Industrial processing in 2026 – resilience, regionalization and the reality of transition

“Volatility is forcing industrial processing leaders to rethink how they balance efficiency, control and long-term performance” , says Robert Hermans, CEO of IPCO.

2026 as a year of industrial recalibration

For industrial companies, 2026 is not about disruption. It’s about rebalance.

Cost versus control, global versus local, stability versus agility, efficiency versus resilience – across markets, leaders are reassessing long-held assumptions. In an environment shaped by geopolitical uncertainty, energy volatility, evolving regulation and changing customer expectations, the industrial sector is being forced to rebalance how it operates and invests.

At IPCO, we sit at the intersection of these forces across industrial processing, materials and manufacturing. Our perspective is shaped by decades of designing, delivering and supporting industrial processing systems in demanding, real-world environments.

What we see is not a retreat from globalization, but a more deliberate and resilient industrial model taking shape.

From global optimization to regional resilience

One of the most visible shifts is the move toward regionalized value chains for industrial manufacturing.

Manufacturers are increasingly locating production closer to raw materials and end markets. Governments want domestic value creation. Customers want security of supply, faster response times and reduced exposure to disruption. Tariffs, trade policy uncertainty and the lessons learned during Covid, have accelerated this shift, forcing companies to rethink where and how they invest.

For example, a German customer of a high-spec product moved production back to Germany after overseas disruption proved too risky. For niche products, control proved more valuable than theoretical cost savings.

In a more regionalized world, proximity, responsiveness and collaborative partnership are becoming decisive advantages for industry.

Cost vs control – how supply chains are changing

The long-running debate about offshore versus onshore manufacturing is evolving. Supply chain resilience has become critical not only for managing short-term disruptions, but for sustaining long-term competitiveness.

Consistent quality, reliable delivery and operational uptime, as well as protecting intellectual property, are increasingly valued by manufacturers over potential but uncertain cost savings. Lifecycle value – rather than upfront CAPEX – is replacing unit cost as the primary decision metric.

The choice of processing technologies, partners and long-term investments is now shaped by control, responsiveness and customer proximity as much as by cost.

Interconnected industries and rising complexity

Another shift we see is a change in demand. Traditional sectors are transforming, creating new industries and cross-industry collaborations. Boundaries are blurring, creating new customers, new markets and new opportunities.

For example, the surge in electric vehicle production is driving massive growth in lithium-ion battery manufacturing. Batteries rely on nickel as a critical raw material, and Indonesia, the world’s largest nickel producer, has seen output expand rapidly.

Because nickel processing requires large volumes of sulphuric acid, this increased processing has, in turn, more than doubled sulphur prices1, highlighting how changes in one sector ripple across interconnected industrial value chains.

What leaders should prepare for over the next 12-24 months Looking ahead, industrial leaders should prioritize flexibility over peak capacity. Processes must adapt to changing inputs and utilization rates, driven by customer demand, compliance and business resilience. Investing wisely across the lifecycle – through productivity enhancements, system upgrades and targeted new processing solutions – will be critical to remaining competitive and future-ready. Choosing partners with regional presence, process and materials expertise and a long-term commitment will be critical in navigating continued volatility. Operational resilience and energy efficiency are no longer differentiators – they are baseline expectations. For IPCO, being a supplier of equipment is not enough. We must be committed to being a long-term partner to our customers, bringing the insight and reliability needed to operate with confidence in a shifting industrial landscape.

Learn more about IPCO’s processing solutions and global capabilities at www.ipco.com