The future of manufacturing is connected: Insights from MHI’s latest Industry Report and trade show

Last week, the Material Handling Industry (MHI) and Deloitte unveiled their 13th Annual Industry Report, offering fresh insight into the technologies and trends shaping the future of global supply chains. This year’s report highlights the growing importance of AI in manufacturing, alongside continued momentum in robotics and automation aimed at improving operational agility, resilience, and workforce enablement.

To bring these innovations to life, MHI also hosted MODEX in Atlanta, USA, last week—North America’s premier supply chain and material handling trade show. With a record 50,000 attendees, MODEX featured more than 1,000 exhibitors and over 200 educational sessions. The show floor showcased a wide range of cutting-edge technologies transforming manufacturing operations, from autonomous mobile robots (AMRs) and robotic picking systems to wearable scanners, and more traditional equipment like hoists and cranes. 

Here are three key takeaways from this year’s report, and how they showed up on the MODEX show floor.

1. Labor challenges are still impacting 90% of supply chain organizations

Labor challenges continue to dominate as one of the most pressing issues facing manufacturers, with talent acquisition and workforce constraints ranking as the top supply chain challenge for over a decade. 

As experienced workers retire and new technologies reshape roles across the supply chain, the skills gap is widening. This year’s Industry Report reinforces that trend, noting that talent shortages are impacting 90% of supply chain organizations, driving delays, increasing operational costs, and putting added strain on already stretched teams.

The top six supply chain challenges according to the 13th Annual MHI Industry Report.

2. Supply chains are moving from siloed automation to connected operations

To address these challenges, many manufacturers are turning to robotics and automation, technologies that are now seen as one of the most disruptive forces in the industry, with 64% of organizations recognizing their potential to drive competitive advantage. However, conversations have shifted from evaluating individual technologies to understanding how they work together within the broader operation.

On the show floor at MODEX, many solutions demonstrated strong capabilities within specific areas, but manufacturers are increasingly looking for vendors with more cohesive approaches that can span the full facility. As supply chains become more complex, the ability to integrate and orchestrate automation end-to-end is quickly becoming just as important as the technologies themselves.

3. Automation spending is growing, but proving value remains a barrier

Automation adoption is no longer a question of if, but how. 73% of manufacturers already have or expect to have robotics and automation in place within the next five years, with investments in the innovations rising as well.

The challenge has therefore shifted from adoption to execution. The report notes that the second-largest barrier to implementation is a lack of a clear business case, reinforcing that organizations must define the problems they’re solving, align on KPIs, and build a roadmap for measurable outcomes before deploying any new technology. As a result, manufacturers are placing greater emphasis on upfront planning, including leveraging simulation, emulation, and consulting expertise to validate approaches, reduce risk, and ensure solutions deliver value. 

If you didn’t get a chance to attend MODEX, or you want to continue learning how these innovations and trends are transforming the manufacturing industry, register for the Automate trade show in Chicago, US from June 22-25 where Rockwell Automation will be showcasing connected solutions from end-to-end in booth #2267.