The disruptions of the past few years, including pandemics, political instability, and energy shocks, did more than expose the fragility of global supply chains. They forced a rethinking of how and where things are made. Across both Europe and the United States, companies are reconfiguring supply strategies not just for efficiency, but for control. Quietly but decisively, a new model is taking shape, less dependent on any single geography, more aligned with political alliances, and more attuned to long-term resilience.
According to Capgemini’s 2025 reindustrialization report, nearly 65% of organizations are actively reducing reliance on China. Two-thirds have launched or are implementing reindustrialization strategies. And combined investment in reindustrialized production and allied trade relationships is expected to exceed $4.7 trillion over the next three years. Perhaps most telling: 72% of companies say they are willing to sacrifice short-term profitability to prioritize long-term supply chain resilience. This marks a notable recalibration in executive decision-making, moving away from lean-at-all-costs operations toward structures that can withstand disruption.
Nearshoring and friendshoring are increasingly central to that strategy. Bringing production closer to home, and into politically stable or economically aligned markets, is no longer just about speed. It’s about mitigating risk, ensuring compliance, and gaining strategic flexibility. For business leaders managing complex international portfolios, this has real implications: fewer dependencies, clearer oversight, and the opportunity to align supply chains more closely with company values and customer expectations.
The transition is being accelerated by digital capability. Organizations using technologies like AI, digital twins, and 5G are reporting not just efficiency, but savings. According to Capgemini, over half of companies deploying these tools have reduced costs by more than 20%. Where supply chains were once managed reactively, they’re now being simulated, modeled, and optimized in real time, and these capabilities becoming increasingly essential.
The challenge isn’t simply building new supply chains. It’s managing the shift. Reindustrialization requires long-term thinking in a short-term environment: board alignment, investor confidence, team reskilling, and a clear understanding that results may be staggered, not immediate. For senior leaders, that means balancing resilience with growth, transformation with operational continuity. It’s a leadership problem as much as a logistics one.
This movement is also accelerating environmental alignment. More localized, digitally managed supply chains often result in fewer emissions, greater traceability, and stronger ESG performance. And as regulation intensifies, especially in Europe, those outcomes are no longer peripheral. They’re a core part of business resilience.
This may not be the most visible transformation, but its impact is already reshaping how businesses operate. Reindustrialization is influencing procurement strategies, investor expectations, and the definition of competitiveness in an increasingly unpredictable global environment.
Sources:
Reindustrialization strategies in Europe and the US – 2025 by Capgemini Research Institute, 2025
