Manufacturers in North American are restructuring regional production and supply networks to sustain production amid trade-policy shifts, economic uncertainty and supply disruptions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens® Manufacturing Industry Services and Solutions report for North America finds that manufacturers are coordinating product, plant and service workflows to preserve safety, continuity and traceability. Aging plants and regional supplier networks in the region make this coordination especially important. Companies are pursuing AI deployment and brownfield modernization while addressing the need for workforce skills and local support.

“North American manufacturers are making operational continuity a central requirement for technology decisions,” said Bob Krohn, ISG partner, manufacturing. “Technology must fit the realities of aging assets, skill shortages and live production environments.”

Manufacturers are linking model-based systems engineering, product lifecycle management and simulation with test and change control, improving launch readiness while reducing the risk of unvalidated design changes reaching the line. For complex products, the digital thread maintains traceability across requirements, systems architecture and software artifacts.

At plants, enterprises are incorporating manufacturing execution systems, quality systems, maintenance and SCADA data into a common production context. They are evaluating physical AI for machine vision, adaptive process control, autonomous material movement and predictive maintenance. These applications require simulation, human oversight, safety assurance and rollback-tested deployment before influencing physical operations.

Companies are upgrading smart-factory capabilities in brownfield environments while limiting downtime and cyber exposure. Supply chain control towers are incorporating supplier, inventory, transport and plant constraints for stronger regional traceability. Aftermarket programs combine connected-asset data, spare-parts planning, field service and reverse logistics to support service lifecycles. These capabilities help companies coordinate parts availability, warranty activity and field interventions, ISG says.

“Physical AI requires controls that allow for human intervention and safe adjustment on the shop floor,” said Sneha Jayanth, ISG lead analyst and lead author of the report. “Clear validation and accountable ownership determine whether engineering models and operational data can support decisions at scale.”

The report also explores other trends affecting North American manufacturers, including the rising need for workforce enablement for technicians and operators and industrial cybersecurity for control systems.

For more insights into the manufacturing challenges faced by enterprises in North America, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 46 providers across four quadrants: Engineering Research & Development (ER&D) Services, Physical AI and Smart/Digital Factory Services, Supply Chain and Aftermarket Services, and Technology, Transformation and Consulting Services.

The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, NTT DATA, TCS, Tech Mahindra and Wipro as Leaders in all four quadrants. It names Deloitte and LTTS as Leaders in three quadrants each. Akkodis, Bosch SDS, EY, Hitachi Digital, LTM, PwC and Quest Global are named as Leaders in two quadrants each. Birlasoft, Cyient, Genpact and Kyndryl are named as Leaders in one quadrant each.

In addition, Hitachi Digital is recognized as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Birlasoft, Cyient and DXC Technology are recognized as Rising Stars in one quadrant each.

In the area of customer experience, Syntax is named the global ISG CX Star Performer for 2026 among manufacturing industry service and solution providers. Syntax earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2026 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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