After many years of continuous disruption, manufacturing has entered a new phase. The pressure from previous uncertainty has allowed the sector to grow rapidly, forcing manufacturing to continually evolve. Looking ahead, success will stem from resilience, innovation and the ability to adapt. Andy Coussins, EVP International, Epicor looks at what manufacturing excellence will look like in 2026.
This progress matters because manufacturing remains a cornerstone of the UK economy, accounting for an output of £220bn and 2.6 million jobs. The sector is also continuing to grow, with the UK manufacturing PMI for December 2025 reaching 50.6, up from 50.2 in November, the highest level in 15 months.
However, manufacturers continue to face a range of challenges: from increasing input costs and shifting supply chains to continuous skill shortages. Confidence has therefore remained fragile.
Our annual customer interactions have highlighted just how dynamic and forward-thinking our customers continue to be. From these conversations, the priority now is to convert short-term stability into lasting transformation, and five key trends will reshape operations.
How automation can be used to innovate and differentiate
Leading manufactures are redefining the role of automation within their organisations. Rather than focusing on automating tasks, they are connecting systems to harness innovation, speed-up responsiveness and deliver a competitive advantage for customers.
With customers that work to excel in complex, small-batch production, automation has allowed them to implement a 24/7 production environment. They can deliver high-quality and cutting-edge components under challenging lead-times.
One notable example is the use of QR codes to replace the manual process of transferring information to customers. In terms of production, the company have also spearheaded a new recycling process, reducing waste and using lighter materials were used to cut fuel consumption within the aerospace sector.
Elsewhere, implementing cloud-based ERP with customer service solutions such as Zendesk allows organisations to transform customer relationships. Support processes and operations are streamlined, duplicate data-entry is eliminated and visibility across sales teams is improved.
Harmonising global operations through connected systems
Fragmentation has been one of the most persistent obstacles for many manufacturers. Maintaining clear oversight and operational consistency becomes increasingly complex, especially for organisations with regional variations and multiple sites.
Manufacturers are now rethinking how their operations are structured with more shifting towards cloud-first, standardised operating models. This streamlines operations and creates a single source of truth for organisations. One of our customers, for example, is using a cloud-first roadmap to bring more than 20 operating entities to one platform. As a result, they have been able to eliminate regional workarounds and reduce reliance on ageing systems.
Similar benefits are being seen elsewhere. A global valves and materials-handling manufacturer with operations in four continents has consolidated disparate regional systems into a single operation model, reducing support overheads and IT ticket volumes.
As we look to the future of manufacturing, success will be dependent on removing silos and achieving consistency across borders. Cloud-ERP is fundamental for this shift to happen and for enabling more resilient and connected operations to emerge.
Driving shop floor efficiency with actionable data.
Organisations that are utilising the shop floor as a rich data source are already ahead of the competition. By capturing real-time data directly from equipment, data accuracy is improved whilst process automation and visibility is maximised.
This leads to reductions in processing time and error rates, followed by improved efficiency, uptime and supplier fulfilment. The availability of real-time, accurate data means employees are better equipped to make informed decisions, leading to reduced response times.
Manufacturers that are benchmarking success in 2026 share a clear set of characteristics. They are creating workforces that thrive on change and align sustainability with performance. Operations are globally unified, and digital insight is embedded into everyday decisions.
Andy Coussins, EVP International, Epicor
These benefits are already materialising. In the plastics manufacturing space, one of our customers have worked to optimise efficiency, quality and eco-friendly principles using real-time analysis initiatives.
The team are now able to monitor Overall Equipment Effectiveness (OEE), run rates, scrap, yield, and energy consumption – enabling optimal production performance across the shop floor.
Another customer we are seeing improve their day-to-day operations efficiency are an electronics manufacturer that serve aerospace and defence sectors. As part of a wider transformation project, its ERP was moved to the cloud which meant supply chain planning was greatly improved and resource utilisation was enhanced. Quotes that usually require a week of calculations to build can now take a couple of hours.
Implementing change and making it an advantage
Change management and maximising internal adoption are becoming increasingly integral to operational excellence. It requires communication, early and ongoing training and collaboration for organisations to sustainably transform their practices.
Many manufacturers are finding success in bringing together stand-alone brands under an umbrella brand and integrating a 360-degree view of operations. This substantially improves visibility and control, nullifies duplicate efforts, and upholds lasting results for Epicor customers.
The BDO Manufacturing Outlook Q3 2025 highlighted that many organisations attribute their success to greater workforce engagement and improved communication surrounding technological change. Whilst the UKG Manufacturing Report 2025, cited that 84% of manufacturers are making frequent and transparent employee communication a priority looking into the future. The emphasis is on how a business implements change, ensuring engaged employees, phased adoptions, and strategic intent.
Purpose-led manufacturing: aligning sustainability and performance
Sustainability has moved beyond regulatory compliance to become a core component of business strategy. To stay compliant, organisations are adopting sustainable operations and technologies at every level, helping them stand out in a crowded marketplace.
For some, this focus is on cleaner energy and new machinery. For others, it involves digitalising documentation and monitoring waste in real-time. In each case, sustainable initiatives are increasingly facilitating efficiency and business growth.
A global packaging manufacturer provides a clear example of this shift. With a focus on becoming the global leader in sustainable packaging solutions, they strategically invest in technology and prioritise sustainability throughout their entire operation to support this commitment.
As a result, this organisation can now address complex supply chain planning challenges, forecast capacity with greater accuracy and timeline sales orders. By remanufacturing rejects they are also able to reduce waste in their operations. Together, these capabilities have supported an ambitious and consistent approach to global expansion, with sustainability embedded at the core of the business.
Environmental performance and purpose-driven innovation are no longer optional, but when approached strategically, become a source of competitive advantage, prompting growth, strengthening resilience and positioning organisations for long-term success.
How success will be defined in 2026 for manufacturers
Manufacturers that are benchmarking success in 2026 share a clear set of characteristics. They are creating workforces that thrive on change and align sustainability with performance. Operations are globally unified, and digital insight is embedded into everyday decisions. The focus is using automation as a way to connect people, not replace them.
The next phase of progress will depend on the sector’s ability to maintain this momentum while navigating a fast-moving and complex environment. This is driven by organisations that combine technical capability with practical leadership. In 2026, excellence will be defined by those who find that balance between innovation and execution, and create clear alignment between people and technology to deliver lasting impact.
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