How To Capitalize On The Asset-Light Manufacturing Boom

Executives have started to reshape manufacturing from the old ways based on these four trends: 1) integrating digital technologies with physical products, combining grease with code; 2) adapting to a changing world order with local, near, and far manufacturing capacity; 3) electrifying, decarbonizing, and then manufacturing sustainably; and 4) balancing the automation triangle to get the best from hardware, software, and people.

This report outlines Forrester’s most important predictions for business and technology leaders in smart manufacturing and mobility in 2026.

Understand When, Where, And How To Make Microfactories Part Of Manufacturing Success

Twenty Technologies Underpin Smart Manufacturing

Figure 4 Limited Manufacturing Events Trigger Changes To Product Content This conceptual graphic depicts event triggers, such as variations in manufacturing bills of materials or maintenance events, that result in publishing new content for sales, marketing, or service consumption.

In traditional manufacturing, fixed conveyors connect equipment to production lines, optimized for volume rather than variety. Modern manufacturing facilities are increasingly moving away from fixed production lines to modular work cells, flexibly connected by automated guided vehicles (AGVs).

Manufacturing Veers From Volume To Variety Technologies like additive manufacturing, robots, and edge play a role in customer-centric manufacturing. Manufacturers are now reconsidering the costs and benefits of different strategies that link sales to manufacturing, such as configure to order and make to stock (see Figure 1). Technology leaders must develop and manage technology portfolios designed to cope with: Market fragmentation.

These and other Chinese investments meet several objectives, including manufacturing large physical products closer to the customer to reduce shipping time and cost, and circumventing sanctions, tariffs, and other charges designed to favor locally manufactured goods. New local manufacturing capacity, plus advances in AI, require European partners and competitors to revise their outdated view of Chinese manufacturing.

To Succeed With Smart Manufacturing, Empower Technology And Operations Teams To Work Together