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Automotive Industry Shifts Gears As Talent and Technology Take Center Stage

1. Rockwell's report shows automotive sector prioritizing AI and workforce transformation. 2. Supply chain challenges have shifted focus from cybersecurity to change management. 3. 62% of manufacturers prioritize long-term tech investments to drive business impact. 4. AI's perceived risk has decreased; generative AI investments are rising in automotive. 5. Manufacturers face a projected worker gap of 7.9 million by 2030.

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Why Bullish?

The emphasis on AI and tech investment indicates demand for automation solutions, benefiting ROK revenue. History shows increased automation investments correlating with ROK's stock performance.

How important is it?

The report underscores trends that align with Rockwell’s core business, indicating substantial future opportunities for growth.

Why Long Term?

Ongoing tech adoption and workforce challenges will drive stable demand for Rockwell's products, similar to trends seen in the previous decade.

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HONGEABBSI
-Rockwell Automation report shows manufacturers are leaning into AI, upskilling and innovation to overcome workforce and operational challenges MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, today announced the results of the 10th annual “State of Smart Manufacturing Report: Automotive Edition.” The global study encompasses the responses of 130 leaders across automotive and tire manufacturers, original equipment manufacturers, engineering procurement companies and systems integrators across 15 countries, revealing a sector rapidly embracing change to stay competitive. Workforce pressures have emerged as the most urgent challenge for automotive companies, signaling a significant shift from last year’s findings. At the same time, concerns around cybersecurity have declined, suggesting many manufacturers have made progress in securing their digital environments. “The future of automotive manufacturing hinges on transformation – not just of technology, but talent,” says James Glasson, vice president, global industry, Rockwell Automation. “As AI and automation reshape the factory floor, success belongs to those who are investing in people. Upskilling and innovation are now the driving forces behind growth.” Key global findings include: Workforce pressures intensify: Automotive and tire manufacturers report that the top workforce-related challenge over the next 12 months is change management (37%), ensuring employees and departments effectively adopt new technology and processes. Other key concerns include employee retention (33%), rising cost of skilled workers (36%), and difficulty finding new employees (31%). Tech Investment Remains Strong: Automotive and tire manufacturers continue investing in AI, production monitoring and cybersecurity. Over 62% of respondents cited long-term business impact as the primary driver of technology investment, followed by expansion or increased capacity (58%), aligning with 2025's overall findings. AI builds momentum: The automotive industry sees the rise of AI as less of a risk now, compared to 2023 (14% in 2025 vs. 24% in 2023) with quality control, robotics and process optimization emerging as top use cases. Automotive companies lead in planned investment for generative AI, robotic process automation (RPA) and digital tools. Business outcomes drive transformation: The top goals of tech adoption remain consistent – improve quality, reduce costs and lower risks related to safety, cybersecurity and compliance. Skills shift underway: To fill the projected 7.9 million worker gap by 2030*, manufacturers are not only investing in automation but also seeking more workers with AI experience and soft skills like communication, adaptability and analytical thinking. The State of Smart Manufacturing Report is part of Rockwell’s broader global research initiative surveying over 1,500 manufacturing decision makers. The full findings of the report can be found here. * “Global Talent Shortage Could Threaten Business Growth Around the World:” (Korn Ferry, 2018) Methodology This report is based on the responses of 130 managers and executives from automotive manufacturers, original equipment manufacturers (OEMs), engineering procurement companies (EPCs), and system integrators in 15 countries. It is part of the 10th annual State of Smart Manufacturing report, which surveyed 1,560 decision makers across various industries and was conducted in association with Sapio Research and Rockwell Automation. About Rockwell Automation Rockwell Automation, Inc. (NYSE: ROK) is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 27,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com. More News From Rockwell Automation, Inc.

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