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A new report released by MHI and Deloitte finds that 74% of supply chain leaders are increasing their supply chain technology and innovation investments with 90% saying they are planning to spend over $1 million, an increase of 24% over last year. Thirty-six percent plan to spend over $10 million, up 19%. This investment includes solutions for improved supply chain transparency and sustainability, according to the 2023 MHI Annual Industry Report, “The Responsible Supply Chain: Transparency, Sustainability, and the Case for Business.” The report provides new insights into trends and technologies that are transforming supply chains and the priorities of the people who run them. As a result of these increased investments, adoption of the 11 categories of technology covered in the report is predicted to rise dramatically over the next five years. Inventory and Network Optimization – 87% Cloud Computing and Storage – 86% Sensors and Automatic Identification – 84% Advanced Analytics – 82% Wearable and Mobile Technology – 80% Robotics and Automation – 78% 3D Printing – 75% Artificial Intelligence – 73% Internet of Things – 68% Blockchain – 68% Driverless Vehicles and Drones – 66% The 2023 report, the tenth in a series of annual industry reports published by MHI and Deloitte, provides updates on the innovative technologies that have the most potential to transform supply chains into more transparent, sustainable, and responsible operations. “Responsible supply chains must react in real-time to changing conditions, this requires actionable data, automation and automated decision-making,” said John Paxton, CEO of MHI. “Investments in automation and other digital solutions like IoT, advanced analytics and AI not only arm your operations with speed, accuracy, and improved visibility. These solutions enable the real-time decision-making and transparency necessary for reporting and improving performance up and down the responsible supply chain.” Workforce tops list of supply chain challenges, disruption a close second Once again, hiring and retaining qualified workers (57%) and the talent shortage (56%) were the top supply chain challenges cited by survey respondents. However, this was followed closely by supply chain disruptions (54%), out-of-stock situations (52%) and customer demands (52%). The worker shortage is spurring companies to invest in technologies that not only improve agility and efficiency but also reduce the need for repetitive, manual labor. These investments create the kind of advanced technology environment that results in more rewarding supply chain jobs that appeal to today’s top talent. This could provide a new path to upskilling current employees and attracting new talent – creating a more modern, capable workforce that can quickly adapt and adjust to changes in the technology and market landscape. Forty-one percent of respondents are reskilling/upskilling workers for emerging technologies, 34% are recruiting for skillsets for future needs and 27% are working to create a culture of innovation. “Tech investment is only part of the equation,” said Paxton. “Having an innovative culture and the right people in place to implement innovation and to bring it all together to exceed your customer demands and expectations – whether they are fast delivery, personalization, low cost, delivery transparency or sustainability goals.” To prepare for supply chain disruption and build transparency, collaboration is key Company leaders understand that planning for digital supply chain investments now is the only way to create a strategy to win the future – a future where supply chain disruption will be the norm. As a result, 49% are partnering with vendors to understand application/benefits and 31% are piloting new technologies. In the past, companies could succeed by primarily collaborating with a small set of suppliers and distributors. However, the supply shocks of the past few years vividly illustrated that a broader approach for collaboration and data sharing is needed to achieve true transparency, sustainability, and resiliency. Increased focus on sustainability Supply chain companies are faced with increasing pressure to become more environmentally responsible and sustainable. In fact, nearly half of this year’s survey respondents (48%) say they face increased influences to adopt a more sustainable supply chain. The pressure is coming from many angles, including consumers, regulators, industry groups, traditional and social media, and other stakeholders that increasingly expect brands and their supply chains to adhere to their own high standards. According to the survey, the top focus areas for sustainability are electrification (40%), natural resource management (29%), water usage (27%), and transition to renewables (27%). However, only 23% of respondents have made Scope 3 emissions a top focus of their sustainability efforts. With so much valuable new data being generated by supply chains, the ability to share that data securely and transparently has become a strategic priority. Scope footprinting, target setting, abatement and disclosure for sustainability simply isn’t possible without collaboration up and down the supply chain and the availability of accurate and reportable data. Additionally, achieving true end-to-end supply chain transparency requires the same. “As leaders, we must drive transparency and coordinate change across the end-to-end supply chain as we work collaboratively to reduce Scope 3 emissions and move toward the circular economy,” said Paxton. “Sustainability will become a key competitive advantage for in the future. Investments in sustainability and transparency help reduce risk exposure and build loyalty with customers and employees alike.” The report includes a Climate Readiness Assessment to help companies evaluate their operations’ maturity across 5 modules of climate with a brief diagnostic that can provide a snapshot of an organization’s climate maturity. Upon completion, the user is classified into one of 6 climate profiles. “Supply chain companies embarking on their sustainability journey will need input from across their organization to support reporting,” said Wanda Johnson, Specialist Leader, Deloitte Consulting. “Embracing circularity, reducing environmental impacts, regenerating nature, and embedding equity should all be coded to their DNA and driven from the top down for them to be successful.” The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders for developing strategies to implement these innovations. The report ends with a report on Supply Chain 2033 with predictions on what will be the future state for supply chains. The findings of the 2023 report are based on survey responses from over 2,000 manufacturing and supply chain industry leaders from a wide range of industries at the end of 2022. Eighty-three percent of respondents hold executive-level positions such as CEO, Vice President, General Manager, Department Head or Engineering Management. Participating companies range in size from small to large, with 74% reporting annual sales of more than $50 million, and 8% reporting $1 billion or more. Download the complete report here. About MHI MHI is an international trade association that has represented the material handling, logistics and supply chain industry since 1945. MHI members include manufacturers of material handling equipment including warehousing and logistics, systems integrators, third-party logistics providers, consultants, and publishers. MHI offers education, networking and solution sourcing for their members, their customers and the industry through programming and events. The association sponsors the ProMat and MODEX exhibitions to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals. The Warehousing Education and Research Council (WERC) is a division of MHI and is a professional organization focused on logistics management and its role in the supply chain. About Deloitte Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 5,000 private and middle market companies. Our people work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthy society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Now celebrating 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s more than 312,000 people worldwide make an impact that matters at www.deloitte.com.

71% say AI is disrupting supply chains
with 24% saying the disruption will be transformationalAtlanta, GA – A new report released today by MHI and Deloitte finds that artificial intelligence (AI) is viewed as the most disruptive technology for the next decade. The publication, based on a survey of supply chain leaders, reports that a quarter of respondents (24%) categorize AI as transformational and nearly half (48%) consider its disruptive impact to be significant or greater—up 25 percentage points since 2025. Robotics & automation follow AI as the second most disruptive technology, with 39% rating its impact as significant or greater, up 16 percentage points.The 2026 MHI Annual Industry Report, “Rewiring the Future: A Supply Chain Playbook for Innovation,” finds that the emergence of AI is causing supply chain leaders to reassess every aspect of their operations, investing not only in advanced digital technologies such as AI, robotics, and real-time analytics but also in their workforce. The report provides new insights into trends and technologies that are transforming supply chains and the priorities of the people who run them.By focusing on the intersection of business and technology, the report goes beyond tech trends to explore how operational assessments, smart automation, data-driven decision making, and new approaches to talent development can be woven together to “rewire” supply chain performance.Innovation Spending PlansAccording to this year’s survey, 56% of organizations expect to increase their spending on supply chain innovation with 52% saying they are planning to spend over $1 million. Seventeen percent plan to spend over $10 million. This spending reflects a more disciplined investment approach as companies are stepping back to confirm what problem they’re trying to solve, selecting management, and scenario planning to better justify, control, and scale technology investments.As a result of these increased investments, adoption of the following 8 categories of technology, covered in the report, is predicted to rise over the next five years: Artificial Intelligence – 88% Advanced Analytics – 86% Cloud Computing and Storage – 85% Internet of Things/Sensors – 77% Robotics and Automation – 73% Wearable and Mobile Technology – 69% Autonomous Vehicles and Drones – 50% Humanoid Robotics – 32%The 2026 report, the thirteenth in a series of annual industry reports published by MHI and Deloitte, provides updates on the innovative technologies that have the most potential to transform supply chains in an orchestrated way that maximizes performance gains while also empowering workers.Today’s supply chain organizations operate in an environment defined by relentless disruption, volatility, and rapidly shifting market demands. Geopolitical uncertainty, labor shortages, accelerating technology cycles, and elevated customer expectations have converged to make predictability a thing of the past. Strategic priorities now include strengthening risk management, enhancing transparency, enabling rapid fulfillment, and embedding sustainability throughout the supply chain.“Supply chains can no longer be optimized at the edges,” said John Paxton, CEO of MHI. “They must be rewired end‑to‑end. Only connected, intelligent, and automated real-time networks will withstand the volatility and meet the future customer demands for speed and efficiency.”AI is the Future of Supply Chain and the Future is NowAI is already adding value in a wide range of supply chain processes, from inventory management to demand planning to logistics. Moving forward, supply chain organizations will increasingly leverage AI to enhance all aspects of their operations. Agentic AI—which can operate independently with human guidance or oversight—specifically has the potential to quickly eliminate high volume repetitive tasks, proactively address disruptions, enhance forecasting precision, and improve overall visibility within the supply chain.While leaders are excited about AI’s potential, the survey finds that they are getting stuck on where to start and what it takes to scale. The barriers are real and practical—unclear use cases and automation cost, paired with limited understanding; difficulty building business cases; talent shortages; and budget constraints.“Those who connect operational excellence, AI-driven orchestration, and workforce readiness into a single playbook will not just withstand disruption; they will convert it into sustained performance and growth,” said Wanda Johnson, Supply Chain Technology Fellow, Deloitte Consulting LLP.The integration of generative AI, agentic AI, physical AI, and edge AI into operations is ushering in a future where fulfillment and supply chain activities become software-defined, perpetually adaptive, and backed by intelligent orchestration engines. This transformation does not just improve what already exists, it fundamentally changes how challenges are solved, how capital is invested, and how workforce capacity is harnessed.Uncertainty Tops the List of Key Trends Impacting Supply Chains in 2026 According to this year’s respondents, economic uncertainty and inflation concerns topped the list of top trends impacting supply chains.1. Economic Uncertainty, Inflation and Geopolitical Risks - Tariff shifts, interest rate drama, military conflicts, wavering consumer confidence, and ongoing concerns about unemployment are all contributing to a uniquely challenging and unpredictable global economic environment.2. Workforce, Talent Shortage and Changing Worker Skillsets
- The workforce and talent gap is now the #2 trend affecting supply chains. The ongoing talent and worker shortage continues as Baby Boomers retire and the adoption of new technologies and automation requires reskilling the supply chain workforce. In the face of these challenges, supply chain leaders are putting more emphasis on technology trends that enable smart operations (AI, real-time data, automation, and emerging technology), which can help them respond quickly when conditions change.3. Pace of Technology Adoption, Digitization and the Need for Real-Time Data
- AI, Robotics, Advanced analytics, and IIoT are disrupting supply chains. Adopting new technologies requires investment and training but early adopters can gain competitive advantage4. Supply Chain Visibility, Agility and Resiliency -
The need for agility, visibility and real-time data in supply chain operations is becoming a higher priority, not just a nice-to have—suggesting that running operations with dated equipment and technology is a growing risk when orchestration is necessary for success moving forward.5. Cybersecurity and Data Security
- Cybersecurity, risk & data security moved into the top five in 2026. This is likely driven by the growing reliance on cloud systems, AI, and advanced analytics, all of which increase how much companies rely on data (and how much data they store and share).The Next Five Trends Shaping Supply ChainsIn addition to the five trends noted above, this year’s survey identified five additional trends that are having a major impact on supply chain strategy and operations.These key tech trends are:6. Rising Cost of Capital Higher capital costs lead companies to delay or scale back infrastructure and tech investments Firms are prioritizing high-return projects and seeking alternative funding Strong credit profiles and strategic planning help secure favorable terms and sustain growth7. Inventory Challenges Pandemic disruptions revealed the need for more responsive and agile inventory management strategies Use of AI forecasting tools and supplier collaboration improves inventory accuracy and efficiency Achieving optimal inventory requires strategic planning, technology support, and agile execution8. E-Commerce Growth Same-day or next-day delivery expectations are forcing supply chains to adopt micro-fulfillment and last-mile delivery innovation Inventory must be visible and synchronized across stores, warehouses, and online platforms Warehouses and DCs are deploying robotic picking systems, automated sorters, and conveyor systems to improve performance9. Customer-Centricity Designing and operating supply chains with the end customer’s needs, preferences, and experience at the center Real-time data, predictive analytics, and AI demand forecasting provide real-time order tracking and multiple delivery channels Adoption of AI driven inventory systems can send products to regional hubs before customers order for faster delivery10. Reshoring Accelerating due to tariffs, geopolitical risks, supply chain disruptions, and the need for resilience Improves responsiveness and sustainability, while lowering risk of disruption Higher operational and labor costs can be offset through automation, robotics, IoT, AI, and advanced analytics“The biggest threat we face isn’t disruption—it’s the failure to innovate and the risk of running tomorrow’s operations on yesterday’s equipment and technology,” said John Paxton, CEO, MHI.The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders to develop strategies to implement these innovations. The findings of the 2026 report are based on survey responses from over 500 manufacturing and supply chain industry leaders from a wide range of industries at the end of 2025. Sixty-one percent of respondents hold executive-level positions such as CEO, Vice President, General Manager, Department Head, or Engineering Management. Participating companies range in size from small to large, with 56% reporting annual sales of more than $50 million, and 18% reporting $1 billion or more.Download the complete report here.About MHIMHI is an international trade association that has represented the material handling, logistics, and supply chain industry since 1945. MHI’s over 1,100 members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third-party logistics providers. MHI offers education, networking, and solution sourcing for their members, their members’ customers, and the industry through programming and events. The association sponsors the ProMat and MODEX exhibitions to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals. The Warehousing Education and Research Council (WERC) is a division of MHI and provides education and research to the warehousing, distribution, and logistics community.MODEX 2026 is being held at Atlanta’s Georgia World Congress Center from April 13-16.About Deloitte

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

55% say they are increasing their investment in supply chain tech and innovation and 60% are planning to invest over $1 millionChicago, IL – A new report released today by MHI and Deloitte finds that 55% of supply chain leaders are increasing their supply chain technology and innovation investments with 60% saying they are planning to spend over $1 million. Nineteen percent plan to spend over $10 million.This investment includes solutions for orchestrated, end-to-end solutions between tech and human workers, according to the 2025 MHI Annual Industry Report, “The Digital Supply Chain Ecosystem: Orchestrating End-to-End Solutions.” The report provides new insights into trends and technologies that are transforming supply chains and the priorities of the people who run them.As a result of these increased investments, adoption of the 11 categories of technology covered in the report is predicted to rise over the next five years.• Inventory and Network Optimization – 92%• Cloud Computing and Storage – 91%• Sensors and Automatic Identification – 88%• Predictive Analytics – 87%• Robotics and Automation – 83%• Artificial Intelligence – 82%• Internet of Things – 77%• Wearable and Mobile Technology – 72%• Autonomous Vehicles and Drones – 64%• 3D Printing – 57%• Blockchain – 54%The 2025 report, the twelfth in a series of annual industry reports published by MHI and Deloitte, provides updates on the innovative technologies that have the most potential to transform supply chains in an orchestrated way that maximizes performance gains while also empowering workers.Today’s business environment is increasingly complex and volatile requiring a more integrated and agile approach to supply chain management. End-to-end supply chain orchestration, which seamlessly connects every stage of the supply chain, has emerged as a critical strategy for organizations to remain competitive.“These are exciting times for the supply chain industry as we see the orchestration of technology and talent coming to the forefront,” said John Paxton, CEO of MHI. “The future of supply chains will center around striking the right combination of human talent and technology to enhance efficiency, transparency, and sustainability.”AI Adoption is SurgingAdoption of artificial intelligence is expected to rise dramatically, with 28% reporting that it's in use today, and another 54% reporting that they plan to have it in use within 5 years, making the 5-year total nearly triple that of today at 82% by 2029.AI is already adding value in a wide range of supply chain processes, from inventory management to demand planning to logistics. Moving forward, supply chain organizations will be increasingly leveraging AI to enhance all aspects of their operations. Agentic AI—which can operate independently without human guidance or oversight—specifically has the potential to quickly and proactively address disruptions, enhance forecasting precision, and improve overall visibility within the supply chain.“As the promise of agentic AI for warehouse process automation, real-time inventory visibility, predictive maintenance, and demand forecasting grows, high-quality data will be essential to utilizing this technology to drive efficiency and agility. Additionally, predictable and ethical behavior from AI solutions will be a focus.” said Paxton.Inflation and Economic Uncertainty Top the List of Key Trends Impacting Supply Chains in 2025 According to this year’s respondents, the top five most impactful supply chain trends are: inflation (38%); economic uncertainty (37%); workforce and talent shortages (35%); supply chain agility and resiliency (28%); and inventory challenges (25%).1. InflationDespite concerns about inflation, interest rate policies and economic uncertainty, the foundation of the US economy remains robust and current data suggests that year-on-year inflation will ease in 2025, although the evolving tariff policies could alter the outlook. The bottom line is that while inflation is a headwind against investment in new supply chain capabilities, those headwinds will likely be more than offset by the resulting efficiency gains and reducing the reliance on scarce talent.2. Economic UncertaintyOngoing geopolitical tensions and recent political shocks, both domestically and globally, have increased uncertainty for global trade. Trade restrictions will require policy revisions that contribute to economic uncertainty and will have an impact on supply chains.3. Workforce and Talent ShortageA major impetus for companies to automate and implement AI is the ongoing decline in supply chain labor force participation—a trend that seems likely to continue for the foreseeable future. Also, automated facilities with end-to-end orchestration requires worker reskilling for work in digital supply chain environments.4. Supply Chain Agility and ResiliencyContinued expansion of product portfolios and supplier networks across manufacturers is making supply chains more complex and more vulnerable than ever, creating more potential points of failure and ripple effects across the supply network. This has made supply chain resiliency and agility a top priority that will likely remain for years to come. Technology is driving this resiliency by providing real-time visibility and actionable data for operations.5. Inventory ChallengesGiven all these other challenges, companies are holding more inventory (and paying more to hold it). Also, economic uncertainty is making demand forecasting even trickier.As supply chain organizations wrestle with these forces—and work to embrace and integrate new technologies—they continue to broadly focus on strengthening their operations to withstand future challenges and capitalize on emerging opportunities, both of which are crucial for maintaining a competitive advantage in a dynamic global marketplace.The Next Five Tech-Specific Trends Shaping Supply ChainsIn addition to the five trends noted above, this year’s survey identified five additional tech-specific trends that are having a major impact on supply chain strategy and operations.These key tech trends are:6. Cybersecurity and Data SecurityFor many businesses, the supply chain is a leading source of cybersecurity risk—and with supply chains’ growing reliance on technology and digitization, data security is sure to become an increasingly vital issue. Powered by the rise of AI, it seems likely that attacks such as phishing, deepfakes, and ransomware will only grow in volume and sophistication in the years ahead.7. Demand for Real-Time DataLack of access to accurate, real-time data is an ongoing barrier to achieving the vision and benefits of supply chain digitization and end-to-end orchestration. Without real-time data visibility, it is difficult or impossible to make informed, data-driven decisions that enable a supply chain to optimize inventory, react to changing demands and risks, and improve efficiency.8. Digitization and the Pace of Technology AdoptionThe dizzying pace of technological change in supply chains can be daunting for supply chain leaders and professionals alike. Yet, the pace will likely only accelerate as supply chain operations embrace AI in the pursuit of improved visibility, transparency and efficiency. This will make keeping up with the latest developments in digital technology even more challenging, but also even more important.9. Ecommerce GrowthEcommerce grew by leaps and bounds during the pandemic, and that growth is showing no signs of slowing. This is driving companies to find new and better ways to anticipate changes in demand and fulfill orders more quickly and accurately. To that end, supply chains are looking for ways to harness the power of technology— especially AI—to more accurately anticipate customer needs, manage inventories, and accelerate delivery.10. SustainabilityAlthough sustainability is not strictly a technical issue, it remains a high priority and strategic differentiator for many firms—with technology being both a critical enabler and potential source of new problems. Technology advances are helping operations around the world become more sustainable; however, many firms are still wrestling with data issues that make it hard for them to accurately report Scope 3 emissions. AI and machine learning algorithms can help; however, the irony is that AI systems use tremendous amounts of energy. Bottom line is that sustainability goals need to be rooted in the overall business plan.“Leaders must ensure seamless integration of all supply chain components to enhance efficiency and meet customer expectations to further drive innovation, reduce redundancies, and deliver superior value,” said Wanda Johnson, Supply Chain Technology Fellow, Deloitte Consulting.The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders to develop strategies to implement these innovations.The findings of the 2025 report are based on survey responses from over 700 manufacturing and supply chain industry leaders from a wide range of industries at the end of 2024. Eighty-three percent of respondents hold executive-level positions such as CEO, Vice President, General Manager, Department Head, or Engineering Management. Participating companies range in size from small to large, with 53% reporting annual sales of more than $50 million, and 21% reporting $1 billion or more.Download the complete report here.About MHIMHI is an international trade association that has represented the material handling, logistics, and supply chain industry since 1945. MHI’s over 970 members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third-party logistics providers. MHI offers education, networking, and solution sourcing for their members, their members’ customers, and the industry as a whole through programming and events. The association sponsors the ProMat and MODEX exhibitions to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals. The Warehousing Education and Research Council (WERC) is a division of MHI and provides education and research to the warehousing, distribution, and logistics communityProMat 2025 is being held at Chicago’s McCormick Place from March 17-20.About DeloitteDeloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 460,000 people worldwide connect for impact at www.deloitte.com.