Industry 4.0 and beyond: Addressing cyber, talent and AI opportunities in manufacturing and distribution

5 min read

2026 Executive Perspectives on Top Risks and Opportunities

While manufacturing and distribution face rising labor costs, policy volatility, and accelerating AI disruption, leaders see a clear path to growth. Protiviti’s 2026 Executive Perspectives on Top Risks and Opportunities Report, reflecting insights from 1,540 cross-industry, global board and c-suite executives, shows strong optimism around revenue potential, ecosystem development, and geographic expansion. At the same time, executives are candid about the roadblocks ahead: legacy systems slowing AI integration, intensifying cyber threats, and talent gaps driven by looming retirements. This mix of opportunity and urgency is shaping near-term investment decisions across the industry. Read the full report to see how industry peers are prioritizing investments, modernizing operations, and preparing their organizations for the next wave of transformation.

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14-minute read

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60-minutes, on-demand

Where M&D leaders see the greatest growth opportunities over the next two to three years

Stabilizing trade conditions, AI-driven modernization and collaborative ecosystems position manufacturing and distribution companies to move beyond recent stagnation and capitalize on a wave of anticipated global growth.

68 %

Revenue potential

60 %

Ecosystem development

54 %

Geographic expansion

Based on a five-point scale assessing agreement/disagreement. 
Percentages reflect sum of "Agree completely" and "Agree somewhat" responses. 

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FAQs

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How prepared are manufacturers to integrate AI at scale?

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Most organizations are not fully ready. Executives identify workforce readiness (36%) and integrating AI with legacy systems (36%) as their top barriers, slowing the ability to realize AI’s full value. Protiviti supports leaders in building the modern data foundations, training programs and technology upgrades needed to unlock AI‑enabled productivity.

How severe is the talent shortage facing manufacturing and distribution?

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The industry faces a significant talent gap, with a quarter of the workforce age 55 or older and millions of roles projected to open as retirements accelerate. Combined with rising labor costs and skill shortages tied to AI and Industry 4.0, this creates operational risk. Protiviti works with organizations to support workforce transformation, upskilling and change enablement programs.

Where are manufacturing and distribution companies making their biggest investments right now?

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Leaders are prioritizing business process improvements (44%), supply chain management (42%), and infrastructure modernization (39%) to reduce downtime, enhance resilience and improve data integration. Protiviti helps organizations modernize core systems, strengthen operations and implement technologies that support long-term scalability.

Why is global trade volatility the top risk for manufacturing leaders?

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Executives rank changes in global markets and trade policies as their number-one near-term risk, driven by tariff uncertainty and shifting government policies. These pressures affect production planning, cost structures and supply continuity.

Which long-term risks will have the greatest impact on manufacturer competitiveness?

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Executives cite customers and competition (45%), markets and economies (41%), and talent challenges (36%) as their top decade-long concerns. These risks signal a shift toward customer-centric models, differentiated offerings and sustained workforce capability. Protiviti supports leaders with strategies and solutions that align innovation, customer experience and workforce resilience.

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