The Manufacturing Outlook 2026 report by Xometry and Thomas provides a compelling roadmap for manufacturers navigating the coming year.
This post will review key findings from the Manufacturing Outlook 2026 and share how Conner Industries applies them to sharpen operations, enhance responsiveness, and deliver more value for our manufacturing partners.
AI in Manufacturing: From Pilot to Daily Practice
Key Insights:
- Executives view AI as a major opportunity.
- Companies that scale AI into everyday operations will lead in 2026.
- The talent shortage has grown from 56% to 68% of manufacturers struggling to find qualified workers.
- AI should empower employees through accessible, flexible systems rather than replace them.
According to the Manufacturing Outlook 2026, 82% of executives view AI as an opportunity for their company.
This growing optimism reflects how artificial intelligence transforms product development and reshapes manufacturing technology.
Instead of following a slow, step-by-step process of ideation, design, and production, these stages are now happening simultaneously within connected systems and at an entirely new scale.
For example, AI is already being used in the design phase to rapidly create and refine product concepts. As early returns on investment become more visible, especially among larger manufacturers, the most successful companies in 2026 will be those that integrate AI directly into their everyday workflows and operations.
In the U.S., AI is shifting from a buzzword to a proven business driver. However, this rapid acceleration also reveals a significant challenge: the skills gap. The percentage of manufacturers struggling to find qualified employees rose from 56% in October 2023 to 68% in August 2025, showing that the talent shortage is intensifying as new technologies become mainstream.
The best way to bridge this gap is to treat AI as a tool that empowers people, not one that replaces them.
Importantly, employees should not have to be coders or data scientists to benefit from AI. Companies that choose flexible, AI-enabled platforms designed for ease of use can innovate faster and more effectively.
For Conner Industries, this aligns with our broader goal of combining technology with human expertise. We’re prioritizing AI that augments the team, such as quoting speed, configurator rules, and repeatable QA checks, so operators and sales can move faster.
Operational Agility: Architect for Speed and Resilience
Key Insights:
- Agility and adaptability are essential in 2026.
- Digital solutions are critical for faster response times and operational efficiency.
- Supplier partnerships have emerged as the “fourth pillar” of procurement.
- Manufacturers that build collaborative, resilient networks outperform reactive competitors.
According to the Manufacturing Outlook 2026, adaptability is non-negotiable.
The most successful companies in 2026 will be those that have stopped simply reacting and started architecting systems for speed, resilience, and adaptability. The path to agility is built on digital solutions. Integrating digital workflows and partnerships can help manufacturers reduce overhead, move faster, and empower teams to focus on high-value tasks.
In addition, manufacturers are strengthening their supplier networks by forming strategic partnerships. This approach has emerged as the “fourth pillar” of procurement, alongside quality, speed, and cost. These partnerships go beyond transactional relationships, fostering long-term collaboration and enhancing supply chain resilience.
For Conner Industries, agility means accelerating our response to customer needs, quote volumes, and new program launches. Our investment in connected digital workflows and strategic supplier engagements ensures we can pivot quickly when project requirements shift.
By adopting tools that make complex processes more accessible, we continue to enhance our operational efficiency, speed, and quality, while keeping people at the center of innovation.
Customer Expectations: Quality, Speed, Transparency
Key Insights:
- Over 50% of executives report higher expectations for product quality.
- 45% of manufacturers note faster delivery demands from customers.
- 40% of executives highlight a growing need for supply chain transparency.
- A 28% increase in domestic sourcing reflects a shift toward local manufacturing.
- Customer experience is now a key competitive differentiator in manufacturing.
The Manufacturing Outlook 2026 clearly shows that customer expectations are evolving rapidly. More than half of executives cited higher product quality as the most noticeable change in expectations.
Buyers now expect a new level of real-time transparency and customization, forcing manufacturers to rethink how they deliver value.
More than 40% of executives have noticed changes in expectations regarding supply chain transparency.
Further, the report shows that in a highly competitive environment, customer experience is emerging as a crucial differentiator. Strengthening client relationships and service levels is a top strategic priority for almost a third of manufacturing leaders for 2026.
In the U.S., data shows that 45% of companies have noticed customers’ faster delivery expectations. Meanwhile, U.S. manufacturers continue to see a shift toward domestic sourcing. From January to July, the report notes a 28% increase in domestic sourcing options and a 22% increase in international sourcing options, signaling a growing preference for sourcing closer to home.
At Conner Industries, we respond to these demands by deepening our domestic and near-shore sourcing footprint, enabling shorter lead times and agile delivery for our customers.
Sourcing for Stability: Diversify, Near-shore, Partner
Key Insights:
- Domestic sourcing grew by 28%, while international sourcing rose by 22%.
- U.S. aluminum sourcing is up 63% since early 2025.
- Strategic partnerships help manufacturers manage costs and protect profitability
The Manufacturing Outlook 2026 also casts a spotlight on sourcing and cost challenges.
A significant shift in sourcing is underway. Data from Xometry shows a 28% growth in U.S. domestic sourcing and a 22% growth in international sourcing, highlighting a move toward diversified supply chains and sourcing closer to home.
Similarly, sourcing for U.S. aluminum suppliers on Thomas has risen 63% since January 2025.
Ultimately, these strategic sourcing shifts are a powerful response to pricing pressures, and they are essential for companies to mitigate costs and risks while maintaining business stability and profitability.
For Conner Industries, our sourcing strategy is built on diversification and strategic partner relationships. We consolidate supplier count but deepen supplier capability, ensure backup options, and align supply networks so we are resilient when cost spikes or supply disruptions occur.
By proactively building this sourcing architecture, we can protect our customers’ timelines and pricing stability while offering scalable packaging solutions that fit evolving needs.
Going Forward
As you digest the findings of the Manufacturing Outlook 2026 and reflect on how your organization is prepared for the year ahead, know that at Conner Industries, we are actively aligning our strategy to meet these trends head-on.
If you are looking for a packaging and manufacturing partner who is tuned to the demands of 2026, let’s connect.
Contact our team at Conner Industries today, and let us help you turn these trends into measurable value.
