How the tech gap threatens U.S. manufacturing

• 75% of U.S. consumers said they have a preference for U.S-made goods—and this preference has increased as a result of global supply-chain disruptions since the COVID era. 
• 62% of consumers, however, said that other factors, such as quality and price, ultimately matter more in their purchase decisions. 
• 57% of manufacturing managers and executives cited cost as their biggest barrier to investing in IT modernization and cybersecurity.

U.S. manufacturing is experiencing a pivotal moment. Policy changes, reshoring efforts, and rising consumer preference for domestically produced goods have generated optimism about a new industrial renaissance in the United States. Still a deeper look inside America’s factories reveals a widening gap between aspiration and readiness. The driving force behind this tension? Technology.

The “2025 U.S. Manufacturing Technology Readiness Report,” based on insights from more than 1,000 respondents—including 700 consumers and 300 manufacturing professionals—highlights a concerning disparity: while the desire for American-made goods remains strong, outdated technology and insufficient digital infrastructure threaten the future of U.S. manufacturing competitiveness.

Consumer demand: Patriotism isn’t enough

While 76% of U.S. consumers express a preference for domestically made products, their purchasing decisions are primarily driven by quality and price. In fact, 62% say those two factors outweigh the country of origin. In essence, patriotism may open the door, but performance and value close the sale.

Furthermore, the growing emphasis on digital trust and cybersecurity plays a major role in consumer confidence. A striking 91% of consumers report concern over cybersecurity risks associated with U.S. manufacturers. With manufacturing now the most-targeted industry for cyberattacks, surpassing even finance, this anxiety is far from unfounded. The result: consumer trust is directly tied to a company’s ability to safeguard data and ensure operational resilience.

Yet, only 15% of manufacturers feel very confident in their ability to prevent cyberattacks. This lack of preparedness erodes the credibility of the “Made in America” label, which now implies not just local production but also modern, secure, and efficient practices.

Inside the factory: Outdated tools and workforce fatigue

Within America’s factories, the consequences of technological stagnation are becoming painfully clear. More than half of manufacturing workers believe their employers are behind global competitors in terms of automation and modernization.

This perception isn’t just a productivity issue—it’s a workforce issue. More than 20% of respondents have witnessed colleagues quit due to outdated systems. Frustrations stem from obsolete machinery, manual data entry, and disconnected workflows—conditions incompatible with the expectations of today’s skilled laborers. At a time when the industry faces an estimated 600,000 unfilled roles, every resignation is a significant operational blow.

Outdated technology isn’t simply inefficient—it’s a liability, one that drives away both talent and competitiveness.

Why manufacturers lag behind their peers: Budget vs. vision

When asked what’s impeding digital transformation, 57% of manufacturing leaders cite cost. However, the deeper issue lies in unclear priorities and roadmaps. Many companies recognize the need to modernize but are unsure where to begin. This hesitation puts them at a strategic disadvantage.

Global and domestic competitors are investing in these technology initiatives:

• Predictive maintenance
• Cloud-based production visibility
• Robust cybersecurity frameworks

These advancements are not speculative; they are active steps toward agility, efficiency, and resilience. Inaction, therefore, is not neutral—it’s regressive.

What’s at stake: A fragile resurgence of U.S. manufacturing

The resurgence of U.S. manufacturing is real but vulnerable. New policies, tariffs, and incentives have created opportunity—but that opportunity is fleeting without modernization.

If U.S. factories continue to rely on legacy systems, they risk losing ground to competitors who are already integrating smart sensors, cloud-based systems, and secure, connected networks into their operations. The global manufacturing landscape is evolving rapidly, and those who wait risk obsolescence.

The “Made in America” brand still commands respect, but in today’s market, it prompts a follow-up question: “Made with what?” Without the right tools, infrastructure, and vision, that label loses its power.

Leadership Imperative: Now is the time

This challenge is not just technological—it’s a test of leadership. Companies that align digital investment with strategic goals will shape the next decade of American industry. For leaders, the moment to act is now. For frontline workers, input and advocacy can help drive smarter, more relevant change.

In summary, bridging the tech gap is essential not only for maintaining domestic pride in American manufacturing but for ensuring its survival and growth. This is about building, not just branding—and it requires a collective, coordinated push toward modernization, security, and operational excellence.

For the full report, click here.