Fictiv Releases Annual State of Manufacturing Report

Fictiv, a global supply chain and manufacturing company, and MISUMI Global, a global supplier of mechanical components and manufacturing services, released the 11th Annual State of Manufacturing & Supply Chain Report, a survey of over 300 senior supply chain and manufacturing leaders. 

"Global manufacturing has entered a new phase where quality, compliance, and transparency are non-negotiable," says Representative Director and President Ryusei Ono, MISUMI. "This research reflects what we see across our customer base: a growing expectation for consistent performance at scale amid increasing regional, regulatory, and technological complexity."

The 2026 State of Manufacturing and Supply Chain Report includes the following highlights:

• AI Impacts Manufacturing & Supply Chains: 95% say implementing AI into manufacturing and supply chain operations is vital to future success.
   
• AI Addresses Workforce Shortages: 95% AI and automation are helping address workforce shortages, but cannot replace specialized expertise.
• Digital Manufacturing Platforms Boost Production: 97% say digital manufacturing platforms are essential for production.
• On-Shoring Top Priority: 93% say moving manufacturing back to the United States is a top priority.
• Supplier Sourcing Complex & Time-Consuming: 81% say supplier sourcing and manufacturing are too time-consuming and costly.
• External Tariff Expertise Needed: 77% say trade compliance requirements are too complex to manage without external expertise.

"This year's data makes clear that speed, predictability, and resilience now define competitive advantage. The companies that are pulling ahead are the ones leveraging AI and digital manufacturing platforms, robust global networks, and embedding quality into their operations," says Dave Evans, president and CEO, MISUMI Americas.

AI Adoption Accelerates

Nearly all of 300+ manufacturing leaders surveyed (99%) say supplier tariff and trade expertise is  essential in partner selection, and 98% report that rising raw-material costs are actively informing smarter, more resilient sourcing strategies.

Today, 83% of engineers spend 4 or more hours per week on procurement-related workflows, whereas 93% of leaders say productivity improves when administrative tasks are offloaded. 

Across the production lifecycle, rising complexity is amplifying supply chain management pressures across the production lifecycle. Manufacturing planning cited as the top challenge for balancing cost, quality, and time-to-market, followed by production, sourcing, design, and demand forecasting. Notably, 81% of leaders now say supplier sourcing and management is too time-consuming and costly, up from 73% in 2025.

AI adoption has also moved decisively from experimentation to execution. The vast majority of respondents (97%) say AI is already embedded across core manufacturing and supply chain workflows, with 95% considering AI a requirement rather than an option. Many leaders anticipate AI-driven productivity gains of 50% or more, with some projecting improvements of two to five times as workflows are redesigned around automation and intelligence.

The Future of Manufacturing

The report underscores the importance of digital manufacturing platforms, with 97% percent of leaders saying they are essential, up from 86% in 2024. Manufacturing leaders are also prioritizing services that reduce handoffs and compress cycle time. Ninety-three percent report that engineering productivity would significantly or moderately improve through managed manufacturing or supply chain services, and 98% see clear optimization opportunities— particularly in quality management, supply chain design support, and DFM, costing, and engineering services.

The full 11th Annual State of Manufacturing & Supply Chain Report is available from Fictiv and MISUMI.

Sources: Press materials received from the company and additional information gleaned from the company’s website.