Happy New Year! Now that we’ve turned the calendar on another year, we thought we’d share what we’re seeing as the most significant trends in precision machine automotive parts and components fabrication.
We believe that although these trends may seem like separate issues, they will both help automotive OEMs evaluate suppliers, negotiate reliability, and plan long-term manufacturing capacity.
A Quiet But Clear Shift Back Toward Internal Combustion Engine (ICE) Programs
Over the last several years, many OEM strategies have been dominated by EV commitments. EV announcements were lauded in the media and supported by governments, prompting fabrication production houses to enhance their operations to accommodate what was expected to be an industry-wide transformation.
However, the automotive sector is expected to shift its tone about EVs from acceleration to rebalancing its manufacturing with ICE vehicles.
This is due to consumer EV adoption not following the expected curve, which is causing market volatility. While EVs continue to grow in specific segments, the mass-market conversion rate is proving slower and more expensive than projected. At the same time, ICE vehicles have remained profitable, technically stable, and globally scalable. Additionally, instead of investing significant funds in a relatively new technology, consumers are returning to the tried-and-true.
OEMs cannot afford production lines that sit underutilized, prompting renewed investment in internal combustion programs to protect margins and stabilize annual output. ICE also continues to dominate commercial, fleet, and export markets where duty cycles, fuel availability, and total cost of ownership remain decisive factors.
We should note that this shift is not ideological, but operational. For the foreseeable future, we expect manufacturers to recalibrate their EV programs to ensure a more sustainable growth trajectory, while relying on ICE vehicles to maintain profitability.
This forecast also means that suppliers of precision-machined automotive parts and components need to be dynamic enough to scale capacity for both EVs and ICE vehicles without sacrificing tolerances, traceability, or performance.
Read More: What Goes Into BEV Battery Enclosure Design and Fabrication?
Precision Machining Production Facilities Will Fast-Track Automation Technology
Automation technology has been making significant inroads into automotive manufacturing over the last decade. However, as 2026 unfolds, this revolution will cease to be a competitive enhancement in fabrication production facilities to become a requirement for long-term viability.
Much of this is driven by the technical expectations of automotive engineers, including dimensional stability, continuous production uptime, and predictable delivery scheduling. These expectations are difficult to meet when manual fabrication processes represent a significant share of process variability.
Automation directly addresses these challenges by standardizing workflows throughout each project’s lifecycle. Here are a few examples where automation helps ensure consistent part quality, even in large production runs:
- Robotic tending systems eliminate inconsistency in loading raw stock onto a machine
- In-process metrology solutions correct dimensional drift before scrap accumulates
- Robots and automated inspection do not deviate from process parameters, using CNC data to reproduce designs to exact specifications
- Production can be pivoted easily because automation cells can be reprogrammed rather than retrained
- Automated pallet systems extend production into nights and weekends without human oversight, improving scheduling
Automation also allows fabrication production facilities to relocate their skilled labour resources to higher-value engineering tasks, such as technical upgrades, process optimization, and continuous improvement, rather than repetitive loading and inspection.
The consistent quality, ongoing production, and reduced waste that automation delivers bring significant cost savings to automotive OEMs, enabling them to develop innovations that enhance the driving experience for their customers.
All of these benefits will prompt OEM engineers to partner with precision-machining equipment manufacturers that invest in automation, creating a manufacturing ecosystem that supports both ICE and EV programs. For suppliers who aren’t currently relying on automation to deliver products, 2026 will be the year they bring their manufacturing technology up to speed.
Partner With Kenona Industries For High-Quality, Precision Machine Parts And Components For ICE Vehicles And EVs
As a leading Tier 1, 2, and 3 supplier to leasing automotive OEMs, Kenona Industries/Arrow Automotive is already positioned with the experience and technology to fulfill virtually any part or component need.
Our production facilities specialize in precision machining high-quality products for both EVs and ICE vehicles, using the latest in automation technology to deliver the consistency, precision, and resiliency automotive OEMs demand. Our scalability also enables our teams to adjust volume while maintaining strict process control as the automotive market continues to evolve.
When you’re ready to start building, call our team first!
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Kenona Industries is a world-class supplier of automotive components to leading OEMs and Tier 1, 2, and 3 manufacturers. Discover what sets us apart by requesting a quote for your next project today