David Howells, Group CEO of Pacific International Executive Search, sits down with Tony Milando, Pacific’s Advisory Board Member, for a fireside chat exploring what 2025 taught the best-performing companies in the Industrial Manufacturing space, and how leaders can turn those lessons into a winning strategy for 2026 and beyond. Together, they unpack the pivotal shifts, capabilities, and priorities that will define resilience and competitive advantage in the year ahead.
Fireside Chat Summary: David Howells with Tony Milando
David Howells:
Tony, thank you for joining me today and welcome to Pacific’s Advisory Board. It is great to have you with us. We are here to reflect on 2025 and look ahead to what leaders should be thinking about in 2026. Let me start with the same question I ask all our board members. How would you summarise 2025 in three words and why?
Tony Milando:
Thank you David. I am glad to be part of this work with Pacific. If I had to summarise 2025 in three words, they would be volatile, uncertain and transformative. Leaders had to deal with unpredictable costs, fluctuating demand, shifting tariffs and the increasing influence of artificial intelligence on operations. At the same time, we saw an acceleration of innovation. It was a year that forced companies to adapt quickly.
David Howells:
Would you say companies were expecting that level of volatility or were some caught off guard?
Tony Milando:
A bit of both. Most executives understood that the environment was unstable, but many underestimated how fast things would shift and how long the uncertainty would last. The companies that stayed focused on fundamentals came out stronger. They invested in areas that support stability and resilience rather than reacting to every spike or dip.
David Howells:
Looking back at 2025, what is one thing the best performing industrial companies did differently to show resilience?
Tony Milando:
The strongest companies treated supply chain resilience as a strategic capability. Not something optional but something essential. They developed better visibility into demand signals, strengthened logistics partnerships and used predictive maintenance to keep their operations running. Several also used the quieter periods to advance digital initiatives that had been sitting on the shelf. That discipline made a big difference when the pressure returned.
David Howells:
You have enormous experience leading large industrial businesses. What do you think leaders are still underestimating as we move into 2026?
Tony Milando:
Leaders are still underestimating the scale and speed of AI driven automation. This goes far beyond robotics. It is the use of artificial intelligence to manage material flow, prevent quality issues, optimise production schedules and support decision making in ways that simply were not possible before. There are already examples in logistics, in precision manufacturing and in renewable energy where artificial intelligence is preventing defects and saving significant cost. The companies that learn how to apply AI in very practical ways will separate themselves.
David Howells:
There are still leaders who see AI as complex or too early. What would you tell them?
Tony Milando:
Start small and learn fast. You do not need a massive corporate programme to begin. Use it in maintenance, customer support, supplier management, internal processes. It is about building the muscle, not launching a moonshot on day one.
David Howells:
If you were leading an industrial company today, what would be your top strategic priority for 2026 to stay ahead and prepare for 2027?
Tony Milando:
I would focus on building a digitally enabled supply chain that can respond to unexpected events. This means integrated data, real time visibility, scenario planning and teams that know how to react when something unusual happens. The world will continue to throw unpredictable events at us. The companies with the most prepared and agile supply chains will win.
The second priority is talent readiness. You need the right people in place before the next growth cycle. That includes leaders in product development, sourcing, operations and digital transformation.
David Howells:
And looking at talent more broadly, what capabilities should organisations be developing today so they are well positioned over the next two years?
Tony Milando:
There are three areas that stand out. First, AI literacy and the ability to turn data into real value. Second, strong digital and data foundations so that AI tools can be applied effectively. Third, a renewed commitment to sustainability. Even if some policies slowed down, sustainability is not going away. It will return with force and companies that stay the course will be better prepared.
David Howells:
Final question. What are you personally most looking forward to in 2026?
Tony Milando:
On a personal level, I am looking forward to ski season. Professionally, I am excited to see how artificial intelligence continues to evolve and create value in industrial environments. We are at the beginning of a major wave of transformation and 2026 will be a year where many companies move from experimentation to real impact.
David Howells:
Tony, thank you for your insights and for joining us today. I am looking forward to working closely with you in 2026.
Tony Milando:
Thank you David. I am looking forward to it as well.
For a confidential chat about how Pacific International can assist you with your Executive and C-suite hiring or Diversity challenges, please contact David Howells or one of our Heads of sector.