Paris, Apr 21(BNP): Reindustrialization is entering a more mature and disciplined phase, with organizations increasingly prioritizing resilience, control, and long-term competitiveness over rapid expansion, according to the latest report by Capgemini Research Institute.
Titled “The Resurgence of Manufacturing: Reindustrialization Strategies in Europe and the US, 2026,” the report reveals that nearly three-quarters of large organizations in Europe and the United States now have reindustrialization strategies in place or under development. However, planned investments over the next three years have declined, reflecting a more pragmatic and selective approach to capital allocation.
Organizations are actively recalibrating their manufacturing and supply chain models to reduce dependency risks while maintaining competitiveness. Hybrid strategies combining domestic production, nearshoring, and friendshoring are gaining traction, supported by increased adoption of advanced technologies such as artificial intelligence and automation.
The shift is most evident in manufacturing-intensive and strategically critical sectors, including automotive, electronics, semiconductors, and aerospace and defense. These industries are leading the transition toward more selective, technology-enabled industrial ecosystems.
Michael Schulte, CEO of Capgemini Engineering and Member of the Group Executive Board, said,
“Reindustrialization is evolving into a resilience-driven strategy focused on sovereignty and long-term value. Organizations are building regionally balanced ecosystems while adopting flexible and capital-efficient models enabled by digital technologies.”
The report highlights varying regional approaches. In continental Europe, 64% of organizations favor friendshoring, emphasizing partnerships with allied nations. In the United States, reshoring is accelerating, with 48% of organizations reporting investments in domestic manufacturing. Meanwhile, global supply chains are being reconfigured, with increased investments flowing into emerging hubs such as India, Vietnam, Mexico, and Canada.
Despite this shift, companies are maintaining a balanced global footprint. Around 64% of organizations plan to sustain or increase investments in China, indicating a pragmatic diversification strategy rather than a complete withdrawal.
Technology is playing a central role in enabling reindustrialization. The report notes that 87% of organizations plan to invest in advanced manufacturing technologies, including AI, automation, and digital twins, to offset higher production costs and improve efficiency. Key use cases include production optimization, supply chain risk modeling, and strategic location planning.
However, talent shortages remain a major challenge. Organizations continue to face gaps in skills related to advanced manufacturing, AI, and digital technologies, underscoring the need for workforce transformation alongside technological adoption.
The findings are based on a survey conducted between January and February 2026, covering over 1,200 executives across major industries in the US, UK, and Europe.
As reindustrialization strategies mature, the report concludes that success will depend on execution—anchored in long-term value creation, technological capability, and a skilled workforce—rather than scale-driven expansion.
