Changes coming in 2025 will challenge the automotive, logistics, and manufacturing industries in ways that’ll force organizations to digitally evolve to avoid falling behind the competition.

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According to Dave Glennon, partner and manufacturing industry leader at Eide Bailly, “Manufacturers clearly realize that if they’re not investing in technology, they’re falling behind. They also know that equipping their team with the necessary digital solutions can make them more productive, efficient and engaged.”

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Getting teams equipped with capable digital solutions is key to a successful 2025 as geopolitical shifts will push reshoring manufacturing by increasing tariffs on international production and boosting incentives for local production. So industries who rely heavily on offshore operations will have to scale up their domestic capabilities, which require robust, scalable, and secure systems. 

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However, many of these organizations are still running on legacy technology. 

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What are Legacy Systems? 

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Legacy systems refer to outdated computing software or hardware that’s still in use. But outdated doesn’t mean obsolete. In fact, a lot of legacy systems can still perform their intended functions. So why do legacy systems need an update? Because of their lack of functionality with modern technology (like artificial intelligence (AI) and machine learning (ML)) older applications can't scale to additional use cases or to new customers with new requirements. 

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For automotive, logistic, and manufacturing organizations, legacy systems will be a roadblock to success. Older software typically involves unconnected solutions, manual processes, and siloed data — slowing down reaction times to evolving market demands.

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To overcome the challenges of 2025 and beyond, the automotive, logistic, and manufacturing industries need to replace their outdated systems with modern solutions.

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The Rising Pressure to Evolve

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Organizations across automotive, logistics, and manufacturing face unprecedented pressures from multiple fronts, including tech capabilities that demand change, evolving customer expectations and user experience, geopolitical and economic pressures, and private equity influence.

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Tech capabilities: Advanced technology is no longer a luxury — it’s an expectation. Companies must adopt capabilities like AI, internet-of-things (IoT), and cloud computing to gain operational efficiencies and competitive advantages. Manual processes that were acceptable five years ago are now becoming barriers to growth, and competitors armed with modern systems are quickly gaining market share.

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For example, AI can sharply reduce the time required to integrate codebases, cutting a 2-3 year process in half. These tools free teams from repetitive, low-value tasks, enabling them to focus on strategic initiatives instead. 

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Customer expectations: The era of cumbersome forms and outdated interfaces is ending. Customers now expect sleek, intuitive experiences — often driven by conversational AI like chatbots. This requires seamless APIs that connect customers to real-time data, enabling smarter decision-making and human-like responsiveness.

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Economic pressures: Tariffs and incentives to reshore production in domestic markets are increasing. Companies previously reliant on a small number of offshore suppliers are now engaging with a broader range of domestic partners. This shift poses significant challenges, such as accommodating higher throughputs and managing complex, multi-party supply chain relationships securely. 

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Private equity: Private equity is creating new pressures for mid-market manufacturers, consolidating multiple smaller players into major conglomerates. While this brings opportunities for scale and efficiency, it also presents significant technical challenges. Merging companies must unify disparate systems and scale their technology infrastructures to handle new complexities.

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But within each of these pressures lies the possibility to create competitive advantages. For companies willing to adapt to the demands of 2025, a dynamic market is theirs for the taking. Preparing for this means having a modern, scalable software in place that’s backed by AI.

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Using AI for a Competitive Advantage in 2025

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Modernizing software isn’t just a short-term fix — it’s a long-term investment in your organization's efficiency and innovation. Integrating AI can provide a competitive advantage by delivering:

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Cost Savings: By automating repetitive tasks and predictive functions, AI reduces the need for manual intervention, cutting labor costs and enabling organizations to compete in an tech-heavy marketplace. 

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Speed: AI accelerates modernization by automating code analysis, system monitoring, and testing, all of which ensure faster times-to-market. As markets go through reshoring and other economic changes, being able to keep pace with the shifts will be imperative to a successful 2025. 

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Scalability: Modern, AI-enabled platforms adapt and grow as your business evolves, making them future-proof. This is especially important as private equity pushes merging companies to run faster and smoother than legacy solutions would allow. 

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Data-Driven Decision-Making: AI’s ability to process and analyze real-time data ensures organizations make informed decisions that directly impact profitability — like dynamic user experiences that meet modern customer expectations. 

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Organizations that rely on aging, patchwork systems run the risk of being left behind in a year where speed, accuracy, and resiliency will define success. Meanwhile, automotive, logistic, and manufacturing organizations that leverage AI will set themselves apart as leaders. 

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The AI Modernization Journey

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Emerging technologies are uniquely positioned to address the pressures facing the automotive, logistic, and manufacturing industries — offering practical paths to transformation. And when it comes to using tech for modernization, nothing brings more to the table than AI. 

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For example, mapping out codebases to uncover system connections was traditionally a manual process, which is not just labor intensive but also prone to errors — resulting in a high risk of overlooking critical dependencies. AI can automate this work at a level of speed and exhaustiveness that humans can’t match, delivering a comprehensive understanding of even the most complex systems in a fraction of the time. 

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AI can also process and analyze vast amounts of data in real time. This is especially critical for industries like automotive and logistics, where high-throughput environments and intricate supply chains generate an overwhelming amount of information. AI tools analyze data from connected machinery to identify bottlenecks, predict potential failures, and ensure smooth operations. 

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Additionally, businesses need to prioritize strengthening the robustness of their security systems, which gets harder as the software ages. AI-driven security tools are crucial for protecting sensitive operational data in manufacturing and logistics. They can detect unusual activity, adapt to threats, and ensure regulatory compliance. 

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By leveraging AI-driven software modernization, the automotive, logistic, and manufacturing sectors can thrive in 2025. 

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Set Yourself Up for Success in 2025

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By 2025, the organizations taking steps to shed legacy technology and adopt AI will emerge as leaders in the automotive, logistics, and manufacturing sectors. AI isn’t just a tool — it's a catalyst for business transformation. For companies in automotive, logistics, and manufacturing, leveraging AI to modernize software isn’t optional; it’s essential for maintaining relevance, innovation, and a competitive advantage in an increasingly complex global landscape.

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So don’t get left behind in this crucial shift. Start future-proofing your systems today and position your business as a leader in the era of domestic production. 

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Are you ready to position your organization for success? See how you can do it with Stride100x. 

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