Three trends the manufacturing industry must lean into in 2026

AI, private equity, and sustainability are worth keeping top-of-mind going forward.

2026 will be a year of sustained growth for the industrial sector, with the manufacturing sector to benefit if it takes advantage of three trends, according to a report by Simon-Kucher.

Manufacturers can benefit from everyday Artificial Intelligence (AI), specifically through optimisation to improve analytics and automate data transfer. Companies can also apply growth levers like cross-selling, upselling, and retention analytics in service, manufacturing, and distribution contexts.

Companies could also do well by funding those systems that drive real growth, such as operational performance, boosting EBITDA through systems improvement, digitalisation, and commercial excellence.

The new landscape with AI and automation demands building technological and operational backbones. Funds that move first and learn fastest will define the next wave of private equity success, the report said.

With the industry entering the post-hype era of sustainability, companies' progress is increasingly  measured less in messaging and more in measurable impact.

Companies are now embedding sustainability in procurement, supply chains, compliance, and process optimisation.

Cost savings from energy efficiency, waste reduction, and circular material flows now align naturally with ESG outcomes.