Wi-Fi Modernization Unlocks Strategic Growth and ROI

Cisco’s inaugural State of Wireless Report highlights Wi-Fi’s evolution into a strategic growth engine, driving productivity, customer engagement, and revenue. The report reveals how AI-driven automation, modern security, and specialized expertise can help companies navigate the wireless AI paradox, achieving significant ROI and competitive advantages for plastics manufacturers.

Wi-Fi has transformed from a basic connectivity tool into a strategic growth engine, according to Cisco’s inaugural State of Wireless Report. The report, based on insights from more than 6,000 wireless professionals globally, reveals how organizations, including manufacturers, leveraging wireless strategically are achieving significantly higher business value compared to their peers.

Anurag Dhingra, senior vice president and general manager of Enterprise Connectivity and Collaboration at Cisco, highlighted Wi-Fi’s multiplier effect, where a single network investment drives compounding returns across employee productivity, customer engagement, and revenue.

“The enterprise workforce is evolving into blended teams of humans, AI agents, and automated systems, all operating together at machine speed,” Dhingra said. “Wi-Fi is the foundation that makes that possible, connecting every endpoint, protecting every interaction, and unlocking the operational insights that drive smarter decisions across the business.”

The report underscores the rise of high-bandwidth applications like 4K/8K streaming, AR/VR, and AI workloads as primary drivers for wireless modernization. Organizations are adapting to these demands alongside workplace trends such as hot desking and BYOD, significantly increasing their wireless budgets:

80% increased spending over the last five years.

29% increased budgets by 50% or more during this period.

82% forecast continued budget increases over the four to five years.

35% expect to increase budgets by 50% or more in the coming years.

Organizations modernizing their wireless infrastructure are experiencing a multiplier effect, with 78% reporting operational efficiency gains, 75% seeing employee productivity improvements, 75% observing enhanced customer engagement, and 68% experiencing positive revenue impacts.

Matthew MacPherson, chief technology officer at Cisco Wireless, explained that modernizing wireless infrastructure can also help manufacturers achieve measurable gains in efficiency, productivity, and revenue, as highlighted in the report.

“When we talk modernizing wireless infrastructure, it’s easy to think that we’re simply talking faster internet,” MacPherson said. “But in the manufacturing world, it’s building a resilient foundation to support industrial innovation and the future of manufacturing.”

MacPherson noted that adopting modern standards like Wi-Fi 6E or 7 unlocks a 'multiplier effect,' where one strategic investment generates compounding returns across multiple areas of operation.

“Think of it as boosting worker productivity on the factory floor, enhancing real-time operational efficiency, and driving increased throughput and revenue growth simultaneously,” he explained.

A modern network allows manufacturers to deploy high-bandwidth, low-latency applications without the constant threat of downtime that might halt a production line or compromise safety systems. MacPherson emphasized that modernization enables the convergence of standard wireless traffic with ultra-reliable wireless backhaul (URWB). By running both on a single, unified network, manufacturers can provide deterministic, mission-critical connectivity for autonomous mobile robots (AMRs) and automated guided vehicles (AGVs), eliminating the need for fragmented, proprietary systems.

“The data is clear on wireless investments for manufacturers: 81% of those surveyed reported efficiency gains, and nearly three-quarters saw a direct, positive impact on their revenue,” he added. “It turns the network from a 'utility' into a strategic growth engine that keeps production lines moving and innovation scaling.”

While AI is a key driver of wireless ROI, it also introduces operational complexity and security risks. Cisco’s report identifies three interconnected areas that organizations must prioritize to achieve wireless ROI:

Reducing Operational Complexity : Nearly all organizations (98%) report rising wireless complexity, which drains resources and undermines AI initiatives. To address this, more than four in five organizations prefer a fully or mostly automated wireless network powered by AI-driven operations. Among those already using AI automation, 98% report substantial gains, saving an average of 3 hours and 20 minutes per person, per day.

Mitigating Wireless Security Risks : AI-generated security incidents are a leading driver of increased wireless security risks. Over half of organizations report financial losses from wireless security incidents, with half of them exceeding US$1 million annually. A third of affected organizations attribute these incidents to compromised IoT or Operational Technology (OT) devices.

Addressing Competition for Wireless Personnel : A significant talent shortage is amplifying operational challenges. Nearly nine in ten wireless leaders are struggling to hire qualified professionals, with many moving to roles in AI and cybersecurity. Organizations facing hiring difficulties are more likely to incur security incident costs that are 70% higher annually than those without recruitment challenges.

The report highlights a growing trend toward upgrading wireless networks to the 6GHz spectrum. Nearly three in five organizations plan to deploy Wi-Fi 6E or Wi-Fi 7 within the year, aiming to meet modern connectivity demands.

“AI is both the biggest opportunity and the biggest test for enterprise networks right now,” Dhingra emphasized, highlighting the dual nature of AI’s impact on wireless infrastructure.

MacPherson noted specific challenges manufacturing companies, including plastics processors, face in aligning wireless technology with their business goals. He said the biggest hurdle identified in the report is the 'Wireless AI Paradox.'

“We found that while AI is the primary driver for ROI, it also introduces complexity, new security considerations, and intensifying competition for specialized talent,” he said. “Many of those surveyed also reported their teams being stuck in a reactive cycle where they’re spending all their time firefighting wireless tickets instead of focusing on production goals.”

Organizations four times more likely to achieve wireless ROI are those that adopt a holistic approach. MacPherson explained that these organizations upgrade legacy Wi-Fi infrastructure, automate routine tasks, focus on mitigating security threats, and invest in talent.

“In manufacturing, a security incident isn't just a data leak; it can stop a production line or even put workers at risk,” he said. “Because IT and operational technology (OT) are now so tightly converged, your attack surface is much larger than it used to be.”

MacPherson identified three key trends likely to impact ROI over the one to three years:

Shift to 6GHz : As companies move to Wi-Fi 6E and 7, the spectrum will become the standard for high-performance industrial applications. Early adopters will gain a competitive edge in deploying AI-driven robotics and high-density sensor networks.

Addressing the Skills Gap : Nearly nine in ten wireless leaders are struggling to hire specialized professionals, driving higher security incident costs and trapping teams in reactive operations. Forward-thinking organizations are leveraging AI, automation, and AgenticOps—autonomous, AI-driven systems capable of executing complex workflows and making real-time decisions—to bridge the talent gap.

Deeper IT and OT Convergence : Seamless communication and collaboration between IT and OT teams are becoming essential for driving improved operations and outcomes.

“We are seeing industrial requirements become a core part of enterprise networking,” MacPherson concluded. “The companies that successfully bridge this gap — making their wireless network as robust, reliable, and secure as their physical production line — will be the ones that see the highest returns on their investment.”

The Cisco State of Wireless Report is a global study based on interviews with 6,098 wireless decision-makers and technical specialists in organizations with at least 250 employees across 30 markets and various industries. Research was conducted by Sandpiper Research and Insights.

Wi-Fi’s evolution into a strategic growth engine is reshaping how organizations approach connectivity, productivity, and security. By integrating AI-driven automation, modern security, and specialized expertise, businesses can turn wireless infrastructure into a powerful competitive edge, achieving significant ROI and driving future growth.

David Hutton is a journalist with more than 25 years of experience as an editor and writer with daily newspapers and trade publications.

A Kent State University graduate, he was born in Canton, OH, and is a lifelong writer. David started his professional career as a reporter and page designer with the Parkersburg Sentinel in Parkersburg, WV. He returned to his hometown, taking a role with the Massillon Independent , where he rose to the position of managing editor.

David’s career took him to October Research Corp. , where he worked for trade publications in the real estate settlement services industry before returning to daily newspapers as news editor for The Times-Reporter in Dover-New Philadelphia, OH. While there, he oversaw design of the newspaper and won an Associated Press award for Best Page 1 Design.

In 2012, David joined the staff of Plastics News as research analyst . He was responsible for the production of data research reports providing analysis of various segments and end markets of the plastics industry. He also produced content for the publication.

In 2019, David joined Ophthalmology Times , serving as managing editor of the publication covering the latest advancements in the ophthalmology industry for physicians and clinicians.

David lives in Canton, OH, with his wife, Arionne. They have three grown children, Paige, Chandler and Connor. Their "zoo" also includes two cats, a parrot, and a pug, named Freddie.

An avid sports fan, David follows the Cleveland Browns, Cavaliers, and Guardians as well as the Ohio State Buckeyes. He also enjoys movies, classic rock, and reading. He enjoys sports cars, and owns a Camaro and a Corvette.