Manufacturing’s 2026 outlook: AI ambition vs. operational reality

With survey data from 661 Manufacturing employees, this year’s findings highlight a sector at a fascinating crossroads. While 57% of manufacturers view AI as their single biggest opportunity, they are simultaneously navigating a "perfect storm" of economic uncertainty and a critical skills gap.

Here are a few of the key themes that will be defining the Manufacturing landscape this year.

1. The AI acceleration: From experiment to essential

Manufacturing has officially entered the era of the "AI-powered workforce”. A significant 58% of respondents named AI adoption and integration as their top business priority for the next 12 months.

The data shows that AI isn't just a future concept; it's already on the factory:

• 35% of organisations say between 26–50% of their work is already powered by AI.
• 71% are actively hiring for AI-specific experience.
• The primary goal? Automating routine tasks (54%) and improving workforce productivity (53%).

However, a "trust gap" remains. Only 18% claim to have a mature AI strategy with measurable benefits, and 31% insist that human oversight remains critical for all AI-driven decisions.

2. The resilience gap: Workflows vs. strategy

While many are ambitious about technology, their underlying infrastructure is showing signs of strain. Although 98% describe their modernisation progress as "moderate" or "advanced," a deeper look reveals some cracks:

• 56% admit their platforms are only somewhat aligned with business needs, noting that gaps are emerging.
• 33% cite economic uncertainty as their biggest operational challenge, followed by the slow adoption of automation.

To combat this, manufacturers are turning to the cloud. Over half (51%) are leveraging cloud services to enable better collaboration, while 50% are focused on better system integration to eliminate the disconnected processes that hinder fast decision-making.

3. The cybersecurity tug-of-war

As factories become smarter and more connected, the attack surface grows. Manufacturers are feeling the pressure:

• 42% see cyber-attacks as a bigger risk to success than AI misuse.
• 60% feel they have protections in place but urgently need more investment.
• The biggest barriers to better security? Budget (50%) and limited staff training (45%).

Confidence in access control is high (37% feel confident), but with only 20% claiming full real-time visibility, there is still significant work to be done to achieve true cyber resilience.

4. The human element: Succession and skills

Perhaps the most telling statistic in this year's report is the concern over the next generation. 48% of manufacturers are worried about long-term succession planning. The fear? By automating entry-level roles today, we may be accidentally removing the proving ground for the leaders of tomorrow. With 13% already citing the skills gap as their single biggest challenge, the industry must balance automation with a clear path for talent development.

Benchmark your business

How does your organisation compare? Are you ahead of the curve in AI adoption, or is your infrastructure holding you back?

The full Manufacturing Trends Report provides a deeper dive into these statistics, offering sector-specific benchmarks and tangible insights to help you navigate the year ahead.

Don't leave your 2026 strategy to chance. Download the Manufacturing Trends Report now.