In 2026, a combination of original equipment manufacturer (OEM) mandates, evolving industry standards, and tightening global trade requirements will significantly raise expectations for labeling and traceability throughout the supply chain. For manufacturers and suppliers, these changes introduce real compliance risks that affect customer relationships, recalls, and overall supply chain performance.

Within this complex environment, labels sit at the center of the automotive supply chain. They serve as the identifiers of products, determine their destination in the supply chain, and carry varied data required to ensure that products are successfully received and processed.

However, the future of labeling isn’t continuing with today’s labeling processes. It’s moving toward more-advanced, data‑rich technologies, with 2D barcodes becoming the standard.

2D barcodes will be the standard for automotive labeling

According to TechChannel, the future of barcoding is unlocked with 2D barcodes. Because 2D barcodes have a two-dimensional representation of the data, they’re more dynamic than traditional 1D barcodes and can store and encode more data in a smaller space. Not only do 2D barcodes hold more information, they can be scanned in multiple directions or angles, even while partially damaged.

So how does this shift help the automotive industry? 2D barcodes, specifically Data Matrix, allow manufacturers to encode critical information such as batch numbers, serial numbers, production dates, and supplier data directly on the part or label. 2D barcodes also enhance traceability by allowing parts to be tracked throughout the supply chain. In the event of a recall, they make it easy to quickly identify the affected parts.

Automotive global standards and regulations

Organizations like the Automotive Industry Action Group (AIAG) continue to refine labeling guidelines, including AIAG B‑16, to support accurate data exchange throughout global automotive supply chains.

For suppliers shipping parts internationally, labeling compliance now requires balancing OEM-specific expectations with regional regulations. Inconsistent labeling practices can result in rework, shipment delays, chargebacks, or rejected goods, and the financial effect can be big. These types of labeling delays can cost hundreds to thousands of dollars per incident.

Adding to this complexity, shifting global trade policies and tariff rules are increasing the importance of accurate, adaptable labeling. Country-of-origin indicators, trade compliance markings, and related documentation must be reflected correctly to prevent customs delays, fines, or disruptions.

As trade and regulatory requirements continue to change, companies with outdated manual labeling processes face greater risk. Labeling accuracy, flexibility, and speed are now critical to keeping parts moving across borders without interruption.

GS1 Sunrise 2027

Among upcoming standards, GS1 Sunrise 2027 is an industry-led initiative encouraging companies to adopt 2D barcodes over traditional barcodes. For automotive manufacturers and suppliers, this creates additional pressure to modernize labeling capabilities ahead of 2027. Companies that get ahead of this change are setting themselves up for an easier and better transition when the initiative takes effect.

Automation is shifting gears for the future of labeling

As OEM requirements, global regulations, and labeling complexity increase, manual labeling processes make it harder for manufacturers to maintain an efficient labeling system. Automation is the future of labeling to help companies operate more efficiently while also helping them meet growing compliance needs.

Automated label printing replaces the manual task of creating and printing a label with a faster and more efficient automated process, which is critical in the automotive industry. A complete label print automation solution integrates your label design software and printing technologies with an existing business system, ERP, WMS, or custom homegrown system. Within a fraction of a second, print automation software can trigger a print job using the data from the business system. It can also automatically populate your labels and send to an unlimited number of printers. This plays a huge role when automotive manufacturers have to work with different moving parts.

In a 2026 environment defined by higher audit expectations and tighter tolerances, automation helps manufacturers respond faster to regulatory changes, OEM updates, and production variability.

Automation case study

Lippert & Kinro is a leading supplier of components for recreational vehicles. As the organization expanded and increased production volume, its labeling system became difficult to manage.

Before print automation, the company was using stand-alone printers that were unable to share files. This caused redundant regeneration of labels and consistency concerns. Lippert & Kinro needed to eliminate unnecessary and time-consuming processes and raise the bar on quality control. It also needed to maintain individual and personal relationships with its customer base while incorporating logistical upgrades and processes to allow for growth.

As Lippert & Kinro grew, so did the demands from its customers. Numerous customers were requesting customization to their labels with items such as personalized UPC codes or serial numbers. The internal team at Lippert & Kinro needed to find a solution for everything—standardization, time and cost savings, increased accuracy, ability to adapt quickly, and easier tracking.

After it implemented an automation solution, Lippert & Kinro scaled from one printer to 239 printers. Because of automation, the company was able to improve logistics and eliminate manual steps and label redundancy, better serving its customers through easy label personalization without additional labor.

Centralized labeling solutions reduce risk and improve control

Another modern labeling system is centralized label management. This lets manufacturers take more control of labeling from a single system. Browser-based label printing provides secure access to approved labels without local software installations, and the system can be hosted on-premises or in the cloud. A centralized label management system gives companies a look into real-time data from their business system to ensure every label is accurate, compliant, and traceable.

All manufacturers can benefit from a centralized labeling system. For contract manufacturers managing multiple OEMs or sites, it simplifies label distribution and updates, while OEMs and suppliers can ensure consistency and compliance across the supply chain. Labeling roles can be determined so there is a strict policy on who can access labels, printers, and tasks, while updated regulatory or customer requirements are immediately available to all users and easy to update.

By centralizing labeling, manufacturers improve accuracy, enforce compliance, and streamline operations. It also creates a flexible labeling process adaptable to change.

How should the automotive industry prepare for the future?

To prepare for labeling in 2026 and beyond, automotive companies should take a proactive approach.

Assess current labeling: Evaluate whether the existing labeling can handle change.

Confirm regulations are being met: Regularly review OEM requirements and AIAG guidelines to ensure your labeling processes keep up with evolving standards.

Invest in a modern labeling solution: Find a labeling solution to reduce manual tasks and handle label design, approval, printing, and reporting.

If companies act on the steps above, they can reduce compliance risk, decrease errors, and continue to build a more scalable labeling system.

Take control of your automotive labeling in 2026

For manufacturers in the automotive industry, 2026 is not going to slow down. Challenges will continue to evolve as labeling becomes more complex. Automotive manufacturers cannot lean on their old labeling habits. They need to look to the future to see where and how their labeling can take them to new heights.