As manufacturers move into the second half of 2026, they continue to navigate a complex mix of interest rates, inventory decisions, energy volatility and geopolitical uncertainty.

While inflation accelerated to 4.2% year over year in May, according to the latest Consumer Price Index report, executives and advisors say companies are still planning investments to help them compete beyond 2026.

One piece of good news for manufacturers is that the Federal Reserve kept interest rates unchanged at the last Wednesday’s Federal Open Market Committee meeting.

Experts say this steadiness in an otherwise uncertain environment can be especially helpful, given the difficulty large manufacturers may have shifting course after their factories are built and their machinery is purchased.

Preparing for 2027 through targeted investments