In 2026, fashion manufacturers must pivot to on-demand digital ecosystems to survive global trade disruptions. By integrating AI-driven design, automated “Smart Hub” workflows, and radical transparency, businesses can eliminate excess inventory and mitigate tariff risks. Success requires upskilling the workforce and forging strategic partnerships to bridge the digital-to-garment finishing gap.
The forecast for the fashion industry in 2026 can be summarised in a single word: challenging.
According to The State of Fashion 2026 report, 46% of executives expect industry conditions to worsen – an 8% increase over the previous year. With nearly eight in ten executives citing consumer confidence as a primary risk, and 40% flagging disrupted trade flows and deglobalisation as critical threats, the message is stark. The era of predictable, high-volume, long-lead-time manufacturing is not just ending; it is collapsing under the weight of geopolitical instability and shifting consumer behaviour.
However, for the printed textile apparel manufacturer, this volatility is not a death sentence. It is the greatest opportunity for commercial reinvention seen in decades. As traditional supply chains fracture under new tariffs and rising input costs, the manufacturers who will thrive are those who transition from being passive producers of stock to agile partners in on-demand, digital ecosystems.
The Economic Case for On-Demand Manufacturing
For years, the industry has spoken about “digital transformation” as a future goal. In 2026, it is a survival mechanism. The State of Fashion report highlights that disrupted trade flows are reshaping supply chains, with US apparel imports from China declining by 30% since 2019, while imports from Cambodia rose by 42%. Tariffs are volatile, spiking input costs and making the gamble of holding inventory untenable.
Manufacturers must understand that their customers, brands and retailers, are desperate to de-risk. They can no longer afford to order thousands of units six months in advance, only to see consumer demand shift or tariffs erode their margins.
This is where the printed textile sector holds the ace card: On-Demand Manufacturing.
By moving to an on-demand model, manufacturers offer brands the ability to produce less, reduce stock or only produce what has been sold. This eliminates the twin evils of the fashion industry: excess inventory and forced markdowns. However, enabling this requires more than just buying a printer and the transition from analogue to digital. It requires a fundamental re-engineering of the factory floor and the digital infrastructure that supports it.
The Digital Thread: From Design to Dispatch
To succeed in 2026, a manufacturer cannot simply be a place where ink meets fabric. They must become a technology hub. The modern printed textile supply chain relies on a seamless “digital thread” that connects every stage of production, ensuring data flows uninterrupted from the designer’s screen or buyer’s desk to the shipping dock.
1. The AI-Driven Front End
The State of Fashion report notes that 92% of organisations plan to increase investment in generative AI, yet only 1% describe their rollouts as mature. This is the bottleneck. The surge in “shopping-related searches on generative AI platforms” (up 1,700%) suggests consumers are looking for specific, often personalised items. Manufacturers must be equipped to handle an influx of unique, short-run designs rather than mass repeats. To achieve this: manufacturers need to integrate with their customers ecommerce software and invest in design software that leverages AI to create print-ready files automatically.
2.The Smart Factory Floor
Once a design enters the ecosystem, manual touch points must be minimised. We are seeing the rise of the “micro-factory” or what many would now redefine as a “Smart Hub” manufacturing concept, where:
Standardised, automated workflows are essential to ensuring efficiency and scalability, regardless of product or output volume. By implementing a unified process framework, manufacturers can seamlessly transition between high-volume production and custom, small-batch orders without compromising on quality or lead times. This approach not only reduces operational complexity but also maximises resource utilisation across the board.
Technology is constantly innovating to fine-tune the process of printed apparel manufacture. And there are many technological and human bottlenecks still to resolve across the factory floor. By example: Consider colour management that’s automated. Colour must be controlled and input matched to output during the design process. CAD/CAM and Print machinery must be profiled, and visual environments standardised. Pre-press and client approval lighting mismatches across the production process can lead to costly rejections. Digital spectrophotometers and automated colour matching systems are now non-negotiable to ensure the first metre matches the thousandth metre in an age of batch production.
3. Radical Transparency
Sustainability is no longer a “nice to have”; it is the new normal. With 84% of US consumers prioritising wellness and values-driven purchasing, brands are under pressure to prove their green credentials. Digital textile printing offers a pathway to reduced water consumption and chemical waste, but manufacturers must be able to prove it. Data transparency – tracking energy usage, ink consumption, and fabric origin will become a standard requirement for securing contracts with high-end brands.
The Skills Gap: The Critical Bottleneck
Perhaps the most daunting challenge outlined in the current landscape by The State of Fashion 2026 report is the human element. While we speak of automation, the reality is that technology requires skilled operators. The State of Fashion 2026 report predicts that by 2030, up to 40% of workers in developed countries will need to reskill.
And there is a looming challenge closer to home. As we move to prioritise close proximity production, we now face a “Sewing Conundrum.” We can print digitally at lightning speeds, but if we lack the skilled talent to sew and finish garments, the supply chain halts. There is a disconnect between academic design education and the industrial reality. Whilst we innovate and automate the sewing process, which may still take decades (and some sectors will be faster than others), for many businesses the only option is to train and build their own sewing departments or seek to build strategic partnership with local Sewing Hubs.
To equip for commercial success, manufacturers must invest in upskilling their current workforce across the manufacturing cycle. In print, the operator of 2026 is not just a machine minder; they are a digital technician capable of managing complex workflows and troubleshooting software-hardware interfaces. Investing in your people is as critical as investing in your printheads.
The Power of Strategic Partnerships
The complexity of the digital textile supply chain means that no single manufacturer can solve these problems in isolation. Success in 2026 will be defined by partnerships.
Manufacturers must forge deep alliances with:
- Technology Providers: Don’t just buy machinery; partner with knowledgeable suppliers who offer software integration and long-term support.
- Software Vendors: Collaboration with companies providing CAD/CAM solutions, MIS systems, PLM (Product Lifecycle Management) and ERP (Enterprise Resource Planning) systems is essential to ensure your factory can “speak” to your customers’ design departments, ecommerce and ordering systems.
- Educational Institutions: Engage with universities to help shape the curriculum, ensuring the next generation of graduates understands the realities of digital production.
The Road Ahead
The landscape of 2026 is unforgiving to those who cling to the past. Value brands are reducing SKUs, luxury consumers are demanding “expertise and quality” above all else, and tariffs are punishing inefficient supply chains.
For the printed apparel textile business, the path forward is clear. You must pivot from being a volume-based commodity provider to a value-based service provider. The future belongs to those who can offer speed, precision, and sustainability through a fully integrated digital workflow.
Much of the technology to achieve this exists today. The demand for on-demand apparel manufacturing is real and growing. The only variable remaining is your ability and willingness to adapt.
To ensure your business is resilient enough to weather the storms of 2026 and agile enough to capture its opportunities, research and explore the latest technologies and partnerships that your business should consider in the year ahead. The time to digitise is now.
Source: FESPA