MT Magazine January/February 2026

ADVANCING MEANS GETTING AHEAD TECHNOLOGY UTILIZATION AND ITS BENEFITS FOR ACHIEVING OPERATIONAL IMPROVEMENTS by Gary Vasilash | 12

ADVANCING AND ENGAGING THE FUTURE by Douglas K. Woods | 01

POCKETS OF OPPORTUNITY AMID ECONOMIC HEADWINDS by Chris Downs | 19

HAPPY NEW YEAR, HAPPY SHOW YEAR by Michelle Edmonson | 27

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JANUARY/FEBRUARY 2026 THE INDUSTRY UPDATES ISSUE VOLUME 5 | ISSUE 1

EXECUTIVE INSIGHTS. FUTURE-READY STRATEGIES.

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Workforce shortages. Economic uncertainty. Global trade and politics. Industrial AI. Addressing today’s business challenges requires a layered, comprehensive strategy. Join fellow manufacturing technology leaders at The MFG Meeting 2026 on March 10-12 in Fort Lauderdale, Florida, for insights, solutions, and networking opportunities.

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JANUARY/FEBRUARY 2026

A VIEW FROM THE WOODS

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Advancing and Engaging the Future

positioning their companies as doing “cool” work – beyond just “interesting.” Don’t get me wrong. These companies are doing serious things, but the way they go at it – with advanced manufacturing equipment and organizational structures that allow individuals not only to grow but to excel – makes a huge difference. The people who run these companies recognize that change isn’t something that happens now and then; instead, change needs to be anticipated and handled while it is still an opportunity and not an obstacle. Thinking that doing “what got us here” will be more than adequate in the future is far too easy. That’s simply not the case. The reality is, every single manufacturing company consists of three elements: physical structures, equipment and tooling, and people. Yet some are advancing, while others aren’t. And that’s because of another element: the way the organization’s leaders deploy those elements, especially the last one – the people. One of the mantras I’ve relied on throughout my career is “I can’t guarantee employment, but I can guarantee employability.” Stuff that happens outside of our control can cause job losses. That’s a fact of business. As a leader, my job is to help people become better than they were when they first joined the organization – make them more capable, more employable. (Not that I want good people to leave, but that, too, is a fact of business.) In September, IMTS 2026 opens in Chicago. People from all over the world will see the most advanced manufacturing technologies ever created. Some of these people will represent various functions within their organization – machinists, maintenance, management, etc. They will be organized into teams and tasked with discovering the technologies and solutions that can help move their companies forward or gain momentum. They will take their responsibilities seriously – but in some ways, they will also be like kids in a candy shop, wowed and even overwhelmed by all the cool stuff on display. Yes, these people have jobs. Yes, these people work. But importantly, these people are engaged. Organizations with people like that will be successful now and in the future. With clear focus, objectives, and empowerment, with forward motion – either in inches or in miles – any company can become an organization like that. What’s stopping yours?

No one in our industry is surprised by the events and challenges that are coming together now and demanding more of us than at any time since the COVID shutdowns in 2020 – or even since the Great Recession. For one thing, as many as 2.2 million baby boomers have exited

the workforce in the past year. Some of your long-time employees have likely left the building, taking valuable know-how and talent with them. For another, manufacturing doesn’t attract young workers. As many as 500,000 manufacturing jobs are vacant today, including machinist, technician, and production specialist positions. According to the National Association of Manufacturers (NAM), up to 4.6 million jobs need to be filled by 2030 – and 2.1 million likely won’t be filled. And finally, the reshoring initiatives and supply chain reconfigurations taking place in the United States are increasing the need for domestic production operations. While automation will handle some of the new production demands, facilities still need staff, as well as on-site personnel capable of setting up, operating, and maintaining the automation equipment. People and talent are in short supply, but addressed correctly, that shortage won’t be your problem – it will be somebody else’s. Let’s face it: Challenges are nothing new in this industry. 1. People have been retiring for ages. This isn’t a new phenomenon. 2. Getting people to take jobs in manufacturing has always been a tough sell. 3. Reshoring may be happening with more vigor than in the past, but that just means that more opportunities are available for capable businesses. Some people and organizations look at challenges as surmountable bumps in the road, while others see them as impassable barriers. The first move forward. The second stands still – until the lights go out. One of the things I’ve observed while traveling across the United States and around the world is that some shops are magnets for talent. These are operations that people – yes, even young people – want to work at. Some of these companies are startups, so the issue of losing longtime employees to retirement isn’t a concern. However, more than a few have been in business for decades, and they attract the best and brightest not because they pay more than the brand-name company across town, but because they offer better, more fulfilling opportunities. A lot of people in my generation – and I’m sure yours – got into manufacturing because we found it interesting, to say nothing of its financial rewards. Today, the places that attract people are

Douglas K. Woods President AMT – The Association For Manufacturing Technology

JANUARY/FEBRUARY 2026

MT MANUFACTURING TECHNOLOGY

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Editorial Team Cathy Ma VP, Audience & Content cma@AMTonline.org

Executive Team Douglas K. Woods President dwoods@AMTonline.org Travis Egan Chief Revenue Officer tegan@AMTonline.org Becky Stahl Chief Financial Officer bstahl@AMTonline.org Christopher Kasmark Chief Information Officer ckasmark@AMTonline.org

Technology Ryan Kelly VP, Technology rkelly@AMTonline.org Intelligence Kevin Bowers VP, Research kbowers@AMTonline.org Smartforce Catherine Ross Director, Community Engagement cross@AMTonline.org Advocacy Amber Thomas VP, Advocacy athomas@AMTonline.org International Ed Christopher VP, Global Services echristopher@AMTonline.org Sales Mike DiFranco VP, Sales mdifranco@AMTonline.org Membership Bill Herman VP, Membership bherman@AMTonline.org

Kristin Bartschi Director, Marketing & Communications kbartschi@AMTonline.org

Kathy Keyes Managing Editor, Content kwebster@AMTonline.org Dan Hong Writer/Editor dhong@AMTonline.org Jacob McCloskey Senior Graphic Designer jmccloskey@AMTonline.org

Tiffany Kim Graphic Designer tkim@AMTonline.org

Hailey Sarnecki Graphic Designer hsarnecki@AMTonline.org

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Want to learn more about AMT membership? To learn how to make the most of your AMT membership, email us at membership@AMTonline.org.

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AMT – The Association For Manufacturing Technology 7901 Jones Branch Dr. Suite 900, McLean, VA 22102-3316 Tel: 703-893-2900 | Fax: 703-893-1151

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Make the Most of Your IMTS 2026 Investment

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JANUARY/FEBRUARY 2026

MT MANUFACTURING TECHNOLOGY

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Table of Contents

Click See what’s trending

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Manufacturing Matters Get details on the latest industry news

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AMT Upcoming Events Important manufacturing technology dates and events to bookmark

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Advancing Means Getting Ahead by Gary S. Vasilash

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Pockets of Opportunity Amid Economic Headwinds by Chris Downs

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The Big Picture Low Hanging Fruit or Still Ripening? 2026 Sector Updates

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Happy New Year, Happy Show Year by Michelle Edmonson

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Building the Blueprint to Innovation: IMTS+ and Hexagon’s Partnership Journey by Cathy Ma

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Pedal to the Metal

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by Stephen LaMarca

Between Blockbuster Events, You’re Not Cut Loose From Insights by Chris Chidzik

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COVER DESIGN Jacob McCloskey | Graphic Designer

INFOGRAPHIC DESIGN Low Hanging Fruit or Still Ripening? 2026 Sector Updates Hailey Sarnecki | Graphic Designer

MT Manufacturing Technology (ISSN # 2836-2896), January/February 2026, Issue 1, is published bimonthly by AMT – The Association For Manufacturing Technology, 7901 Jones Branch Drive, Suite 900, McLean, VA 22102. Periodicals postage paid at Merrifield, Virginia, and at additional mailing offices. Postmaster: Send address changes to MT Manufacturing Technology at 7901 Jones Branch Drive, Suite 900, McLean, VA 22102.

To manage your subscription, contact Elissa Davis at edavis@AMTonline.org.

DATE: January 28-30, 2026 | LOCATION: Fort Worth, TX An exclusive event for NTMA’s Chapter Leadership. This event has a targeted group of registrants. Chapter Leadership Summit provides a great opportunity to get in front of and personally meet our Chapter Executives, Chapter Presidents, and Trustees (also member company owners and Presidents). This event will help maximize your connections at the local level. Anticipated Attendance: 60-75 People

2026 NTMA CALENDAR OF EVENTS Please contact Kristen Hrusch, our Events Manager for more information and to register: Kristen Hrusch - Krusch@ntma.org 216.264.2845 or visit www.ntma.org/upcoming -events www.ntma.org/events

DATE: April 27-29, 2026 | LOCATION: Grand Rapids, MI NTMA gathers the best and brightest up-and-coming industry leaders to network, share knowledge and brainstorm about tomorrow’s manufacturing industry. Since this event targets the younger generation, they may be more receptive to newer technologies and processes. Build and grow your relationships with these industry influencers and be top of their mind. Anticipated Attendance: 100-150 People *NTMA has invited industry associations to partner for this event. Partnering associations will be: AMT, NFFS, AGMA and TMA.

DATE: September 14-19, 2026 | LOCATION: Chicago, IL This is the perfect place to showcase your product and any new technologies. NTMA will be hosting a luncheon to a targeted audience during IMTS that will allow our National Associates the opportunity to showcase new products and/or technologies. Anticipated Attendance: TBD

* Events Subject to Change*

DATE: November 10-13, 2026 | LOCATION: Las Vegas, NV NTMA’s signature event! Targeting Presidents, Owners and C-Level professionals for endless networking and learning opportunities. Anticipated Attendance: 150-200 People

JANUARY/FEBRUARY 2026

CLICK

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Click MT Magazine is more than just paper pulp and ink. Explore our content on AMTonline.org and engage with discussions on a wide array of topics affecting manufacturing technology now.

The Inside Track: AMT Committee Highlights From AIM, E&S, Global, and TIC AMT’s Automation in Manufacturing, Economics & Statistics, Global, and Technology Issues committees support the growth and advancement of the manufacturing technology community. The latest committee highlights include trend tracking initiatives for automation; category revisions for the U.S. Manufacturing Technology Orders program; a new mission and charter for the Global Committee; and key membership updates.

Using Trade Shows To Build Your Brand and Generate Qualified Leads Trade shows remain one of the most effective ways to meet buyers face to face and shorten sales cycles. With most attendees holding purchasing authority, events offer a concentrated environment for demonstrating technology, gathering customer needs, and qualifying leads quickly. Beyond visibility, shows help test messaging, assess competition and market trends, and strengthen long-term business relationships.

Opportunity and Innovation: Manufacturing’s Moment Is Now U.S. manufacturing is surging, driven by strong demand, favorable policy, and new investment in defense, aerospace, and space sectors. Advances in industrial AI, automation, and robotics are laying the groundwork for big gains, especially in contract manufacturing. As IMTS 2026 approaches, it positions itself as more than a show: It’s a springboard for the innovations shaping tomorrow’s factories.

Sharp Tools, Sharper Profits As the owner of Pro-Cam Services discovered, upgrading from a manual to an automatic drill-sharpening system can significantly transform your shop floor. Consistently sharp tools means fewer broken taps, cleaner holes, reduced scrap, and faster throughput. What started as a quick IMTS demo turned into a clear ROI case: better quality, less waste, and a more reliable, efficient workflow overall.

Data is power, and AMT bridges the gap between the data and turning those insights into real opportunities. When I entered the industry, I thought that the manufacturing community would be more protective of their resources and knowledge. But everyone has been willing to share – and I have a lot of questions!

ANDY CHU Vice President Supertec Machinery, Inc.

YOUR MINDSET

After more than 120 years, AMT – The Association For Manufacturing Technology and its members know that manufacturers are in the same boat. So, when companies like Supertec Machinery want to combine their 70-year-old traditions with new technology, AMT provides the glue through data, connections, market insights, and key support to level up.

Learn About Joining AMT

Email membership@AMTonline.org or scan the QR code to learn more about AMT membership.

JANUARY/FEBRUARY 2026

MANUFACTURING MATTERS

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Manufacturing Matters Check in for the highlights, headlines, and hijinks that matter to manufacturing. These lean news items keep you updated on the latest developments.

TECHNOLOGY

Opportunity Lives Between the Sectors Sometimes the fastest path to growth isn’t in your market – it’s in someone else’s. For example, a decade ago, as electric vehicles gained popularity, some oil and gas suppliers with idle capacity pivoted to machining parts for electric vehicles. Today, that same principle holds. Sector-specific slowdowns often leave high-value capabilities sitting unused, while emerging markets – like clean energy, aerospace, or defense – face capacity shortfalls. The key is visibility and flexibility. Manufacturers who understand their strengths and stay open to cross-sector work can thrive where others stall. In an unpredictable economy, diversification isn’t a hedge – it’s a strategy.

INTERNATIONAL

Strategies for Shifting Opportunities in Global Market Sectors Opportunities in the global industrial sector for manufacturers are never constant. Tracking and capitalizing on them is an ever changing game of chess. In volatile times, prioritize sectors that maintain or increase investment, such as pharmaceuticals, defense, energy, and utilities, where demand and regulatory pressures create steady equipment needs. There are also nice opportunities in semiconductors, logistics automation, and renewable energy. Target emerging markets – India, Vietnam, Indonesia, and Mexico – where industrial growth and government incentives drive automation spending. When mainstay sectors like automotive and aerospace slow down, shift emphasis to retrofits, productivity upgrades, and service contracts rather than new machine sales. Develop sector-specific ROI tools and application engineering to differentiate yourself from your competitors. Build partnerships with local integrators and distributors who specialize in your target industries. Monitoring global trends and opportunities can be daunting. For some help, turn to AMT’s weekly International News From the Field column on AMT Online, which can help guide you in allocating your global resources.

SMARTFORCE

Running Out of Candidates? The Student Summit Has Thousands The Smartforce Career Pathways program at IMTS 2026 connects you directly with the next generation of manufacturing talent. More than 15,000 students will attend the Smartforce Student Summit, including over 5,000 college and university students actively exploring their career options. It is a powerful way to put your entry-level openings in front of a motivated, future-focused audience. Participating IMTS exhibitors receive prominent placements on two large-format digital job boards inside the Student Summit, located in Hall C of the North Building at McCormick Place, as well as extended visibility in the Smartforce section of IMTS.com through the end of 2026. Each listing includes your logo, booth number, up to three open entry-level roles, and a QR code linking directly to your IMTS digital showroom. Whether you are hiring interns, apprentices, or new graduates, Smartforce Career Pathways helps you build brand recognition, connect with emerging talent, and show your commitment to workforce development. Contact summit lead Catherine “Cat” Ross at cross@AMTonline.org to secure your spot.

THE INDUSTRY UPDATES ISSUE

MANUFACTURING MATTERS

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ADVOCACY

2025 Wrap-Up and 2026 Outlook: Manufacturing Policy 2025 marked a significant year for U.S. manufacturing policy, with Congress enacting several long-standing industry tax priorities. Permanent bonus depreciation, restored R&D expensing, continuation of the passthrough deduction, and increased Section 179 thresholds collectively provide greater certainty for capital investment, innovation, and small-business planning across the manufacturing technology sector. Looking ahead to 2026, trade policy will continue to be a central focus. The Trump administration continues to advance a layered tariff strategy, maintaining Section 301 duties on Chinese imports, pursuing reciprocal tariff frameworks, and progressing with Section 232 investigations involving industrial machinery and robotics. These developments are expected to impact pricing, sourcing decisions, and supply chain planning for manufacturers and technology providers. In parallel, Congress may revisit competitiveness, workforce, and supply chain legislation, while federal agencies, including those at the departments of Commerce and Defense, continue industrial base assessments and reshoring initiatives. Taken together, 2025 delivered tax stability, and 2026 is poised for sustained activity in trade and industrial policy. Lower Bank Rates To Start 2026 The Federal Reserve controls the money supply to maximize employment and the dual mandate is to acheive maximum employment and maintain price stability. Because monetary policy shapes borrowing costs and business expectations, it can strongly influence investment in new manufacturing technology. Interestingly, orders for manufacturing technology, according to AMT’s USMTO survey program, have remained fairly robust throughout 2025 despite the elevated interest-rate environment. Against that backdrop, the Fed’s latest move – a third consecutive quarter-point cut to a 3.5%-3.75% target range – helps set the tone for 2026. Updated projections point to stronger expected GDP growth, a gradual easing in unemployment, and inflation holding slightly above target. Machinery orders were already firming in late 2025, and improved financial conditions could support continued capital investment. Still, growing dissent within the Federal Open Market Committee reflects lingering uncertainty. As the Fed navigates the competing pressures of its dual mandate, manufacturers will be watching closely for signals that shape technology spending in the year ahead. INTELLIGENCE

Source: The Board of Governors of the Federal Reserve System

JANUARY/FEBRUARY 2026

WHAT’S HAPPENING

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AMT Upcoming Events Learn more or register at AMTonline.org/events. Your datebook will thank you.

UP NEXT

MFG The 2026 MFG Meeting March 10-12, 2026 | Fort Lauderdale, Florida The MFG Meeting brings together manufacturing technology industry leaders to address key business challenges and provide actionable solutions. Sessions cover a wide range of topics, including workforce, economics, supply chain, leadership, politics, and more.

MTFORECAST MTForecast 2026 October 14-16, 2026 | Schaumburg, Illinois

AMT MEMBER MEETUPS

AMT Member Meetups are regional gatherings of the AMT community. These free events bring together diverse perspectives from every corner of the supply chain to help manufacturing communities grow and innovate. Stay tuned for more dates for upcoming AMT Member Meetups.

MTForecast offers attendees the latest economic and global forecasts, manufacturing technology market insights, and information on new opportunities and challenges. Learn from the actual experts about the pitfalls and opportunities shaping manufacturing technology over the next few years.

CHICAGO, IL: May 5, 2026 CINCINNATI, OH: May 7, 2026 MILWAUKEE, WI: June 2, 2026 MINNEAPOLIS, MN: June 4, 2026

Events & Media Sponsorship

IMTS IMTS 2026 September 14-19, 2026 | Chicago, Illinois

Looking for an all-access pass to an audience of manufacturing technology OEMs and distributers? Look no further! AMT offers event sponsorship opportunities that get your brand in front of your key audience.

The largest manufacturing trade show in the Western Hemisphere returns to Chicago! Find new equipment, software, and products to move your business forward, connect with industry experts and peers, and attend conference sessions to boost your industry knowledge.

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Advancing Means Getting Ahead Technology utilization and its benefits for achieving operational improvements BY GARY S. VASILASH CONTRIBUTING DIRECTOR Between headlines touting the latest artificial intelligence achievements, new legislation and policies aimed at stimulating growth in manufacturing, and a dearth in skilled job applicants, more and more manufacturers are turning to advanced technologies to solve their challenges and seize opportunities. But what solutions are setting up long-term success for them – and you?

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FEATURE STORY

Before exploring some trends and technologies that manufacturers may use going forward, it is probably worthwhile to review what some of the best manufacturers are doing right now. So, we turn to some of the results of the Top Shops program conducted by Gardner Business Media. Now in its 14th year, the benchmarking survey has earned more than a slight amount of credibility associated with its findings – to put it mildly. For 2025, GBM found that the industry’s top shops don’t just have newer equipment than the other shops (7 1/2 years versus 10 years), they run the equipment more (15 hours per day versus 8 1/2 hours) and make more with it ($350,000 in sales per machine versus $183,000). It is also worth noting that top shops produce less scrap and rework (0.9% versus 2.4%); their first pass quality yield is better (95% versus 90%); and customers get their deliveries on time more often (94% versus 86%). Which brings us to the equipment utilized by the top shops. As it turns out, while all shops have similar equipment, top shops have more of it than other shops:

And Then Robots… Another enabler for lights-out/unattended machining – one that also works when the lights are on – is robots. But even at the top shops, there are significantly fewer than you might expect: Only 54% of top shops use robots for part loading/unloading. That shrinks to just 27% for other shops. Ryan Kelly, vice president, technology at AMT, said, “A lot of manufacturers are interested in flexible automation, but they don’t want to leverage robotics in a fixed system; they want to be able to move the robot from station to station on a mobile base.” However, robot deployment in a shop presents some issues for manufacturers. Kelly said that, for many shops, robots are still too expensive. And if a decision is made to add robotic automation, the time between making that decision and deployment is too long. What’s more, small and medium-sized

• Vertical Machining Centers: 94% vs. 80% • Horizontal Turning Centers: 89% vs. 74% • Horizontal Machining Centers: 67% vs. 50% • Turn-Mill/Multitasking: 69% vs. 44% • Twin-Spindle Turning: 53% vs. 37%

Despite a high level of similarity (although the delta between the use of multitasking machines is notable in top shops), equipment utilization – in terms of setup, load/unload, and tooling – makes a big difference: 71% of top shops perform lights-out/unattended machining, while the others are at just 54%. That helps explain the difference in spindle utilization – 74% at top shops and 60% at others. After all, if the spindle isn’t turning, parts (and revenue) aren’t being made.

Amazon’s Vulcan robot has a sense of touch for carefully handling items. (Image: Amazon)

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operations generally don’t have people to spearhead these automation projects, which can require a substantial amount of time. So, Kelly said, the cost of implementation needs to come down; the time for deployment needs to collapse; and the overall ease of use of robots needs to improve. He said that he sees a lot of evidence that things are moving in that direction. The Amazon Effect One of the places where Kelly looks is probably a place that most people at shops – top ones and others alike – don’t look: Amazon. Amazon operates more than 300 facilities worldwide that utilize robots – both commercial models you likely recognize and robots that Amazon itself is developing. With more than a million robots, the company claims to be “the world’s largest manufacturer and operator of mobile robots.” Its fleet of robots includes Hercules, which can lift and move 1,250 pounds of inventory, and Proteus, a fully autonomous mobile robot that can move heavy carts full of goods and maneuver around employees while doing so. With so many robots in its facilities, Amazon has developed DeepFleet to coordinate traffic and avoid congestion. The company calculates that this suite of AI-based foundation models improves the travel time of the fleet by 10%. Additionally, Amazon recently announced the development of Blue Jay, which it describes as a “next-generation robotics system that coordinates multiple robotic arms to perform many tasks at once.” While this may not be useful in a physical shop – after all, Amazon fulfillment centers have high-speed conveyors that move thousands of items – conceptually, it is: Blue Jay consolidates three robotic workstations into one. Another example of what is sometimes referred to as “physical AI” (AI that works with machines, such as robots or vehicles, to perform tasks in the real world, as opposed to the digital space) is Vulcan, a robot with a sense of touch. Its end effector includes force feedback sensors, so it knows when it makes contact with an object and how much force is being applied. Vision allows it to see items in a container; a rod allows it to move the items, creating space for new items or to allow accessibility for removal, which is performed by a suction cup on the end effector. While Vulcan can handle about 75% of the items processed in Amazon fulfillment centers, it is smart enough to know when it can or can’t perform its required tasks. When it encounters something it can’t handle, it alerts human employees for help. Although these systems are developed for warehouse situations, they are likely to lead to a proliferation of operations, including in manufacturing. Architecturally, the robots being used at Amazon are either like the ones being used in manufacturing operations (e.g., 6-axis arms) or are flat and have wheels (for carrying things on their surfaces).

Optimus under its “skin.” It probably isn’t coming to a shop near you anytime soon. (Image: Tesla)

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Scanning a door panel at the Detroit Assembly Complex – Jefferson. AI can help improve quality. (Image: Stellantis)

Humanoids: $erious — For Now A lot of attention is being paid to humanoid robots. One might even conclude that their mass adoption is just around the corner. However, Dayton Horvath, AMT’s director, emerging technology and investment, pointed out that a huge data set is required to make robots do human-like tasks in a human-like way. This means a lot of resources – both digital and financial. Consequently, they’re likely only to be used by companies that have the wherewithal to address the high cost of implementation – companies like Amazon. AI is all the buzz, but it needs to be contextualized. For example, Stellantis, a company with the resources for AI, is rolling out the technology in its factories for use in vision systems, machine data monitoring, machine diagnostics, part picking optimization, and other tasks. So, before we get to AI-powered humanoids, there is still a way to go. Horvath said the ubiquity of cobots – collaborative robots – will grow over the next two to three years as they become easier to use.

Smart Manufacturing Matters A 2025 Deloitte survey of 600 executives from manufacturing companies larger than those in GBM’s Top Shops survey indicated a tremendous interest in smart manufacturing, including the deployment of factory automation hardware, data analytics, active sensors, vision systems, robotics, IoT platforms, wearables, and cloud computing. Notably, 92% of those surveyed responded that smart manufacturing will be the main driver of competitiveness

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over the next three years, and 85% said a smart manufacturing initiative “will transform how products are made, improve agility, and attract new manufacturing talent.” That last item, talent – people – cannot be underestimated. Deloitte conducted a study in 2024 that projected a need for 3.8 million net new employees in manufacturing by 2033 to meet labor demands. Since the study was conducted before the Trump administration enacted the current reciprocal tariffs to encourage more domestic manufacturing, that figure may be an underestimation. According to the “2025 Reshoring Survey Report” from the Reshoring Initiative and Regions Recruiting, “Even without a surge in reshoring, 2.1 million manufacturing jobs are forecast to go unfilled by 2030.” Deloitte’s 2025 smart manufacturing survey also uncovered that about 70% of respondents have “moderate to significant challenges” in hiring skilled people for IT, OT (operational technology), data science and engineering, application development, and cybersecurity. And this is today.

What To Do Whether for operational improvements and their consequent financial benefits or as part of the smart manufacturing efforts that many companies are deploying, it is clear that the businesses that will succeed going forward not only recognize the need to use advanced technology but actually find it, acquire it, and use it. To that end, IMTS 2026, which will be held Sept. 14-19 at McCormick Place in Chicago, is an excellent place to start your journey toward implementing advanced technology in your operations. Although overall market uncertainty continues to be largely driven by geopolitics, a few things are absolutely clear, like the need to manufacture more products in the United States – efficiently manufactured. Otherwise, an affordability issue arises among consumers. While public attention seems to focus on AI, improved fundamentals, like implementing unattended machining, are opportunities that can make a huge difference.

If you have any questions about this article, please contact Gary at vasilash@gmail.com.

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Pockets of Opportunity Amid Economic Headwinds Amid ongoing economic, policy, and global shifts, manufacturers are poised for a year of transition in 2026, marked by renewed growth driven by investments in technology, defense, and energy. BY CHRIS DOWNS DIRECTOR, DATA PRODUCTS MTForecast 2025, which took place Oct. 15-17 in Schaumburg, Illinois, provided manufacturing leaders with insights into the market and policy trends their businesses are likely to face over the next 12-18 months. Beyond the macroeconomic and policy trends affecting all manufacturers, experts gave deep dives into specific manufacturing technology (MT) end-user markets and shared their outlook for these key customer industries. Highlights from the sector-by-sector breakdowns reveal a landscape of both opportunity and challenges.

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Automotive The U.S. auto market is stabilizing, with light vehicle sales projected to increase slightly in 2026. The industry is not likely to see dramatic peaks in future years but rather a plateau shaped by affordability concerns, evolving lifestyles, and tariff uncertainty. The number of manufacturers in this sector continues to grow. Electrification continues to reshape the industry, although hybrids appear to be the driving force instead of full electrification. Chinese automakers are gaining traction and pressuring North American OEMs; with limited room for domestic growth, they must look abroad to sustain expansion. AEROSPACE

AUTOMOTIVE

Aerospace Despite persistent supply chain constraints and labor shortages, the aerospace sector remains a bright spot, although it has not yet returned to its pre-COVID peak. Airbus continues to lead in new orders, while Boeing shows signs of stabilization and growth. The sector is buoyed by strong commercial jet demand and long backlogs, increased global defense spending, and support for new platforms. MT companies should keep an eye out for any news related to a new Boeing model, which would lead to significant retooling and capital expenditures in future years as Boeing brings the new platform online.

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FEATURE STORY

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ENERGY

Defense U.S. defense spending remains robust, with the budget for fiscal year 2026 exceeding $1 trillion. Spending levels are now approaching their post-World War II peak, seen at the end of the George W. Bush administration. Priorities include missile defense (i.e., the Golden Dome), shipbuilding, and nuclear modernization, all of which support demand for precision manufacturing and advanced materials. Global defense spending is also rising as countries in NATO boost their spending to meet agreed-upon defense levels. The sector stands out as a bright spot for manufacturers, where they can find strong demand for their products.

DEFENSE

Energy The Gulf Coast is emerging as a hub for low-carbon manufacturing, driven by decarbonization mandates and rising electricity demand. Investments in electric vehicles, heat pumps, artificial intelligence, and data centers are fueling a new era of energy consumption. Electricity demand is expected to increase, but probably less than clickbait headlines suggest, as the energy efficiency of new products is improving. U.S. energy exports are expected to grow, positioning the region as a global supplier of power and fuel. Renewables will likely continue to grow market share, but perhaps more slowly than anticipated due to tax credit and policy changes.

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CONTRACT MANUFACTURING & MACHINE SHOPS

Agriculture, Construction, and Mining These sectors present a mixed outlook. In particular, construction shows private and residential construction contracting, while public construction is doing well as a result of Build Back Better initiatives. Interest rates continue to be a concern. 2026 looks to be a much stronger year for the industry than 2025, and manufacturers can capitalize on opportunities by selling equipment to companies in the AI-construction supply chain. Significant investment and demand continue to drive growth in this sector. Similarly, mining equipment saw improvement with stabilization in 2025, and growth is likely in 2026 and 2027. The supply of critical, rare-earth minerals captures headlines, and investment will likely increase in this area as the government gets more involved and geopolitical factors drive increased demand and competition for these resources. Agriculture faces headwinds from weak farmer sentiment, input cost inflation, and policy uncertainty. Trade issues have hit the sector hard, and while OEMs like John Deere are committed to manufacturing in the United States, they are also eyeing investments in Mexico. Crop prices for farmers are below the cost of production in some cases, which limits the capital they have for investing in new equipment. A modest recovery in production and sales is expected in 2026 for agricultural machinery like tractors and combines, but this may be contingent upon commodity price stabilization and improved financing conditions. AGRICULTURE, CONSTRUCTION, & MINING

Contract Manufacturing and Machine Shops Survey data from the National Tooling and Machining Association shows cautious optimism among small and medium-sized job shops, with reshoring activity increasing and automation adoption holding steady at around 30%, driven by persistent workforce challenges. However, backlog declines and tariff concerns are tempering growth expectations, and the anticipated capital expenditure for new machine tools and manufacturing technology is likely to drop next year. Projected business conditions among respondents have become more unfavorable. The data revealed that the strongest areas in the United States for job shops are currently the Northeast, North Central, and Central Southwest regions, likely due to huge growth in the outer space market. According to the Gardner Capital Spending Survey, more shops are turning to used equipment and flexible tooling solutions to manage costs and maintain competitiveness. Additionally, larger shops are better positioned to handle the economic headwinds in 2026 and represent a better opportunity for sellers than smaller ones, where every dollar spent is coming directly out of the owner’s pocket. Overall, MT customer markets represent a mixed bag of opportunities for next year, but any downturn is likely to be short-lived, as economists expect 2027 to bring renewed growth to the industrial sector. AMT President Doug Woods said, “This is one of the best times to be in manufacturing, as the advancements in automation, additive, digital manufacturing, and more offer an exciting future ahead.” Those in attendance at MTForecast have a similarly optimistic long-term outlook on the industry. While 2026 may prove to be a bumpy year, the next several years are looking promising for U.S. manufacturers, with numerous economic opportunities and excitement surrounding new technological advancements. Long-Term Outlook for Manufacturing Still Strong

If you have any questions about this article, please contact Chris at cmdowns@AMTonline.org.

MISING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS • PROMISING • OPTIMISTIC LITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • MISING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS • PROMISING • OPTIMISTIC LITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • MISING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS • PROMISING • OPTIMISTIC ILITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITIN ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • SING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS •PROMISING • OPTIMISTIC • ITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • SING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS •PROMISING • OPTIMISTIC • ITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • SING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS •PROMISING • OPTIMISTIC • ITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • SING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO CREDIBLE • EXCITING • CONTINUOUS •PROMISING • OPTIMISTIC • ITY • INTEGRITY • CHANGE • SPEED • INCREDIBLE • EXCITING ATION • TECHNOLOGY • TRAINING • CREDIBILITY • INTEGRITY • SING • OPTIMISTIC • DIGITAL TRANSFORMATION • TECHNOLO In the latest episode of the IMTS+ series "The World According To," AMT President Doug Woods discusses the resurgence of U.S. manufacturing and the transformative impact of advanced technologies, such as industrial AI and robotics. AMT – The Association For Manufacturing Technology

THE BIG PICTURE

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JANUARY/FEBRUARY 2026

IMTS

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Happy New Year, Happy Show Year BY MICHELLE EDMONSON VICE PRESIDENT, EXHIBITIONS

Celebrating a new year always brings anticipation, but nothing builds excitement like a new show year for IMTS – The International Manufacturing Technology Show. 2026 marks the 36th IMTS, and

machining, industrial AI, additive manufacturing, and digital solutions. Down each aisle, attendees will find hundreds of machines, software, small tools, and subject matter experts that can make a big impact on your bottom line. Temporal landmarks also generate moments of reflection, and I’d like to borrow a phrase from my colleague and friend, Doug Woods, who is also president of AMT: “There’s never been a more exciting time to attend IMTS or be in manufacturing.” Woods grew up in his family’s tool and die business and brings a practical optimism to the industry. He sees manufacturing as a daily opportunity to build something of value – whether that’s a precision component or a professional connection. He also points out that there’s no better place to do that work than in the United States. The U.S. manufacturing sector generates roughly $2.9 trillion annually; if it were a country’s economy, it would rank eighth in the world. Beyond scale, American manufacturers innovate faster,

we’re looking forward to sharing our joy with the entire manufacturing community on Sept. 14-19 at McCormick Place in Chicago. As someone who has been involved with IMTS for nearly 30 years, I look forward to reconnecting with hundreds of friends. Invariably, these friends introduce me to their colleagues, and my circle grows. If you think about it, IMTS is the coolest New Year’s party ever. You get to hang out with great people and explore new manufacturing technology together, strengthening your bonds through mind-blowing demonstrations and experiences. Fresh Start Effect IMTS, like New Year’s Day, is a temporal landmark, or a moment in time that stands out from the ordinary. It creates what behavior scientists call a “fresh start effect” – a psychological boost and catalyst for change. As for the agents of change, that comes through exploring the show itself. IMTS 2026 will feature 1,800 exhibiting companies, covering more than 1.2 million square feet of exhibit space and showcasing the latest in metal removal technologies, automation and robotics,

adopt technology more efficiently, and foster a culture of rewarding progress. That same mindset defines the IMTS community. When manufacturers come together to exchange ideas and lessons learned, everybody wins – and that’s worth celebrating. Start the party now. Register for IMTS 2026 and explore more exhibitors and features at IMTS.com.

If you have any questions about this article, please contact Michelle at medmonson@AMTonline.org.

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IMTS+

Building the Blueprint to Innovation: IMTS+ and Hexagon’s Partnership Journey BY CATHY MA VICE PRESIDENT, AUDIENCE AND CONTENT

In 2025, AMT – The Association For Manufacturing Technology and Hexagon came together with a shared vision: to create engaging, meaningful content that celebrates the technology, talent,

and partnerships driving American manufacturing forward. That vision became reality through the IMTS+ award-winning series “The Architect” – a storytelling journey that explores the blueprint to innovation. “The Architect” series isn’t just about hardware or software. It’s about people – the manufacturing engineers, technologists, and collaborators who turn ideas into action. Together, we’ve showcased how expertise and partnership translate into real world impact across the industry. The series features Hendrick Motorsports, Co-Line Manufacturing, and Fullerton College, highlighting how different organizations – each serving unique purposes – embody the same core spirit: pushing the boundaries of digital twins, advanced metrology, and integrated workflows, all powered by remarkable talent. These are American-made success stories that reflect the strength and creativity of our manufacturing community. This partnership with Hexagon sets an example of what happens when industry expertise meets storytelling that truly resonates. It demonstrates how we can communicate not just what our members do but why it matters – to innovation, to industry growth, and to the people who make it all happen. As we look ahead, we invite the broader AMT community to join us. By becoming an IMTS sponsor, we can help your company craft, amplify, and deliver stories that inspire and educate – stories that showcase the brilliance of discrete component manufacturing and remind us all how exciting it is to be part of this industry today. The IMTS show cycle is a 24-month journey, and the year leading up to IMTS is a crucial window for exhibitors to shape their key messages. By working with AMT, we can share your stories with the right audience. If you have a story to share about innovation, collaboration, or transformation, we’d love to hear from you. Together, we can continue to shape the narrative of American manufacturing excellence. For more information on sponsorship opportunities, visit IMTS.com or email me.

If you have any questions about this article, please contact Cathy at cma@AMTonline.org.