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The U.S. manufacturing sector had a tumultuous 2025. Tariff uncertainty, labor shortages, geopolitical issues and supply chain volatility were just some of the key challenges that producers dealt with for most of the year. There were pockets of opportunity, of course, but for most of the year the typical manufacturer navigated a labyrinth of roadblocks and hurdles that would make even the best marathon racer question their pacing plan.
“In 2025, the US manufacturing industry faced a challenging economic environment,” Deloitte points out in its new 2026 Manufacturing Industry Outlook. “Costs rose, employment fell, and manufacturing construction spending—an indicator of investment in new or expanded facilities—steadily declined. These challenges were due in large part to trade policy uncertainty and tariffs.”
5 Manufacturing Trends to Watch
As we move into 2026, the situation doesn’t show much sign of easing. Input costs remain elevated, key trade relationships are still in flux and workforce constraints continue to shape daily production decisions. Manufacturers are now planning for another 12 months of uneven demand and tight margins, with a renewed focus on efficiency and better control over their supply networks. The coming year may bring new opportunities, but most producers are preparing for another stretch that requires steadiness, careful planning and a close eye on the forces outside of their control. Here are five different ways Deloitte says manufacturers can ride out the conditions that 2026 may bring and also prepare their operations for the future.
- Use tech to boost competitiveness and agility. Deloitte says investment in smart manufacturing is likely to continue in 2026 as manufacturers seek to improve competitiveness, agility and resilience in the face of uncertainty and complexity. Citing one of its recent surveys, the firm says 80% of companies plan to invest 20% or more of their improvement budgets in smart manufacturing initiatives, with a focus on foundational tools and technologies.
- Leverage more digital supply chain management tools. The future could bring greater trade certainty. The United States has brokered tariff agreements with the United Kingdom, Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union, and additional deals could follow. To mitigate these potential challenges, Deloitte says manufacturers can continue to invest in digital technologies like agentic AI, which can provide enhanced visibility and agility by “autonomously sensing and mitigating supply chain risk while optimizing costs.”
- Look to growing sectors like semiconductors for new opportunities. Looking ahead to 2026, Deloitte says semiconductor manufacturing investment will likely continue to grow. As of July 2025, companies had announced more than $500 billion in private sector commitments to revitalize the U.S. chipmaking ecosystem, setting the stage for a projected tripling of domestic capacity by 2032. “These projects are expected to create more than 500,000 jobs in the United States,” says Deloitte, adding that manufacturing companies that can harness these growth opportunities in 2026 may wind up better positioned for the future, and especially if economic uncertainty continues.
- Use an adaptive workforce planning framework to address uncertainty. The competition for skilled labor remains intense, especially as manufacturers invest in advanced digital tools and smart manufacturing facilities. For instance, the top concern for more than a third of the 600 manufacturing executives in a 2025 Deloitte survey was “equipping workers with the skills and knowledge they need to maximize the potential of smart manufacturing and operations.” Companies that can remain focused on the long-term goal of creating a world-class workforce, while also managing potential uncertainty and volatility in 2026, may gain a substantial advantage over their competitors. “For instance, agentic AI could be used to capture workers’ tacit knowledge,” Deloitte says, “and generate standard operating procedures, thereby accelerating onboarding and training.”
- Make targeted tech investments focused on problem solving. Deloitte says manufacturers should also prioritize a “renewed strategic focus” and targeted technology investments in the year ahead. This will help them maintain a competitive edge, continue to drive innovation and achieve sustainable growth amid uncertain economic conditions. “As operations and global supply chains grow increasingly complex,” it adds, “manufacturers can leverage advanced technologies to optimize costs, enhance decision-making, improve customer experience, and create new solutions to longstanding challenges.”
