Supply Chain Reshoring Boom

Executive Summary

Geopolitical tensions and supply chain vulnerabilities are driving the largest manufacturing migration in modern history. $890 billion in production capacity is relocating from Asia to North America and Europe over the next four years, creating massive infrastructure investment opportunities.

The Reshoring Revolution

Think of global supply chains like a spider web that got badly damaged—instead of trying to repair the complex web, companies are building simpler, stronger structures closer to home.

Driving Forces:

• Geopolitical Risk: China trade tensions accelerating domestic production
• Supply Chain Resilience: COVID exposed dangerous dependencies
• Automation Economics: Robots make labor cost differences less important
• Sustainability Mandates: Shorter supply chains reduce carbon footprint

Investment Opportunities by Sector

Semiconductor Manufacturing:

• $280 billion CHIPS Act driving US fab construction
• Equipment suppliers seeing 5-year order backlogs
• Specialized construction and engineering services premium pricing

Battery Production:

• $156 billion in announced EV battery facilities
• Lithium processing and refining infrastructure
• Recycling technology becoming critical supply chain component

Pharmaceutical Manufacturing:

• $89 billion in "critical drug" domestic production requirements
• API (Active Pharmaceutical Ingredient) reshoring from China/India
• Specialized cleanroom construction and validation services

Real Estate and Infrastructure Impact

Industrial Real Estate:

• Manufacturing-suitable properties commanding 40-60% premiums
• Purpose-built facilities with specialized power/cooling requirements
• Proximity to transportation hubs becoming critical

Utility Infrastructure:

• Massive power grid upgrades for energy-intensive manufacturing
• Natural gas pipeline extensions for industrial facilities
• Water treatment and industrial waste management systems

Investment Strategy

Target $1-1.5B in reshoring-related investments across real estate, infrastructure, and manufacturing equipment sectors, with 18-24 month investment horizons capturing peak construction demand.