Automation in Manufacturing to Double by 2030: What It Means for OEMs
Automation in manufacturing is entering a new phase. Recent industry outlooks suggest that global investment in automation, AI, and advanced production technologies will more than double by 2030. This shift is being driven by labour shortages, rising product complexity, supply chain volatility, and increasing pressure on manufacturers to deliver both resilience and scalability.
According to a recent PwC outlook, manufacturers expect to more than double their use of automation and AI-enabled technologies by the end of the decade.
For OEMs, this is not just a technology trend. It represents a structural change in how products are designed, manufactured, and scaled.
Why automation is accelerating
Several factors are converging to drive rapid adoption.
- Workforce dynamics continue to challenge manufacturers across North America. Skilled labour shortages and an aging workforce are forcing organizations to rethink production models. Automation is helping companies maintain throughput and quality while reducing dependence on manual, repetitive tasks.
- Product complexity is increasing. Advanced electronics, precision systems, and connected devices require tighter tolerances, stronger traceability, and more sophisticated testing. Automation enables consistency at scale, especially in industries such as telecommunications, infrastructure, and industrial IoT.
- Supply chain resilience has become a strategic priority with automation making reshoring and regional manufacturing more viable by improving productivity and reducing labour dependence.
Automation supports flexible manufacturing, faster changeovers, and improved visibility, allowing organizations to respond more quickly to demand shifts and disruptions.
From cost reduction to resilience and scalability
Historically, automation was viewed primarily as a cost-reduction tool. Today, the focus is broader.
Leading manufacturers are investing in automation to:
- Improve product quality and repeatability
- Strengthen traceability and compliance
- Enable rapid scaling and ramp-ups
- Support regional and nearshoring strategies
- Reduce risk in complex global supply chains
Automation is also becoming a key enabler of data-driven manufacturing. Integrated systems provide real-time insights into production, quality, and performance, helping organizations make faster and more informed decisions.
This shift reflects a broader transformation with supply chains evolving from cost centres into strategic growth drivers, supported by AI, predictive analytics, and autonomous decision-making.
The role of EMS partners in automation strategies
As automation becomes more strategic, the role of electronics manufacturing partners is evolving.
OEMs are increasingly looking for EMS providers that bring:
- Advanced manufacturing and test capabilities
- Scalable, automated production environments
- Strong engineering collaboration
- Integrated supply chain and lifecycle management
- Digital tools that support visibility and traceability
Automation investments are not only about equipment. They require alignment across design, engineering, supply chain, and operations. Early collaboration helps ensure that products are designed for manufacturability and automation from the start.
Automation and human expertise
Despite rapid advancements, automation does not replace people. Instead, it elevates the role of skilled teams.
Human expertise remains essential in:
- Process optimization and continuous improvement
- Quality and reliability engineering
- Advanced troubleshooting
- Strategic decision-making
- Innovation and new product introduction
Industry leaders increasingly view AI and automation as tools that augment human capabilities rather than replace them. As automation expands across the value chain, workforce skills and training will become even more critical to long-term success.
At DSM, we combine advanced automation with the strength of our people. Backed by over 20 years of industry expertise, our teams apply Lean and continuous improvement practices to deliver consistency, scalability, and resilience. Automation enhances performance, while human expertise ensures reliability, problem-solving, and innovation.
What this means for the future of manufacturing
By 2030, automation will be a core competitive differentiator across industries. The companies that succeed will be those that invest in scalable, flexible manufacturing; strengthen collaboration across the value chain, align automation with resilience and agility, and focus on both technology and people.
For OEMs, the key question is no longer whether to automate, but how to build the right partnerships and roadmap to support long-term growth.
How DSM supports automation-ready manufacturing
At Dynamic Source Manufacturing, we work closely with OEMs to align product design, automation strategy, and supply chain planning from the earliest stages of development.
Our investments in advanced equipment, automated processes, and digital traceability support precision, scalability, and resilience. Through cross-functional collaboration, we help customers improve manufacturability, reduce variability, and build flexible production environments that can adapt to changing demand.
As automation continues to reshape the industry, our focus remains the same: enabling customers to scale with confidence while maintaining the quality and reliability required for mission-critical applications.
Reach out today: dsmsales@dynamicsourcemfg.com
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