For years, manufacturers have been bombarded with bold promises about digital twins, Industry 4.0 revolutions and more recently, the rise of AI. But in 2026, according to FourJaw CEO Chris Iveson, the noise will finally give way to something more useful: pragmatism.
Rather than chasing shiny concepts or over-engineered digital agendas, manufacturers will double down on tools and technologies that solve real problems on the factory floor, fast.
Below, we explore the five smart-factory trends Chris predicts will define 2026, and how forward-thinking manufacturers can capitalise on them.
01. Reshoring & rising demand will push capacity to the limit
Manufacturers already face uncertainty, high costs, labour shortages and ongoing supply chain disruption. When combined with increasing reshoring efforts, Chris believes we are heading into a “perfect storm” in 2026.
Sectors such as aerospace and pharmaceuticals are generating strong demand, but many manufacturers are hesitant to invest in more people, machinery or space. The result? A growing capacity crunch.
Those who understand their true production capacity — and who can flex and scale output using the resources they already have — will be the ones who thrive. Real-time visibility, streamlined processes and end-to-end operational insight will become invaluable differentiators.
02. The productivity race will accelerate as skilled labour tightens
The shortage of skilled machinists isn’t easing any time soon. Manufacturers are realising that future growth won’t come from expanding headcount — it will come from making their skilled teams more productive.
In 2026, Chris expects efficiency to overshadow expansion. Manufacturers will prioritise:
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Upskilling existing machine operators
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Eliminating non-value-adding tasks
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Supporting machinists with automation, robotics and digital tools
Businesses wrestling with high overtime costs or persistent capacity constraints will invest proactively, viewing productivity as the only path to staying competitive.
3. Smart factory investment will shift from hype to hard numbers
The days of being dazzled by futuristic factory concepts are numbered.
Chris predicts a new era of industrial pragmatism, where manufacturers demand clear ROI, measurable performance improvements and technology that solves well-defined operational problems.
Continuous improvement systems, accurate machine data and proven use cases will guide investment decisions. In 2026, manufacturers won’t be asking “What’s the latest innovation?” — they’ll be asking, “What gets results this quarter, next quarter and the year ahead?”
4. AI will become the factory’s trusted advisor
As more digital-native leaders enter the industry, Generative AI will become a day-to-day operational asset.
Chris foresees AI stepping into the role of smart-factory advisor: identifying inefficiencies, recommending best practices and helping teams move from recognising a problem to knowing exactly how to solve it.
Far from replacing people, AI will support them, inspiring continuous improvement cultures and boosting productivity, efficiency and even sustainability across the shop floor.
5. The end of the DIY Smart-Factory movement
In previous years, some manufacturers tried to build their own IoT or AI solutions in-house. By 2026, Chris believes this trend will have run its course.
Self-built systems are often:
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Complex to develop
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Difficult to maintain
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Prone to low adoption
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Costly in both time and resources
Manufacturers are recognising that industry-standard, plug-and-play technologies deliver far better value — without the distraction or technical burden of developing technology internally.
Summary
Chris’s insights are informed by FourJaw’s experience across more than 160 manufacturers worldwide, backed by his track record of commercialising advanced manufacturing technologies at the University of Sheffield’s Advanced Manufacturing Research Centre.
As we enter 2026, one thing is clear: the manufacturers who win will be those who cut through the hype, focus on solving practical problems and empower their teams to work smarter every day.
At FourJaw, we believe this shift toward practical, data-driven decision-making, using fundamental machine data is exactly what UK manufacturing needs to unlock the productivity gains that have been out of reach for too long.
2026 isn’t about futuristic smart factories — it’s about smarter, more productive ones. And that work starts now.
Learn how to achieve 'Total Factory Visibility' in 2026 with FourJaw.
