5 Key Manufacturing Trends That Will Shape 2026

If 2025 taught manufacturers anything, it’s that uncertainty isn’t going away. Trade policy shifts, rising costs, and rapid technological change created turbulence throughout the year for manufacturers worldwide.

But 2026 isn’t about waiting for things to stabilize; it’s about building resilience despite ongoing uncertainty. The manufacturers who will thrive are those making strategic investments in technology and people, starting with a strong data foundation.

The 5 Key Manufacturing Trends for 2026

In this article, we also gathered insights from industry experts Mohamed Mouni, Founder of Beyond 4.0 and Certified SIRI Assessor, and Spiros Vamvakas, Manufacturing Industry Expert with 40 years of experience. Here we explore the five key trends shaping manufacturing in 2026.

1. AI Matures in Manufacturing

In Evocon’s Key Trends Impacting Shop Floors in 2025 report, AI in manufacturing was the number one trend for the year. Although there was skepticism about its impact on the floor in 2025, it was clear that manufacturers should look for opportunities to adopt AI thoughtfully.

Now, AI in manufacturing is evolving beyond data analysis and reporting. In 2026, agentic AI (AI systems that can reason, plan, and take autonomous action with human oversight) is moving into practical applications. In Forbes’ 6 Defining Manufacturing Trends Of 2026, Bernard Marr describes this shift as the rise of the “cognitive industry,” where AI doesn’t just inform decisions, but actively manages factory operations with minimal human intervention.

This shift is significant. Previously, AI might alert you to a supply chain disruption, whereas agentic AI detects the disruption, evaluates suppliers, starts negotiations, and presents solutions. Manufacturers are currently experimenting with agentic AI for autonomous supply chain management, knowledge capture from retiring technicians, production optimization through automated shift reports, and customer service with instant contextual guidance. Industry forecasts cited by Forbes suggest that the use of agentic systems in manufacturing could quadruple by 2027. But even with these rapid advancements, we still need to wait to see the full impact on shop floors.

Spiros emphasizes the importance of data quality and human involvement when experimenting with AI in manufacturing. AI can process massive volumes of data, but it does not guarantee correct or meaningful outcomes on its own. The quality of AI results depends heavily on three factors:

• Data quality:
  Inaccurate, incomplete, biased, or inconsistent data leads directly to unreliable or misleading outputs. “Garbage in, garbage out” still applies, even with advanced AI.
• Proper training and context:
  Users must understand how the AI was trained, its assumptions, and its limitations. Without training, people may overtrust results or misinterpret probabilities as facts.
• Human evaluation and accountability:
  AI does not replace judgment; it supports it. A person must review, validate, and contextualize results before decisions are made. Final responsibility remains with humans, especially in high-impact areas (health, finance, law, safety).

In practice, effective AI systems work best when humans curate and validate data, AI analyzes and highlights patterns, and people interpret results and make final decisions.

With AI adoption accelerating across industries, manufacturers are facing pressure to implement quickly. But agentic AI requires a foundation of real-time operational data. If your production tracking is still manual or spreadsheet-based, the priority is to digitize it first. Start with automated data collection and visibility into machine performance before adding AI capabilities on top.

2. Trade Uncertainty and Supply Chain Resilience

2025’s trade volatility made supply chain management particularly challenging. According to Deloitte’s 2026 Manufacturing Industry Outlook, manufacturers responded with strategies including front-loading inventory, diversifying suppliers, and restructuring their supply chain networks. Yet, input costs are still expected to rise by 5.4% over the next year.

There are some positive signs for US manufacturers, with new trade agreements with the UK, Vietnam, Japan, South Korea, and the EU bringing more predictability. The renegotiation of the United States-Mexico-Canada Agreement is underway, which could stabilize tariff rates with two of US manufacturing’s largest import partners.

But these changes take time. According to the National Association of Manufacturers (NAM) Third Quarter Manufacturers’ Outlook Survey, over 75% of US manufacturers identified trade uncertainty as their top concern. But this uncertainty isn’t stopping them — it’s leading them to adapt and optimize. The same survey shows that 56.9% expect output to rise over the coming months, with production expected to increase 2.5% and sales to rise 2.6% on average over the next 12 months.
Digitization helps manufacturers overcome these challenges, with opportunities to implement production monitoring tools and automation to reduce waste and maximize output. We can see that this is top-of-mind for manufacturers when we look at investment priorities, with 89.4% of manufacturers planning to prioritize digital transformation in their operations over the next year.

But investing in new technologies won’t solve every problem. The best path forward is often getting the most out of your current machines.

3. Adaptive Workforce Planning

Competition for skilled workers remains a challenge, especially as manufacturers invest in advanced technologies. More than a third of manufacturing executives say their top challenge is equipping workers with the skills needed to maximize smart manufacturing potential.

Economic uncertainty makes workforce planning even harder. Demand can shift rapidly, but hiring and training can take months. According to Deloitte, the Build-Buy-Borrow framework can help manufacturers navigate this challenge.

• Build: Invest in your core workforce — including wages, childcare support, transportation, and housing. Use technology to make jobs more flexible and appealing to younger generations.
• Buy: Recruit external talent with critical expertise that would take too long to develop internally.
• Borrow: Use temporary workers or third-party specialists to handle demand fluctuations.

New technology supports these approaches. AI can capture knowledge from experienced workers and generate training materials for new employees, and access to remote collaboration can broaden the talent pool. As Deloitte notes, the “US manufacturing industry will continue to make its human workforce a top priority in the coming years.” 

The fact is that with all of these new technologies and tools, you need humans with creativity, collaboration, and emotional intelligence to use them effectively. Implementing tools that are easy to use can help ease the transition to new systems. Evocon clients have shared that it can be used effectively even without extensive training, thanks to its simple and intuitive interface.

Similar to 2025, this year’s focus should remain on using technology to support human capabilities, rather than replace them.

4. Sustainability Pressures

In last year’s report, sustainable production pressures were already a key concern for manufacturers. In 2026, this has evolved from a competitive advantage into a business must-have, driven by investor expectations, regulatory requirements, and consumer demand.

According to Tracera’s ESG Manufacturing Report, 79% of consumers now consider sustainability when choosing products. This consumer pressure, along with investor scrutiny, is changing how manufacturers operate. 

In Europe, regulations are tightening, with the EU’s Corporate Sustainability Reporting Directive requiring extensive sustainability disclosures from large companies. The EU is also implementing mandatory digital product passports, which will start with battery passports from February 2027. These requirements are pushing manufacturers to invest in systems that can track, measure, and report on sustainability metrics throughout their operations.

But sustainability isn’t just about compliance; it’s about operational efficiency. Manufacturers who optimize processes to use less energy, water, and materials not only reduce their environmental footprint but also improve profitability. According to Tracera, 60% of companies are prioritizing investments in technology to drive operational efficiency as part of their sustainability strategies.

The data collection required for sustainability compliance naturally connects to smart manufacturing systems. Real-time monitoring of energy consumption, waste, and machine utilization provides the data needed for sustainability reporting while also identifying opportunities for cost reduction.

For manufacturers in 2026, the focus should be on integrating sustainable practices into operations in a way that drives both compliance and competitive advantage.

5. The Connected Factory

The key to navigating uncertainty and capitalizing on the other four trends is a fully connected factory floor. Most advanced manufacturing technologies are fundamentally dependent on having accurate, instant data from production.

Today, manufacturers still lack the visibility needed for informed decision-making. Data is often delayed, incomplete, or manually collected, making it difficult to make confident operational decisions. The first step toward a connected factory is therefore not advanced automation or AI, but a system capable of reliably capturing and visualizing real-time production data.

At the core of the connected factory is data collection:

• Industrial Internet of Things (IIoT):
  Sensors and connected devices capture live data on machine performance, operating conditions, downtime, and utilization. This continuous data stream builds the foundation for all higher-level systems.

Once this data foundation is in place, other technologies can build on it:

• Robotics and automation:
  Automated systems execute tasks with precision and can adapt to live production conditions for flexible manufacturing.
• Digital twins and simulation:
  Virtual representations of machines or entire facilities let you test changes and optimize performance without disrupting operations.
• Analytics integration:
  Connecting factory data to platforms like Power BI enables performance monitoring across teams. Integration with ERP systems like SAP ensures production data informs planning, inventory, financials, and customer commitments.

Together, these technologies turn production data into operational insight. This visibility enables AI systems to reason and act, supports sustainability reporting through accurate energy and waste tracking, and improves supply chain responsiveness by providing a clear view of actual capacity and output. The trick is to start on a small and manageable scale. By investing in real-time visibility and collecting Overall Equipment Effectiveness (OEE) data, manufacturers gather the necessary data for advanced analytics and building resilience.

Taking Action in 2026

The trends shaping 2026 — from AI advancement to sustainability pressures — call for a shift from operating on guesswork to acting on real-time data.

To make sure you’re ready for the challenges ahead, focus on these four steps:

1. Stop waiting for perfect conditions:
   Instead of waiting for the opportune time and planning a massive, multi-year overhaul, identify one high-impact area — like a specific bottleneck on a single production line — and commit to improving it now.
2. Establish the data foundation:
   The first strategic investment should be in visibility. You cannot address supply chain volatility, optimize labor, or enable advanced AI without understanding actual machine utilization, downtime, and performance.
3. Start with production monitoring and measuring OEE:
   Tools like Evocon’s OEE software can provide a practical starting point. By collecting accurate data from machines through IIoT sensors and operator input, manufacturers gain instant visibility, creating the essential foundation for informed decision-making.
4. Avoid reinventing the wheel:
   Developing in-house monitoring and reporting systems is typically not a core competency, while specialized providers offer more mature and reliable solutions. Pilot testing should precede any internal development effort.

The approach doesn’t require massive upfront investment. Many manufacturers start with a single production line, validate the value, and then scale. This method allows you to begin digitizing during times of economic uncertainty.

In 2026, the manufacturers that build resilience won’t be those who wait for perfect conditions — it will be those who start collecting the right data, connecting their operations, and using that foundation to make better decisions.

Key Takeaways

In 2026, manufacturers should focus on building resilience despite ongoing uncertainty.

AI in manufacturing is moving from experimentation to practical application. But AI requires a foundation of real-time operational data. If your production tracking is still manual, the priority is to digitize it first. Once you have established the foundation, you can start with a pilot project in a high-impact area, such as knowledge capture. Don’t wait for the perfect use case — start small, and learn by doing.

Supply chain resilience requires digital tools that provide visibility across multiple supplier tiers and can help respond to disruptions. Trade uncertainty isn’t going away quickly, so building systems that can adapt is becoming essential.

Workforce planning needs to be adaptive. The Build-Buy-Borrow framework helps balance long-term talent development with short-term flexibility. Technology can make manufacturing jobs more attractive and training more efficient, but the focus should remain on supporting people, not replacing them.

Sustainability is now a business requirement, not just a competitive advantage. Meeting reporting requirements and consumer expectations requires real-time data on energy consumption, waste generation, and resource utilization — making connected operations essential for compliance and cost reduction.

The future of manufacturing is about using technology to empower people to do their best work, and building systems resilient enough to handle whatever economic conditions emerge, while capturing the opportunities that exist even during uncertainty. 2026 will separate manufacturers who wait for stability from those who build it themselves.

Sources 

1. Deloitte, 2026 Manufacturing Industry Outlook
2. National Association of Manufacturers, 2025 Third Quarter Manufacturers’ Outlook Survey
3. Forbes, 6 Defining Manufacturing Trends Of 2026, by Bernard Marr
4. Evocon, Key Trends Impacting Shop Floors in 2025
5. Tracera, ESG in manufacturing – How to keep up in 2026 and beyond