Why Hardware Is the Latest Disruption in Manufacturing

There was a time when top technology companies proudly declared their intentions to bypass hardware in favor of software development. For instance, as early as 2022, IBM announced that although it was “once known as a hardware company,” it would be “shifting its focus from hardware and global services to software, cloud, consulting, and infrastructure.” While cloud technology has indeed experienced a boom since the post-pandemic world, limitations have led many companies to sing a very different tune. McKinsey notes that analysts have seen a resurgence in “software-defined hardware”—hardware that can be configured and upgraded via software, suggesting that the “software vs. hardware” debate is no longer part of the zeitgeist. In fact, current manufacturing is smarter, better, and more time- and cost-efficient thanks to new advancements in both technology and materials.

A Growing Dependence on Hardware

Although software has grown at an impressive rate, many limitations have curtailed its expansion. Physical products and systems still rely on hardware, and several new items—from autonomous vehicles to IoT, advanced medical devices, and aerospace—require the integration of hardware, software, and cutting-edge materials. Take the example of autonomous vehicles that use software to help drivers make decisions and process sensor data. These functions depend heavily on hardware components, such as LiDAR, radar, high-resolution cameras, onboard processors, and lightweight automotive materials. In the realm of IoT, meanwhile, software connects devices and analyzes data, but hardware—including antennas, sensors, and microcontrollers—makes IoT functionally possible in the physical world. 

The Rise of New Materials

New developments in metallurgy have opened the doors to many new uses for hardware. For instance, advanced composites, alloys, and high-performance metals such as titanium are widely used in the automotive and aerospace industries. Manufacturers are not only purchasing this metal in greater quantities but are also seeking to work with local suppliers. Frequently searched terms such as “titanium material suppliers near me” reflect the trend toward regionalized and more sustainable manufacturing. For instance, modern alloys such as Titanium Beta-C boast higher tensile strength, improved fracture toughness, and better performance at higher temperatures. They allow manufacturers to build light, stronger components, which are vital for vehicles, airplanes, and high-performance machinery. There have also been significant advancements in powder metallurgy and electron beam melting, enabling 3D printing to manufacture complex components that cannot be machined. New materials such as nano-coatings, meanwhile, have boosted tool hardness and wear resistance to unprecedented levels.

The Role Played by Automation and Robotics

Automation is now part of far more processes than in decades past. It is utilized in everything from robotic welding to autonomous QA systems, reducing human error, speeding up production, and permitting manufacturers of all sizes to scale. Advanced automation systems, alongside cloud-connected machines, digital twins, and on-demand production, has dramatically reduced the time and cost required to bring hardware from prototype to market. Rapid iteration was once the exclusive domain of software engineers. Today, it has entered the world of physical product manufacturing.

Hardware Manufacturing Is Thriving in a Global Economy

Hardware and other forms of manufacturing remain key pillars of economic growth and trade competitiveness in the US and beyond. The World Economic Forum notes, for instance, that six countries are actively growing their manufacturing sectors through policy and investment. The global share of manufacturing has declined, yet the value of manufactured goods is increasing in areas such as aerospace, semiconductor, and advanced materials manufacturing. In the US, manufacturing value added accounted for about 9.7% of GDP in the first quarter of 2025, and the sector supports many more jobs and drives additional economic activity. The National Association of Manufacturers reports that for every $1 spent in manufacturing, the overall economy sees a total impact of $2.64, representing one of the most significant sectoral multipliers in the economy. Moreover, for every manufacturing worker, some 4.8 workers are added to the overall US economy. In August 2025, there were almost 13 million manufacturing workers.

Less than five years ago, powerful companies like IBM were announcing a shift toward software-centric strategies. While it is true that technologies such as cloud computing have experienced significant growth in the post-pandemic world, many of these technologies still require hardware to serve consumers, from autonomous vehicles to devices powered by artificial intelligence. The rising demand for hardware can also be attributed to factors such as advances in materials, automation, and robotics—all of which reduce the costs and time required to manufacture a wide array of machines, equipment, and devices.