Fictiv and MISUMI Group's 11th Annual State of Manufacturing & Supply Chain Report, released in February 2026, presents findings from a survey of over 300 senior supply chain and manufacturing leaders and highlights three major transformation movements across the sector: artificial intelligence (AI) becoming vital infrastructure, digital manufacturing platforms evolving into mandatory tools, and supplier complexity driving up management burden.
Ninety-five percent of surveyed leaders say implementing AI into manufacturing and supply chain operations is now essential, not optional. The share viewing digital manufacturing platforms as essential reached 97%, a marked increase from 86% in 2024. Industry leaders cite manufacturing planning as the top challenge (62%) for balancing cost, quality, and time-to-market, followed closely by production, sourcing, design, and demand forecasting. The proportion of leaders saying supplier sourcing and management is too time-consuming and costly rose from 73% in 2025 to 81%.
Geopolitical uncertainty and trade policies are creating new realities. Nearly all of the 300+ manufacturing leaders surveyed (99%) say supplier tariff and trade expertise is now essential in partner selection, and 98% report that rising raw-material costs are actively informing smarter, more resilient sourcing strategies. Companies are redesigning supply chains around regional resilience strategies, tariff pressures, sustainability expectations, and rising compliance standards. Eighty-three percent of engineers spend four or more hours per week on procurement-related workflows, highlighting opportunities to boost efficiency through integrated services.
AI is now moving from experimental phase to operational scale. Industry leaders indicate that the heaviest AI usage clusters around inventory, quality, and supply chain management functions. Deloitte and other research organizations found that the majority of manufacturers (80%) plan to invest 20% or more of their improvement budgets in smart manufacturing initiatives, including automation hardware, data analytics, sensors, and cloud computing. Notably, agentic AI—systems that make decisions autonomously—is gaining increasing attention. Experts note these AI tools can monitor real-time supplier risks, recommend alternative suppliers, and initiate contract negotiations with human approval.
Volatility—from geopolitics and tariffs to material costs—is no longer a temporary disruption but a permanent operating condition, the report emphasizes. Leaders now view speed, predictability, and resilience as the defining elements of competitive advantage. Organizations combining AI-enabled workflows, regional networks, and data-backed supplier performance are positioned to set the competitive baseline for 2026 and beyond.
Note: This summary draws on SupplyChainBrain's publicly visible headline + subhead + opening paragraph and on sector background on 2026 manufacturing and supply chain transformation.
Key Takeaways:
1. Fictiv and MISUMI survey of 300+ leaders revealed AI viewed as mandatory infrastructure by 95% of respondents.
2. Share viewing digital manufacturing platforms as critical rose from 86% in 2024 to 97% in 2026.
3. Proportion saying supplier management is time-consuming and costly increased from 73% in 2025 to 81% in 2026.
4. Ninety-nine percent of manufacturing leaders consider supplier tariff expertise essential in partner selection.
5. Eighty percent of manufacturers allocated at least 20% of improvement budgets to smart manufacturing and AI.
