EU and US manufacturers shifting supply chains - report

These are some of the conclusions of the Capgemini Research Institute’s report titled ‘The Resurgence of manufacturing: Reindustrialisation strategies in Europe and the US.

According to the report, the reconfiguration of global supply chains and manufacturing capacity, including reshoring and nearshoring production, as well as diversification, is being strategically prioritised over short-term profitability.

Nearly 60 per cent of executives are determined to continue their efforts despite higher costs and 65 per cent of organisations are reducing reliance on Chinese products. Instead, they are planning to invest in so-called friendshoring over the next three years to de-risk their supply chains.

The survey, conducted from January 1st to 20th, 2025, also found that market tensions are driving large European and US organisations to accelerate their plans to diversify their manufacturing and supply chains with two thirds having an active or in-progress reindustrialisation strategy, which is up from 59 per cent in 2024.