Faced with increasing quality, risk, and talent pressures, life sciences manufacturers are overwhelmingly embracing smart manufacturing to overcome these challenges, according to results from a new survey from Rockwell Automation.
The survey of 143 decision makers from life sciences manufacturers across 15 countries shows that smart manufacturing is “nearly universal” with 95% of survey respondents saying they are using or evaluating smart technology, finds the 10th annual State of Smart Manufacturing Report: Life Sciences Edition.
“Most life sciences manufacturers believe it will help them improve quality, operate more cost-efficiently and generate growth,” according to the report, which found that 50% of respondents see improving quality as the primary business outcome from smart manufacturing technology — while 38% of manufacturers are using data collected from connected devices to monitor and improve product quality.
Although most manufacturers collect large volumes of data, only 46% indicate they are using it effectively, Rockwell Automation reported.
“These findings suggest a gap in the ability of life sciences manufacturers to use that data for real-time decision making and meaningful, measurable operational improvements,” states the report.
Smriti Khera, head of global life sciences strategy and marketing at Rockwell Automation, told Pharma Manufacturing that pharmaceutical manufacturers are facing disruption on many fronts in 2025, including shifts in trade policies and tariffs that are forcing companies to rethink their sourcing strategies and invest in nearshoring facilities to reduce exposure and achieve better control over supply chains.
“We find that trend reverberating globally because of supply chain redistribution — this creates opportunity for manufacturers,” Khera said, noting that they are leveraging smart manufacturing and emergent technology to navigate macroeconomic and supply chain disruption.
Inflation, economic growth, and supply chain disruption are the main external barriers to growth for life sciences manufacturers, followed by cybersecurity risks, according to the survey. Two-thirds (66%) of manufacturers are investing in technology for long-term stability and growth, with 41% adopting smart technology and 40% leveraging artificial intelligence (AI) to mitigate external risk. Most companies are using AI to improve quality (53%), streamline operations (50%) and strengthen cybersecurity (48%).
According to the survey results, 36% of respondents plan to invest in generative AI or causal AI, while 35% are focusing on digital twins, simulation, and emulation — “technologies known for reducing time-to-market and enhancing product quality,” the report states.
Cybersecurity, workforce challenges
When it comes to cybersecurity, 48% of respondents plan to leverage AI/machine learning (ML) over the next 12 months, with 29% indicating that cyber risk is the biggest external obstacle to growth in 2025.
“50% cite securing operational technology (OT) assets as the main driver of their technology investments in 2025,” according to the report. “38% cite cybersecurity as a top smart manufacturing capability that will drive the biggest business outcomes.”
Securing top talent in manufacturing also remains a challenge for life sciences manufacturers, with 26% of survey respondents indicating that finding skilled workers is the biggest barrier to growth in 2025. To help fill talent gaps, nearly half of manufacturers are turning to AI (48%) and automation (46%) to support their workforce.
A 2022 report, sponsored by the Department of Health and Human Services, found that the U.S. faces a shortage of workers with the specialized knowledge for pharmaceutical manufacturing, with 60% of those jobs going unfilled.
According to Rockwell Automation’s survey, the capabilities that life sciences employers are looking for in their workforce include adaptability and flexibility (86%), analytical thinking (84%), as well as science, technology, engineering, and mathematics (83%).
“Nearly half of life sciences manufacturers are doubling down on AI/ML and automation technologies to navigate the growing labor shortage, and repurposing their existing workforce to address evolving skill demands,” the report states. “47% of manufacturers plan to repurpose existing workers to new or different roles as they increase the use of smart manufacturing technology.”
