ETQ Pulse of Quality in Manufacturing Survey reveals various challenges

ETQ, part of Hexagon, recently conducted its second annual global survey, the ETQ Pulse of Quality in Manufacturing. The survey revealed widespread challenges confronting manufacturers across 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, the ETQ Pulse of Quality in Manufacturing 2025 also revealed issues which continue to plague manufacturers around the world, including stubborn product recalls and safety incidents in the plant; and their consequences, such as damage to brand reputation, delayed product introductions, plant shutdowns and personnel lay-offs.

“The results of our annual survey get to the heart of what’s happening on the frontlines, corner offices and supply chains of manufacturers across the globe,” said Vick Vaishnavi, CEO, 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., the U.K. and Germany were asked about the quality trends, initiatives and current status of quality in their organizations.

Key findings from U.K. survey respondents to the ETQ Pulse of Quality in Manufacturing 2025 survey include:

A persistent labor shortage is impacting most manufacturers

Seventy two percent of respondents in the U.K. stated that their organizations are impacted by a labor shortage, with 90% revealing that the labor shortage has had an impact on the quality of their products or services.

Product recalls remain stubbornly high despite vigilance and oversight

Seventy-seven percent of respondents said their organization had a product recall in the past five years. Out of those recalls, 46% said the cost to rectify each product recall ranged from £4million-to- £7.99 million. Thirty-eight percent said the cost to rectify the last recall was between £8 million and £39.99 million. Forty-seven percent attributed their product recalls to problems in the supply chain.

AI investment is on the rise in manufacturing

Forty-nine percent of respondents to this year’s survey plan to implement AI in the next two years (up from 24% in 2024), with 34% already using it and only 2% of respondents citing no plans for AI adoption. Respondents cited the following applications for AI in their organizations:

• Automating core processes (61%)
• Automating document processing (47%)
• Spotting defects on the factory floor (47%)
• Predicting future trends (42%)

Investment in quality Initiatives is increasing in 2025

Sixty-nine percent 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, 59% of respondents use an electronic quality management system (EQMS) to manage quality processes. Respondents stated that the top business drivers for investing in quality include improved compliance, a stronger supply chain, increased revenue, reduced costs and reduced risk.

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

Forty percent of respondents said they have 11-to-20 safety incidents in an average year with 45% of respondents noting that the number of safety issues has increased over the last five years.