{"id":23199,"date":"2026-10-07T12:12:15","date_gmt":"2026-10-07T12:12:15","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=23199"},"modified":"2026-10-07T12:37:14","modified_gmt":"2026-10-07T12:37:14","slug":"manufacturing-demand-ai-trends","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/","title":{"rendered":"US Manufacturing Trends: Demand, Inventory, and AI Over the Past 3 Years"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Over the past three years, US manufacturers have dealt with shifting demand, inventory levels that don&#8217;t always match what&#8217;s needed, and AI tools becoming part of everyday work. We looked at three years of BTOS survey data to see how these trends have actually played out across manufacturers of different sizes.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand-1024x576.jpg\" alt=\"inventory-demand\" class=\"wp-image-23176\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand-1024x576.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand-300x169.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand-768x432.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand.jpg 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<style>\n  .key-takeaways {\n    margin: 32px 0;\n    padding: 24px 28px;\n    border-left: 4px solid #4A91E9;\n    border-radius: 0 6px 6px 0;\n    background-color: #f4f8fd;\n    color: #343333;\n    font-family: msans, \"Red Hat Display\", sans-serif;\n  }\n\n  .key-takeaways__title {\n    margin: 0 0 16px;\n    color: #003557;\n    font-size: 22px;\n    line-height: 1.3;\n  }\n\n  .key-takeaways ul {\n    margin: 0;\n    padding-left: 22px;\n  }\n\n  .key-takeaways li {\n    margin-bottom: 12px;\n    padding-left: 4px;\n    line-height: 1.65;\n  }\n\n  .key-takeaways li:last-child {\n    margin-bottom: 0;\n  }\n\n  .key-takeaways li::marker {\n    color: #4A91E9;\n  }\n\n  .key-takeaways li strong {\n    color: #003557;\n  }\n\n  @media (max-width: 640px) {\n    .key-takeaways {\n      padding: 20px;\n    }\n\n    .key-takeaways__title {\n      font-size: 20px;\n    }\n  }\n<\/style>\n\n<section id=\"key-takeaways\" class=\"key-takeaways\" aria-labelledby=\"key-takeaways-title\">\n  <p id=\"key-takeaways-title\" class=\"key-takeaways__title\">\n    <strong>Key takeaways<\/strong>\n  <\/p>\n\n  <ul>\n    <li>\n      <strong>Demand has been negative across the board for three years, but a turnaround is expected everywhere.<\/strong>\n    <\/li>\n\n    <li>\n      <strong>Larger manufacturers are more likely to have optimal inventory, but also far more likely to have too much of it.<\/strong>\n    <\/li>\n\n    <li>\n      <strong>Every size group expects to move closer to optimal inventory, and the expected improvement grows with company size.<\/strong>\n    <\/li>\n\n    <li>\n      <strong>AI adoption is climbing fastest for mid-sized manufacturers, not the largest ones.<\/strong>\n    <\/li>\n  <\/ul>\n<\/section>\n\n\n\n<p class=\"wp-block-paragraph\">Every 2 weeks, the US Census Bureau surveys 200,000 businesses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The survey, known as the <a href=\"https:\/\/www.census.gov\/programs-surveys\/btos.html\" target=\"_blank\" rel=\"noreferrer noopener\">Business Trends and Outlook Survey (BTOS)<\/a>, asks US companies about their current and expected business conditions. Survey participants include businesses of all sizes and from a range of industries, including construction, retail, and manufacturing.<br><br>The BTOS has been taking place since September 2023. Its large sample size and bi-weekly polling frequency make it a reliable indicator of what\u2019s actually been happening with US manufacturers over the past three years.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In our research, we analyzed three years of BTOS survey data to understand the strongest trends in US manufacturing when it comes to inventory, demand, and AI use. Here is what we observed.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#Demand_on_the_rebound\" >Demand on the rebound&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#Demand_has_cratered_but_a_turnaround_is_coming\" >Demand has cratered, but a turnaround is coming<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#Inventory_trending_in_the_right_direction\" >Inventory trending in the right direction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#Inventory_ratings_by_company_size\" >Inventory ratings by company size<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#The_optimal_share_keeps_climbing\" >The optimal share keeps climbing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/#AI_adoption_among_US_manufacturers\" >AI adoption among US manufacturers<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Demand_on_the_rebound\"><\/span>Demand on the rebound&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As part of the survey, the BTOS asks manufacturers the following questions about demand:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the last two weeks, how did demand for your goods or services change?<\/li>\n\n\n\n<li>How do you expect this to change in six months?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Survey responses came from manufacturers across every company size group, from the smallest businesses (1 to 4 employees) up to the largest (250 or more employees).<\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Build your production plan around actual demand with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<p class=\"wp-block-paragraph\">We averaged three years of survey responses, then subtracted the share reporting falling demand from the share reporting rising demand. This gives each group&#8217;s &#8220;net&#8221; demand, both now and six months from now. Here&#8217;s what we saw:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Averaged across the survey period, more manufacturers reported falling demand than rising demand, regardless of company size. The current net was negative for every group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The size of this gap varied widely, though.<br><br>For the smallest manufacturers (1 to 4 employees), the share reporting falling demand far outweighed the share reporting rising demand. The gap shrank steadily with company size, and was smallest for manufacturers with 250+ employees.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, when manufacturers described what they expect six months ahead, the outlook was positive. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Manufacturers from every size group expected demand to rise, rather than fall. The following chart shows the difference between currently reported and expected demand (averaged over the 3-year period).<\/p>\n\n\n\n<section class=\"mrp-hn\">\n  <h2 class=\"mrp-hn__title\"><span class=\"ez-toc-section\" id=\"Demand_has_cratered_but_a_turnaround_is_coming\"><\/span>Demand has cratered, but a turnaround is coming<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p class=\"mrp-hn__subtitle\">Net share reporting rising vs. falling demand (Increased \u2212 Decreased), now vs. expected in 6 months, by company size<\/p>\n\n  <ul class=\"mrp-hn__legend\">\n    <li><span class=\"mrp-hn__swatch\" style=\"background:var(--mrp-current)\"><\/span>Current net \u2013 last 2 weeks<\/li>\n    <li><span class=\"mrp-hn__swatch\" style=\"background:var(--mrp-expected)\"><\/span>Expected net \u2013 6 months out<\/li>\n  <\/ul>\n\n  <div class=\"mrp-hn__rows\">\n    <div class=\"mrp-hn__vline\" style=\"left:calc(72px + (100% - 72px) * 0.16667)\"><\/div>\n    <div class=\"mrp-hn__vline\" style=\"left:calc(72px + (100% - 72px) * 0.33333)\"><\/div>\n    <div class=\"mrp-hn__vline\" style=\"left:calc(72px + (100% - 72px) * 0.66667)\"><\/div>\n    <div class=\"mrp-hn__vline\" style=\"left:calc(72px + (100% - 72px) * 0.83333)\"><\/div>\n    <div class=\"mrp-hn__vline\" style=\"left:calc(72px + (100% - 72px) * 1)\"><\/div>\n    <div class=\"mrp-hn__zeroline\"><\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>A<\/b>&nbsp;1\u20134<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:16.833%;width:33.167%\"><span>-19.9%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:6.667%\"><span>+4.0%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>B<\/b>&nbsp;5\u20139<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:24.0%;width:26.0%\"><span>-15.6%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:16.833%\"><span>+10.1%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>C<\/b>&nbsp;10\u201319<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:29.333%;width:20.667%\"><span>-12.4%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:24.667%\"><span>+14.8%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>D<\/b>&nbsp;20\u201349<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:35.333%;width:14.667%\"><span>-8.8%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:31.833%\"><span>+19.1%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>E<\/b>&nbsp;50\u201399<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:41.333%;width:8.667%\"><span>-5.2%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:39.0%\"><span>+23.4%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>F<\/b>&nbsp;100\u2013249<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:46.0%;width:4.0%\"><span>-2.4%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:46.5%\"><span>+27.9%<\/span><\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"mrp-hn__row\">\n      <div class=\"mrp-hn__label\"><b>G<\/b>&nbsp;250+<\/div>\n      <div class=\"mrp-hn__track\">\n        <div class=\"mrp-hn__bar mrp-hn__bar--current mrp-hn__bar--neg\" style=\"left:48.167%;width:1.833%\"><span>-1.1%<\/span><\/div>\n        <div class=\"mrp-hn__bar mrp-hn__bar--expected mrp-hn__bar--pos\" style=\"left:50%;width:37.667%\"><span>+22.6%<\/span><\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  <div class=\"mrp-hn__axis\">\n    <div class=\"mrp-hn__headspacer\"><\/div>\n    <div class=\"mrp-hn__axistrack\">\n      <div class=\"mrp-hn__tick\" style=\"left:16.667%\"><span>-20%<\/span><\/div>\n      <div class=\"mrp-hn__tick\" style=\"left:33.333%\"><span>-10%<\/span><\/div>\n      <div class=\"mrp-hn__tick\" style=\"left:50%\"><span>0%<\/span><\/div>\n      <div class=\"mrp-hn__tick\" style=\"left:66.667%\"><span>+10%<\/span><\/div>\n      <div class=\"mrp-hn__tick\" style=\"left:83.333%\"><span>+20%<\/span><\/div>\n      <div class=\"mrp-hn__tick\" style=\"left:100%\"><span>+30%<\/span><\/div>\n    <\/div>\n  <\/div>\n\n  <div class=\"mrp-hn__footer\">\n    <div class=\"mrp-hn__notes\">\n      <p>U.S. Census Bureau BTOS \u00b7 full 3-year average, Sept 2023 \u2013 Aug 2026 \u00b7 company size in employees<\/p>\n    <\/div>\n    <div class=\"mrp-hn__logo\"><span class=\"mrp-hn__brand\">mrpeasy.com<\/span><\/div>\n  <\/div>\n<\/section>\n\n<style>\n.mrp-hn,.mrp-hn *{box-sizing:border-box;font-family:'Red Hat Display',system-ui,-apple-system,'Segoe UI',sans-serif}\n.mrp-hn{\n  --mrp-current:#4A8FE7;\n  --mrp-expected:#2D1660;\n  --mrp-ink:#111111;\n  --mrp-muted:#555555;\n  --mrp-grid:#E3E3E8;\n  --mrp-zero:#1a1a1a;\n  max-width:880px;\n  margin:0 auto;\n  padding:32px 28px 24px;\n  background:#ffffff;\n  color:var(--mrp-ink);\n  line-height:1.4;\n}\n\n.mrp-hn 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0.5);width:1.5px;background:var(--mrp-zero)}\n\n.mrp-hn__row{position:relative;display:flex;align-items:center;min-height:52px}\n.mrp-hn__label{flex:0 0 72px;font-size:11px;line-height:1.35;color:var(--mrp-muted);white-space:nowrap}\n.mrp-hn__label b{font-weight:400}\n\n.mrp-hn__track{position:relative;flex:1;height:34px}\n.mrp-hn__bar{position:absolute;height:14px;border-radius:7px}\n.mrp-hn__bar--current{top:2px;background:var(--mrp-current)}\n.mrp-hn__bar--expected{top:18px;background:var(--mrp-expected)}\n.mrp-hn__bar span{position:absolute;top:50%;transform:translateY(-50%);font-size:11px;line-height:1;font-weight:400;white-space:nowrap}\n.mrp-hn__bar--neg span{right:100%;margin-right:6px;color:var(--mrp-muted)}\n.mrp-hn__bar--pos span{left:100%;margin-left:6px;color:var(--mrp-ink)}\n\n.mrp-hn__axis{display:flex;margin-top:6px}\n.mrp-hn__headspacer{flex:0 0 72px}\n.mrp-hn__axistrack{position:relative;flex:1;height:26px}\n.mrp-hn__tick{position:absolute;top:0;transform:translateX(-50%);display:flex;flex-direction:column;align-items:center}\n.mrp-hn__tick::before{content:\"\";width:1px;height:6px;background:var(--mrp-zero);opacity:.5}\n.mrp-hn__tick span{margin-top:4px;font-size:11px;color:var(--mrp-muted)}\n\n.mrp-hn__footer{display:flex;align-items:center;justify-content:space-between;gap:32px;margin-top:40px;padding-top:20px;border-top:1px solid var(--mrp-grid)}\n.mrp-hn__notes{flex:1;min-width:0}\n.mrp-hn__notes p{margin:0;padding:0;font-size:12.5px;line-height:1.6;color:var(--mrp-muted)}\n.mrp-hn__logo{flex:0 0 auto;display:block;line-height:0}\n.mrp-hn__brand{font-size:13px;font-weight:600;color:var(--mrp-ink);white-space:nowrap}\n\n@media (max-width:600px){\n  .mrp-hn{padding:24px 14px 18px}\n  .mrp-hn h2.mrp-hn__title{font-size:22px}\n  .mrp-hn p.mrp-hn__subtitle{font-size:14px}\n  .mrp-hn .mrp-hn__legend{gap:8px 20px;font-size:13px;margin-bottom:30px}\n  .mrp-hn__label{font-size:10px}\n  .mrp-hn__bar span{font-size:9.5px}\n  .mrp-hn__tick span{font-size:10px}\n  .mrp-hn__footer{flex-direction:column;align-items:flex-start;gap:16px}\n  .mrp-hn__logo{align-self:flex-end}\n  .mrp-hn__brand{font-size:12px}\n}\n<\/style>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_trending_in_the_right_direction\"><\/span>Inventory trending in the right direction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When looking at how manufacturers currently describe their inventories, there&#8217;s a clear pattern:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The share describing their inventory as &#8220;oversized&#8221; rises steadily with company size. The &#8220;optimal&#8221; share follows a similar upward pattern overall, though it dips slightly for manufacturers with 100 to 249 employees before climbing again at the largest size group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At one end of the spectrum, 36.9% of very small manufacturers (1 to 4 employees) describe their inventory as optimal. Just 6.6% say it\u2019s oversized.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">57.3% of the largest manufacturers in the survey (250+ employees) say their inventory is optimal. Meanwhile, 30.9% say it&#8217;s oversized.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This shows that larger manufacturers are more likely to have optimal inventory levels, but they&#8217;re also far more likely to have too much inventory.&nbsp;<\/p>\n\n\n\n<section class=\"mrp-it\">\n  <h2 class=\"mrp-it__title\"><span class=\"ez-toc-section\" id=\"Inventory_ratings_by_company_size\"><\/span>Inventory ratings by company size<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p class=\"mrp-it__subtitle\">Share currently describing inventory as &#8220;optimal&#8221; vs. &#8220;oversized&#8221;<\/p>\n\n  <table class=\"mrp-it__table\">\n    <thead>\n      <tr>\n        <th>Company size<\/th>\n        <th>Optimal<\/th>\n        <th>Oversized<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td><b>A<\/b><span>1\u20134<\/span><\/td>\n        <td>36.9%<\/td>\n        <td>6.6%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>B<\/b><span>5\u20139<\/span><\/td>\n        <td>46.6%<\/td>\n        <td>7.9%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>C<\/b><span>10\u201319<\/span><\/td>\n        <td>50.6%<\/td>\n        <td>10.9%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>D<\/b><span>20\u201349<\/span><\/td>\n        <td>54.9%<\/td>\n        <td>15.9%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>E<\/b><span>50\u201399<\/span><\/td>\n        <td>56.2%<\/td>\n        <td>23.2%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>F<\/b><span>100\u2013249<\/span><\/td>\n        <td>55.6%<\/td>\n        <td>29.2%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>G<\/b><span>250+<\/span><\/td>\n        <td>57.3%<\/td>\n        <td>30.9%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n\n  <div class=\"mrp-it__footer\">\n    <div class=\"mrp-it__notes\">\n      <p>U.S. Census Bureau BTOS \u00b7 current period, 3-year average, Sept 2023 \u2013 Aug 2026<\/p>\n    <\/div>\n    <div class=\"mrp-it__logo\"><span class=\"mrp-it__brand\">mrpeasy.com<\/span><\/div>\n  <\/div>\n<\/section>\n\n<style>\n.mrp-it,.mrp-it *{box-sizing:border-box;font-family:'Red Hat Display',system-ui,-apple-system,'Segoe UI',sans-serif}\n.mrp-it{\n  --mrp-header:#003557;\n  --mrp-ink:#111111;\n  --mrp-muted:#555555;\n  --mrp-grid:#E3E3E8;\n  --mrp-stripe:#F6F7F9;\n  max-width:880px;\n  margin:0 auto;\n  padding:32px 28px 24px;\n  background:#ffffff;\n  color:var(--mrp-ink);\n  line-height:1.4;\n}\n\n.mrp-it h2.mrp-it__title{margin:0 0 12px;padding:0;font-size:28px;font-weight:700;line-height:1.2;text-align:center;color:var(--mrp-ink);letter-spacing:-0.01em}\n.mrp-it p.mrp-it__subtitle{max-width:560px;margin:0 auto 32px;padding:0;font-size:16px;font-weight:400;line-height:1.6;text-align:center;color:var(--mrp-muted)}\n\n.mrp-it__table{width:100%;border-collapse:collapse}\n.mrp-it__table thead th{background:var(--mrp-header);color:#ffffff;font-size:14px;font-weight:600;text-align:center;padding:14px 20px}\n.mrp-it__table thead th:first-child{text-align:left;border-radius:6px 0 0 0}\n.mrp-it__table thead th:last-child{border-radius:0 6px 0 0}\n\n.mrp-it__table td{padding:14px 20px;font-size:14px;color:var(--mrp-ink);text-align:center}\n.mrp-it__table td:first-child{text-align:left}\n.mrp-it__table td:first-child b{font-weight:700;color:var(--mrp-ink);margin-right:10px}\n.mrp-it__table td:first-child span{color:var(--mrp-muted);font-weight:400}\n\n.mrp-it__table tbody tr:nth-child(even){background:var(--mrp-stripe)}\n.mrp-it__table tbody tr:last-child td{border-bottom:1.5px solid var(--mrp-ink)}\n\n.mrp-it__footer{display:flex;align-items:center;justify-content:space-between;gap:32px;margin-top:24px;padding-top:20px}\n.mrp-it__notes{flex:1;min-width:0}\n.mrp-it__notes p{margin:0;padding:0;font-size:12.5px;line-height:1.6;color:var(--mrp-muted)}\n.mrp-it__logo{flex:0 0 auto;display:block;line-height:0}\n.mrp-it__brand{font-size:13px;font-weight:600;color:var(--mrp-ink);white-space:nowrap}\n\n@media (max-width:600px){\n  .mrp-it{padding:24px 14px 18px}\n  .mrp-it h2.mrp-it__title{font-size:22px}\n  .mrp-it p.mrp-it__subtitle{font-size:14px}\n  .mrp-it__table th,.mrp-it__table td{padding:10px 12px;font-size:12.5px}\n  .mrp-it__footer{flex-direction:column;align-items:flex-start;gap:16px}\n  .mrp-it__logo{align-self:flex-end}\n  .mrp-it__brand{font-size:12px}\n}\n<\/style>\n\n\n\n<p class=\"wp-block-paragraph\">Looking ahead, the share of manufacturers expecting &#8220;optimal&#8221; inventory levels six months out also increased. This was true for manufacturers of every size group, with the difference growing steadily with company size.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For the smallest manufacturers (1 to 4 employees), 41.9% expect optimal inventory in 6 months, compared to 36.9% currently reporting optimal inventory.<\/li>\n\n\n\n<li>For manufacturers with 100 to 249 employees, 70.6% expect optimal inventory in 6 months, compared to 55.6% currently reporting optimal inventory.<\/li>\n\n\n\n<li>For manufacturers with 250+ employees, 73.1% expect optimal inventory in 6 months, compared to 57.3% currently reporting optimal inventory.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This gap makes sense in light of where each group starts. Larger manufacturers currently carry the most <a href=\"https:\/\/www.mrpeasy.com\/blog\/excess-inventory\/\" target=\"_blank\" rel=\"noreferrer noopener\">excess inventory<\/a>: nearly a third of the largest manufacturers describe their inventory as oversized.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That gives them more room to improve, since many expect to bring that excess back down to an optimal level. Smaller manufacturers report far less oversized inventory to begin with, so they have less room to correct on that front.<\/p>\n\n\n\n<section class=\"mrp-it\">\n  <h2 class=\"mrp-it__title\"><span class=\"ez-toc-section\" id=\"The_optimal_share_keeps_climbing\"><\/span>The optimal share keeps climbing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p class=\"mrp-it__subtitle\">Share describing inventory as &#8220;optimal,&#8221; current vs. expected in 6 months<\/p>\n\n  <table class=\"mrp-it__table\">\n    <thead>\n      <tr>\n        <th>Company size<\/th>\n        <th>Current<\/th>\n        <th>Expected<\/th>\n      <\/tr>\n    <\/thead>\n    <tbody>\n      <tr>\n        <td><b>A<\/b><span>1\u20134<\/span><\/td>\n        <td>36.9%<\/td>\n        <td>41.9%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>B<\/b><span>5\u20139<\/span><\/td>\n        <td>46.6%<\/td>\n        <td>52.3%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>C<\/b><span>10\u201319<\/span><\/td>\n        <td>50.6%<\/td>\n        <td>57.3%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>D<\/b><span>20\u201349<\/span><\/td>\n        <td>54.9%<\/td>\n        <td>63.3%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>E<\/b><span>50\u201399<\/span><\/td>\n        <td>56.2%<\/td>\n        <td>67.6%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>F<\/b><span>100\u2013249<\/span><\/td>\n        <td>55.6%<\/td>\n        <td>70.6%<\/td>\n      <\/tr>\n      <tr>\n        <td><b>G<\/b><span>250+<\/span><\/td>\n        <td>57.3%<\/td>\n        <td>73.1%<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n\n  <div class=\"mrp-it__footer\">\n    <div class=\"mrp-it__notes\">\n      <p>U.S. Census Bureau BTOS \u00b7 current period, 3-year average, Sept 2023 \u2013 Aug 2026<\/p>\n    <\/div>\n    <div class=\"mrp-it__logo\"><span class=\"mrp-it__brand\">mrpeasy.com<\/span><\/div>\n  <\/div>\n<\/section>\n\n<style>\n.mrp-it,.mrp-it *{box-sizing:border-box;font-family:'Red Hat Display',system-ui,-apple-system,'Segoe UI',sans-serif}\n.mrp-it{\n  --mrp-header:#003557;\n  --mrp-ink:#111111;\n  --mrp-muted:#555555;\n  --mrp-grid:#E3E3E8;\n  --mrp-stripe:#F6F7F9;\n  max-width:880px;\n  margin:0 auto;\n  padding:32px 28px 24px;\n  background:#ffffff;\n  color:var(--mrp-ink);\n  line-height:1.4;\n}\n\n.mrp-it h2.mrp-it__title{margin:0 0 12px;padding:0;font-size:28px;font-weight:700;line-height:1.2;text-align:center;color:var(--mrp-ink);letter-spacing:-0.01em}\n.mrp-it p.mrp-it__subtitle{max-width:560px;margin:0 auto 32px;padding:0;font-size:16px;font-weight:400;line-height:1.6;text-align:center;color:var(--mrp-muted)}\n\n.mrp-it__table{width:100%;border-collapse:collapse}\n.mrp-it__table thead th{background:var(--mrp-header);color:#ffffff;font-size:14px;font-weight:600;text-align:center;padding:14px 20px}\n.mrp-it__table thead th:first-child{text-align:left;border-radius:6px 0 0 0}\n.mrp-it__table thead th:last-child{border-radius:0 6px 0 0}\n\n.mrp-it__table td{padding:14px 20px;font-size:14px;color:var(--mrp-ink);text-align:center}\n.mrp-it__table td:first-child{text-align:left}\n.mrp-it__table td:first-child b{font-weight:700;color:var(--mrp-ink);margin-right:10px}\n.mrp-it__table td:first-child span{color:var(--mrp-muted);font-weight:400}\n\n.mrp-it__table tbody tr:nth-child(even){background:var(--mrp-stripe)}\n.mrp-it__table tbody tr:last-child td{border-bottom:1.5px solid var(--mrp-ink)}\n\n.mrp-it__footer{display:flex;align-items:center;justify-content:space-between;gap:32px;margin-top:24px;padding-top:20px}\n.mrp-it__notes{flex:1;min-width:0}\n.mrp-it__notes p{margin:0;padding:0;font-size:12.5px;line-height:1.6;color:var(--mrp-muted)}\n.mrp-it__logo{flex:0 0 auto;display:block;line-height:0}\n.mrp-it__brand{font-size:13px;font-weight:600;color:var(--mrp-ink);white-space:nowrap}\n\n@media (max-width:600px){\n  .mrp-it{padding:24px 14px 18px}\n  .mrp-it h2.mrp-it__title{font-size:22px}\n  .mrp-it p.mrp-it__subtitle{font-size:14px}\n  .mrp-it__table th,.mrp-it__table td{padding:10px 12px;font-size:12.5px}\n  .mrp-it__footer{flex-direction:column;align-items:flex-start;gap:16px}\n  .mrp-it__logo{align-self:flex-end}\n  .mrp-it__brand{font-size:12px}\n}\n<\/style>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_adoption_among_US_manufacturers\"><\/span>AI adoption among US manufacturers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The survey also asks businesses if they\u2019ve used AI in the last two weeks, and whether they expect to be using AI at all in six months. The BTOS first asked about AI use in 2023, but broadened the question&#8217;s wording in December 2025 to capture AI use across more business functions. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our analysis uses only data collected under that current wording, so the comparison is still based on a limited number of survey cycles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regardless of the small sample size, the survey responses provide insight into AI use among small to mid-sized manufacturers in the US.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">AI use is climbing across the board<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">We looked at the 3 earliest survey cycles with AI-related questions, then compared the responses with the 3 latest cycles. Our analysis showed that actual AI use has been climbing for manufacturers of most sizes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The smallest manufacturers (1 to 4 employees) show a strong increase in AI use, from 10.2% to 19.3%.<\/li>\n\n\n\n<li>Manufacturers with 20 to 49 employees show a smaller rise, from 13.9% to 20.6%.<\/li>\n\n\n\n<li>Manufacturers with 50 to 99 employees show one of the sharpest rises, with AI use climbing from 14.4% to 30.0%.<\/li>\n\n\n\n<li>AI use for manufacturers with 100 to 249 employees rose from 19.2% to 27.7%.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">One group in particular showed growing uncertainty about the future. For manufacturers with 20 to 49 employees, &#8220;don&#8217;t know&#8221; responses to the six-month AI-use question rose from 22.5% to 28.7%, even as their own current-use number climbed. This shows that manufacturers in this size group are using AI more, but also less clear about future AI use.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">AI doesn&#8217;t need a big budget&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AI use rose sharply for manufacturers with 50 to 99 employees. But this increase wasn&#8217;t limited to one group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Almost every other size bracket shows a real, statistically reliable rise in the use of AI. Only manufacturers with 250+ employees fail to show a reliable trend in either direction.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This suggests AI adoption doesn\u2019t follow the &#8220;bigger companies move first&#8221; logic. It also shows how accessible a lot of AI tools have become. A small manufacturer doesn&#8217;t need a dedicated IT team or large budget to start using AI, as it would for larger-scale automation or equipment investment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A similar shift already played out with <a href=\"https:\/\/www.mrpeasy.com\/manufacturing-erp-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturing ERP software<\/a>. Cloud-based platforms like MRPeasy removed much of the infrastructure cost and licensing overhead that once made ERP systems practical mainly for larger manufacturers, putting the same kind of planning and production tools within reach of much smaller shops.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>You might also like: <a href=\"https:\/\/www.mrpeasy.com\/blog\/us-manufacturing-hiring-trend\/\" target=\"_blank\" rel=\"noreferrer noopener\">Hiring Trends for US Manufacturers: What 3 Years of Census Data Shows<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past three years, US manufacturers have dealt with shifting demand, inventory levels that don&#8217;t always match what&#8217;s needed, and AI tools becoming part of everyday work. We looked at three years of BTOS survey data to see how these trends have actually played out across manufacturers of different sizes.<\/p>\n","protected":false},"author":17,"featured_media":23176,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[96,56],"tags":[3,57,101],"class_list":["post-23199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventory","category-news","tag-manufacturing","tag-manufacturing-news","tag-us-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US Manufacturing Trends: Demand, Inventory, and AI Over the Past 3 Years Blog for Manufacturers and Distributors<\/title>\n<meta name=\"description\" content=\"See what 3 years of US Census data reveals about demand, inventory levels, and AI adoption for US manufacturers, broken down by company size.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Manufacturing Trends: Demand, Inventory, and AI Over the Past 3 Years Blog for Manufacturers and Distributors\" \/>\n<meta property=\"og:description\" content=\"See what 3 years of US Census data reveals about demand, inventory levels, and AI adoption for US manufacturers, broken down by company size.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-demand-ai-trends\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog for Manufacturers and Distributors\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-07T12:12:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-10-07T12:37:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2026\/10\/inventory-demand.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1440\" \/>\n\t<meta property=\"og:image:height\" content=\"810\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Shane Dubbelman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shane Dubbelman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" 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