(Octave: Huntsville, AL) -- The third annual Pulse of Quality in Manufacturing survey has been released by Octave, a global leader in software for the world’s most critical facilities and infrastructure. This year’s survey reveals that the overwhelming majority of manufacturers are either using AI today or plan to use it within the next two years. It also indicates that quality is rapidly emerging as a core business driver, with 71% of organizations planning to increase quality investment in 2026.

The study indicates that manufacturers in the U.S., U.K., and Germany are elevating quality from a functional discipline to a strategic priority amid rising product recalls, escalating regulatory pressures, and a persistent skills shortage affecting 85% of product quality outcomes.

“Manufacturers are at a pivotal moment where quality is no longer just a function—it’s a strategic lever for growth, resilience, and competitive advantage,” says Vick Vaishnavi, head of Octave Reliance. “This year’s Pulse of Quality in Manufacturing survey findings make it clear that organizations are doubling down on quality investments and embracing AI to drive smarter operations. They still face an uphill struggle, however, with persistent labor shortages, rising product recalls, and the repercussions of tariffs. Manufacturers that overcome these challenges will be those that treat quality not as a cost center but as a catalyst for innovation, efficiency, and long-term business performance.”

The Pulse of Quality in Manufacturing 2026 survey was conducted on behalf of Octave by research firm Censuswide during the first quarter of 2026. The firm collected real-world feedback on the state of quality in manufacturing, as well as the trends, issues, and challenges that are top of mind among manufacturers in the U.S., U.K., and Germany. A sampling of 2,263 managers and directors in midsize to large manufacturing firms (with 1,000–50,000-plus employees) were surveyed.

Five key findings from the survey

1. AI adoption in quality operations has reached the mainstream
Nearly half of manufacturers are already using AI—and adoption is set to surge further:
• 47% currently use AI in quality processes (up from 33% in 2025)
• 43% plan to deploy AI within two years
• Among AI users, 51% are leveraging generative AI/LLMs
• Top use cases for quality professionals include document automation (48%), defect detection (44%), and training (46%)

2. Manufacturers are elevating quality to a strategic, revenue-driving priority
Investment in quality is accelerating as organizations tie it directly to business performance:
• 71% expect quality spending to increase in 2026 (up from 60% in 2025)
• 63% now view quality as a companywide strategic initiative (up from 38%)
• 45% report to a dedicated VP of quality or chief quality officer
• Top drivers are increased revenue (49%), improved compliance (48%), and stronger supply chains (43%)

3. Rising compliance demands and repercussions of tariffs are reshaping operations
Manufacturers are navigating increasing regulatory pressure alongside global trade disruptions:
• 59% report increased external regulatory requirements
• 65% report higher internal quality standards
• 56% say tariffs or geopolitical issues have significantly affected their business
• 68% have raised prices as a result, while many are shifting to domestic sourcing

4. Product recalls remain a costly and persistent challenge
Despite increased investment in quality, recalls continue to affect the majority of manufacturers:
• 75% experienced a product recall in the past five years
• 59% say each recall costs between $10 million and $49.9 million (up from 48%)
• 47% cite supply chain issues as the primary cause

5. Workforce shortages are putting quality at risk
A widening skills gap is directly affecting product quality across the industry:
• 78% report being affected by labor or skills shortages (up from 70% in 2026)
• 85% say these shortages are negatively affecting product quality

About the survey methodology

Industries represented in the survey include heavy manufacturing, electronics and appliances, medical devices, pharma and life sciences, food and beverage, chemicals and agrosciences, logistics and distribution, transportation, automotive, aerospace and defense, and other manufacturing sectors. Specific respondents are responsible for compliance, continuous improvement, digital transformation, document control, IT, lean Six Sigma, process improvement, quality management, regulatory affairs, and supply chain management.

Click here to download the 2026 Pulse of Quality in Manufacturing e-book.