After decades of globalization, manufacturing organizations 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 reindustrialization – 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, minimize supply chain disruptions, navigate tariffs, reduce logistical costs, and prioritize sustainability.

The resurgence of manufacturing: Reindustrialization strategies in Europe and the US – 2025 is the second installment in an annual research series exploring the forces driving the transformative wave of reindustrialization sweeping across Europe and the US.  With insights based on findings from a survey of 1,400 senior executives from organizations 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 organizations are approaching nearshoring, reshoring, and friendshoring in their production and supply chains, and leveraging data and technology as key enablers to reduce reindustrialization costs.

Key insights include:

  • Reindustrialization 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 organizations cut reindustrialization costs, streamline operations, and drive competitiveness. Over half (54%) of organizations have already realized 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 reindustrialization.
  • Reindustrialization supports sustainability objectives by offering an opportunity for organizations to integrate cleaner energy, enable shorter supply chains, and optimize efficiency through advanced manufacturing technologies. These upgrades reduce emissions, minimize waste, and enhance resilience.

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

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