Octave Pulse of Quality in Manufacturing Survey reveals widespread product recalls, labor shortages and growing AI adoption in life sciences

"Survey Also Indicates Impact of Rising Compliance Requirements, Trade Tariffs and Geopolitical Tensions"

HUNTSVILLE, AL - The third annual Octave Pulse of Quality in Manufacturing survey reveals critical insights into the quality challenges life sciences/pharma manufacturers are facing in 2026, such as widespread product recalls, labor shortages and rising compliance requirements. It also sheds light on the impacts of trade tariffs and geopolitical tension.

The study also indicates the opportunities and initiatives life sciences/pharma firms are experiencing, such as their plans and use of AI, as well as the role of quality operations to offset the challenges.

"The life sciences industry is at a critical juncture. Against a backdrop of product recalls, trade tensions, labor shortages and new compliance mandates, quality is no longer just a function - it's a strategic lever for growth, resilience and competitive advantage," said Vick Vaishnavi, head of the Octave Reliance business. "This year's Pulse of Quality in Manufacturing survey findings makes it clear that the life sciences and pharma industries are doubling down on quality investments and embracing AI to drive smarter operations."

For The Pulse of Quality in Manufacturing 2026 survey, Octave collected real-world feedback on the state of quality in manufacturing, as well as the trends, issues and challenges that are top of mind among senior life science and pharma professionals across the U.S., U.K. and Germany. A sampling of 194 managers and directors were included in the survey.

Six key findings from the survey, include:

• Product recalls remain a costly and persistent challenge. Product recalls continue to impact most life sciences/pharma manufacturers.

  • 74% have experienced a product recall in the past five years

  • 46% said the cost to rectify each recall is between $10M and $49.9M

  • 46% cite internal issues as the primary cause and 42% said they are caused by supplier issues

• Workforce shortages are putting quality at risk. A widening skills gap is directly affecting product quality across the industry.

  • 75% report being impacted by labor or skills shortages

  • 80% say these shortages are negatively impacting product quality

• Regulatory requirements and complexity are on the rise

  • 63% of respondents said that internal compliance requirements have increased in the past 12 months

  • 70% said that internal compliance mandates and quality audits are increasing

• Trade tariffs and geopolitical tension are impacting business

  • 59% of respondents said that trade tariffs and geopolitical tension have had a significant impact on their businesses

  • 66% said they have forced price increases

  • 60 percent said it is forcing them to consider onshoring operations

  • 56% said it is forcing them to find domestic suppliers

• AI adoption is going mainstream. 38% of life sciences/pharma respondents are using AI today and 47% plan on deploying AI in the next in two years.

  • Respondents are looking to AI to help them to:

  • Automate cores processes (55%)

  • Improve staff training (52%)

  • Predict future trends (48%)

  • Spot defects on the manufacturing floor (46%)

  • Automate document processing (45%)

• Manufacturers are elevating quality to a strategic, revenue-driving priority. Investment in quality is accelerating as life sciences/pharma organizations tie it directly to business performance. In fact, 63% of respondents said their organizations expect to increase spend on quality programs in 2026. The key drivers to increased quality investments include:

  • Increased revenue (47%)

  • A stronger supply chain (47%)

  • Reduced costs (47%)

  • Improved compliance (43%)

  • Reduced risk (36%)

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FOR MORE INFORMATION, CONTACT:

Chris Nahil, Director, Public Relations and Analyst Relations, Octave, +1 617.529.6126, [email protected]

Linda Savage, Pendergast Consulting (for Octave), +1 224-7905, [email protected]

About the Survey Methodology:

The survey was given to individuals within life sciences/pharma organizations responsible for compliance, continuous improvement, digital transformation, document control, IT, Lean Six Sigma, process improvement, quality management, regulatory affairs and supply chain management.

Click here to download the Pulse of Quality in Manufacturing 2026 eBook.

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About Octave:

Octave (NASDAQ:OCTV) provides mission-critical software that empowers organizations to make informed decisions across every stage of the asset lifecycle - Design, Build, Operate and Protect - where performance, safety and reliability are non-negotiable and failure is not an option.

Turning complex operational data into actionable intelligence, Octave connects expertise, real-world conditions and enterprise-scale insight to improve performance, resilience and incident response where it matters most.

Octave has more than 7,200 employees in 45 countries. Learn more at octave.com and follow us on LinkedIn.