The Sikich 2025 Manufacturing Industry Pulse Survey’s recent findings point to a decisive shift in executive strategy: manufacturing leaders are entering 2026 with rising confidence and a renewed commitment to operational efficiency.
More than half of surveyed leaders plan significant investments in automation and equipment within the next 12 months, signaling that modernization is essential for maintaining competitiveness. Meanwhile, 81% expect revenue growth, reinforcing a broader trend toward targeted capital deployment rather than defensive cost-cutting.
Yet, as companies swiftly approve equipment purchases and upgrade facilities, many overlook a powerful financial lever available to them: state incentive programs designed to support manufacturing investment. For companies operating in Illinois, the Advancing Innovative Manufacturing (AIM) program deserves early strategic evaluation.
Modernization is driving capital and opportunity
Manufacturers today face a convergence of pressures: persistent labor shortages, margin compression, supply chain recalibration, and the increasing need for data-driven operations. Automation and advanced equipment are now immediate operational priorities.
Illinois created the AIM program to encourage this exact type of forward-looking investment. By providing tax credits tied to qualifying machinery and equipment, the program helps offset modernization costs while reinforcing long-term state-wide economic growth. For leadership teams balancing capital intensity with shareholder expectations, these credits can meaningfully improve project economics – if well-timed.
Evaluate incentives before capital is committed
One of the most common — and costly — mistakes manufacturers make is exploring incentives after equipment decisions have already been made. By then, there is limited negotiating flexibility, eligibility pathways and opportunities to structure projects for maximum benefit. Early evaluation allows companies to:
- Align investment strategy with available incentives
- Incorporate credits into financial modeling
- Strengthen internal capital approval cases
- Improve overall return on investment
In an environment where even modest margin improvements matter, these advantages can influence both near-term performance and long-term competitiveness.
Who should be looking at AIM now?
While this program is broadly relevant, several manufacturer types should consider immediately evaluating it:
- Companies investing in automation to address workforce constraints or increase throughput
- Companies upgrading legacy equipment to support digital transformation or AI-enabled operations
- High-growth manufacturers expanding capacity to meet sustained customer demand
- Private equity-backed portfolio companies pursuing operational improvements following acquisition
- Multi-state operators assessing where to prioritize future investment
Notably, incentive strategy can also play a role in internal site selection decisions. When companies can deploy capital in multiple locations, state support can shape where projects land.
Incentives are more than a financial benefit — they signal partnership
State incentive programs reflect a broader commitment to economic development. Communities invest alongside manufacturers to support job creation, technological advancement and regional competitiveness. This alignment offers advantages to companies planning long-term operational footprints beyond the immediate tax credit, including stronger governmental relationships and enhanced workforce development support. In many cases, incentives are less so transactional benefits and more so components of a broader growth strategy.
Navigating complexity requires strategy
Like most statutory programs, AIM operates within a defined framework of eligibility requirements, application procedures and compliance expectations. Understanding how qualifying investments are structured — and how credits are ultimately realized — is essential to capturing the program’s full value.
Experienced site selection and incentives advisors can help companies:
- Evaluate eligibility early in the planning cycle
- Model the financial impact of available credits
- Coordinate applications with project timelines
- Align incentive strategy with broader expansion goals
- Maintain compliance once benefits are secured
Just as importantly, early advisory engagement helps prevent missed opportunities, which occurs more often than many executives realize.
A strategic moment for manufacturers
As the latest Pulse Survey shows, the sector is entering a period where capital, technological modernization and policy are aligning to accelerate growth. Manufacturing leaders must integrate incentive strategy into their planning process. Incentive programs like Illinois’ AIM program expand strategic options. Companies that factor in these opportunities gain flexibility, strengthen returns and position themselves ahead of competitors who fail to act. In this market defined by modernization, foresight is becoming a key differentiator.
Before approving the next major equipment purchase, leadership teams should ensure they understand the full spectrum of incentives available to them — and how those incentives can help power the next phase of growth. Sikich’s experts identify incentives that align with manufacturers’ tax and operational strategies. Connect with us to find out how.
This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.
