Arlington, VA – October 5, 2026 – Manufacturing boards are moving beyond traditional oversight toward active strategic stewardship, according to How Manufacturing Boards Are Evolving for a Changing World, new research from Manufacturers Alliance Foundation and Egon Zehnder. AI, cybersecurity, and geopolitical volatility are expanding board agendas, and directors are responding by adding seasoned executives, leaning on outside advisers, and working more closely with CEOs.
What have manufacturing boards been focused on during this time of accelerated change?
AI and technology transformation lead board focus. In a survey of manufacturing board directors and manufacturing CEOs, 91% of directors said digital, AI, and technology transformation has become more important over the past two to three years, more than any other agenda item measured. AI strategy and value creation, cybersecurity and technology resilience, and AI risk and governance now lead the technology agenda. Nearly 40% of directors said geopolitical and macroeconomic developments have also grown in importance.
How prepared are manufacturing boards to govern AI?
Boards are less prepared than they would like to be. Seventy-seven percent of directors rate their board's understanding of AI and its business implications as "moderate," and only 9% rate it "high." Just 4% count technology, digital, and data among their board's deepest strengths, while 57% name it as the area where their board most lacks depth.
Why does this matter for manufacturers?
Boards are deep in operating experience, but the hardest questions now on their agendas call for technology fluency. Eighty-three percent of directors cite CEO or senior executive experience as a core board strength, and boards continue to add these directors. Forty-eight percent report more CEOs or CFOs on their board over the past three years. To close the technology gap in the meantime, 74% of boards use external advisors and 57% hold regular deep dives with management and technology leaders.
Key Findings:
Manufacturing boards are adapting on every front: what they discuss, who serves on them, and how they work with management.
- AI is reshaping what boards expect from CEOs. 75% of CEOs say AI and technology have changed their board's expectations, including the need for AI plans, measurable results, and KPIs.
- Every board is working to close technology gaps. No director reported that their board is not actively addressing them, with upskilling existing members (52%) close behind advisors and deep dives.
- Geopolitical planning remains informal. Only 17% of boards use structured scenario planning or stress testing. Most rely on directors' own experience and networks (91%) and insights from management (83%).
- Board-CEO relationships are growing more collaborative. Half of directors and 68% of CEOs describe the relationship as primarily collaborative and advisory, and both groups rate trust at roughly 9 out of 10.
- CEOs want more constructive challenge. CEOs rated their board's ability to challenge management at 7.1 out of 10, compared with 8.4 among directors, the widest gap in the study.
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