Chicago manufacturers are staring down 2026 with a stubborn problem that money alone cannot fix: not enough skilled people on the shop floor. Across the U.S., that same worker gap is steering big investment calls, forcing companies to choose how hard to lean into automation versus doubling down on training and retention.
Survey: Skilled Labor Tops The List
According to CADDi’s 2026 Manufacturing Outlook Study, 79% of manufacturing leaders said the skilled labor shortage is their biggest external challenge heading into 2026. The survey, produced with the Society of Manufacturing Engineers and conducted among more than 200 U.S. manufacturing professionals, also flagged tariffs, rising costs, and geopolitical risk as major headwinds.
Jobs Are Open, But Hard To Fill
Federal labor data backs up what factory managers are seeing on the floor. The U.S. Bureau of Labor Statistics reported roughly 457,000 manufacturing job openings in January 2025, a sign that demand for technicians and machinists remains elevated. At the same time, data from the International Federation of Robotics show industrial robot installations on the rise, a trend that points to automation as a stopgap for persistent staffing shortfalls.
Capital Is Flowing To The Shop Floor
CADDi’s research also shows a shift in capital plans. In 2026, 69% of respondents plan to invest in physical assets such as robots and equipment, while only 33% intend to prioritize ERP or MES system upgrades this year. “Manufacturing teams are facing shrinking headcounts despite rising volatility and pressure,” CADDi CEO Yushiro Kato said in the company’s release.
Why It Matters For Chicago
Local reporting has already seized on what this means for the region. As reported by the Chicago Business Journal, area suppliers and small manufacturers are rethinking where to put capital and training dollars. State officials are trying to close the gap too. The Illinois Department of Commerce and Economic Opportunity recently announced expanded apprenticeship funding and plans for new manufacturing training academies to help build the pipeline.
For many manufacturers, the near-term play is a two-track approach: buy equipment to keep lines running while investing in recruitment, apprenticeships and retention to rebuild the talent base. Chicago’s calendar reflects that pivot, with major industry events focused on automation bringing suppliers and buyers together this year. At the same time, groups like the Technology & Manufacturing Association are expanding hands-on training programs for entry-level machinists and technicians…