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January 27, 2026

Record Technology Investments Outpace U.S. Manufacturing Workforce Readiness, New Report Finds

New Revalize report reveals that despite rising software budgets, AI skill shortages are becoming a bottleneck in U.S. manufacturers’ digital transformation

JACKSONVILLE, FL. – January 27, 2026 – Revalize, a worldwide leader in CAD, CPQ, and PLM software solutions for manufacturers, released new research around the state of AI and smart technology adoption in the manufacturing sector. Despite ongoing economic uncertainty, the report finds that technology investment continues to surge, prioritizing AI and automation, yet many companies are struggling to find talent with the right skillsets to implement and deploy the technology effectively. Manufacturers must focus on streamlining systems and upskilling workers to leverage emerging AI opportunities and fully realize the return on these investments.

The report, Smart Manufacturing 2026: Agile Leaders Confront the AI Skills Gap, features data gathered from a survey of 500 business leaders in select manufacturing fields across the United States, Germany, Austria, and Switzerland. The research reveals companies are investing in new technologies, but many are starting to face the reality that their workforce might not be ready for it.

Key findings include:

  • Technology Investments Continue to Rise: 77% of manufacturing leaders report increased software budgets over the past 12 months, up from 70% the year prior, signaling sustained momentum behind digital transformation. Additionally, 93% of manufacturing leaders plan to utilize new technologies, tools, or software this year.
  • Holistic AI Adoption is Lagging Despite Lofty Goals: While 56% of manufacturers reported having implemented AI in select areas, only 10% said the technology was fully integrated across their operations, illuminating a critical gap in execution.
  • The U.S. Has the Highest Demand for AI Skills: U.S. manufacturers lead investment in AI-driven and human-centric Industry 5.0 technologies, creating the highest demand for AI skills among all countries surveyed. As a result, 44% of U.S. teams cited a need for AI expertise, 16% higher than other regions.
  • Industry 5.0 Confidence Remains High, but Realism Grows: 84% of manufacturers feel prepared to adopt and leverage Industry 5.0 technologies, a slight decline from last year, reflecting a more realistic understanding of the integration, data, skill, and workforce capabilities required for success.
“AI and automation are transforming the manufacturing sector, but without serious investment in workforce training to leverage these technologies, initiatives fall short of expectations,” said Mike Sabin, CEO of Revalize. “The industry’s continued technology investments must be matched by a commitment to upskilling talent through both internal programs and external academic partnerships. I foresee 2026 as a pivotal turning point where manufacturers will either move beyond AI hype and take the necessary steps to bridge the gap between investment and readiness or fall behind as competitors move faster toward Industry 5.0.”
To read the full report, visit here.
Infographic showing 2026 manufacturing priorities: 93% plan tech adoption, 77% face budget issues, 84% feel Industry 5.0 pressure, and 56% highlight a Tech-Investment vs Skills Gap as AI leaders outpace workforce readiness.

© Revalize; A study by Revalize shows that rising technology investments are strengthening Industry 5.0 readiness. However, AI is not yet fully established, and the demand for AI expertise is higher than the skilled workforce available.

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Note To Editors:

Revalize commissioned TEAM LEWIS to survey 500 CPQ, PLM, and engineering modeling / simulation software decision makers at companies in select manufacturing industries with 100+ employees in DACH (Austria, Germany, Switzerland) and the United States (250 respondents per region). The survey was fielded from October 30 to November 7, 2025. Respondents were recruited by OpinionRoute, a global market research panel provider who is committed to ensuring data quality.

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About Revalize

Revalize is transforming the future of manufacturing through a best-in-class suite of CAD, PLM, and CPQ solutions. Built to streamline the path from concept to cash, Revalize empowers more than 16,000 customers across the globe to reduce complexity, accelerate speed to market, and achieve greater business outcomes. Revalize is a portfolio company of TA Associates, Hg, and ST6. Learn more at www.revalizesoftware.com.

About Configure One Cloud

Configure One Cloud from Revalize is the most powerful CPQ (Configure, Price, Quote) solution to accelerate sales cycles, streamline processes, and drive operational efficiency. Backed by more than 20 years of manufacturing industry experience, our platform enables teams and sales channels to create unique product configurations, instantly calculate pricing, dynamically generate detailed quotes and proposals for customers, and create orders while automating BOMs, all from a single application. Hundreds of manufacturing leaders are making Configure One Cloud the cornerstone of their digital transformation. Learn more at revalizesoftware.com/configure-one-cloud.

MEDIA CONTACT:
Peggy Schilha
press@revalizesoftware.com