Manufacturing leaders are facing an uncertain operating environment in 2026. Tariff exposure, supply chain disruptions, legacy technology constraints, and changing workforce demands are testing operational readiness across the sector. Two recent studies explore these challenges. The C-Suite Barometer: Executive Leadership Insights in the US captures the strategic perspective of 600 U.S. executives across industries, including manufacturing, with emphasis on technology, talent, and global expansion. The 2026 Financial Executives Priorities Report reflects the focus areas of more than 200 senior finance leaders, with deeper attention to balance-sheet pressures and operational execution. Together, they paint a clearer picture of manufacturing trends and executive priorities in 2026 and beyond.
Tariffs Are Reshaping Competitive Ground
The Financial Executives Priorities Report notes that manufacturing is the top industry impacted by tariffs, and 52% of companies report workforce impacts as their most significant strategic response. The C-Suite Barometer offers a broader enterprise view: 95% of U.S. executives expressed confidence in managing tariff-driven costs, with many viewing tariffs as a catalyst for efficiency gains and technology-enabled supply-chain investments.
That confidence does not always match competitive reality. One CFO of a global manufacturing company shared:
“The two largest manufacturers are in Mexico, and they source all their parts from China with no tariff, then ship into the U.S. with no tariff because of United States-Mexico-Canada Agreement. Some of these tariffs have actually hurt U.S. manufacturers instead of helping them. If your competition’s in Canada or Mexico, it’s a problem.”
Tariffs and manufacturing competitiveness are not just a cost issue. They are reshaping workforce strategy, sourcing decisions, and long-term capital allocation, prompting a rethink of manufacturing strategic planning at every level.
Technology, AI, & Automation Is a Top Priority, but Readiness Lags
Both studies identify technology transformation as the top strategic priority, and manufacturing C-suite insights from both reports reinforce that AI is leading the investment agenda. Results from the C-Suite Barometer reveal that 9 in 10 U.S. companies have restructured teams to implement artificial intelligence (AI), while the Financial Executives Priorities Report found that 7 in 10 executives say AI is having a major impact on their businesses. Manufacturing CFO priorities center on accounts payable (AP) automation, financial forecasting and planning, and management reporting and analytics.
However, readiness lags behind ambition. The Financial Executives Priorities Report found that only 15% of organizations report being well or fully prepared for advanced analytics and AI, largely due to data quality issues and infrastructure gaps. Enterprise resource planning (ERP) modernization remains the gating factor. One manufacturing CFO noted:
“We’re switching to a new ERP system, and it looks like it’s going to do a lot for us. It has AP automation built in and other features that will bring real efficiencies and eliminate all the workarounds we had built around our current ERP system.”
Manufacturing AI and automation investments will only deliver returns when built on clean data, modern systems, and clear governance.
Working Capital Is Under Structural Pressure
Manufacturing leaders in the Financial Executives Priorities Report reported a 48% increase in working capital, one of the highest among all industries. The drivers are structural. Tariff-driven input costs, reshoring initiatives that increase inventory and facility investment, persistent supply-chain volatility requiring higher safety stock, and heavy spending on automation and facility expansion are all contributing to elevated cash demands.
Manufacturing working capital management is no longer a routine finance exercise. It is a strategic lever for resilience and operational scalability.
Workforce Readiness Calls for a New Approach
Data, technology, and AI skills now outrank traditional financial planning and analysis (FP&A) as the top capability priority for finance teams. This shift carries real tension for manufacturing leaders. One financial leader reporting to the CEO of a global manufacturing company reflected:
“I’m worried about how we train the future me because we’re taking away a lot of the manual things that I did in my 20s and 30s that helped develop me and gave me the insights I have. Reducing manual work is a good thing, but at the same time, we have to figure out how we train people to have the background to question it.”
Reskilling is not optional. It is a strategic investment that determines whether automation strengthens institutional knowledge or erodes it.
Growth Is Turning Inward
Manufacturing reports one of the largest declines in merger and acquisition (M&A) interest compared with other industries. Leaders are favoring finance-led transformation and organic growth over acquisitions. The shift reflects a manufacturing growth strategy centered on enhancing operations and building internal capacity before pursuing external expansion.
What Does This Mean for Manufacturing Leaders?
The message across both studies is consistent. Execution is the differentiator in 2026 and manufacturing leadership strategy should reflect that. Manufacturing leaders who act on ERP modernization, put AI to work on the right foundation with strong governance and clean data, invest in workforce readiness, and build supply-chain strategies around competitive reality will be better positioned to navigate what lies ahead.
How Forvis Mazars Can Help
Our Manufacturing team at Forvis Mazars can work alongside manufacturing leaders to turn these priorities into progress. Our cross-functional teams bring extensive experience in ERP modernization, AI strategy, supply-chain resilience, working capital management, and workforce readiness, helping organizations close the gap between where they are and where they need to be. If you have any questions or need assistance, please reach out to a professional at Forvis Mazars.