Analyst Insight: Procurement used to be all about finding the best deal — an insular, contract-heavy, back-office function. But as the business landscape undergoes vast changes, from supply chain disruptions to economic volatility to digital transformation, so too does procurement.  

Today’s procurement professionals are evolving from cost-cutters to value creators focused on long-term supplier partnerships, technological innovation, and cross-functional collaboration. Manufacturers evaluating new hires should be cognizant of several key trends currently reshaping procurement.  

AI takes center stage. Artificial intelligence tools are  improving fast, and proficiency with them is now a must for procurement professionals. This could entail everything from data visualization tools and automation of requests for proposals (RFPs) to streamlining contract reviews and receiving recommendations based on market data and organizational spend. 

Generative AI adoption is booming as well. In a 2024 survey, 92% of chief procurement officers said they’re assessing these capabilities, and 11% of organizations are currently spending over $1 million of their annual budgets in this area for sourcing and procurement. That amount is expected to double to 22% in 2025.

While AI may be all the rage right now, certain procurement responsibilities will remain AI-proof, such as collaborating with various team members on strategy, master planning, and project management. 

Election results provide some clarity, and some unknowns. On one hand, some uncertainty should dissipate now that we know the results of the 2024 elections, which could lead to more investment in procurement staffing in 2025. 

On the other hand, the changing administration may be a cause for concern for some U.S. manufacturers who, should proposed higher tariffs go into effect, will have to nearshore their supply chains to avoid high import costs. This could have a downstream impact on staffing for procurement professionals as manufacturers scramble for domestic partners. 

Expect a continued increase in project-based roles. In 2025, the procurement workforce will continue its ongoing shift toward project-based roles. This trend is predominantly driven by ongoing digital transformations, including major enterprise resource planning (ERP) implementations and accelerated cloud migration strategies. 

Soft skills are increasingly important. In addition to technology skills, communication, collaboration, change management, emotional intelligence will become increasingly important as procurement professionals take on more strategic, cross-functional responsibilities. 

The growing need for these skills also reflects generational shifts, as more senior-level professionals seek ways to connect with younger talent and get their buy-in — particularly in light of the tendency of younger generations to switch jobs. 

Hot sectors to watch. Procurement staffing needs may pick up in several industries in 2025. Food manufacturing, for instance, could see an uptick amid the rise of nutraceuticals. The global push for sustainability and vast government subsidies should drive the procurement of components for solar, wind and battery storage systems. In addition, as innovation in healthcare remains a top priority, the demand for specialized materials and equipment in the biopharmaceutical and advanced medical technology spaces will likely continue to grow. 

Outlook: Procurement in 2025 is no longer a peripheral function, but a critical strategic capability. Professionals are gaining unprecedented exposure across the organization, from manufacturing and sales teams to production and finance departments. They’re also deploying innovative technologies to deliver tangible bottom-line business impacts. These should be attractive attributes for up-and-coming professionals, as well as those still looking to develop their careers.  

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