This paper investigates whether investments in research and development (R&D) could have a significant impact on reducing the cost and/or enhancing the effectiveness of manufacturing assembly. It also recommends a research agenda that from an industrial perspective would result in the highest return on investment in assembly R&D. The assessment was conducted on 24 product lines across companies ranging in size from $10 million to $2 billion in annual sales. Approximately 64% of the assembly dollar value surveyed corresponded to Department of Defense (DoD) products.A needs and trends analysis was conducted to determine the perception of industrial participants regarding their current investment, need for investment, and cost impact potential of assembly activities. This resulted in identification of three major assembly issues: R&D opportunities, R&D inhibitors, and technology transfer. These findings are also summarized.