How are Manufacturing Trends Shaping Supply Chain Shifts?

A global study from IFS and Accenture has highlighted how manufacturers are reshaping their operations in response to widespread disruption.

The report indicates a clear pivot towards service-based strategies as a method for growth and a buffer against supply chain volatility.

With pressures from tariffs, climate change and geopolitical instability affecting business, it appears the traditional manufacturing model is being re-evaluated.

Service delivery and supply chain evolution

The joint report The State of Service 2025: Manufacturing Transformation Report surveyed 800 leaders and found that servitisation is becoming a mainstream strategy. New service models have impacted the operations of 94% of leaders surveyed, with 25% having already fully embedded these models.

The data also shows that 39% of leaders cited servitisation as central to their long-term growth plans. This move marks a change from traditional warranty and break-fix models to more sophisticated outcomes-based contracts (31%) and tiered service offerings (27%).

This evolution from product-centric to service-centric operations is redefining the supply chain. It is no longer about the one-time delivery of a product but about maintaining an ongoing service relationship that requires a responsive and agile logistics network for parts, technicians and support. The change marks a fundamental rewiring of the sector’s commercial and operational DNA.

“Manufacturing is undergoing a defining transformation," says Mark Moffat, CEO of IFS.

"Service has evolved from a support function into a core profit engine with 94% of manufacturers reporting that new service models are already impacting operations. Industrial AI and sustainability are now central to delivering smarter, faster and more personalised service.”

AI integration for operational resilience

Technology is a critical enabler of this transformation. According to the report, 63% of manufacturers are focusing on cloud infrastructure, AI, IoT and AR to expand their service operations. Despite this, there remains a gap in scaled adoption.

While 96% of leaders use AI in some part of service delivery, nearly 75% have yet to apply the technology across the entire service lifecycle. This gap could hinder the ability to create truly predictive and resilient supply chains.

Barriers to wider AI adoption include concerns over data governance, cybersecurity and integration with legacy systems. The report noted that 41% of UK leaders cite data quality as a key barrier, while 44% in the Middle East and DACH region point to cybersecurity and data privacy. Overcoming these challenges is important for unlocking the full value of AI in forecasting demand, optimising inventory and managing a complex service supply chain.

Circularity and skills in modern manufacturing

The study highlights that supply chain disruption has affected 95% of respondents in the last year, leaving only 32% feeling 'very confident' in their business's resilience. In response, 97% of leaders have made sustainability a strategic priority.

Many are embedding circularity into their operations to reduce waste and minimise dependence on volatile global supply lines. This strategy not only has environmental benefits, but also shortens waiting times for customers and reduces the risk of disruption.

The human element is also a factor. The report found that 98% of manufacturers are experiencing labour shortages and skills gaps. These shortages contribute to increased workloads, operational inefficiencies and slower issue resolution, which directly impacts the ability to deliver on its service promises.

Gert Müller, EMEA Intelligent Asset Management Lead at Accenture, explains: “Manufacturing today is about innovating faster, optimising smarter and delivering service with intelligence at every touchpoint.

"Service has reached a tipping point: it is no longer a support function but the front line of competitive advantage. With Industrial AI maturing rapidly, manufacturers can anticipate needs, personalise experiences and extend service value like never before.”

As global supply chains face more continuous disruption, it is vital that manufacturers find a way to wholly integrate these systems into business strategy. Through the implementation of circularity and AI, business leaders can be confident in their supply chain resilience.