In a year when the UK has climbed to 11th in global manufacturing rankings, with output valued at $279 billion, the sector is thriving despite challenges brought about by an ageing workforce and reduced numbers joining the industry. As we increasingly see technology – and AI in particular – become an invaluable feature of the modern workplace, what will the next 12 months bring, and who will come out on top?
We spoke to six experts across technology and manufacturing businesses to find out their predictions for 2026.
The foundation of seamless manufacturing? Supply chains
The manufacturing industry relies heavily on efficient and reliable supply chains, yet as Navin Kulkarni, Director of Product Management at eMaint, Fluke Corporation explains, “Manufacturers are facing headwinds from every direction, from volatile demand and rising costs to chronic supply chain disruption. One of the most persistent challenges is the ripple effect of parts shortages. Our latest survey shows that 80 per cent of manufacturers across the UK, US, and Germany have experienced delays in critical spare parts; disruptions that don’t just stall production, but stall progress.”
Disruption has also been caused by rising cyberattacks on the sector, with Bertijn Eldering, Associate Sales Engineer at HackerOne predicting that “2026 will be the year cyber criminals grow bolder, more coordinated and more fearless in the targets they choose. No longer are they content with attacking single businesses, they now have entire industries in their scopes – exploiting common vulnerabilities or supply chains to jump from business to business in rapid succession attacks.
“As we look to 2026, businesses need to get back to basics. That means using phishing-resistant MFA on ERP, SaaS and supplier portals, keeping IT, ERP and OT networks strictly separated, applying least-privilege and just-in-time access for admin accounts, and continuously testing vendor integrations and APIs through third parties. Above all, resilience needs rehearsal.”
“There's little chance manufacturers will escape disruption,” agrees Jaco Maritz, CEO at Syspro, “However, I do expect them to become more resilient, more strategic and more adaptable in how they respond. The shocks through 2025, from cyber incidents in automotive to supply chain fragility and weakening consumer demand, have made clear that business resilience can't be treated as a side project anymore. It has to sit at the heart of commercial strategy.
“Resilience runs through people as much as processes, including upskilling teams to make data-led decisions and giving them the tools to spot problems early and act fast.”
Keeping supply chains closer to home
“Disruptions are also reshaping the geography of supply chains,” says Simon Bowes, European Corporate Vice-President for Manufacturing Industry Strategy at Blue Yonder, who believes that companies in the sector are looking to bring their supply chains closer to home.
“Nearshoring and ‘friendshoring’ are becoming mainstream as companies seek shorter, more reliable routes to market. AI supports this regionalisation by modelling trade-offs between cost, lead time, and risk through automated, continuous scenario planning,” he reveals.
Syspro’s Maritz is also seeing the same trend, noting that “Boards are quietly moving away from just-in-time and single-sourcing models, repatriating or regionalising critical parts of their operations. There's a shift from pure globalisation to 'right-shoring', meaning keeping complex, high-risk or high-value manufacturing steps closer to the customer while using digital tools to coordinate global partners.”
“The shocks of recent years have forced a fundamental rethink of how and where goods are made,” emphasises Fluke Corporation’s Kulkarni. “As we look ahead to 2026, the return of manufacturing capacity to domestic markets will take on a new meaning. What began as a hedge against tariffs and transport costs has turned into a chance to rebuild smarter. The factories' breaking ground now are not copies of their predecessors; they are laboratories of connected intelligence.
“Reshoring has therefore become more than a geographic strategy; it is a digital leap. The new generation of sites is setting the standard for how intelligence can underpin competitiveness.”
Connected intelligence becomes reality
But what does this look like in 2026?
“Sensors are wired in from day one,” Kulkarni pictures. “Predictive inventory tools feed procurement data straight into maintenance plans. Even finance teams can see equipment health in real time. This fusion of reliability and supply-chain insight allows companies to price risk and manage volatility rather than endure it. The most progressive plants treat inventory as a living system, not a warehouse.”
Volker Spanier, Head of Manufacturing Solutions at Epson EMEAR, envisions a similar future in which “Automated machines are no longer rigid, single-task tools. Instead, they are adaptable, reprogrammable, collaborative robots (cobots). Far from replacing humans, these intelligent systems take on repetitive or hazardous tasks, freeing people to focus on creative, strategic, and value-adding work. This evolution not only enhances productivity but also helps create safer, more inclusive workplaces that attract a wider talent pool into the sector.
“2026 may mark the moment where collaborative robots become mainstream enablers of productivity, quality and competitiveness – revitalising UK manufacturing and supporting ambitions for industrial renewal.”
And we’re already seeing positive results in the industry from existing implementations of smart manufacturing.
Ted Combs, Industry Principal, Consumer Products at AVEVA shares how “The overwhelming majority (92 per cent) of manufacturing executives say smart manufacturing will be the main driver of competitiveness, Deloitte research shows, principally through operational and financial benefits. With these plant-to-people networks, gains of up to 20 per cent each were reported in production output and employee productivity, with a further 10-15 per cent in unlocked capacity, the report said.
"As the year progresses, companies that integrate task-specific AI agents will see the greatest benefit, particularly in terms of automated monitoring, quality inspection and control, compliance, testing and integrating customer feedback.”
Blue Yonder’s Bowes agrees: “In many ways, the argument in favour of using AI to improve supply chain performance and resilience has already been won. Blue Yonder’s Supply Chain Compass research reveals that 74 per cent of industry leaders believe AI is already transforming their operations. The challenge now is moving from experimentation to scaled deployment – unifying data, connecting processes, and equipping teams to act on AI-driven insights with confidence.
“This human-AI partnership turns what was once an administrative effort into strategic decision-making. It is also important to recognise that in-built supply chain expertise is mandatory to make AI support this human-AI partnership. Without in-built supply chain expertise there is a long and painful ramp up training AI tools to give accurate advice.”
Tech and sustainability grow hand in hand
AI is not the only buzzword, however. Sustainability has been pushed up the priority list this year, and Epson EMEAR’s Spanier predicts that “The UK’s Circular Economy Growth Plan is expected to add further momentum to sustainable manufacturing practices next year.
"With its priority focus areas including construction, chemicals and plastics, the taskforce’s recommendations are likely to encourage manufacturers to utilise more durable tools, improve reuse and recycling processes, and tighten materials management. These shifts will support the industry’s move towards smarter, cleaner and more resource-efficient production.
“Smart manufacturing and advanced robotics will become more accessible, transforming entire production processes for UK manufacturers.”
Adaptability will be critical
As we look towards a new year, Syspro’s Maritz shares one final lesson to learn: “The winners in 2026 won't be those with the cheapest supply chains on paper, but those with the most adaptable ones in reality. It will be businesses that can absorb a shock on Monday, reroute production by Wednesday, and still deliver by the weekend.”
