(ETQ: Burlington, MA) -- ETQ, part of Hexagon, has shared results of its second annual global survey, the ETQ Pulse of Quality in Manufacturing. The survey revealed widespread challenges confronting manufacturers in a variety of sectors, including a persistent labor shortage as well as a growing reliance on automation, AI, and predictive analytics to help offset the shortage. In a major shift from last year’s survey, respondents also stated that quality has become a strategic driver to corporate revenue and business growth, as opposed to a more tactical process.

In line with last year’s survey, ETQ’s 2025 survey also revealed issues that continue to plague manufacturers around the world, including stubborn product recalls and safety incidents in the plant, as well as their consequences, such as damage to brand reputation, delayed product introductions, plant shutdowns, and personnel layoffs.

“The results of our annual survey get to the heart of what’s happening on the front lines, corner offices, and supply chains of manufacturers across the globe,” says Vick Vaishnavi, CEO of ETQ. “While this year’s ETQ Pulse of Quality in Manufacturing survey revealed challenges that don’t appear to be abating anytime soon, the study exposed some very encouraging trends. Virtually all mid- to large-sized manufacturers are relying on automation—from quality management systems and software to AI and predictive analytics—to help them achieve their quality goals and overcome these challenges. In doing so, quality is becoming elevated as a key corporate revenue driver instead of a tactical measure to improve efficiency.”

The ETQ Pulse of Quality in Manufacturing 2025 survey was conducted on behalf of ETQ by research firm Censuswide. In January/February 2025, 752 quality leaders and related project managers at manufacturing firms across the U.S., U.K., and Germany were asked about the quality trends, initiatives, and current status of quality in their organizations.

Key findings from the survey:
• A persistent labor shortage is affecting most manufacturers.
• 70% percent of respondents in the U.S. stated that their organizations are affected by a labor shortage, with 88% revealing that the labor shortage has affected the quality of their products or services.
• Product recalls remain stubbornly high despite vigilance and oversight.
• 75% of respondents said their organization had a product recall in the past five years (up from 73% in the 2024 survey). Out of those recalls, 48% said the cost to rectify each product recall ranged from $10 million–$49.99 million; 48% attributed their product recalls to problems in the supply chain.

AI investment is on the rise in manufacturing

49% of respondents to this year’s survey plan to implement AI during the next two years (up from 47% in 2024), with 33% already using it, and only 1% of respondents citing no plans for AI adoption. Respondents cited the following applications for AI in their organizations:
• Automating document processing (46%)
• Automating core processes (47%)
• Spotting defects on the factory floor (45%)
• Predicting future trends (38%)

Investment in quality initiatives is increasing in 2025

60% of respondents cited plans for an increase in total spending on quality in 2025. The tools and programs they will invest in include generative AI, automated quality management tools, human resources and staffing, predictive quality analytics, workforce connectivity solutions, and lights out/autonomous operations.

Currently, 55% of respondents use a quality management system to manage quality processes. Respondents stated that the top business drivers for investing in quality include increased revenue, increased compliance, a stronger supply chain, reduced costs, and reduced risk.

Safety incidents continue to affect quality, but the numbers are decreasing

41% of respondents (down from 48% in 2024) said they have 11–20 safety incidents in an average year. Respondents also cited plant injuries (27%) as the biggest effect on poor quality (after product recalls).

About the survey methodology

Industries represented in the survey include medium to large organizations in heavy manufacturing; electronics and appliances; medical device, pharma, and life sciences; food and beverage; chemicals and agrosciences; logistics and distribution; transportation, automotive, aerospace and defense; and other manufacturing sectors.