Reindustrialization is advancing into a more focused and disciplined phase as organizations across Europe and the United States sharpen their approach to supply chain resilience and operational control. According to the 2026 edition of a new report from the Capgemini Research Institute, titled The resurgence of manufacturing: Reindustrialization strategies in Europe and the US, 2026, nearly three-quarters of large enterprises have already implemented or are developing formal reindustrialization strategies.
This shift reflects a growing emphasis on reducing dependency risks while maintaining competitiveness. Although overall investment plans for the next three years have declined compared to prior projections, this change signals a more selective and value-driven allocation of capital rather than reduced commitment. Companies are redesigning their manufacturing and supply chain networks through a mix of domestic production, nearshoring, and partnerships with allied nations, supported by increasing use of automation and artificial intelligence.
The transformation is most evident in sectors with high strategic importance, including automotive, electronics, semiconductors, and aerospace and defense. These industries face elevated exposure to supply disruptions and geopolitical pressures, prompting a transition toward targeted, technology-enabled production models.
“Amid rising geopolitical and economic uncertainty, reindustrialization is entering a more mature stage centered on resilience, sovereignty, and long-term competitiveness,” said Michael Schulte, CEO of Capgemini Engineering and Member of the Group Executive Board. “Organizations are building regionally balanced ecosystems and adopting flexible, capital-efficient approaches, underpinned by digital capabilities and workforce readiness.”
Regional strategies are diverging as companies tailor their approaches. In continental Europe, “friendshoring” has gained traction, with 64% of organizations prioritizing supply chains within allied countries. In the United States, reshoring activity has accelerated significantly, while nearshoring continues to play a key role. At the same time, global supply chains are being reconfigured, with increased investments in markets such as India, Vietnam, Mexico, and Canada. Many organizations also continue to maintain operations in China, reflecting a balanced, multi-market strategy.
The report highlights a shift toward flexible operating models, including contract manufacturing, shared infrastructure, and multi-product facilities. These approaches enable companies to retain control while limiting capital intensity. A majority of organizations expect improved resilience to support revenue growth, with many anticipating long-term cost efficiencies.
Technology is emerging as a critical enabler, with 87% of organizations planning investments in advanced manufacturing solutions such as AI, automation, and digital twins. However, talent shortages in engineering and digital skills remain a significant constraint, underscoring the importance of aligning workforce development with technological adoption.
Capgemini works with global enterprises to accelerate their transition toward a digital and environmentally responsible future, delivering solutions from strategy and design to engineering and deployment. With a team of 350,000 professionals in more than 50 countries and €22.5 billion in revenues in 2023, the Group combines deep industry knowledge, AI and cloud expertise, and a strong partner ecosystem to create meaningful business and societal impact. The Capgemini Research Institute — ranked the world’s leading corporate think tank by independent analysts — operates research centers across India, Singapore, the UK, and the US, driving data-backed insights on technology’s role in transforming large enterprises.
