A new survey by Capgemini has revealed that large organisations across the US and Europe are prioritising reindustrialisation investments over short-term profitability in a bid to mitigate supply chain vulnerabilities and geopolitical risks.
The findings highlight a significant surge in reshoring, nearshoring, and ‘friendshoring’ as companies seek greater resilience in an increasingly complex global trade environment.
The survey, which gathered insights from 1,400 senior executives, found that businesses are prepared to invest $4.7 trillion over the next three years in reindustrialisation efforts, up from $3.4 trillion in 2024.
The research indicates that rising tariffs and trade tensions are key factors driving this shift, with 97% of UK executives citing supply chain resilience as a priority, a notable increase from 68% in 2024.
UK companies ramp up investment
British firms are leading the charge this year, with organisations set to invest $650 billion in reindustrialisation by 2028, a sharp rise from $430 billion projected in 2024.
The investment aims to mitigate risks associated with international trade conflicts and supply chain vulnerabilities.
Since 2022, British firms have already invested $440 billion in reshoring activities.Notable investments include Amazon’s $10 billion data centres in the UK and Exxon Mobil’s expansion in Hampshire.
A growing number of businesses are moving production closer to home, with 28% of UK companies having invested in nearshoring in 2025, more than double the 13% recorded the previous year.
Friendshoring—the strategic relocation of supply chains to allied nations—is also rapidly gaining traction. A key example is the UK and Japan’s G7 agreement, established two years ago, which fosters ambitious R&D collaboration and skills exchange in the semiconductor sector.
This trend is further underscored by the expectations of UK business leaders: nearly three-quarters (74%) of UK executives foresee friendshoring playing a significant role, projecting it will constitute 38% of total manufacturing capacity within the next three years.
According to Aiman Ezzat, CEO of Capgemini, after decades of globalisation, the need for reindustrialisation is evident. She added that companies are actively “mitigating risks and diversifying supply chains through friendshoring.”
While the costs and complexities of restructuring are significant, he argued that busiensses are making strategic investments to remain competitive. In an evolving global landscape, he added, “collaboration with regional suppliers, technology providers, and policymakers” was crucial for a resilient manufacturing ecosystem.
Investment in Wales’ semiconductor industry
One recent example of reindustrialisation in the UK is a £250 million investment in the Welsh semiconductor sector. Last week, during the UK Chancellor’s Spring Statement it was announced that Vishay Intertechnology, a semiconductor manufacturer, is set to expand its operations in Newport, supporting hundreds of highly skilled jobs.
Chancellor Rachel Reeves announced increased investment in UK manufacturing
It is claimed that the investment will enhance production of advanced Silicon Carbide semiconductors, which are crucial for electric vehicle (EV) manufacturing. Chancellor Rachel Reeves hailed the development as “a major win for the UK’s advanced manufacturing ambitions.”
US expansion
The US is also witnessing a similar trend, with companies making substantial investments in domestic manufacturing.
Schneider Electric, an energy management firm, has announced a $700 million expansion of its US manufacturing footprint. The investment, set to create over 1,000 jobs, aims to support AI-related job growth and meet the increasing demand for domestic production.
More than half of US organisations have already invested in nearshoring or reshoring in the past year, with 35% planning further investments in 2025.
Nearly 60% of executives surveyed stated they would continue prioritising reindustrialisation efforts despite higher costs, as they seek to reduce reliance on Chinese supply chains and bolster long-term competitiveness.
As supply chain disruptions and trade tensions persist, companies across the UK, Europe, and the US appear committed to reshoring and nearshoring initiatives, ensuring a more secure and resilient industrial future.
