By Lindsey Munson, editor, The American Mold Builder

As the plastics industry approaches the end of 2025, it stands at a crossroads – balancing innovation and technological advancements with ongoing supply chain disruptions, regulatory pressures, shifting market demands and more.

In this article, three industry veterans share their insights and perspectives on what lies ahead in 2026. Each professional has taken a moment to offer his or her expertise on the progress made throughout the prior year and the challenges that remain. With 2026 on the horizon, it is crucial that companies strategically align their operations to navigate and shift with a dynamic global landscape.

Advisor Viewpoint
When looking to the future of mold manufacturing, it’s important to incorporate the perspective of an expert in advisory and consulting. It offers a bird’s-eye view of strategy and industry direction. Mike Devereux is a partner at Wipfli Advisory LLC, an accounting and advisory firm that helps closely held businesses achieve operational excellence, drive innovation and support growth. Devereux leads a national team that provides audit, tax and consulting services to the manufacturing sector.

Looking ahead, mold manufacturers will face a combination of familiar and evolving challenges that demand a sharper operational focus. Devereux said, “Beyond the longstanding challenges moldmakers face – such as workforce shortages and foreign competition – 2026 is expected to intensify cost pressures, making it essential to prioritize project margins, streamline lead times and delivery schedules, embrace technology integration and enhance overall operational efficiency.” With that, the economy also is playing a role. “External pressures, particularly trade and tariff policies, increasingly are influencing the market value and sourcing strategies for tooling packages. Tool shops that secure these projects can improve margin outcomes by driving operational efficiencies, leveraging data-driven decision-making and focusing on key performance indicators that directly impact profitability,” said Devereux.

Preparing for these pressures will require both short- and long-term operational adjustments of investments in technology and talent. The ongoing market volatility will remain a challenge for moldmakers, driven by factors such as tariff policies, broader economic shifts, reshoring activity, fluctuations in material costs and supply chain lead-time pressures.

Devereux said, “To succeed in 2026, mold shops must focus on controllable elements: managing cash flow, understanding capacity and utilization, and building discipline around processes like sales execution. Leveraging data through technology will be key to gaining deeper insights into profitability and driving smarter
business decisions.”

While the molding industry faces ongoing economic and operational challenges, there are clear signs of progress and opportunity that point to an encouraging and positive year ahead. In Wipfli’s view, the outlook for 2026 includes strong areas of growth and innovation that position mold manufacturers for long-term success.

When asked, “What is Wipfli most optimistic about when it comes to mold manufacturing in 2026?,” Devereux responded, “Trade and tariff policies are expected to remain favorable for American mold builders in 2026, and with the passage of the One Big Beautiful Bill (OBBB) in July 2025, will encourage investment in US manufacturing. This landmark legislation reversed the prior punitive treatment of research expenditures, allowing companies to deduct domestic research and development (R&D) costs immediately – rather than amortize them over five years. Companies also can catch up their unamortized R&D expenses, hopefully freeing up cash flow for operations.”

Additionally, Devereux continued, “OBBB reinstated 100% bonus depreciation and significantly expanded Section 179 expensing limits. The bill also introduced incentives for new factory construction, providing mold builders with enhanced opportunities to invest in modern infrastructure and technology. These provisions collectively strengthen cash flow, reduce tax burdens and support strategic growth for US-based tooling operations.”

Supplier-, Service-focused Insights
As 2026 approaches, a key area to explore is the supplier- and service-focused side of the molding industry. Tony Demakis, president of Alliance Specialties and Laser Sales in Wauconda, Illinois, a company specializing in complete mold finishing and maintenance solutions, offers his insights and perspective on the future of the economy, the supply chain and more. A strong advocate for American manufacturing, Demakis has played an active role in Washington, pushing mold manufacturing into the spotlight to promote policy reforms that protect and strengthen
the industry.

Demakis said, “My experience has shown me that it is incredibly difficult to try and forecast these sorts of things because nothing is ever guaranteed and certain. That being said, I am optimistic about the future for both work and workers. More and more people are taking renewed interest in the manufacturing and service sectors of business, and with technology continuing to improve rapidly, the barriers to entry are significantly reduced. Companies like Westminster Tool are proving that you can hire for character and train for skill and be incredibly successful.” He shared that the industry’s outlook is positive – with continued growth and opportunities expected. While some companies may close or be acquired by private equity firms, those that “weather the storm, stick to who they are and focus on what they do best” likely are to continue succeeding.

Recent disruptions have tested the adaptability of companies across the molding industry, highlighting both vulnerabilities and opportunities for improvement. “They are just disruptions;” said Demakis, “they are not dead ends. What I mean is that there always is a way. When COVID-19 hit, some companies got scared, closed up shop and disappeared. Other companies took advantage of the opportunities that came from the disruption and adapted, evolved and grew into better versions of themselves. There always will be external forces that create challenges, but they don’t get to define how we do business. At Alliance, we looked at the challenges we have faced – shipping delays, price volatility and supply chain issues – and reinvested to ensure we have the proper inventory to meet the demands of our customers.”

Alliance adjusted its business operations, not out of fear, but to address any future concerns its customers might have. “We wanted to ensure that we could meet and, in most cases, exceed the needs of our customers and be able to come through for them. Our strategy is to make sure we have what we need for a good year. Don’t wait and see; be aggressive, trusting that we will have the year we are gearing up for, so we can continue to serve based on the reputation we have developed,” said Demakis. 

To turn lessons into results, manufacturers need practical approaches to prepare for and manage these challenges. Demakis explained that leaders and management need to know their teams and companies to their core. Then, they can take actions and steps that are right for the operations, employees and customers – there is no one-size-fits-all solution. Depending on the company, some will advise caution while others will say, “Go all in!” Demakis said, “I can tell you that we are not making decisions based on external factors that are out of our control. Instead, we are bringing the best, most prepared version of ourselves to be bold and aggressive in 2026 and beyond.”

Looking ahead, Alliance is bringing a team ready to meet the challenges and opportunities in 2026. “We have dealt with the struggles and hardships of the last few years,” said Demakis, “and in each of those years, we have rallied as a team to not just maintain but have continued to grow, both personally and professionally.” Demakis gave four areas of optimism for 2026:

1. Customers are quoting more than ever before.
2. Industry peers share being so busy that they need additional support to get the work done.
3. Orders are being placed for 2026, showing an interest in manufacturing – and from the next generation coming into the industry.
4. The industry is an open playing field, with nothing determined – it can be shaped into what manufacturers choose to make of it.

Perspective from Inside the Shop
One key perspective to consider as manufacturers look ahead to 2026 is that of mold builders. They understand what drives the industry forward, as well as the challenges and opportunities. To provide a look at “inside the shop” and the future of the industry, Hillary Thomas, vice president and strategic leader at Westminster Tool, shared her insights. Located in Plainfield, Connecticut, Westminster Tool is an injection moldmaker that specializes in complex plastic and composite parts.

With 2026 on the horizon, the pace of innovation and shifting market demands likely are to reshape what’s next for mold manufacturing. Thomas said, “While we are seeing an increase in quoting, higher costs across the board may mean less willingness and ability to invest in replacement or capacity tooling. The consolidation of the moldmaking industry (consumed by larger companies and private equity groups) continues to play a positive role in our growth and sustainability.” As Westminster navigates an evolving marketplace, the economic climate inevitably impacts its strategy and decision making. “We are proceeding with caution,” said Thomas. While Westminster’s pipeline remains strong and skilled moldmakers are in high demand, it recognizes that changes in factors such as interest rates or tariffs quickly could affect its 2026 sales.

Also, it was noted that overall company costs – including salaries, insurance and materials – are expected to rise over the next few months into 2026. Thomas shared, “We are being strategic about who and what we sell to cover the rising costs and remain competitive as an employer and a mold builder. We will continue to invest in technology that increases our capabilities and productivity, and build on our culture, which has attracted the best talent in the area.”

Facing these pressures, Westminster must both adapt and be ready to capitalize on new opportunities. “Staying true to what we have done for years,” said Thomas, “we are focused on diversifying our business through industries (medical, defense and industrial), services (Class 101 molds, mold components and low-volume contract machining and molding), locations (US and worldwide) and company level (OEM and contract manufacturers). While offsetting increasing costs, we are prioritizing profitable work by aligning with customers who value our capabilities and provide repeat business. As mold shops continue to be consumed by larger OEMS and private equity firms, our advantage as a small shop strengthens.”

As Westminster positions itself for the future, Thomas said, “For Westminster Tool, I am excited to see the investments we made in 2025 start to flourish. We brought on 10 new employees and four new key accounts. This next year is our chance to settle into growth and drive performance improvements.”

The Path Forward
As the new year approaches, insights from three key perspectives across the mold manufacturing landscape – supplier, mold builder and advisor – offer a well-rounded view of the opportunities and challenges that await in 2026. Suppliers provide valuable guidance on material advancements and market trends. At the same time, mold builders stay focused on operational efficiency and customer demands.

In bringing these perspectives together, an industry advisor helps to connect the dots, offering strategic direction to navigate a changing landscape. Together, these insights help shape a clear and informed path forward for the year ahead in mold manufacturing.

More information: www.wipfli.com, www.alliancelasersales.com and www.westminstertool.com