Why Companies Prioritise Sustainable Manufacturing in 2026

Fictiv and MISUMI Group have unveiled the 11th Annual State of Manufacturing & Supply Chain Report, which examines how global industry leaders are navigating continued volatility.

In recent years, market fluctuations and geopolitical tensions have dramatically reshaped the design, sourcing and production of goods.

Sustainability in focus

Amid these disruptions, the report reveals how leaders are adapting and strengthening resilience across manufacturing ecosystems.

Supply chains are continuing a clear shift toward sustainability, with 73% of respondents in 2026 stating that sustainable practices are “very important” to their operations, and 96% confirming sustainability is embedded in sourcing decisions. Larger enterprises, in particular, are more likely to have formal sustainability governance in place.

As a result, manufacturing supply chains are evolving toward more sustainable models – especially across Climate Tech and EV production.

Navigating turbulence

The report highlights how global supply chains have been reshaped by overlapping crises including geopolitical upheaval, climate impacts and inflation. Companies are rethinking strategy around supplier diversification, near-shoring, AI integration and other measures to boost resilience.

Events such as conflict, trade reroutes, tariffs, and extreme weather have all forced businesses to pivot, updating their models to maintain growth and competitiveness.

To explore these responses, Fictiv and MISUMI surveyed 300 senior manufacturing and supply chain executives for this 11th edition of the report.

Fictiv, a global manufacturing and supply chain platform, helps companies scale efficiently through high-quality production, streamlined logistics, and risk mitigation. MISUMI, a leading provider of mechanical components and engineering support, complements this with deep manufacturing expertise. Together, they deliver a unified digital manufacturing network built on precision, speed and design integration.

The study reflects insights from over 300 senior respondents – directors and above – working in engineering, supply chain, production, R&D, or digital innovation within industries such as clean energy, EVs, robotics, and medtech.

“Global manufacturing has entered a new phase where quality, compliance, and transparency are non-negotiable,” says Ryusei Ono, Representative Director and President at 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.”

The role of AI

Artificial intelligence is now central to manufacturing and supply chain strategy, increasingly viewed as essential to maintaining reliability and competitiveness amid rising demand.

According to the report, 83% of engineers spend at least four hours a week on procurement-related tasks – highlighting scope for efficiency gains – while 93% of leaders say offloading administrative routines boosts productivity.

This confirms that many leaders understand how excessive administrative demands hinder performance and the need to build long-term efficient supply chains.

Complexity continues to rise across the production lifecycle, with manufacturing planning cited as the biggest challenge for balancing cost, quality and time-to-market – followed by production, sourcing, design and forecasting difficulties.

“97% of leaders say AI is already embedded in core workflows,” notes Nate Evans, Co-Founder and Head of Climate/AI at Fictiv.

“The question is no longer if you use AI but how and to what extent.”

AI is increasingly addressing administrative delays and supporting faster, more adaptive production. Many leaders anticipate AI-driven productivity gains of 50% or more, with some expecting even greater improvements as automation reshapes workflows.

Sourcing strategies

As supplier reliability becomes critical to resilience, sourcing has also become more time-consuming and costly. 81% of leaders now consider supplier management overly burdensome – rising from 73% in 2025.

With this rising complexity, more companies are adopting digital platforms to simplify sourcing, minimise handoffs and accelerate delivery.

“Sourcing is becoming more complex across the entire supply chain lifecycle, especially for custom and standard mechanical components,” explains Dave Evans, President & CEO of MISUMI Americas.

“Having a single source for both significantly reduces that complexity.”

Leaders now prioritise quality management (59%), supply chain design support (54%), and DFM, costing & engineering services (53%) as the most effective areas for optimisation.

Reliance on digital manufacturing platforms has grown rapidly – from 86% in 2024 to 97% in 2026 – as leaders recognise the value of digital tools in reducing complexity and driving engineering efficiency in a volatile marketplace.

External pressures continue to weigh heavily, with 71% reporting that geopolitical tension is shaping long-term strategy (up from 51% last year), and 98% feeling the strain of raw material price volatility. Companies are adapting sourcing strategies accordingly – mainly through on-shoring and near-shoring aimed at building regional resilience.

Industries such as EV, MedTech, and Climate Tech are increasingly prioritising North American manufacturing alongside global diversification. Over the past five years, a steady trend toward on-shoring has culminated in 2026 showing the strongest shift yet toward regionalised production.