Written by Morgan Bright
With an increased focus on reshoring and boosting competitiveness in the U.S. and other developed economies, manufacturers are adopting a new wave of software solutions to improve operational efficiency, workplace health & safety, and sustainability—all while tackling a tight labor market. Several key segments, including supply chain planning software, environment, health, and safety (EHS) solutions, and quality management software, are projected to nearly double within five to ten years, drawing attention from strategic acquirers, investors, and software vendors who hope to tap into the still fragmented market.
Abhishek Nanda, M&A lead at global manufacturing software platform Revalize and former technology investor at Partners Group, joins us to share his insights on the trends fueling this shift, what it means for the industry’s future and potential investment opportunities.
Thank you for joining us today, Mr. Nanda. Manufacturing may not be the first sector people associate with high-tech software. What’s driving these changes?
Abhishek Nanda: That’s true—manufacturing is often seen through the lens of robotics or heavy machinery. But software adoption is catching up fast, driven by reshoring efforts like the bipartisan CHIPS Act, a push for sustainable practices, and the need for greater profitability and agility. Manufacturers are under significant pressure to operate more efficiently and meet evolving regulatory requirements, while still needing to increase production volume.
What types of software solutions do you think are most relevant for manufacturers and present attractive opportunities for strategic acquirers and investors?
Nanda: Three major trends come to mind. First is supply chain digitization, which has become very important for business resilience, especially after recent global disruptions. Solutions that support predictive analytics, real-time tracking, and spend management help keep many of these time-sensitive operations moving smoothly. Investors have taken note of this demand resulting in investments such as the recent acquisition of Jaggaer, a supply chain and procurement platform, by the private equity firm Vista.
Second, we’re seeing a strong push for workplace health, safety, and sustainability—manufacturers are adopting EHS software to reduce the number of safety incidents and injuries, improve industrial hygiene, and report on sustainability metrics.
Lastly, the need to improve competitiveness and skilled labor constraints are pushing companies toward automation and AI solutions to enhance productivity. There has been a bipartisan effort to expand the U.S. manufacturing base, and the recent Executive Order promoting domestic manufacturing is pushing companies to bring work back to the U.S. and maximize existing infrastructure. With effective hardware and talented people in place, software becomes the next logical step.
Did these same trends drive your investment decisions in EHS software?
Nanda: Absolutely. When I was working at Partners Group, we saw we already had a number of portfolio companies that could benefit from these new solutions. By collaborating with industry experts, we pinpointed EHS software as a high-growth area and moved to secure early market entry through the investment in VelocityEHS. The investment was about closing a gap—companies wanted software that simplified compliance while providing operational value.
EHS software has evolved rapidly, especially with the introduction of AI. How is AI transforming the software?
Nanda: EHS software has thankfully matured beyond ticking compliance boxes. AI-driven predictive analytics can spot risks by analyzing equipment usage or safety incident patterns, allowing companies to address issues before they escalate. This shift to proactive safety management is a huge step forward, both for worker safety and compliance. AI is also enhancing productivity and quality control—many manufacturers are now using AI-powered “co-pilots” to assist with tasks like equipment maintenance and quality checks. These tools are reducing errors and automating repetitive work, and that enables skilled employees to focus on more complex, value-added tasks.
You mentioned the bipartisan push and Executive Order on domestic manufacturing. How does software fit into the trend toward reshoring in the U.S.?
Nanda: Reshoring has raised the stakes for operational efficiency. There’s strong demand for supply chain planning solutions and manufacturing execution systems (MES), the two pillars for U.S.-based manufacturers aiming to stay competitive globally. AI and other technologies allow companies to optimize production with a smaller, more effective workforce.
Achieving digital transformation is challenging, so manufacturers seek solutions that integrate with their existing processes. Quality management and EHS software are important drivers—they help maintain quality, safety, and sustainability standards while improving operational efficiency. Companies want tools that simplify processes and support high performance in the long term, without relying on market conditions to change.
Looking ahead, what role do you see for software in the future of manufacturing?
Nanda: As we’ve discussed, software can enhance job quality for existing workers, making roles more efficient rather than just adding more tasks. The ability to adapt and integrate new technologies will determine whether the U.S. can expand its position in global manufacturing. Software is a strategic asset. It’s moving beyond innovation to also focus on cost reduction and resilience, which signals the industry’s maturity. Platforms like Revalize are committed to helping manufacturers develop and sell their products more efficiently, future-proof their operations, and remain competitive in an increasingly complex market space.
Thank you for sharing your insights, Mr. Nanda.
As domestic manufacturing faces new challenges and opportunities, software adoption is driving how companies operate and meet regulatory demands. Advanced solutions in supply chain management, EHS, and quality management enable critical industry players to stay agile and resilient, maximizing productivity with a limited workforce and ensuring sustainable, compliant operations at both local and global scales.
