The State of the Talent and Job Market in AM: 2025 Outlook

The additive manufacturing industry has seen significant shifts in recent years, with 2024 marking a critical turning point. Economic pressures, evolving hiring trends, and an increasing talent shortage at the production level, have all shaped the industry’s trajectory, creating both challenges and opportunities. As we move into 2025, it is essential to analyze the state of the AM job market, talent availability, and hiring strategies to understand what lies ahead.

The Talent Shortage Intensifies

One of the most pressing concerns in the AM industry remains the growing talent shortage. The rapid expansion of AM across multiple sectors—including aerospace, automotive, and consumer electronics—has led to fierce competition for skilled professionals. Larger multinational corporations with significant financial resources are now dominating the hiring landscape, offering higher salaries, better benefits, and more attractive career paths. This has put smaller and mid-sized AM firms at a disadvantage, making it increasingly difficult for them to attract and retain top talent.

The skills gap has become particularly evident among middle-skilled workers—those with specialized AM training but without four-year degrees. Roles such as machine operators and technicians are in high demand, yet AM employers must now compete with other industries that utilize AM technology and offer more lucrative compensation. While educational programs and certifications in additive manufacturing continue to expand – examples such as Ohio State University’s Centre for Design and Manufacturing Excellence comes to mind – they are not keeping pace with industry growth. In response, many AM companies must start focusing on internal talent development through upskilling, cross-training, and partnerships with technical schools and apprenticeship programs to mitigate the current talent market conditions. However, these strategies take time to yield results, leaving companies struggling to fill critical positions in the short term.

Market Volatility and Hiring Trends

The AM market faced a turbulent 2024, with declining revenues and shaken investor confidence. Industry leaders like Stratasys and 3D Systems reported Q2 revenue drops of 13.6% and 11.7%, respectively, reflecting broader struggles in the sector. Investor faith, already weakened by the failed SPAC boom of 2021—where anticipated revenues of $2 billion amounted to just $400 million—took another hit as ten AM companies collapsed, erasing $800 million in investments. Stratasys CEO, Yoav Zeif, highlighted these challenges during the Additive Manufacturing Strategies conference in February, underscoring how bankruptcies and bailout deals have reshaped an industry once viewed as an unstoppable force of innovation.

Conversely, the contract manufacturing and service bureau segments showed strong growth, supported by increased demand from defense projects and investments from private equity firms. According to AM Research, services experienced a 12% year-over-year (YoY) growth in Q2 2024, highlighting a shift in market focus from hardware differentiation to solutions-based offerings.

Declining Job Availability and Workforce Growth

For the third consecutive year, job availability in additive manufacturing has declined, with 2024 seeing the steepest drop yet. Hiring slowed across key regions, with North America experiencing a 14% decrease, EMEA seeing a 21% decline, and APAC reporting an 18% reduction, as published in the 2025 AM Salary Survey Report. This trend reflects the broader economic pressures on the industry and shifting hiring strategies.

Despite the contraction in job openings, the talent pool continues to expand. Around 76,000 new professionals joined the AM workforce across North America, EMEA, and APAC in 2024—10,000 fewer than in 2023. This disparity between growing talent supply and diminishing opportunities has created a mismatch in the job market, leading to restricted job mobility, particularly in North America and EMEA.

The slowdown in workforce expansion is another significant development. In previous years, AM workforce growth consistently reached double-digit figures—between 17% and 27%. However, in 2024, APAC saw no workforce growth, EMEA experienced only a 6% increase, and North America fared slightly better with a 13% expansion. This sluggish growth signals a market that is adjusting to prolonged economic headwinds, leading to more cautious hiring practices.

To get all the insights, you can download the 2025 AM Salary Survey Report for free from the Alexander Daniels Global website.

Strategies for Talent Retention and Industry Growth

In an increasingly competitive job market, AM companies must adopt innovative strategies to attract and retain talent. Offering competitive salaries alone may not be enough, although it still remains a key motivator for AM Talent. Organizations that provide career development opportunities, flexible working arrangements, and clear pathways for advancement are more likely to retain top talent in a tight labor market.

Companies are also focusing on building long-term talent pipelines through:

• Upskilling and cross-training existing employees to fill critical roles.
• Expanding partnerships with technical schools and apprenticeship programs to create a steady influx of skilled workers.
• Emphasizing workplace culture and job satisfaction to reduce turnover rates.

As the AM industry matures, businesses that successfully differentiate themselves through innovative solutions and strong workforce strategies will be best positioned for long-term success. While economic challenges persist, strategic hiring and talent development will remain key drivers in shaping the industry’s future.

Conclusion

The state of the AM talent and job market in 2025 reflects a maturing industry facing both growth and contraction in different segments. While hiring slowdowns and workforce challenges persist, the industry continues to evolve, with service-based AM solutions and defense-driven demand presenting opportunities for expansion. Companies that invest in talent development, embrace strategic hiring practices, and prioritize solutions differentiation will be best equipped to navigate the shifting landscape and drive the industry forward.