Nearly 95% of respondents say implementing AI into manufacturing and supply chain operations is vital to their company's future success, according to the 11th Annual State of Manufacturing & Supply Chain Report, released by Fictiv and MISUMI Global.
“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.”
Key takeaways:
· 95% AI and automation are helping address workforce shortages, but cannot replace specialized expertise.
· 97% say digital manufacturing platforms are essential for production.
· 93% say moving manufacturing back to the United States is a top priority.
· 81% say supplier sourcing and manufacturing are too time-consuming and costly.
· 77% say trade compliance requirements are too complex to manage without external expertise.
· Nearly all of the 300-plus 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.
· 83% of engineers spend four or more hours per week on procurement-related workflows—highlighting a strong opportunity for efficiency gains—while 93% of leaders say productivity improves when administrative tasks are offloaded.
· Manufacturing planning was 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—highlighting a growing need for more integrated operating models.
· 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 report further 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. 93% 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.
