Every year, we see new trends in metal fabrication and operational practices reshape what OEMs expect from their metalworking partners, which in turn influences how suppliers like Arrow invest and operate.
In 2026, we predict three significant trends in metalworking that will influence how metalworking solution providers operate and how OEMs will select their suppliers.
Further Investment Into AI/Industry 4.0 Technology To Support Faster Turnaround Times
In 2026, investment in AI-enabled and Industry 4.0 technologies will no longer be a differentiator for a select few metalworking companies. Instead, advanced technology will be an integral part of everyday manufacturing operations across the industry.
That’s because OEMs are under increased pressure to stay competitive in a tightening marketplace. As a result, they will demand greater predictability, faster delivery, and data-backed confidence that their fabrication partners will deliver components on time and to spec. Production facilities that adopt advanced scheduling software, machine monitoring, and AI-driven production optimization will be directly addressing those expectations.
For example, real-time visibility into machine utilization, tool wear, and process stability allows shops to reduce unplanned downtime, tighten delivery windows, and commit to reliable lead times, improving predictability.
AI is also reshaping inspection and quality assurance. Integrated sensors and machine-learning models can identify defects earlier in the process, reducing scrap and rework while preserving throughput. For OEMs, this translates into fewer late-stage surprises and more consistent product quality.
When tech-based metalworking suppliers such as Arrow can consistently measure and track production data, quality metrics, and delivery performance, OEMs gain confidence that their production supply chain is reliable and secure.
Read More: Introducing Industry 4.0 – Smart Manufacturing In Machining And Fabrication
OEMs Will Increasingly Favour Strategic Consolidation, Partnering With Fewer, More Capable Metalworking Suppliers That Can Support Multiple Processes Under One Roof
As product complexity increases and timelines compress, the administrative overhead, communication gaps, and compounded risk of coordinating multiple niche vendors are no longer sustainable. As a result, forward-thinking OEMs are expected to refocus their partnerships with single-source metalworking providers to reduce the total cost of ownership of their manufacturing programs in 2026.
The benefits of this shift are numerous. For example, integrated suppliers can seamlessly conduct cross-process optimizations that would be difficult when work is spread across multiple vendors. This means machining strategies can be aligned with downstream welding or coating requirements, reducing production time and the risk of miscommunication.
Control and accountability are also improved. When a single supplier handles machining, fabrication, finishing, and assembly, handoff errors decrease, and responsibility becomes clearer. If a tolerance stack-up causes an issue downstream, there’s no doubt about where the problem originated or who is responsible for the fix.
For metalworking companies, this trend demands deliberate investment in systems integration, process discipline, and engineering alignment. However, for OEMs this means significant time and cost savings throughout their projects’ lifecycles.
Consolidated single-source suppliers, such as Arrow, are better positioned as long-term strategic partners than interchangeable vendors for long-term, sustainable profitability.
Read More: What Metalworking Companies Can Expect As Part Of The Arrow Family
Metalworking Companies Will Continue To Cross-Train And Mentor Employees For Better Quality Products
Although AI and automation are advancing in metalworking, our industry remains deeply dependent on human expertise. What’s expected to change in 2026 is how that expertise is developed and deployed amid skilled labour shortages and rising quality expectations.
Cross-training team members is a viable way to create operational flexibility. For example, when machinists understand inspection requirements or when fabricators are familiar with machining constraints, quality improves organically. Problems are caught earlier because workers recognize downstream impacts, not just those that affect their immediate task.
Mentorship programs also play a critical role in preserving knowledge and experience that might otherwise be lost to employee retirement or turnover. Experienced operators pass on not just techniques, but judgment on how to interpret borderline measurements, adjust processes based on material behaviour, and anticipate issues before they materialize. This depth of tried-and-true understanding results in more consistent product quality.
There is also a direct link between workforce development and process capability. Shops with well-trained, broadly-skilled teams are better equipped to adopt new technologies effectively, making it far more likely for them to derive value from digital investments than struggle with them.
In 2026, evidence of people training, retention, and internal knowledge transfer will play a role in how OEMs will assess supplier quality. Suppliers such as Arrow that treat workforce development as a strategic asset will outperform those that rely solely on automation to compensate for skill gaps.
How Arrow Customers Benefit From These Trends
Arrow combines advanced technology, integrated capabilities, and a highly skilled workforce to help our customers reach their production goals.
While we still prioritize manufacturing speed, quality, and reliability, we also understand our OEM customers’ needs for long-term program stability. Arrow’s ability to keep pace with change also helps set the standards OEMs should demand of their suppliers, making us the ideal partner for your metalworking parts and components projects.
Get in touch with us anytime to learn how we combine emerging trends with traditional, reliable practices to help support your next project.