By Kevin Bull, Director at Columbus UK
We’re heading into 2026, and the UK manufacturing industry’s investment in digital technologies is expected to grow once again with the government’s expansion of the Made Smarter programme, intended to encourage more manufacturers to utilise digital technologies in their day-to-day operations. But the question that remains unanswered is just where will these developments be most effective?
To help manufacturers through the maze of digital choices, I have identified key areas where technological advancements will impact the manufacturing industry the most in 2026 – from smart manufacturing initiatives that are making AI go mainstream and increased supply chain resilience, to manufacturers becoming cybersecure and ensuring a data-driven future.
Prediction 1: AI is no longer an option, it’s the new industry standard
AI tools are quickly becoming indispensable for the industry and for manufacturers to stay competitive, integrating AI is a must, as it can increase efficiency, lower costs and improve product quality. In 2026, investment in AI technologies such as Machine Learning (ML), predictive analysis and robotics is expected to soar.
At present, only 7% of manufacturers have successfully introduced this technology in their daily operations, indicating that full-scale adoption is still in development.
The hype for AI and ML is real in manufacturing, but we must go beyond this to deliver measurable outcomes. Here are five areas AI and ML can significantly improve productivity, efficiency and reduce costs across manufacturing processes in 2026:
- Maintenance scheduling goes predictive: Sensor data is taken from the machinery and fed into AI algorithms to anticipate when equipment will fail before it occurs. This can significantly reduce maintenance downtime and cut costs.
- Improved product quality: ML models can conduct product inspections to identify inaccuracies or defects in real-time and more accurately than humans, improving production and ensuring high-quality standards are maintained.
- Robotics and automation ease the industry skills shortage: Monotonous tasks can be performed by AI-powered robots and collaborative robots with greater accuracy and efficiency, allowing workers to focus on more complex tasks.
- Enhanced supply chain management: AI can optimise supply chains by forecasting demand, managing inventory, and streamlining logistics.
- Data-insights increase production rates: Production inefficiencies can be identified by AI data-driven insights to enhance throughput and consistency.
Prediction 2: It’s time to build a resilient and efficient supply chain
Over recent years, manufacturers and their global manufacturing supply chains have faced a plethora of issues to combat – from securing raw materials, soaring transportation costs, geopolitical conflict, labour shortages and natural disasters, to name but five. With supply chain disruptions lasting a month or longer now happening every 3.7 years according to McKinsey research, a key focus for manufacturers in 2026 will be to increase supply chain resilience.
The opportunity is there in 2026 to tackle these challenges head-on, manufacturers can look to adopt advanced digital supply chain management solutions, such as real-time tracking, automated inventory management and strategic sourcing practices. IoT technology for instance, can improve relationships with suppliers by identifying when a restock is needed and informing suppliers to help avoid any potential delays. AI tools can also improve supply chain management as sensors and temperature controls can inform manufacturers of issues to resolve before they become costly, and downtime can be minimised.
It’s coming home? Supply chains move back home
Offshoring and outsourcing have been staple tactics for manufacturers to reduce costs. However, recent challenges with transportation costs and global disruptions have exposed weaknesses in this approach. As a result, manufacturers should look to bring their operations back home and reduce dependency on global supply chains. Despite this process potentially posing some initial challenges, manufacturers will quickly reap the rewards of enhanced quality control, shorter lead times, and increased agility.
Prediction 3: Turning the tide on cybersecurity! Company-wide effort required
The manufacturing industry has been the most cyberattacked industry for three consecutive years, and one of the most targeted areas is supply chains. So it is to little surprise that supply chain security is top of the agenda for over half of manufacturers looking to achieve cyber resilience in 2026. But what will this look like?
As the manufacturing industry continues along its digital transformation journey, it’s essential for companies to create a culture of cybersecurity by embedding good practices across every level of operations and at the forefront of all business decisions. For instance, access controls need to be rigid and companies need to assume every connection is a threat, implementing two-factor authentication. But that’s not all.
Manufacturers must monitor all activity and set strict security standards for all digital and data connections. It is important to ensure all systems are monitored and updated regularly to guarantee security is the most up-to-date, and also have a backup system and recovery plan in place to restore operations quickly in the event of a cyber-attack.
Prediction 4: Manufacturers are becoming data-driven from the shop floor to the top floor
In today’s digital era, data is increasingly more readily available due to the rise in IoT, sensors, automation and advanced analytics. Yes, having all this data is great for manufacturers, but without the right tools, it’s just numbers. As more manufacturers plan to make better use of real-time data to drive their business operations, one trend that will take off in 2026 is manufacturers investing in integrated analytics tools to gather quality data and turn it into actionable insights in real time.
Data quality is crucial in manufacturing operations as poor data can lead to expensive mistakes, inefficiencies, and missed opportunities. The potential benefits of data in 2026 are endless, but the biggest challenge for manufacturers lies in utilising the data for actionable insights. In a few simple steps, manufacturers can transform this by setting goals and KPIs, investing in the right tools, integrating data across all systems, and empowering employees with data. The manufacturers that successfully turn raw data into actionable insights will be able to optimise maintenance schedules and be better positioned to prosper in an increasingly competitive market.
Digitally adapt today and reap the rewards tomorrow
Technology presents huge opportunities for the manufacturing industry to embrace in 2026. AI and ML are quickly becoming industry standards to stay competitive, while supply chains become more resilient to disruptions with advanced supply chain management tools and nearshoring tactics. Cyberattacks are one of the biggest challenges the industry faces, but to offset this, manufacturers need to take a rigid company-wide approach to tighten up their cybersecurity.
Meanwhile, a few simple steps can unlock a gold mine of actionable data insights and enable manufacturers to enjoy and happy and prosperous 2026.