Labor Shortage Remains Top Obstacle for Manufacturers in 2026: CADDi Survey

79% of manufacturing leaders report the skilled labor shortage as a major external challenge, a 7% increase over the 72% reported in 2025, according to CADDi's 2026 Manufacturing Outlook Study. In response, 62% of respondents say they are aiming to improve worker recruitment and retention.

“Manufacturing teams are facing shrinking headcounts despite rising volatility and pressure,” says Yushiro Kato, CEO and co-founder of CADDi. “To ease the labor shortage’s impact, companies need faster answers, stronger cost visibility and data that lets them act with confidence.”

Rising direct costs (61%), uncertain trade policy (47%) and geopolitical supply chain disruptions (38%) also rank among manufacturers’ top concerns for 2026.

69% of organizations plan to invest in physical assets in the coming year, a 9% increase from last year, and only 33% are planning investments in operational systems like MES and ERP, down from 60% in 2025.

“This reflects a pragmatic turn toward technologies that deliver measurable output gains on the shop floor. Machine monitoring, sensors and predictive analytics continue to strengthen quality and uptime, while AI moves upstream into forecasting and decision support,” the report says.