According to the 2026 State of Manufacturing Report released by Wherefour Inc., manufacturers are optimistic about growth in 2026. Insights show that while AI adoption is slow, day-to-day operations issues, such as compliance and traceability, are at the forefront of their focus for the year.

PETALUMA, Calif., March 12, 2026 /PRNewswire-PRWeb/ -- According to Wherefour, a leading ERP platform for regulated manufacturers, the growth outlook for the manufacturing sector remains optimistic. In its second annual State of Manufacturing report, based on a December 2025 survey of hundreds of manufacturers, 80% of respondents said they are very optimistic (29%) or cautiously optimistic (51%) about growth in 2026, signaling an industry focused on operational improvement.

According to the report, economic conditions (24%), consumer demand (23%), and raw material costs (17%) are expected to have the greatest influence on business performance in the year ahead. While optimism remains high, more than half of manufacturers expect investment levels to remain flat compared to 2025.

"Manufacturers are entering 2026 with a clear understanding that growth requires discipline," said Matthew Brown, CEO of Wherefour Inc. "The data shows strong optimism, but it also highlights a shift toward tighter operational control, in-house compliance expertise, and smarter investment decisions. Companies that prioritize efficiency and accountability will be the ones that turn cautious confidence into measurable results."

Key findings from the report highlight top priorities and operational challenges shaping manufacturers' strategies in 2026, including:

• The most anticipated challenges for 2026 are supply chain/inventory (43%), staffing (40%), forecasting demand (34%), and cash flow (33%).
• Manufacturers feel most bottlenecked by inventory management (59%) and production scheduling (46%)
• Compliance protocols are top of mind and critical for manufacturers, yet 70% say their protocols are acceptable but could be improved.
• A focus on automation has increased efficiency with top automated processes reported as purchase orders, invoices, and credit memos (23%), orders and pick lists (20%), and shipping labels (17%)
• Only 5% of manufacturers report currently employing AI in their operations.

Read the full report: https://wherefour.com/state-of-manufacturing/

About Wherefour Inc.

Wherefour offers modern, affordable ERP and traceability software for manufacturers and distributors in food, beverage, cannabis, personal care, nutraceuticals, textiles, and general manufacturing. Our software ensures accurate production costing, inventory control, batch and lot tracking, raw material traceability, overhead monitoring, and customer/vendor relationship management. Mobile-friendly and easy to implement, Wherefour supports multiple users and accounts, managing recalls, compliance, and safety audits. Integrations with QuickBooks®, Sage Intacct®, Microsoft Dynamics®, Metrc, Epicor, Shopify, ShipStation, Xero, and more help users monitor production performance and quickly identify cost, yield, or inventory deviations.

More information about Wherefour is available at wherefour.com.

Media Contact

Faith Borland, Wherefour Inc, 1 415-930-4028, faith.borland@gmail.com, https://wherefour.com

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SOURCE Wherefour Inc