New research shows that less than half of manufacturers have fully connected data across design, production, quality and business systems, indicating a gap between operations and what is actually happening on the production floor. 

Although 77% of manufacturers describe their operations as connected, but only 40% have fully connected data across systems, according to research from Hexagon’s 2026 America's State of Manufacturing Report.. 

Additionally, 39% of manufacturers reported limited feedback between design, manufacturing and quality teams, and 67% do not have data from most systems integrated into a single view. 

The research, which was commissioned by Hexagon and conducted by Dynata, surveyed 511 professionals working in U.S. manufacturing from entry-level workers to the C-suite.   

Other key findings from the report include: 

• Almost 70% of manufacturers lose at least six hours per week to quality issues, with 42% saying issues are identified too late. 
• 85% face barriers to increasing automation, led by cybersecurity concerns and difficulty demonstrating cost and ROI. 
• Only 7% anticipate workforce cuts, down from 18% last year, while 41% expect AI to create new roles. 

Steve Ilmrud, vice president at Hexagon Manufacturing Intelligence, recently told Automation World why some of the statistics in the report hit home for him. 

“Overseeing factories day to day means I'm living these innovations and challenges firsthand, and this data validates what I'm seeing on the ground as the industry races to keep pace with new technology. We aren’t ignorant to the fact that the manufacturing industry is going through a lot of change, growth, and uncertainty at the moment," Ilmrud said.  

“We’re hearing this regularly from customers, and it was important for us to obtain a wider snapshot as to how areas like connectivity, insights and more can help the factory floor work at its best during pivotal moments of growth and change.” 

Automation World: Why is there such a chasm between connected operations and fully connected data? 

Steve Ilmrud: Most plants added systems one at a time over the years, like an ERP here, a quality system there, and a CAD/CAM package later. Each one solved a real problem, but they were never designed to talk to each other. That is how you get a wide disconnect that our research was able to back up; 77% of manufacturers saying they are connected while 67% don't have their data in a single view. 

AW: What was the biggest surprise in this report? 

SI: That the gap between what manufacturers believe about their own connectivity and what the data shows is as wide as it is. 40% say they are fully connected end to end. In those same companies, more than a third report limited feedback between design, manufacturing and quality, and both answers come from the same workforce. That tells you the label has outrun the reality, and that gap is exactly where quality problems hide. 

AW: Are disconnects between shop floor and C-suite getting worse or better? 

SI: Right now, it doesn't appear to be something that's getting better as there is a major disconnect. 80% of executives say their data is integrated, but only a third of the shop floor agrees, the widest gap in our research. The solution starts with asking the people running the equipment where information breaks down before assuming you already know. 

AW: What is the most actionable insight for readers? 

SI: While it may sound broad, focus on connecting people, data, technology and processes into a single, unified view. Two-thirds of manufacturers told us that they aren't doing this, and it's a major oversight as the factory floor becomes more connected. From there, ask the people running the equipment where the biggest gaps are and what should be fixed first instead of expecting executives to have the right answers.