The State ofthe ManufacturingIndustry 2026 but Only 10% of Manufacturers Have ScaledAcross Networks, New Global Study Finds PARSEC SECTION 01 Executive Summary not by incremental digital transformation, but by structural complexity.The combined pressures of reshoring, supply chain volatility, workforceshortages, cost pressure, and accelerating technological change arereshaping operational priorities. and automation--but scaling these capabilities across operationsremains limited. Most organizations remain in early or intermediate stages of digitaltransformation, with fragmented systems, inconsistent data strategies,and workforce constraints limiting progress. differentiator to a prerequisite for survival.In February 2026, we surveyed 1,200 manufacturing leaders worldwide to better understand how organizations are navigating technologyadoption, Al integration, labor challenges, reshoring initiatives,and supply chain disruption. SECTION 01 Executive Summary in Al, automation, and reshoringyet scaled execution, governance maturity,and workforce capability are not advancing at the same pace. MANUFACTURING NETWORKS adoption alone, but by the ability to operationalize and scale these capabilitiesacross production environments ADOPTION REMAINS LIMITED.3. EXECUTION SYSTEMS AND OPERATIONAL VISIBILITY ARE BECOMING FOUNDATIONAL TO RESILIENCE. technology first, but by who integrates, governs, and operationalizes Methodology& Interpretation Notes manufacturing leaders across global markets. Respondents representa mix of executive, operational, and technical roles across diverseCertain resultsparticularly comparisons between systems suchas ERP, MES, and QMS-should not be interpreted as indicatorsmanufacturing sectors. Comparative references to 2024 data reflectof overall market penetration. Instead, they reflect which systemsresults from prior State of the Manufacturing Industry surveys.respondents rely on for specific operational functions. This distinction is critical to avoid misinterpretation of the data Many survey questions allowed respondents to select multiple operational context. answers. As a result, percentages throughout this report representselection frequency, not mutually exclusive adoption orsystem penetration. Digital TechnologyLandscape Execution Systems at the Centerof Modernization How would you characterize the state of legacy equipment across your plant network? Finding Manufacturing is no longer experimenting withdigital toolsit is increasingly dependent on them. Most manufacturers (69%) report operatingwith a hybrid mix of legacy and modernequipment, highlighting the operational realityof integration across generations of infrastructure.Most organizations are still in transition ratherthan operating with fully modernizedtechnology stacks. modernized environments. Instead, they aremanaging layered technology ecosystems thatcombine legacy systems, modern platforms, and,in many cases, manual processes.This creates integration complexity and limits the The challenge is no longer access to technology-it is the ability to integrate ability to standardize operations across sites. and operationalize technology across heterogeneous environments. Data Strategy Progress Does your company have a data driven digital strategy in place? Meaning, yourcompany collects and stores data in an accessible, unified format so decisionscan be made based on this data to improve future business performance. Finding Only 37% of manufacturers currently have a unified,data-driven strategy in place. However, 60% areeither implementing or planning such strategiesup from 40% in 2024. organizations remain in early stages of maturityand are still building foundational architecture. investment, creating a structural constraint onscalability, analytics, and Al enablement. Most Common Digital Solutions Which systems are used to manage manufacturing operations?Please select all that apply. Finding 44% 44% Manufacturing Execution System (MES)43% Quality Management System (QMS)38% Enterprise Resource Planning (ERP)34% Warehouse Management System (WMS)32% Supervisory Control & Data Acquisition(SCADA) System32% Maintenance/Asset Management System (CMMS/EAM)31% Labor Management System (LMS)31% Process Control System (PCS/DCS)30% Energy Management System (EnMS)29% Production Planning/Scheduling Tool28% Statistical Process Control (SPC) Tool28% Data Visualization/BI Tool23% Laboratory Information Management System (LIMS)0% None of these Manufacturing Execution System (MES) 43% 38% commonly used systems, while ERP appears lowerthan expected. These results should not beinterpreted as a reflection of ERP penetration. Giventhe structure of the survey question, responsesreflect how systems are used operationallynotwhether they exist within the organization. Most Common Digital Solutions Interpretation In practice, ERP systems are nearly ubiquitousacross manufacturing organizations, but are typical