2026 Manufacturing Outlook: European Edition

As we look ahead, several themes stand out as defining the path forward for manufacturers. These trends highlight where companies are focusing their efforts, the challenges they are working to overcome, and the strategies driving competitiveness in 2026.
AI Is a Competitive Necessity
AI has moved from a buzzword to an operational enabler, with 82% of manufacturing executives viewing it as a key growth driver. Almost half have experienced significant ROI on their investments. However, a skills gap remains a major obstacle for innovation.
Agility Is the New Manufacturing Currency
Manufacturing’s future depends on proactive resilience, not reactive plans. Reshoring is now a dominant strategy, with 45% of global executives pursuing it to counter risks from rising costs and tariffs. The greatest blind spot is overreliance on a single supplier. True business continuity must be built into operations from the start, not just written in a playbook.
The Future of Manufacturing Is Customer-Driven
Customer expectations are at an all-time high, demanding faster delivery, superior quality, and stable pricing. As costs rise, manufacturers face mounting pressure and are raising prices. The path forward requires a focus on value, streamlining processes, and adopting transparent pricing to build trust and meet these new demands.
Sourcing for Stability
The pricing power paradox is forcing a sourcing revolution. Facing rising raw material and labor costs, companies must raise prices while facing customer pushback. The only way to gain stability and a competitive advantage is through updating sourcing strategies. Eighty-four percent of companies are using new technologies and partnerships to diversify their supplier networks, which builds resilience and ensures flexibility.
2026 Manufacturing Outlook: European Edition
Discover the key trends and strategies shaping manufacturing in 2026 to stay ahead of the competition and drive growth. For a deeper look with additional insights and figures, download the report.
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