Federal policies, particularly around tariffs, will loom over the Central Massachusetts manufacturing industry in 2026.
Manufacturing in Central Massachusetts felt the impact of an overhaul in federal policies in 2025. Those effects will continue into next year.
Tariffs
Tariffs dominated headlines in 2025, and even with President Donald Trump’s long-promised trade deals trickling in, expect that to continue into 2026. Many manufacturers have so far attempted to eat any increased raw material costs associated with tariffs, but customers are likely to start feeling the pinch at some point. With Trump-targeted China, Canada, and Mexico being the state’s three largest trade partners, that pinch may be felt particularly hard in Central Massachusetts.
Talent pool drying up
An aging workforce and the cooling impact of federal policies toward immigration are expected to continue to impact the talent pool. AI will require reskilling of workers, but it remains to be seen if current job training infrastructure in the region will be able to meet this unprecedented moment. With the job market being what it is, at least business owners will have to worry less about top talent leaving.
More uncertainty
A predictable environment makes business decisions easier, but don’t expect such an environment to form next year. The uncertain impact of AI and the impact of federal policies will continue to encourage business owners to attempt to push off major decisions. However, companies who manage to ride the cutting edge of new technology development will find themselves in a prime position to attract new investment.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
