Half of U.S. Manufacturing Workers Say We’re Falling Behind

A silent consensus is forming inside U.S. factories: we’re no longer leading the pack. For years, American manufacturing has been viewed as the heart of innovation and productivity, but that perception is beginning to fracture. Among the most telling signs is a rising wave of concern from those within the sector itself. Workers on the ground and executives in the boardroom are sounding the same alarm—American factories are losing ground in the global technology race.

A Growing Concern on the Factory Floor

The numbers paint a sobering picture. According to the 2025 U.S. Manufacturing Technology Readiness Report: Ready to Lead? by Integris, 51% of U.S. manufacturing workers believe that American factories are falling behind their international counterparts when it comes to technological advancement. This concern isn’t limited to the workforce. In fact, 54% of manufacturing executives agree, pointing to a cross-tier recognition that something is structurally wrong. The divide isn’t about opinions, it’s about systems that no longer serve the needs of a modern industrial economy.

Manufacturing employees, who are closest to the machines and systems that power U.S. production, are the first to see where the cracks are forming. Their concern stems from day-to-day frustrations with outdated software, inefficient workflows, and slow adoption of automation tools. In a world where precision and speed are paramount, even minor lapses in technology can snowball into significant productivity losses. These challenges don’t just frustrate operations, they threaten long-term viability.

Tech Deficits and Their Domino Effect

Core concerns raised by workers and leaders alike center on slow automation adoption, aging IT infrastructure, and poor software integration. These aren’t minor obstacles. They’re systemic disadvantages that weaken America’s industrial agility. While other nations press forward with advanced robotics, real-time data analytics, and cloud-connected systems, many U.S. factories remain bound to legacy equipment and patchwork IT solutions. These technological deficits create drag across every link of the production chain.

Inefficiency has become a recurring theme. Delays in upgrading software mean decision-making is often based on incomplete or outdated information. Poor IT integration across departments results in communication bottlenecks that hamper responsiveness and innovation. And the slow pace of automation adoption makes it harder for companies to scale operations or adapt to market changes. These are not just missed opportunities. They are competitive disadvantages that affect everything from lead time to labor costs.

The repercussions extend beyond the shop floor. Without modern systems in place, it’s harder to attract and retain skilled workers who want to be part of a forward-thinking, tech-enabled environment. Today’s workforce, particularly younger, tech-savvy professionals, expects to operate within modern systems that support efficiency, learning, and collaboration. When those expectations aren’t met, industries suffer from brain drain, further eroding their ability to innovate and remain competitive.

A Blow to Morale and Global Standing

The belief that U.S. manufacturing is lagging in the global race isn’t just a technical diagnosis—it’s a psychological one. Morale suffers when workers and executives alike feel they’re fighting an uphill battle with outdated tools. When employees know that international competitors are working with better systems, it fosters a sense of vulnerability and frustration that undermines productivity and long-term confidence.

This internal perception has real-world consequences. It shapes how businesses plan for the future and how teams engage with their roles. Employees who feel their company is behind the curve are less likely to feel invested in its vision. They’re also less likely to see a future for themselves within it. Meanwhile, from a global standpoint, this perceived disadvantage damages how U.S. manufacturing is viewed on the international stage. Nations with faster modernization efforts appear more capable, more adaptive, and ultimately more attractive to global partners and investors.

When perception becomes reality, it’s difficult to reverse. Allowing this sentiment to persist unchecked means risking not only the momentum of American manufacturing, but its very identity as a leader in global production. The pressure is no longer just to maintain operations, but to restore belief, internally and externally, that the U.S. can compete at the highest technological level.

Modernization Must Move Faster

There is no longer time for incrementalism. The tech race won’t wait. If American manufacturers are to reclaim their edge, modernization efforts must move beyond patchwork upgrades and reactive changes. They must be bold, strategic, and immediate. Investment in automation, digital infrastructure, and advanced manufacturing processes is not optional—it’s existential.

Workers and executives are aligned in their diagnosis of the problem. Now it’s up to leadership, policy makers, and industry stakeholders to act on that shared insight. Creating a national framework for manufacturing modernization, incentivizing private investment in cutting-edge systems, and nurturing a tech-literate industrial workforce will be essential steps toward rebuilding competitiveness. The future of American manufacturing won’t be determined solely by output—it will be determined by whether or not the systems behind that output are built to last.

In the global race for industrial dominance, standing still is falling behind. America has the talent, the history, and the resources to lead. What it needs now is the will to modernize at the speed of progress.