# Economic uncertainty drives manufacturing technology investment > See how economic uncertainty is driving software investment for manufacturers, including an overview of the top software manufacturers are buying. Source: https://www.softwareadvice.com/resources/economic-uncertainty-drives-manufacturing-software-investment/ --- 1 million+ businesses helped. Get advice Get Free Advice [Home](https://www.softwareadvice.com/) / [Resources](https://www.softwareadvice.com/resources/) / Manufacturers invest in software to brace against macroeconomic uncertainty # Manufacturers invest in software to brace against macroeconomic uncertainty By: [Molly Burke](https://www.softwareadvice.com/resources/author/mburke/) on March 31, 2026 On this page: - How the current economy drives manufacturers to adapt - Top areas of software investment emphasize risk management, upskilling, self-sufficiency, and advanced reporting - Software investments help manufacturers navigate our uncertain economy To keep up with the demands of today’s chaotic macroeconomic landscape, manufacturers are turning to technology investments.  According to Capterra’s 2026 Software Buying Trends Report, **tariffs (53%), inflation (52%)**, and **supply chain volatility (39%)** are the most pressing macroeconomic issues for manufacturers in 2026. These and other pressures are hitting manufacturers with unforeseen costs, unpredictable customer demand, and new supply chain complexity. Most manufacturers are rising to meet these challenges by increasing technology investment: over three quarters (77%) will increase software budgets in 2026. Knowing where to invest based on industry trends as well as how the economy impacts your businesses is critical to powering through this period of economic uncertainty. ## How the current economy drives manufacturers to adapt Manufacturing is among the hardest-hit industries by today’s macroeconomic turbulence. As the first node in the chain connecting finished goods to consumers, they face intense pressure to keep cost and production time at a minimum.  But today’s headwinds attack that imperative from all angles: - **Tariffs** impose enormous import costs on raw materials and components, disrupting international trade and forcing a rethink of sourcing and pricing strategies.  - **Inflation** raises costs for energy, labor, and loans, which requires smarter resource allocation. - **Supply chain volatility** creates sourcing unpredictability and leads to frequent shortages.  - **Market volatility** impacts consumer demand and investment decisions, making demand forecasting more challenging. - **Demand fluctuation** requires agility to scale operations up or down rapidly, so that manufacturers are not faced with slow-moving stock or critical shortages. One way manufacturers can get around these issues is to lean on automation to pick up the slack where they have limited resources, make better purchasing decisions, and identify unforced errors in their production lines. For many manufacturers, accessing automation means replacing spreadsheets and manual methods with software, or upgrading existing licenses to unlock more functionality, including AI features.  ### Organizational outlook on AI influences software investments Manufacturers use AI to shift responsibilities from humans to algorithms and meet faster production speeds. But not every business uses the same approach. Among manufacturers as a whole, the most valuable AI use cases include: - **Generative AI** (51%) can be used to refine designs for parts for greater stability and cost-efficiency, to translate IoT sensor data into actionable alerts, and to create synthetic training data for AI-powered quality control inspection tools.   - **Predictive analytics** (44%) allow manufacturers to predict and prevent machine malfunctions, forecast demand for parts and materials, and anticipate peak demand for utilities based on production schedules.  - **Automated planning and scheduling** (42%) uses “what if” simulations to optimize production schedules, sequences jobs and maintenance tasks, and allocates the right skilled employees to skill-restricted tasks at critical steps in workflows.    Though it evolves and improves rapidly, AI is still a cutting-edge technology that can be prone to errors and comes with upskilling demands. While half (50%) of manufacturing software buyers say leveraging AI is a challenge they expect to face in 2026, businesses have different levels of tolerance for the risk and training that comes with adopting AI.  Manufacturers largely break down into two main groups: - **Aggressive adopters** (20%) rapidly test and deploy emerging AI technologies, such as computer vision and robotic process automation. They spend more and prioritize tools promising automation and efficiency, but this can introduce complexity and risk misalignment with business needs. - **Balanced adopters** (72%) favor proven AI technologies and use cases, including content generation, predictive analytics, automated planning, and scheduling. They use AI to augment decision-making and validate recommendations against their own goals, resulting in higher satisfaction and less disruption. Each approach has its pros and cons. Balanced adopters focus on tools that enhance human expertise, such as business intelligence, governance, risk, and compliance (GRC), and learning management (LMS). Aggressive adopters are ahead of the curve on robotics and advanced app development, but risk overspending and implementation challenges. ## **Top areas of software investment emphasize risk management, upskilling, self-sufficiency, and advanced reporting** In leaning on software investments to combat macroeconomic instability, manufacturers are focusing on tools that address their most urgent needs. Their top areas of investment include risk management, workforce development, and data-driven decision-making.  ### [Governance, risk and compliance (GRC)](https://www.softwareadvice.com/risk-management/grc-comparison/)  A quarter (25%) of manufacturing software buyers plan to invest in GRC tools in 2026, reflecting the elevated need to maintain compliance, manage risk, and navigate regulatory changes using data analysis. GRC software helps businesses identify risk in their supply chains and calculate the cost impact of tariffs so they can make better sourcing decisions.  Key features: - **Scenario planning** allows businesses to model the impact of tariffs on bills of materials (BoM).  - **Supplier risk management** helps businesses trace the origin of materials and components so they can identify which are impacted by tariffs.  - **Compliance management** automates and tracks compliance with internal and external policies. ### [Learning management system (LMS)](https://www.softwareadvice.com/lms/) A quarter (25%) of manufacturing software buyers will also invest in learning management systems (LMS). These tools help businesses onboard new employees more quickly, upskill workers to be able to handle new workflows and tasks, and standardize learning across multiple locations.  Key features: - **Course scheduling** lets employers assign training modules to new employees based on their hire date.  - **Certification tracking** verifies employees’ completion of mandatory training.  - **Mobile access** allows employees to learn new workflows at their work stations, rather than remotely through a desktop-bound module. ### [App development](https://www.softwareadvice.com/app-development/)  Over one-fifth (22%) of manufacturers will adopt app development software, with which they can  create tailored software for production, logistics, and reporting, supporting self-sufficiency and agility. Key features: - **Access controls/permissions** restricts certain features and data to users with approved licenses to ensure data security.  - **Low-code interface** enables non-technical staff to build and deploy functional apps quickly, rather than relying on an overburdened IT or engineering team.  - **API integration** connects custom applications to existing ERP or MES systems, providing a single source of truth across the factory floor and the back office. ### [Business intelligence](https://www.softwareadvice.com/bi/)  Another 23% of manufacturers will adopt business intelligence platforms, which provide advanced analytics. These tools transform disparate data sets into actionable insights, enabling businesses to predict production needs and maintain stability despite market volatility. Key features: - **Predictive modeling** uses historical production and market data to forecast future demand, allowing manufacturers to adjust procurement and labor schedules proactively. - **Real-time dashboards** provide an instant overview of key performance indicators (KPIs), such as OEE (Overall Equipment Effectiveness), to identify and resolve inefficiencies immediately. - **Supply chain mapping** visualizes the geographic distribution of suppliers, helping manufacturers assess the impact of geopolitical shifts or logistics bottlenecks on their lead times. ### [CRM (customer relationship management)](https://www.softwareadvice.com/crm/)  One in five manufacturers (20%) plan to invest in CRM tools to help attract and retain customers and manage sales pipelines. In an era of demand fluctuation, a robust CRM ensures that manufacturers can maximize the value of their existing customer base and improve the accuracy of their revenue projections. Key features: - **Pipeline management** tracks every stage of the sales cycle, offering visibility into future order volumes and helping managers allocate production capacity more effectively. - **Automated quoting** generates pricing and configuration for complex orders, reducing lead times for bids and improving the conversion rate of new prospects. - **Customer health scoring** analyzes purchasing patterns and service interactions to identify accounts at risk of churning, allowing for proactive retention efforts. With strategic investments in tools that increase operational flexibility, strengthen data analytics, and provide necessary upskilling to employees, manufacturers can position themselves to survive the economic headwinds they currently face.  ## **Software investments help manufacturers navigate our uncertain economy** Manufacturers are battling today’s economic uncertainty by arming themselves with new software. Top areas of software spending demonstrate a strategic focus on reducing risk, upskilling employees, achieving self-sufficiency, and gaining actionable insights. **To stay competitive, manufacturers must:** - Invest in solutions that build organizational resilience - Prioritize integration and risk management - Adopt AI thoughtfully, using it to augment internal expertise **Ready to make your next software purchase a success?** [**Speak with one of our advisors**](https://www.softwareadvice.com/) **for tailored recommendations on tools that support business growth.**  * * * ### Survey methodology \*Software Advice 2026 Software Buying Trends survey was conducted online in August 2025 among 3,385 respondents in Australia (n=281), Brazil (n=278), Canada (n=293), France (n=283), Germany (n=279), India (n=260), Italy (n=263), Mexico (n=288), Spain (n=273), the U.K. (n=299), and the U.S. (n=588), at businesses across multiple industries (including 389 respondents in manufacturing roles), ages (1 year in business or longer), and sizes (5 or more employees). Business sizes represented in the survey include: 1,676 small (5-249 full-time employees), 822 midsize  (250-999), and 887 enterprise (1,000+). The goal of this study was to understand the timelines, organizational challenges, research behaviors, and adoption processes of business software buyers. Respondents were screened to ensure their involvement in business software purchasing decisions.