April, 2026- There is a lot of noise in the media about artificial intelligence and automation. ECI Software Solutions helps small to mid-sized manufacturers cut through the noise and apply AI and automation in ways that improve their bottom line.
ECI Software Solutions leverages AI to streamline estimating and scheduling.
“We are seeing businesses make the transformation from being AI-curious to applying practical uses for AI and automation,” says Tim Watkins, vice president of integrated solutions at ECI. “The digital shift to smart manufacturing is real—and a key driver in 2026,” he adds, citing findings from the company’s annual trend report.
“ECI is a trusted advisor to help guide organizations in understanding how and when to apply ERP to increase production levels, expand capacity and get more out of employee productivity. A robust and industry-specific ERP is the new operational backbone of modern business,” says Watkins.
SURVEY RESULTS
For four years, ECI has published an annual report on trends impacting its key customer industries. The report anticipates 2026 will be a year of innovation in the manufacturing world, drawing from hundreds of customer conversations and aggregated patterns from ECI’s product ecosystem as well as broader industry benchmarks.
Four major market factors are driving the accelerated move to practical AI application and automation. According to the report, these trends include a digital shift to smart manufacturing, continued labor challenges, more focus on cybersecurity and how fluctuating tariffs are impacting the supply chain.
With ECI technology, manufacturing managers have access to the same source data from all functions—from estimating to shipping.
SMART MANUFACTURING
Watkins cites a survey by Deloitte that found that 92 percent of manufacturers believe that smart manufacturing will be the primary driver of competitiveness in the next three years.
“While companies have discussed automation and data for years, 2026 marks a turning point in putting smart manufacturing to work in practical, high-impact ways,” Watkins notes. He says that smart manufacturing connects teams, breaks down silos and streamlines data workflows.
An industry-specific ERP system is a critical step toward achieving smart manufacturing. “With ECI technology, manufacturers have all functions (quality, operations, estimating, inventory, accounting and finance) working with the same source data,” says Watkins. When these core operations are connected, leadership is better informed to make decisions that protect margins, improve delivery times, reduce downtime and expose capacity opportunities.
Watkins points to research that found that manufacturers that embraced automation are already seeing real results in their operations. Deloitte quantifies these results as 10- to 20-percent improvement in production output, 7- to 20-percent jump in employee productivity, and 10- to 15-percent expansion in capacity.
WORKFORCE CHALLENGES
In his own visits to customer locations, Watkins echoes the findings in the ECI Trend Report: One in four manufacturing workers is now over age 55—their retirements outpacing new entrant arrivals. “Manufacturers are quickly losing tribal knowledge with every retirement. AI and automation are a way to capture and utilize tribal knowledge while increasing productivity,” says Watkins.
“Technology isn’t about replacing employees, rather it’s about freeing up employees to put eyes on more intense projects,” he says. For example, an ERP system can scan a vendor invoice, comparing it to the purchase order and bill of lading. “This eliminates the need for manual entry, leaving the employee to focus only on discrepancies,” he adds.
CYBERSECURITY AND THE AI FRONTIER
Data security has rapidly evolved from a back-office IT concern into a critical priority for executive leadership, according to Watkins. The central challenge for manufacturers is no longer just about efficiency but about fundamental survival: How do we keep our doors open and our business secure from cyberattacks?
The integration of AI introduces unique vulnerabilities that extend beyond traditional hacking. When employees interact with public AI models, they may inadvertently feed proprietary data into a system that learns from every interaction, potentially exposing trade secrets to the broader digital ecosystem. “This makes the implementation of AI a balancing act where the speed of innovation must be matched by the strength of the protective measures surrounding it,” states Watkins.
He cites research showing that 43 percent of cyberattacks specifically target small businesses. As these organizations adopt technology, their surface area for potential attacks grows. Watkins advises businesses to rely on secure, enterprise-grade ERP systems and to maintain rigorous data hygiene. “It is absolutely critical that businesses protect the data and information that makes each company unique,” he says.
TARIFFS AND TRADE
Earlier this year, the U.S. Supreme Court ruled that certain recent tariffs were unconstitutional, a decision that has injected fresh volatility and uncertainty in supplier relations.
“Changing tariffs have raised the stakes when it comes to pricing and accurate quoting,” explains Watkins. “To survive this volatility, manufacturers must transition from a reactive stance to a proactive one, using technology to manage trade fluctuations in real-time.”
This environment makes the selection of a specialized ERP solution a strategic necessity rather than a luxury. Unlike general software, an ERP designed specifically for manufacturers prioritizes the two functions Watkins sees as most intertwined: estimating and scheduling. In a world of fluctuating tariff costs, precision at the start of the pipeline is mandatory for maintaining margins. “If your estimating is not accurate, then your scheduling is impacted, which then affects the delivery time,” Watkins explains.
PRACTICAL ERP
Watkins notes that selecting an ERP solution isn’t about flashy features or experimentation. It’s about choosing a platform that delivers focused, practical capabilities that unlock operational capacity and drive measurable margin growth.
Leveraging AI is also about scaling knowledge to benefit the business as a whole. “The real benefit of AI isn’t helping one employee work faster—it’s embedding that insight into your processes so the entire organization benefits, without compromising data security.”
The ECI Trend Report highlights six practical ways that manufacturers are leveraging AI on their shop floors. Watkins summarizes these into two categories. First, businesses are mitigating redundancy of manual tasks like estimating, scheduling and predictive maintenance. Rather than relying on disconnected spreadsheets and siloed tools, businesses are consolidating operations into unified ERP systems where job costing, inventory, production, quality and accounting share real-time data.
Second, manufacturers are creating end-to-end visibility into profitability, traceability, resource allocation and compliance. “When your data is connected and reliable, leadership can make faster, more confident decisions,” Watkins says. “Leaders are no longer reacting to fragmented information; instead they are managing the business in real time.”
AI and automation are helping manufacturers capture tribal knowledge while increasing productivity.
GETTING STARTED
For the most meaningful use of an ERP solution, Watkins advises manufacturers to start by identifying their biggest operational pain point. ECI can help the manufacturer apply AI and automation in ways that directly support their specific business goals and measurable outcomes.
AI and automation no longer are the sole domains of the IT team. Instead, a successful strategy requires what Watkins calls “a deliberate decision to leverage AI as a business driver. It must be intentional, aligned with strategy and led from the top.” He also advises that implementing a new ERP solution should include functional leaders early in the planning process. ECI partners with manufacturers throughout this journey, from assessment to execution.
“Manufacturers and fabricators are facing labor shortages, trade and market volatility and growing security risks. But these pressures create opportunity. Those who lean into smart manufacturing and invest in the ERP systems that power it will build more resilient operations and a stronger backbone for long-term growth,” he predicts.
ECI Software Solutions, 866/374-3221, http://ecisolutions.com/
