Research

2026 Mid-Market Manufacturing Industry Outlook

Key trends shaping mid-market consumer and industrial product manufacturing in 2026

November 18, 2025

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Mid-market Manufacturing trends in 2026

  • Supply chains move from defensive to permanently flexible

    Tariffs, policy shifts, and disruptions are pushing manufacturers to design networks that flex by geography, backed by shared data, scenario planning, and resilient supplier partnerships.
  • Turning AI from proof-of-concept into proof-of-value

    Leaders are embedding AI into workflows with clean data, governance, and clear KPIs to scale pilots into measurable gains in throughput, quality, and uptime.
  • Deals that build, not just buy

    M&A is rebounding as manufacturers use acquisitions to modernize operations, accelerate AI, and diversify risk while prioritizing value creation and integration discipline.
  • Reinventing work for a younger, AI-enabled workforce

    With retirements rising and digital fluency growing, manufacturers are capturing institutional knowledge, redesigning roles for human-machine collaboration, and upskilling at scale.

The Year of Connected Transformation

Randal Kenworthy Headshot

"Manufacturing enters 2026 with urgency—and a new kind of clarity. The forces reshaping the industry aren’t theoretical anymore: workforce turnover, supply chain volatility, AI acceleration, and renewed deal activity are rewriting how value is created and sustained. We’ve seen this shift up close.

The companies that lead will be those who stop treating AI, workforce, and operations as separate priorities and start connecting and activating them as one strategy. This is about redefining how work gets done, how deals create value, and how resilience is built into every layer of the business. The next generation of manufacturers aren’t waiting for clarity. They’re building it."

Randal Kenworthy

Senior Partner, Consumer & Industrial Products

2026 Manufacturing Industry Outlook

Discover West Monroe’s 2026 Mid-Market Manufacturing Outlook, highlighting four key trends across supply chain flexibility, scaling AI for real value, modernization through M&A, and reinventing work for an AI-enabled workforce.