New Research: Two-Thirds of Middle-Market Manufacturers Plan to Increase Equipment Investment in 2026
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First National Capital Corporation’s comprehensive CapEx outlook reveals a widening gap between capital intentions and traditional lending capabilities
IRVINE , CA, UNITED STATES, February 4, 2026 /EINPresswire.com/ -- First National Capital Corporation (FNCC), one of America's largest private credit CapEx and project financing companies, today published its 2026 Manufacturing CapEx Outlook: Where Middle-Market Operators Are Placing Their Bets, a research report examining where manufacturing capital is flowing and why traditional financing models are straining under the complexity of modern equipment investment.
Developed in partnership with Secured Research and drawing on survey data from 1,342 manufacturing decision-makers at companies with $50 million to $1 billion in annual revenue, the report finds that two in three manufacturers plan to increase equipment investment this year. Median planned spending has reached $4.2 million per company — a 34% increase from 2024 levels.
Three Converging Forces
The report identifies three forces driving the most significant shift in manufacturing capital strategy in more than a decade. Reshoring has matured from risk mitigation into full-scale capacity execution, with 38% of manufacturers already moving production back to North America and another 27% in advanced evaluation. Automation investments have crossed from competitive advantage to operational necessity as structural labor constraints compress payback calculations from 4–5 years to 18–24 months. And deferred technology refresh cycles have reached their limit — maintenance costs in years 8–10 of a typical CNC machine's life run 2.3 times mid-life costs, while the opportunity costs of declined jobs and missed delivery windows compound further.
A Widening Capital Gap
Among the report's most striking findings is the growing disconnect between what manufacturers need from capital providers and what traditional banks deliver. Average bank equipment financing timelines have stretched to 73 days — up from 54 days in 2022 — while integrated automation projects routinely running $2 million to $8 million per production line challenge generalist credit analysts who struggle to evaluate systems where value lies in integration rather than individual components. The research documents this gap across speed, technical understanding, structural flexibility, and lending capacity.
The Shift Toward Lifecycle-Aligned Financing
The report also details a significant evolution in financing strategy. Demand for residual-based lease structures has increased 41%, reflecting a shift toward lifecycle-aligned approaches that match payment obligations to asset productivity. Manufacturers who actively optimize financing structures across their equipment portfolios reduce total cost of capital by 15–25% compared to those relying on standardized approaches.
Report Availability
The 2026 Manufacturing CapEx Outlook is the first installment of FNCC's 2026 research series, delivering monthly thought leadership across manufacturing, oil and gas, aviation, and private equity. The full report is available for free at https://firstncc.com/2026-manufacturing-capex-outlook/.
Keith Henry
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