Act or fall behind: Mastering the challenges of the manufacturing industry in 2025 with IFS Cloud
2025 will be the decisive year for the manufacturing industry: Rapid technological changes, increasing cyber security threats and climate change are putting pressure on manufacturers. Those who drive digital transformation now can secure decisive competitive advantages. Others, however, will lose ground and may hardly be able to catch up on this backlog.
But where to start? How can the balance between innovation and stability be found? One answer to this is provided by the ERP software IFS Cloud, which supports companies in responding flexibly and future-proof to these challenges.
Here are four central trends of 2025 and how they can be effectively mastered with IFS Cloud.
1. Technological transformation through Industrial AI
Technologies like Industrial AI are revolutionizing the manufacturing industry. With IFS Cloud, companies can directly integrate AI-driven functions into their business processes. This enables predictive maintenance, optimized production control and data-based decisions in real-time.
An example: By integrating IoT data and AI algorithms, IFS Cloud helps companies avoid unplanned downtimes by monitoring machines early for potential disruptions. At the same time, production flexibility increases, which can mean up to 50% more agility and 44% higher efficiency.
Companies that take this step early on secure a strong market position in the long term and stay ahead of the competition.
2. The hybrid work world: Humans and AI as a team
The use of GenAI is sustainably changing the world of work. Routine tasks are increasingly being automated, while employees can focus more on strategic activities and problem-solving.
IFS Cloud supports this development through smart user interfaces and collaborative tools. For example, production employees can access relevant data in real-time via mobile applications and augmented reality, enabling quick decisions and more efficient processes.
Given the challenges of skilled labor shortages and the “silver tsunami” – the retirement of experienced employees – it is crucial to invest in training and new technologies. With IFS Cloud, targeted further education programs can be managed and collaboration between humans and machines promoted.
3. Sustainability and circular economy as success factors
Sustainability is increasingly becoming a mandatory program for companies. The EU requirements for the Corporate Sustainability Reporting Directive (CSRD) demand comprehensive evidence of the environmental impact of products.
IFS Cloud offers comprehensive solutions to support companies in achieving sustainability goals. The platform enables the implementation of digital product passports (DPPs), which contain information on the material composition, production and recyclability of a product. This transparency not only facilitates compliance with regulatory requirements but also increases customer trust in sustainable products.
Furthermore, IFS Cloud helps to optimize energy consumption in production and reduce waste, which brings both ecological and economic benefits.
4. Localization and resilient supply chains
Global supply chains are more vulnerable than ever. Geopolitical instabilities and climate-related disruptions make it necessary to design production processes more regionally and resilient.
With IFS Cloud, companies can monitor and control their supply chains in real-time. Automated workflows and integrated planning functions make it possible to detect supply bottlenecks early and develop alternative solutions. Additionally, the platform supports local production sites with smart manufacturing technologies such as robotics and additive manufacturing, which increase efficiency and flexibility.
Manufacturers who rely on resilient supply chains are better prepared for crises and can secure their market position in the long term.
Successfully starting with FLEXiCODE and IFS Cloud
Technological transformation, sustainability and resilient processes are central success factors for the future. However, implementing such strategies requires expertise and a reliable partner. This is where FLEXiCODE comes into play.
As a leading IFS Gold Channel and Gold Services Partner for the German-speaking region, FLEXiCODE accompanies companies on their journey to digital transformation. With decades of experience and more than 600 man-years of bundled expertise in IFS Cloud implementations, FLEXiCODE offers tailored solutions for the manufacturing industry.
Our customers value us not only for our expertise but also for our collaborative partnership on equal terms. In the current Trovarit study, FLEXiCODE was ranked first among ERP implementation partners – proof of our customers’ high satisfaction.
Start now and master the challenges of 2025 with IFS Cloud and FLEXiCODE as your digitalization partner!
Based on the IFS blog–post “Manufacturing Trends 2025” by Maggie Slowik and Andrew Burton