Manufacturing In 2026: How Businesses Can Prepare For What’s Next

Since 1999, Bill Rokos has spearheaded the development of Parsec’s manufacturing operations management (MOM) platform, TrakSYS.

Manufacturers are well accustomed to disruptions and volatility, but this year seemed especially chaotic. The global tariffs affected key trade partners and materials like steel and plastics, throwing everyone for a loop—especially when it seemed like the policies changed every week.

Manufacturers had to grapple with material shortages, price spikes and existential cost pressures. While many of the tariffs have since been walked back, giving businesses some much-needed breathing room, their impacts remain. With increased latitude to mitigate future disruptions, manufacturers are pursuing new operational optimizations.

Most (if not all) roads to optimization go through technology; in that regard, the industry’s journey continues. Businesses are marching toward Industry 4.0 and digitalization at the pace that makes sense for their company, aligns with their overall strategy and ensures alignment with their workforce and supply chain ecosystem.

As we look ahead to 2026, I expect that many manufacturers will frame their goal-setting around advanced technology that boosts quality, efficiency and resiliency. Let’s take a look at what’s likely to come, and how manufacturing leaders can help their businesses prepare.

Data quality and availability will be a top priority.

Implementing AI is a solid goal for manufacturers, and one we’ll see more of in 2026, but they shouldn’t put the cart before the horse. First, they’ll need to get their data management in order. Any advanced tool like AI is only as effective as the data it’s provided. AI can’t do anything to fix poor-quality or insufficient data; it will just give you an inaccurate output faster than you could do manually.

To get ready, manufacturers will need to make other investments first—like IIoT-enabled smart sensors that directly connect to shop-floor machinery and feed real-time data to a centralized platform for analysis. With the right tools, manufacturers will be able to understand not just the what behind operations (e.g., the vibration rate or temperature of a given machine) but the so what (e.g., how those metrics might affect operations and whether they could be optimized).

Connected platforms can help synthesize and contextualize manufacturing data, giving leaders and workers not only the insights they need to better understand operations, but the building blocks for overall data proficiency and maturity.

Building a solid data foundation is a can’t-miss step on the way to overall optimization, and it’s one we’ll see manufacturers take in the year to come—particularly as they set their sights on even higher tech like generative AI.

GenAI will take hold in the industry.

Many manufacturers have likely already used GenAI for research and fact-finding (e.g., asking ChatGPT for the latest update on a potential disruption). What hasn’t been widely available yet—but which I expect we’ll see in the next year—is a manufacturing-specific GenAI tool that integrates with an organization’s operations and data to inform decision-making.

Imagine an LLM-based tool that allows shop-floor teams to use natural language queries to monitor KPIs, visualize downtime trends, explore historical performance and more. Such a solution will bring manufacturers much closer to the data that drives their business forward, helping them make better, faster decisions.

To prepare for this reality, manufacturers will need to formalize their data capture and analytics, as described above. But that’s just the first step. What comes next is methodical preparation, likely in partnership with a tech consultant or system integrator, to ensure the underlying technology can correctly contextualize and package data for GenAI’s use.

For instance, if a user asks about last month’s top causes of downtime on Line 1 along with potential fixes, the LLM will need to be able to sift through all of the facility’s data and isolate only what’s relevant before it can conduct its analysis. That requires a lot of back-end setup.

This setup takes time and careful planning—and, of course, it’s not as if facilities can simply shut down while their systems are rewired for GenAI. As manufacturers research, vet and demo GenAI solutions, they should work with system integrators or consultants to develop implementation plans that limit disruptions to production.

For any of this—high-quality data, GenAI adoption and system integration—to take effect, they’ll also need to get their teams up to speed on how their roles may evolve.

Leaders will empower teams to do more.

To make the most of their technology investments, manufacturers will spend more time upskilling and training employees on new tools. Advanced technology is exciting, and having a high degree of buy-in and understanding is nonnegotiable. Many workers will be using new tech daily and must be aligned with the role and impact of any solution being used. Effective training makes the difference between checking a technology box and achieving sustained, impactful improvement.

Beyond any technical training is empathy-forward leadership. Change is hard for everyone; even if teams demonstrate a grasp of the new tools and how to use them, leaders should keep a constant pulse on team morale. With new technology and changing roles, it can be easy for teams to start feeling alienated or left behind. Effective change management prioritizes both technical proficiency and emotional support.

Take the time to get it right.

In manufacturing (as in most industries), advanced technology delivers a competitive edge. But only if the tech is adopted thoughtfully and with good reason. There are many pieces that must be in place before organizations can make meaningful progress toward digitalization and Industry 4.0.

Taking the time to build a data foundation, partner with experts and bring teams up to speed will help organizations accelerate time-to-value on any new tech investments, paving the way for success in 2026 and beyond.