As industrial machinery and equipment (IM&E) manufacturers enter 2026, the industry is facing a new convergence of pressures: volatile global supply chains, tightening lead times, rising demand for equipment-as-a-service models, and a rapidly expanding expectation for smart-factory readiness.
For many IM&E companies, legacy ERP systems—built for past eras of predictable supply and static workflows—are now limiting strategic flexibility. Meanwhile, competitors are embracing smart-factory ERP designed specifically for industrial machinery: cloud-ready, AI-enabled, and connected across production, service, and aftermarket operations.
If 2025 was the wake-up call, 2026 is the year IM&E firms must act.
Industry analysts widely expect 2026 to be the year global manufacturing stabilizes into a new rhythm: multi-region sourcing, reshoring of key components, and tighter regulatory scrutiny across the value chain. IM&E manufacturers are particularly exposed:
Smart factory-enabled ERP gives IM&E organizations the live data, predictive analytics, and integrated planning functions needed to operate in these new supply-chain realities.
Executives want fewer surprises.
Smart factory ERP provides the visibility to make that possible.
Most IM&E operations are brownfield environments—not shiny new Industry 4.0 facilities. Yet customers now expect equipment manufacturers to behave like smart factories, even if the equipment running on the floor is 20 years old.
Smart factory ERP doesn’t require a full plant overhaul. Instead, it:
This is where the phrase “smart factory ERP industrial machinery” becomes literal: ERP becomes the nervous system for a digitally upgraded shop floor.
IM&E companies increasingly rely on aftermarket revenue—service, parts, warranties, maintenance, rentals—to sustain growth. Customers want:
A modern ERP built for equipment manufacturers supports this shift with:
Legacy ERP systems often treat service as a bolt-on module rather than a core revenue driver.
Smart factory ERP places it at the center.
Manufacturers no longer ask if AI impacts their business—they ask how soon, and where first?
In IM&E, AI-embedded ERP is already improving:
Companies still using manual spreadsheets or outdated MRP logic will fall behind as AI-driven planning becomes industry standard.
Avoid monolithic rebuilds. Cloud or hybrid ERP provides flexibility, scalability, and faster implementation time.
Generic ERP systems drag projects into costly customization.
Industry-produced data models, BOM structures, costing logic, and service workflows reduce risk.
Smart factory capabilities require ERP that speaks fluently with:
Energy usage, traceability, and regulatory tracking are becoming required—not optional.
ERP selection is important, but it’s only 20% of success.
The other 80% is implementation strategy, data governance, and industry-specific guidance.
This is where SAS delivers its greatest value.
While SAS is platform-agnostic, SYSPRO deserves a dedicated mention for one reason: its long-standing strength in the industrial machinery & equipment sector.
SYSPRO’s IM&E capabilities include:
For IM&E manufacturers seeking an ERP system architected specifically for their production and service realities—rather than forcing a generic ERP to fit—SYSPRO is a credible, future-proof option.
And when combined with SAS’s implementation and advisory expertise, it becomes a strategic advantage rather than just a software decision.
IM&E organizations partner with SAS to:
Our Industrial Machinery & Equipment practice is designed specifically for the pressures OEMs and component suppliers face—tightening margins, rising complexity, and the need for smarter, more resilient operations.
Learn more: https://sasconsult.com/industries/industrial-machinery-and-equipment/
Industrial machinery manufacturers are entering a new era defined by:
Legacy ERP simply can’t keep up.
Smart factory ERP is not a technology upgrade—it’s a strategic pivot toward a more resilient, predictable, and profitable future.
IM&E leaders who modernize their ERP foundations in 2026 will be the ones shaping the decade.