As geopolitical risks and tariff shocks deepen, reindustrialisation strategies are gaining traction across Europe and the US—with profound implications for global supply networks.
Resilience Over Reach in the New Manufacturing Equation
The logic that shaped global supply chains over the past three decades—low-cost production, centralized offshore hubs, just-in-time inventory—has been fundamentally rewritten. A new wave of reindustrialisation is taking hold across Europe and North America, as manufacturers refocus their strategies around resilience, regionalisation, and control.
According to Capgemini’s 2025 report on reindustrialisation, two-thirds of US and EU manufacturers now have active reshoring or nearshoring programs in play—up from just 59% last year. Nearly 95% of surveyed executives cited supply chain resilience as the primary driver, with rising tariffs, political instability, and repeated freight disruptions accelerating the shift. Friendshoring—sourcing from geopolitically aligned countries—is also surging, with destinations like Mexico, Vietnam, and Eastern Europe gaining ground as strategic alternatives to China.
It’s a sharp pivot away from the offshoring-first mindset that has dominated for decades. Offshore manufacturing is projected to fall by nine percentage points over the next three years, replaced by a mix of onshoring and nearshoring moves designed to reduce risk and bring production closer to end markets.
Tariffs, Trade Wars, and the Repricing of Supply Chain Risk
For years, supply chain risk was managed quietly in the background. Now, it’s a board-level priority. With 93% of executives concerned about the ripple effects of trade wars and over half saying tariffs are accelerating their reshoring timelines, the cost calculus has changed.
Despite higher capital, labor, and energy costs, 59% of business leaders say they’re committed to reindustrialisation strategies—even if it comes at the expense of short-term profitability. More than $4.7 trillion is expected to be invested globally over the next three years, driven not only by policy shifts and economic pressure, but by a broader need to regain strategic autonomy.
Digital tools are easing the transition. AI, digital twins, and connected manufacturing platforms are helping offset the cost of moving production closer to home. According to the Capgemini study, 54% of companies adopting advanced tech have already achieved cost savings of more than 20%.
Environmental performance is also playing a supporting role. With shorter, regionalized supply chains come lower emissions, greater use of clean energy, and stronger alignment with ESG goals—another factor that’s gaining weight in global operations planning.
What Reindustrialisation Demands of Supply Chain Strategy
Reindustrialisation isn’t just a manufacturing trend—it marks a structural rebalancing of global trade flows, with direct consequences for network design, supplier diversification, and inventory strategy. For supply chain leaders, the challenge is not simply to relocate production but to rethink how agility, visibility, and resilience are architected into regional operations. As supply chains become more distributed and politically exposed, the emphasis must shift toward orchestration—managing complexity across a broader base of partners and geographies without sacrificing speed or service. This moment calls for a recalibration of supply chain thinking: not just where we make and move goods, but how deliberately we build systems that can adapt to a world defined by volatility and regionalization.
