Automation is reshaping, rather than eliminating, manufacturing employment in the U.S., according to a recent CBRE analysis. The firm reports that multiple lower-skill manual positions are giving way to fewer but more technical roles as robotics and advanced systems take on a growing share of repetitive production tasks.
CBRE notes that automation is most likely to replace work that is repetitive, predictable and physically demanding. Functions such as pick-and-place assembly, spot welding, basic quality inspection and moving materials between workstations are increasingly handled by robots, which can deliver greater speed, more consistent precision and lower labor cost per unit for many of these activities.
The report, drawing on Bureau of Labor Statistics data, highlights sharp declines in some traditional manufacturing jobs between 2016 and 2025. Employment for hand packers and packagers, as well as machinists, fell during that period, with machinist positions down by more than 25%. At the same time, hiring surged in more technical roles: industrial engineer employment grew nearly 43%, industrial machinery mechanics rose 31%, and electro-mechanical and mechatronics technologists and technicians increased by 13%.
CBRE frames these changes as part of a broader trend that economists call job polarization, in which automation absorbs repetitive, rules-based tasks and elevates the value of judgment, adaptability and complex decision-making. As a result, modern manufacturing facilities require a workforce with different capabilities than the plants they are replacing.
The report points to three broad categories of in-demand jobs. Automation technicians and robotics maintenance specialists focus on diagnosing and repairing robots, robot cells and conveyor systems. These roles typically do not require an engineering degree but tend to pay above traditional production work. Process engineers and automation systems integrators design workflows that blend human and robotic labor and increasingly work with AI applications such as machine vision, predictive maintenance, digital twins and AI-enabled process optimization. Data analysts and technology specialists represent a newer cohort in manufacturing, using large volumes of equipment and production data to improve uptime, quality and defect rates.
CBRE cites BLS data showing that data science employment in manufacturing rose 171% from 2021 to 2025, outpacing the 147% increase for data science roles across all industries. Over the same period, computer occupations in manufacturing expanded by 72%, underscoring the sector’s growing reliance on digital skills.
Compensation patterns reflect this shift. In 2025, industrial engineers earned a median salary of about $102,000, while data scientists earned roughly $120,000, nearly double the $45,000 to $55,000 median range for machinists, welders, assemblers and machine operators. However, CBRE notes that recent wage growth has favored production workers, not technical staff. A shrinking pool of production labor helped push median pay for hand packers up 64% and for laborers up 55% from 2016 to 2025, while technical wages rose more slowly and were more heavily eroded by inflation.
Overall, CBRE concludes that automation reduces labor cost per unit by boosting output, even as the average cost of each remaining skilled worker increases. As manufacturers expand their technical teams, a growing share of payroll will be devoted to higher-paid roles focused on maintaining automated systems, managing complex processes and converting operational data into decisions. The report suggests that companies best able to attract, develop and retain talent in automation, engineering and analytics will be positioned to capture the productivity advantages offered by new technologies.
