Research shows that the industry is entering a new phase of adoption. For manufacturers, the question is no longer whether to invest in smart manufacturing, but how quickly and where to implement it. Automakers and suppliers already operate with advanced automation in bodywork, painting, and welding. The shift is now toward areas that have been more difficult to automate, such as electronic component assembly, validation, production coordination, and logistics. At the same time, AI and ML are improving predictive maintenance, inspection accuracy, and system performance in existing operations. The industry has built a solid foundation for automation.
“What’s changing now is how manufacturers are using AI and data to manage increasing complexity, improve decision-making, and create a competitive advantage,” said Edgar Faler, principal mobility analyst and head of strategy at CAR. Those who move faster are starting to see measurable benefits.
The report combines CAR's analysis with proprietary data from Rockwell Automation's eleventh annual State of Smart Manufacturing report. It highlights key drivers accelerating adoption, including more complex production environments, ongoing warranty pressures, rising costs, and increasing global competition. Automation also helps enable the relocation of production back to the home country by supporting cost-competitive manufacturing in tight labor markets.
Manufacturers are already achieving measurable results, including reductions of up to 50% in unplanned downtime in selected applications, improvements of approximately 5% in overall equipment effectiveness, and increases of 5% to 7% in throughput thanks to real-time production analytics.
“Manufacturers are being asked to do more with less while managing increased complexity,” said James Glasson, global VP of Industry (automotive, tires, and advanced mobility) at Rockwell Automation. The combination of automation and AI is helping teams identify problems early, reduce downtime, and improve performance across all plants.
The difference now lies in how effectively companies scale these capabilities. The findings also point to a growing gap across the industry. These differences in adoption are creating gaps in quality, availability, and productivity, with implications for supplier performance and long-term competitiveness.
