State of the Industry: Key Trends for 2026
By Rachel Duran
The metalworking sector is entering what can be considered its greatest era.
Connected smart shops. Next-level, advanced automation. AI-driven, and vision-based software. Intelligent robots. Game-changing innovations in laser cutting, welding, and machining technologies.
Metalworking manufacturers are constantly inundated with messages that adopting the above technologies will enable them to remain agile, efficient, sustainable, and competitive in an evolving — sometimes unpredictable — manufacturing sector.
In 2026, metalworking manufacturers should continue to explore these investments to support their growth — particularly as workforce challenges persist. However, one constant remains: the fundamentals of manufacturing have not shifted. Combine these emerging and advanced tools with your tried and true manufacturing processes to guide your growth. Be pragmatic and selective when implementing these advances in order to achieve success in shifting economic conditions.
Uncovering New Opportunities in 2026
There are a few key trends that are expected to impact the metalworking industry in 2026. Fabricating & Metalworking asked Tim Gaus, based in Miami Beach, Fla., who is a principal, as well as the Smart Manufacturing Business Leader, for Deloitte Consulting LLP, to share his thoughts about the future of manufacturing.
Gaus expects to see the progression of emerging technologies from experimentation and proof of concept testing to fundamental drivers of productivity, through the use of agentic AI; shifts in how automation and robotics are implemented, such as robots with embedded intelligence; and the continued digital capture of worker knowledge and skills to share with the next generation.
In his role at Deloitte, Gaus partners with his clients to create factories of the future through the use of the Internet of Things, converging information technology and operational technology systems, as well as using edge-to-cloud technology to deliver real-time insights.
Outlined below are three major trends Gaus believes will play out in 2026:
- This will be the year the industry moves from experimentation to progress regarding AI and agentic AI as true contributors to manufacturing productivity. The growth of agentic AI will revolutionize the way the manufacturing sector performs job functions, for example, with preventive maintenance functions. “Now, will it [agentic AI] get to full scale next year?” Gaus asked. “Probably not. But we will see some substantial progress in that regard.”
- There is also a major shift underway in how automation is taking root in facilities, highlighted by the growth of AI applications in the physical world. “So, it’s not just about insights and analytics and making our software run better, it’s really: how does our own automation and robotics start to transform [processes]?” he noted.
- Experienced and older workforce team members continue to transition out of the manufacturing workforce, due to a host of reasons. To retain that “tribal knowledge” in house, expect to see a continued focus on digitally capturing that knowledge and expertise. By doing so, manufacturers are able to more efficiently train a developing workforce because they have captured the knowledge of exiting engineers, welders, machine operators, procurement staff, and operations staff, among other roles.
Breaking Down the Trends
- Agentic AI
Agentic AI will continue to transform the manufacturing sector. Think of it as a digital employee with their own résumé of skills. These “employees” learn based on the expertise and knowledge you provide. For example, these agents can become experts in preventative maintenance, specializing in the repair of machines and systems. An AI agent has a “very specific set of skills that it can use to take action,” Gaus noted.
Staying with the maintenance example, AI agents can perform day-to-day actions such as checking settings, monitoring signals, determining issues and solutions based on past trends, diagnosing the best way to resolve problems, and issuing work orders, among other tasks. The “maintenance person — that physical person doing the maintenance — can interact with that agent and get more information,” regarding troubleshooting issues, Gaus noted. “That’s the shift in the way we’re going to define productivity, and the ability to change the way the workforce interacts.”
- Automation and Robotics
When it comes to the shifts expected regarding automation systems, with the continued expansion of AI into the physical world, robots with embedded intelligence will continue to adapt to situations they haven’t performed in the past.
“Some people call it physical AI — there are lots of different buzzwords around it — but for me, it’s really: how do you bring AI into the robotics world in a meaningful way?” Gaus asked. “We have seen multiple clients already starting to work with this at some scale and having some very interesting results and outcomes.”
These shifts in automation are of particular relevance to metalworkers who are increasingly implementing cobots and robots to perform a variety of processes. The increase of embedded intelligence in these robots supports not only training in the virtual world before things reach the physical world, which tremendously cuts down on training cycles; now robots are adapting to a project’s engineering changes, which results in an increased deployment of capabilities on shop floors. Consider that traditionally, robots are programmed to perform specific tasks. So, when a design has a slight change or a new customer requirement, operators need to stop the process to reprogram the robots. Increasingly, robots with embedded intelligence adapt on their own and make those changes without slowing production.
Leveraging the Power of the Trends
Gaus pointed out the advantages and benefits of these trends will cut across the manufacturing industry, where no sectors will be left behind. “It is less about [specific] industry but more about how ready you are to catch this wave of AI coming our way,” he said. Your shop’s ability to make the most of these next generation technology trends is based on having made investments in infrastructure along the way — bad data and systems that are not well integrated into your processes may lead to struggles in achieving the full value of these trends. However, there is no doubt your shop will still gain value from these technologies; those with stronger infrastructure, as well as structured industrial and enterprise data, will benefit disproportionately, Gaus noted.
He reiterated the advantages of capturing the skills and expertise of your workforce to share with the incoming generations of workers. “Now is the time to use these modern toolkits to capture and systematize a lot of that expertise that you as a company, you as a fabricator, have built up over the years,” Gaus said. “I think that it is critical on us to act quickly, because every day that passes, you’re losing more expertise out the door.”
Gaus shared that in all cases, “we’re still in a very tumultuous environment. The amount of greenfield manufacturing that’s coming in right now is the most I’ve seen in a long time.” He believes the manufacturing sector will continue to experience strains on global supply chains. “Those that are going to win are the ones that are looking at the next generation of things and finding the efficiencies that pay them back in the short term,” Gaus said. “This isn’t actually about long-term bets; this is actually looking for ROI and efficiency as quickly as possible.”
Is it Hype or is it Real?
During this time of economic uncertainty, metalworkers are advised to stay the course and serve customers like you always have, as well as continuing to adopt and implement best manufacturing practices, embracing emerging technologies, and be willing to adapt to new business models in order to react appropriately.
“So, should you react immediately?” Gaus asked. “Absolutely not. Should you be prepared for a future that’s going to continue to shift and evolve? Absolutely. And that’s what I would encourage all of your readers to think about.”
While it can seem like an overwhelming environment at times, struggling to distinguish between hype, buzz, and practical solutions, Gaus said these trends are real and here to stay. “We have our own smart factory to test these things out, so I can tell people what I think is real, because we’re running it ourselves,” he said.
One of the most important things to remember is that the fundamentals of manufacturing are not changing, although the tools to solve problems and carry out processes are changing. When you combine proven manufacturing practices and processes with the addition of these new tools, your shop can selectively insert the tools that will best serve your processes.
“Many people underestimate how much value they can get from some of these new tools without having a lot of exposure [to them] in the past,” Gaus said. “If you think about the ability to democratize information and get insights in a much quicker fashion, there’s a lot of opportunity out there.”
And don’t lose sight of the important role your operators and team members play in your operations. “At the end of the day, as much as we like talking about technology, frankly, it’s still the people that are doing the work,” Gaus said. “Keep them front and center of your strategy, of your execution, and the way you think about your future.”
Embracing the latest manufacturing trends provides the opportunity to “make the jobs of the people in your organizations better, easier and more effective,” Gaus said. “But always embrace the human at the front end of the equation.”
In 2026, smartly investing in and implementing the newest technologies is a strategic imperative in order to optimize productivity levels and continue competing in an ever-evolving manufacturing landscape.
About the Author: Rachel Duran
