Is Manufacturing Entering a New Era of Resilience?

Global manufacturing and supply chain company Fictiv, alongside mechanical component supplier MISUMI Global, has released the 11th Annual State of Manufacturing & Supply Chain Report.

The research explores how the industry is operating in a landscape defined by market shifts and geopolitical instability.

Surveying 300 senior leaders across sectors including electric vehicles, medical technology and robotics, the report highlights a move toward operational resilience. Following years of disruption, manufacturers are now rethinking fundamental design and build processes to mitigate risks associated with trade rerouting, tariffs and inflation.

Turbulent market shifts and resilience

The role of the manufacturing leader has moved to a phase where quality and transparency are paramount, the report says.

Industry leaders are increasingly looking toward supplier diversification and near-shoring to build a buffer against external shocks like extreme weather and global conflict, it adds.

"Global manufacturing has entered a new phase where quality, compliance and transparency are non-negotiable," says Ryusei Ono, Representative Director and President at MISUMI.

Ryusei noted that there is a growing expectation for consistent performance at scale. This shift reflects a broader necessity to maintain reliability despite increasing regional, regulatory and technological complexity across global production networks.

Embedding AI into core workflows

A significant finding in the 2026 report is the widespread adoption of artificial intelligence within manufacturing operations.

AI is now a requirement for maintaining competitiveness. Currently, 83% of engineers report spending four or more hours weekly on procurement-related tasks, creating a clear demand for automated efficiency.

"97% of leaders are saying AI is already embedded in core workflows," says Nate Evans, Co-Founder & Head of Climate/AI, Fictiv. Nate says that the focus has shifted from whether to use AI to the specific extent of its implementation within the supply chain.

All supply chain, procurement and logistics leaders should attend:

• Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Sustainability LIVE, these events bring together COOs, CSOs, and senior decision-makers at a moment when supply chains and commercial performance are increasingly interconnected.

Strategic sourcing in a complex market

As volatility persists, sourcing strategies are becoming more expensive and time-consuming.

Approximately 81% of leaders now believe that supplier management is too costly, up from 73% in 2025. In response, manufacturers are prioritising quality management and design-for-manufacturing services to optimise their operations.

Many are moving toward North American production and global sourcing diversification to build regional resilience

This trend is particularly evident in the EV and MedTech sectors, where 2026 has shown the strongest shift toward on-shoring and regionalising production seen in the last five years, as companies seek to reduce their exposure to material cost pressures.

Digital platforms simplify mechanical procurement

To manage the rising complexity, there is a marked reliance on unified digital platforms. The belief in these tools as essential for engineering productivity has surged to 97% this year.

The report says leaders are seeking ways to reduce handoffs and move faster in the production lifecycle. "Sourcing is becoming more complex across the entire supply chain lifecycle, especially for custom and standard mechanical components," says Dave Evans, President & CEO, MISUMI Americas.

Dave suggests that having a single source for custom and standard components significantly reduces operational complexity, allowing leaders to better balance the competing pressures of cost, quality and time-to-market.

Prioritising sustainability in global sourcing

The report also identifies a significant year-on-year shift toward environmental responsibility.

In 2026, 73% of respondents said that implementing sustainable practices is 'very important', while 96% of businesses now include sustainability as a factor in their sourcing decisions.

This trend is most pronounced among larger companies with established governance structures. As the industry moves forward, sustainability is being integrated into the core of the manufacturing supply chain, especially within climate tech and EV industries.