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80% of U.S. factories have no automation. Here's what's changing in 2026.

Eighty percent of U.S. factories currently operate without automation, despite a surge in AI vendor activities. Recent trends suggest significant changes are expected in automation technology by 2026, potentially transforming manufacturing floors.

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By MarketScale Newsroom · Industrial AutomationAi in ManufacturingHoneywellAbb
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80% of U.S. factories have no automation. Here's what's changing in 2026.

Key takeaways

01

Eighty percent of U.S. factories lack automation.

02

AI vendor activity is at a peak but has yet to significantly impact factory floor automation.

03

Significant changes in manufacturing automation are anticipated by 2026.

Eight in ten U.S. manufacturing facilities operate with zero automation. That number, cited by Intrinsic Chief Technology Officer Brian Gerkey and reported by Manufacturing Dive, is one of the more clarifying statistics in industrial technology right now, because it arrives at the same moment vendor AI announcements are at a volume rarely seen before. The gap between what is being sold and what is actually running on factory floors defines the operational challenge facing every plant and operations leader in 2026.

The belief-deployment gap

Manufacturer sentiment about AI is not the problem. Deloitte's 2025 Smart Manufacturing and Operations Survey, cited by Manufacturing Dive, found that 92% of manufacturers believe smart manufacturing will be the primary driver of competitiveness over the next three years. Yet the same research shows only a small share say AI is widely deployed across their operations today.

Manufacturer sentiment vs. actual AI deployment92Believe smart manufacturing drivescompetitiveness14Report AI is widely deployed today
Deloitte 2025 Smart Manufacturing and Operations Survey, via Manufacturing Dive · © MarketScaleDownload chart

Jeff Burnstein, president of the Association for Advancing Automation, put it plainly in comments to Manufacturing Dive: interest is high across the board, but execution is where things get difficult. The barriers he and others cite are structural. Cost, integration complexity with legacy equipment, workforce skills gaps, and uncertainty about return on investment all slow decision cycles well past the point where a vendor's press release fades.

For a mid-sized plant manager, the jump from spreadsheet-driven scheduling to an AI-connected production line is not a software purchase. It is an operational shift that touches every system on the floor, from PLCs and SCADA infrastructure to maintenance protocols and operator training programs.

Labor shortage is reframing the business case

Honeywell CEO Vimal Kapur offered a different entry point for the conversation during a June 2026 appearance on CNBC's Mad Money. Rather than leading with efficiency ratios, he pointed to demographics. The available pool of operators and technicians is already shrinking across Honeywell's customer base, spanning hospitals, data centers, LNG plants, and semiconductor fabs, and he does not expect that to reverse, according to CNBC.

Our customers are looking at it not as a productivity opportunity. They are looking at it as a revenue-generation opportunity., Vimal Kapur, CEO, Honeywell, as reported by CNBC, June 2026

That framing carries real weight for procurement and operations teams building internal business cases. Automation positioned as a cost reduction competes on a different approval track than automation positioned as a capacity expansion that fills roles no candidate pipeline can fill. Kapur also argued, per CNBC, that Honeywell's existing sensor, controls, and software infrastructure already captures large volumes of operational data, and that AI now makes that data actionable in ways that were not previously possible.

The organizational context matters here. Honeywell completed the spin-off of its Solstice Advanced Materials business last fall and is separating its aerospace unit, according to CNBC, effectively concentrating the remaining business on automation, building controls, industrial software, and process automation. That structure aligns investment and management focus precisely where AI opportunity is accelerating.

Vendors moving toward the 80%

For the facilities that have never automated at all, the entry point matters more than any roadmap vision. A cluster of product activity in mid-2026 reflects vendors trying to reduce that entry barrier rather than selling exclusively to already-sophisticated plants.

ABB extended its all-compatible drive platform to deliver localized motor control in severe operating environments, covering heat, dust, and moisture exposure, without requiring a separate protective enclosure, according to MarketScale. Enclosure costs and installation complexity are among the most common reasons drive deployments get deferred in brownfield facilities, so removing that requirement addresses a real budget-cycle objection rather than a theoretical one.

The pattern across these moves is consistent: vendors are bringing the hardware and software requirements down to meet facilities at their actual starting point, rather than asking operators to build toward a greenfield standard. For procurement teams evaluating first-time automation investments, that shift means a wider set of options that do not require tearing out existing infrastructure before generating any return.

What this means for your team

  • Reframe the internal business case: if a pure cost-reduction argument has stalled, model the automation investment as a capacity offset against open headcount rather than a headcount reduction. The approval path and stakeholder set may be different.
  • Audit brownfield compatibility first: when evaluating automation vendors, prioritize those whose hardware eliminates ancillary infrastructure costs like enclosures or dedicated power conditioning. That is where budget conversations break down most often in existing facilities.
  • Benchmark against the 92%: if your organization is among the majority that believes smart manufacturing is competitiveness-critical but has not yet deployed, identify the specific structural barrier (cost, integration, skills, ROI uncertainty) and address it directly in the evaluation process rather than deferring to a future budget cycle.
  • Watch the Honeywell portfolio post-restructuring: with aerospace separating and the core business concentrating on industrial software and automation, the product and partnership roadmap for the remaining entity will be worth tracking closely over the next 12 months.

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