Source: Supply Chain Dive
Date: 13th November 2025

How fresh tax relief, evolving trade policy, and rapid investment in smart technologies will shape the manufacturing landscape in the year ahead.

Manufacturers are preparing for a year of transition in 2026 following the wide-ranging incentives introduced through the One Big Beautiful Bill Act. After several challenging years marked by restricted expensing rules, heavy tax burdens, and high interest rates, the new legislation finally offers meaningful relief. The Act expands interest deductions on debt, particularly valuable for companies involved in mergers and acquisitions, and permanently restores immediate expensing for research and development activities and capital equipment purchases.

A key area of opportunity lies in the reassessment of what qualifies as R&D. While many businesses traditionally think of laboratory research, the definition is far broader. Activities such as reorganising production lines, debugging new machinery, improving workflow processes, or installing new equipment all fall under the R&D umbrella. Manufacturers with unused amortised R&D costs now effectively hold a “tax coupon” that can be applied in either 2025 or 2026, making strategic year-end planning essential. Additional incentives also exist for companies considering reshoring, while the Workforce Opportunity Tax Credit, available for certain categories of eligible hires, remains a valuable yet underutilised tool.

Tariffs, however, continue to introduce uncertainty. As the Supreme Court reviews the limits of presidential tariff authority under the International Emergency Economic Powers Act, manufacturers face a range of possible outcomes. Even if some levies are overturned, tariffs may not vanish entirely due to their role in offsetting national debt. Companies that have paid duties under the IEEPA are encouraged to maintain rigorous documentation in anticipation of potential refund opportunities, depending on how the ruling unfolds. A mixed outcome, removal of some tariffs and retention of others, remains a strong possibility.

With tax savings back on the table, many manufacturers are expected to reinvest strategically in artificial intelligence and automation. Industry research suggests that nearly all manufacturing leaders plan to deploy AI, machine learning, or robotics within the next five years. Current spending patterns show significant investment in quality control technologies, process optimisation tools, and robotics, areas that directly enhance efficiency and competitiveness. Importantly, these tools are not expected to replace labour; instead, they will free employees to focus on higher-value tasks through upskilling and redeployment.

To maximize these advancements, manufacturers are encouraged to adopt a structured AI roadmap that targets priority challenges, such as labor shortages, maintenance inefficiencies, or reactive operational processes. Ensuring that AI tools are used securely, within internal systems and behind firewalls, is critical to protecting proprietary data as digital adoption intensifies.

These policy changes, tariff uncertainties, and technological advancements will have a significant impact across global supply chains. For shippers, the restoration of R&D expensing and the rise in AI-driven optimisation may lead to more predictable manufacturing cycles and smoother outbound flows. If tariffs are reduced or refunded following the Supreme Court ruling, shippers may experience lower handling costs and fewer unexpected pricing adjustments. Additionally, improved production efficiency, fewer stoppages, less rework, and enhanced quality control can support more accurate container planning and warehouse scheduling.

For importers, the Supreme Court decision represents a potentially transformative shift in cost structures. A ruling that limits tariff authority under the IEEPA could unlock refunds for duties already paid and deliver lower landed costs if specific levies are removed. If certain tariffs remain in place or new ones emerge, importers must prepare for ongoing pricing volatility. Meanwhile, reshoring incentives introduced under the new tax law may alter sourcing strategies, shorten supply chains, and reduce exposure to overseas disruptions.

For exporters, reinvestment into automation and AI stands to boost production reliability and capacity, enabling steadier export volumes. With domestic manufacturers becoming more competitive, international positioning may strengthen, helping maintain price stability even in volatile global markets. However, any changes in overseas tariff structures affecting American goods, arising from broader trade negotiations, may influence foreign demand, requiring exporters to stay responsive to evolving market conditions.