Open-access content [Tanya Weaver](/authors/tanya-weaver) — Mon 31 Mar 2025
**Concerns over supply chain pressures, rising tariffs and trade disputes are driving large organisations in Europe and the US to focus on reindustrialisation, according to the latest Capgemini report.**
Capgemini Research Institute has published its second annual report exploring the forces driving reindustrialisation across Europe and the US called _The resurgence of manufacturing: reindustrialization strategies in Europe and the US_.
Conducted during January 2025, 1,400 senior executives from large organisations with an annual revenue above $1bn were surveyed. The findings reveal that trade tensions are driving organisations to diversify their supply chains and invest in local manufacturing to mitigate the impact of tariffs.
Reshoring, nearshoring and friendshoring (a growing trade practice where supply chain networks are focused on countries regarded as political and economic allies) are escalating trends among organisations to de-risk their supply chains, despite the possible higher costs of doing so.
The report found that 66% of large European and US organisations have an active or in-progress reindustrialisation strategy in place – up from 59% in 2024. Reindustrialisation investments within and outside of domestic markets are projected to reach around $4.7tn over the next three years, up from $3.4tn in 2024.
In the UK, organisations are preparing to invest a staggering $650bn in reindustrialisation efforts over the next three years – an increased projection from $430bn in 2024.
Aiman Ezzat, chief executive officer at Capgemini, said: “After decades of globalisation, the imperative to reindustrialise is clear. Organisations are intensifying their efforts to de-risk and diversify their manufacturing and supply chains through friendshoring to reinforce proximity to markets.
“In an evolving global landscape, regional collaboration with suppliers, technology providers and policymakers will be key to build a resilient and adaptable manufacturing ecosystem.”
According to the survey, nearly 60% of executives are determined to continue their reindustrialisation efforts, despite higher costs, and most organisations (65%) are reducing reliance on Chinese products.
Organisations are instead targeting reindustrialisation destinations in North America, the UK, Mexico, Vietnam, India and North Africa.
The report finds that the top drivers for reindustrialisation include supply chain resilience (97%), geopolitical concerns (94%), a desire to be closer to customers (96%) and rising tariffs (93%).
While six in 10 firms (62%) expect rising capital costs in the next three years due to reindustrialisation efforts, half foresee reduced logistics and supply chain costs within the same period thanks to greater proximity to customers.
The report also found that investment in advanced digital technologies – such as AI and GenAI, cloud computing, 5G, edge computing and digital twins – is helping organisations to cut reindustrialisation costs by streamlining operations.
Over half (54%) have already realised more than 20% cost savings through the adoption of these technologies, while a large majority (84%) plan to invest in advanced manufacturing technologies to further reduce costs.
According to the report, nearly three-quarters (73%) of organisations foresee that reindustrialisation efforts will help support sustainability objectives – a significant increase from 56% in 2024.
The Korea Institute of Machinery & Materials has developed air purification technology to reduce ultrafine particulate matter in various public spaces, including subways, schools, department stores and other large public facilities.
North Korean leader Kim Jong Un has overseen tests of ‘various kinds of reconnaissance and suicide drones’, according to a report by the Korean Central News Agency.
During this week’s 2025 Airbus Summit in Toulouse, France, the European aircraft manufacturer made various announcements including details of the technologies to deliver its hydrogen roadmap.
Fusion energy start-up Focused Energy and German energy company RWE have signed an agreement to build a 1GW fusion power plant at the former Biblis nuclear power plant site in Hesse, Germany, according to Reuters.
The smart meter roll-out saw its 25-millionth installation in February, according to energy insight from telecommunications service provider ElectraLink.
The government has announced that up to 60,000 more engineers, brickies, sparkies and chippies are to be trained by 2029 to deliver its housing ambitions.
Isar Aerospace to launch its first test flight mission, ‘Going Full Spectrum’, from Andøya Spaceport in Norway later today.
Great British Energy has announced that schools and hospitals across the UK are to benefit from £180m of rooftop solar investment.
Volklec will begin battery production from its Coventry base later this year, with plans to build a 10GWh £1bn gigafactory by the end of the decade.
Sandvik is rolling out a new gender-neutral parental leave program that enables employees around the world to take 14 weeks of paid leave.
Make UK’s latest Manufacturing outlook report reveals that despite a downturn in the sector’s output and growth, business confidence is the highest it has been in 11 years.
The healthcare industry has benefited from additive manufacturing (AM) technology for many years, particularly for producing patient-specific dental and orthopaedic implants. Enrico Orsi, AM product manager at global engineering technologies company Renishaw, explores how the healthcare industry can now move from small-scale production of customised parts towards volume manufacture.
A study by the University of Sheffield has found that installing solar panels on farmers’ land would not result in a loss of agricultural activity.
New manufacturing technique paves the way for low cost and scaleable solar generation, according to new research by the University of Sheffield.
Professor Graham Reed, a globally recognised leader in silicon photonics at the University of Southampton and one of the driving forces behind the UK’s Cornerstone Photonics Innovation Centre, discusses how this field has evolved over the past few decades and what is in store for its future.
A Chinese research team has developed technology to repurpose decommissioned wind turbine blades into a material for use in asphalt mixtures and cement concrete.
The Clean Industry Bonus is a new incentive scheme aimed at encouraging offshore wind developers to invest in industrial communities and low-carbon supply chains.
Unlock the Full Potential of Your MRO Supply Chain
A University of Oxford study has found that offering green ammonia at just 10 regional fuel ports could decarbonise 60 per cent of shipping. It concluded that the fuel could be a viable option for decarbonising international shipping by 2050.
British car makers boosted their output by over 13 per cent in February as supply chain pressures eased – particularly with regards to the ongoing semiconductor shortage.
A University of Oxford study has found that exported used vehicles generate at least 13-53% more emissions per mile than those kept in the UK.
China is trying to weave a new lattice of trade routes – complex variations on the ancient Silk Road – even as it decouples from the West
A report from the Energy and Climate Intelligence Unit (ECIU), a non-profit research organisation, has said that increasing numbers of electric vehicles (EVs) will do more for the UK’s energy security than the issuing of new North Sea oil licences.
A new AI chip especially designed by Nvidia to comply with export restrictions has failed to attract the interest of the very companies it is targeting, The Wall Street Journal reports.
The first European rover designed to explore the surface of Mars will be delivered with a landing system built in the UK.
Major cyber-security holes have been found in technology made by some leading solar panel brands, raising the risk of targeted blackouts due to remote attacks on the energy grid.
The Prime Minister has pledged to invest £2.15bn to bolster “Victorian-era” transport services in the North of England.
Chancellor Rachel Reeves has unveiled the Spring Statement with a package of spending measures targeting infrastructure projects, defence and modernisation of public services.
The US Department of Defense has awarded Northrop Grumman a $24.9m contract for a new autonomous undersea sensing research and development programme.
Local authorities report that the backlog of repairs to bring the road network up to ‘ideal’ conditions has reached almost £17bn.
Europe’s largest completed green hydrogen project has started operations at BASF’s Ludwigshafen site in south-west Germany.
Chinese EV maker BYD says its new platform has charging speeds of 1,000kW, twice the power of Tesla’s superchargers.