The resurgence of manufacturing:

After decades of globalisation, manufacturing organisations in Europe and the US are pivoting from cost-focused offshoring to an emphasis on local and regional resilience and autonomy.

This major trend of reindustrialisation – exhibited by intensive remodeling of supply chains and moving bases of production closer to their markets – is influenced by a number of key drivers, including the desire to mitigate geopolitical risks, minimise supply chain disruptions, navigate tariffs, reduce logistical costs, and prioritise sustainability.

The resurgence of manufacturing: Reindustrialisation strategies in Europe and the US – 2025 is the second installment in an annual research series exploring the forces driving the transformative wave of reindustrialisation sweeping across Europe and the US.  With insights based on findings from a survey of 1,400 senior executives from organisations with annual revenue above $1 billion, across 13 sectors and 11 major countries in the US and Europe, the report offers valuable perspective on how organisations are approaching nearshoring, reshoring, and friendshoring in their production and supply chains, and leveraging data and technology as key enablers to reduce reindustrialisation costs.

Key insights include:

• Reindustrialisation investments within and outside of domestic markets are projected to reach around $4.7 trillion over the next three years – up from $3.4 trillion in 2024.
• Advanced digital technologies are helping organisations cut reindustrialisation costs, streamline operations, and drive competitiveness. Over half (54%) of organisations have already realised more than 20% cost savings through the adoption of these technologies, with AI/Gen AI, cloud computing, 5G and edge computing, and digital twins identified as top investment priorities for reindustrialisation.
• Reindustrialisation supports sustainability objectives by offering an opportunity for organisations to integrate cleaner energy, enable shorter supply chains, and optimise efficiency through advanced manufacturing technologies. These upgrades reduce emissions, minimise waste, and enhance resilience.

The resurgence of manufacturing: Reindustrialisation strategies in Europe and the US – 2025 provides organisations with a roadmap to accelerate and capitalise on their reindustrialisation journey by focusing on “rightshoring,” integrating sustainability and resilience, harnessing technology and data to reduce reindustrialisation costs, and developing a future-ready talent strategy to manage labor and skills shortages.

To delve deeper into the evolving landscape of industrialisation and learn how digital transformation and sustainability can play a critical role in driving the next phase of industrial competitiveness, download the report today.