News
London, 10 February 2026 – European manufacturers are entering 2026 with a strong focus on efficiency and performance, with 96% citing efficiency as the primary driver for technology investment amid ongoing skills shortages, rising costs and market uncertainty, according to new research from ECI Software Solutions.
Confidence in emerging technologies is also high, with 72% of manufacturers feeling positive about the potential of AI and 66% saying it will be important or decisive for competitiveness over the next three years. The findings suggest a sector that, while under pressure, is actively looking to technology to improve productivity and resilience.
The findings come from the Manufacturing Trends Report 2026, based on a survey of 300 manufacturing businesses across Europe, including the UK. While pressures remain, the research points to a pragmatic approach to growth, with technology playing a central role in operational decision-making.
Despite the challenging backdrop, 58% of manufacturers expect their business to grow in 2026, reflecting optimism across the sector. However, the data also highlights structural challenges that continue to hold businesses back. 84% of manufacturers are still in the early stages of digitalisation, while only 15% have digitised more than 75% of their processes. Skills shortages remain a critical issue, with 42% citing this as their biggest workforce challenge.
The research conducted by ECI Software Solutions reflects the UK manufacturing landscape. The sector ranked 11th globally for manufacturing output in 2025, valued at nearly £210bn, with recent investment concentrated in engineering and vehicle manufacturing. Despite the Government’s 10-year Industrial Strategy which aims to double business investment in advanced manufacturing to £39bn by 2035 and reduce energy costs, manufacturers across the country continue to face high energy prices, supply chain uncertainty and accelerating digital change.
Against this backdrop, manufacturers are increasingly turning to enterprise resource planning (ERP) systems – software platforms that bring together core business processes and data such as finance, production, inventory and planning – as central operational tools to drive efficiency and control costs. 72% use ERP to improve costing, 65% for production planning and 53% for inventory optimisation, yet only 37% currently use ERP for forecasting, highlighting untapped potential to use data more strategically.
“For many manufacturers, this is no longer about digital ambition – it’s about operational survival,” says Aldo Veenstra, President Manufacturing Division Europe at ECI Software Solutions. “When margins are tight and resources are stretched, technology has to earn its place. Sector-specific solutions give manufacturers the visibility and control they need to make faster decisions, improve efficiency and remain competitive in a tougher market.”
The Manufacturing Trends Report 2026 is available to download free of charge via this link: UK Manufacturing Trends 2026: Digital Transformation, AI Adoption & Workforce Challenges
The research was conducted by ECI Software Solutions, among a sample of 300 European respondents across European countries including the UK, Netherlands and Belgium.
ECI Software Solutions provides industry-specific cloud-based business management solutions. Working with small and medium-sized manufacturers across North America, Europe and APAC, ECI has over 30 years of experience and understands the challenges faced by these organisations.
Created and developed by experts with industry knowledge, ECI’s ERP manufacturing software offers comprehensive functionalities, customisation features and dashboards, exceptional support, and is proven to drive success. Ridder iQ is trusted by 2,600 businesses across Europe to manage the continuous coordination between R&D and engineering, purchasing, production, assembly and services teams. For those with up to 25 full-time employees, Ridder iQ Essentials is a simple, yet complete, EPR solution that supports the team and drives efficiency.