Overcoming the impact of outdated technology in manufacturing

Outdated technology is often the invisible roadblock hindering manufacturing efficiency, growth, and workforce readiness. While the industry itself continues to evolve with cutting-edge tools and techniques, many manufacturers find themselves stuck with legacy systems. According to Hexagon’s 2025 America’s State of Manufacturing Report, 72% of surveyed manufacturers cite outdated technology as a key obstacle, impacting not only their production processes but also their ability to attract and retain skilled workers. 

These are lessons that reverberate all around the world. In many ways, the US manufacturing sector can be seen as a global barometre for trade and economic stability.

If your current systems no longer serve your business goals, you aren’t alone. Below, we explore why outdated technology remains such a critical challenge in the industry and what actionable steps manufacturers can take to modernise their operations for a competitive edge. 

Why outdated technology is a persistent challenge 

Even though advanced manufacturing tools are now widely available, many organisations continue to depend on aging systems. This is often due to budget constraints, fear of operational disruptions, or the perceived complexity of integration. However, the costs of staying behind can outweigh the short-term savings. 

1. Slowed production and reduced efficiency 

Legacy systems struggle to keep pace with the demands of modern manufacturing, especially in high-stakes industries like aerospace and automotive. Outdated equipment can’t support the latest production techniques, leading to inefficiencies that snowball into higher operating costs. 

For example, manufacturers relying on older CNC programming tools often experience slower machining processes, higher rejection rates, and lower throughput. These inefficiencies make it harder to meet tight deadlines and increase overall production costs per part. 

Pro tip: Consider implementing adaptive technologies, such as cloud-based CNC solutions, that can improve efficiency by delivering real-time insights and optimising production workflows. 

2. Barriers to workforce modernisation 

Modern tools attract modern talent. However, outdated equipment presents significant barriers to hiring and retaining skilled workers. Many younger machinists and CNC programmers prefer working with advanced systems that are easier to learn, more efficient, and, frankly, more exciting. If your equipment feels obsolete, you run the risk of deterring talent – intensifying the labour shortages already plaguing the industry. 

Hexagon’s report also highlights a concerning statistic. Only 8% of manufacturers are actively reskilling their workforce. Reskilling initiatives are crucial to bridging the gap between legacy systems and employees’ ability to adapt to modern production needs. 

Pro tip: Offer reskilling programs paired with investments in intuitive, user-friendly technologies. This can make your workplace more appealing and prepare your current workforce to transition seamlessly into using new tools. 

3. Lack of scalability and adaptability 

One of the biggest limitations of outdated technology is its inability to adapt to new materials, processes, or customer demands. For instance, industries like medical and aerospace manufacturing often require the ability to scale quickly or shift to new production methods as specifications evolve. Legacy systems, with limited customisation or operational flexibility, leave manufacturers at a disadvantage in a competitive marketplace. 

Pro tip: Look for modular equipment or software solutions that allow for scalability. These systems can grow and evolve alongside your production needs without requiring a complete overhaul. 

The consequences of staying stagnant 

Ignoring the challenges of outdated technology means exposing your business to a cascade of consequences. These include: 

• Higher defect rates that require additional quality checks, adding to inspection costs. 

• Missed opportunities for reshoring as operations fail to adapt. 

• Growing skill gaps, with employees finding it harder to bridge the demands of both old and new systems. 

• Customer dissatisfaction, when delayed production timelines make you less reliable than your competitors. 

Modernisation isn’t just about survival – it’s about preparing your organisation for growth in an industry that prizes efficiency, adaptability, and quality. 

Steps to modernising your manufacturing operations 

Thankfully, overcoming the challenges of outdated equipment is achievable with the right strategy. Here are actionable steps to consider: 

1. Evaluate your current systems 

Start by identifying which legacy systems are causing the biggest bottlenecks. Are there specific machines or software platforms that slow down your team? Conduct a cost-benefit analysis for upgrading versus maintaining them. 

2. Set clear goals for modernisation 

Every business is different. Whether it’s reducing defect rates by 15% or improving throughput by 20%, clear, tangible goals will define the scope of your modernisation efforts and justify future investments. 

3. Invest in seamless integration 

When replacing outdated systems, integration concerns often top the list of objections. Choose tools that integrate easily into your existing workflows and minimise downtime. For example, Hexagon offers adaptive inspection solutions designed to work seamlessly with existing setups. 

4. Reskill your workforce 

Invest in training programs that teach employees how to operate new tools efficiently. This not only ensures adoption but also empowers your team to approach production challenges confidently. 

5. Adopt modular and adaptable technologies 

Choose equipment and solutions that allow for incremental upgrades. This ensures scalability while keeping up with the changing demands of industries like aerospace and medical manufacturing. A phased approach can also reduce costs and minimise operational disruption. 

6. Prioritise support and maintenance 

Even the most advanced systems require proper support to maintain optimal performance. Invest in solutions with comprehensive post-purchase support, such as real-time analytics, diagnostic tools, and responsive customer service. 

Why now is the time to act 

The risks of delaying modernisation are clear. From slower production cycles to rising operational costs, outdated technology is a drain on resources and potential growth. Competitors who have already embraced advanced manufacturing tools are gaining an edge in efficiency, quality, and customer satisfaction – while capturing talent that could drive their future success. 

Modernising your operations is no longer a “someday” goal. It’s a “right-now” priority and Hexagon is here to help. 

Download the full report for more insights 

For a more comprehensive look at the challenges outlined above, including how industry leaders are overcoming them, download Hexagon’s 2025 America’s State of Manufacturing Report.   

The future of manufacturing starts with the actions we take today. What’s your first move?