturers’ need to address complex customer requirements and skilled labor shortages.
• Bundled vs. best-of-breed: 65% prefer turnkey solutions when vendors can demonstrate clear business value and superior integrations.
• AI transformation timeline: Feature recognition and programming guidance will reshape workflows faster than most expect—early adopters are already gaining a competitive advantage.
• Cloud adoption reality: Manufacturing remains conservative with only 11% using public cloud, especially in regulated industries like defense where security concerns dominate.
• The SaaS transition gap: While 45% are open to subscription pricing, the journey from perpetual licenses to true cloud deployment will take longer than in other industries.
• Vendor opportunity: Flexible deployment options (hybrid, customer-controlled cloud) represent the biggest untapped market for software providers.

Ready to benchmark your software strategy against industry leaders? Source:  https://www.mastercam.com/news/blog/the-manufacturing-software-revolution/