79% of Manufacturing Executives Say Skilled Labor Shortage is Greatest Challenge According to New CADDi Research
New Data Shows Manufacturing Teams are Battling Production Goals with Fewer Workers Amid Continued Cost Pressure and Trade Uncertainty
CHICAGO--(BUSINESS WIRE)--CADDi, the pioneer in AI data intelligence platforms designed exclusively for manufacturing, today released new research revealing 79% of manufacturing leaders say the skilled labor shortage remains their greatest challenge. In addition, 90% say manufacturing departments are the most impacted by the labor shortage, followed by operations (48%) and design and engineering (40%).
The shortage hits at a time when several economic factors threaten manufacturing operations. Almost half (47%) of manufacturers report tariffs and unclear trade policy are making planning harder, while 38% are bracing for supply chain disruptions tied to geopolitical instability. Sixty-one percent cite rising costs and inflation as another major roadblock.
“Manufacturing teams are facing shrinking headcounts despite rising volatility and pressure,” said 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. Our work is focused on giving engineers, buyers, and operations teams the ability to answer these challenges with information they already have but cannot easily access due to limited labor hours and poor visibility.”
Sixty-two percent of companies are focusing on improving employee recruitment, enablement, and retention to address the shortage. Sixty-nine percent plan to invest in physical assets such as robots and equipment – a 9% increase from 2025. Investment in operational systems like ERP and MES fell sharply to 33% (down from 60% last year), reflecting a focus on technologies that deliver measurable output gains on the shop floor.
Kato emphasized, “Our research shows manufacturing growth in 2026 will not come from broad expansion. Instead, it will come from the ability to extract more value from the assets companies already own. Smarter use of parts data can help leaders automate inventory tracking, streamline procurement, and keep production moving throughout the labor shortage, global turbulence and beyond. ”
CADDi continues to expand its market intelligence products that help manufacturers turn drawing and procurement data into searchable insight. The goal is to close the gap between what teams know, what they can find, and how fast they can make decisions.
CADDi’s 2026 Manufacturing Outlook Study - produced in tandem with the Society of Manufacturing Engineers - is based on a survey of over 200 U.S. manufacturing professionals. The full white paper explores industry trends in depth, and is available on the CADDi website.
About CADDi
CADDi is an AI powered data platform that makes design and supply chain data accessible and actionable for manufacturing teams. Headquartered in Tokyo and Chicago, the company was founded in 2017 by industry veterans Yushiro Kato and Aki Kobashi, formerly of McKinsey, Apple, and Lockheed Martin. Its flagship product, CADDi Drawer, uses advanced AI to centralize and analyze unstructured design and production data, helping manufacturers improve efficiency, reduce redundancies, and unlock innovation. Recognized globally for innovation, CADDi was listed in Fast Company’s Most Innovative Companies and won the SaaS Award for Best Business Intelligence and Engineering Management Software. To learn more or to book a product demonstration, visit us.caddi.com.
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Milbien Medina
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CADDi USA