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11. August 2025Your contact
t +49 (0) 89 1250 1590
presse@munich-strategy.com
Matthias
Riemann
Ansgar
Breuer
Matthias
Riemann
Ansgar
Breuer
WHITE PAPER
07 / 2025
Whitepaper: The Revival of US Manufacturing – US-based production as a growth opportunity for European machinery manufacturers
“Local for local” seems to be the new credo when it comes to how German industry is adapting its value creation structures to changing trade policy conditions. As open borders and the free exchange of goods and services increasingly become a thing of the past, established approaches such as fragmented value chains or centralized production at domestic sites are reaching their limits.
In the white paper “The Revival of US Manufacturing”, Munich Strategy analyzes the specific impact of current developments on the strategically important US market. It becomes clear that reindustrialization is already well underway — a trend from which European companies can also benefit.
Key findings
Background
Short-term shocks are eroding the logic of globally-scattered value creation:
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Frequent changes in tariffs and trade rules make import costs unpredictable, leading CFOs to set up local production just to gain pricing stability.
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Geopolitical crises and climate-related events often disrupt global supply chains and shipping routes, leading to higher transport costs and delays — problems that local production can avoid.
Customers increasingly expect shorter delivery times — that’s why local production is becoming essential in the long run:
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More and more industrial customers choose suppliers who can quickly update designs, send prototypes, and offer fast service.
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Local production helps make this possible — and gives nearby suppliers a real advantage when bidding for capital equipment projects
European machinery manufacturers can profit in two ways:
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Grow by supplying automation equipment to reshored factories across industries
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Build local production to reduce geopolitical risks and better meet local needs
Recent developments in the US
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Spending on manufacturing construction in the U.S. has risen significantly, driving growth in re-shored and foreign direct investment (FDI) jobs.
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FDI & reshoring jobs are concentrated in electrical equipment, computers & electronics, transportation equipment, and chemicals sectors.
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68% of CEOs are considering re-shoring manufacturing parts & assembly to the US. Geopolitical risks, supply-chain issues, and stronger oversight are main drivers for reshoring operations.
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Federal incentive programs announced in 2021 and 2022 are attracting manufacturing relocation to the US.
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Decreasing cost differences between the US and other countries have lowered barriers to entering the US market.
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Skilled workforce availability is the main barrier to building up manufacturing capacities in the US.
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Companies are investing more in automation to mitigate the lack of skilled labor required for higher-tech manufacturing.
Opportunities and fields of action for European manufacturers
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Synergies across both workforce training and automation system design will be critical to realizing productivity and therefore reshoring and FDI benefits.
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Talent & automation synergies, quality focus, proactive customer targeting and the capability to calculate total cost of the offering are keys to to win the relocation battle.
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Companies should evaluate multiple factors as part of their localization considerations — including customer demand, products, supply network, operational flexibility and total landed cost.
Munich Strategy offers a tailored process to assess, position, and optimize manufacturing operations and capture local manufacturing opportunities.
CONTACT
Connecting knowledge.
If you would like to order our white paper as a PDF (service fee: EUR 150.00 plus VAT), please send an email with your billing address to presse@munich-strategy.com.
Munich Strategy offers a tailored process for analyzing, positioning, and optimizing production activities – and for strategically tapping into local manufacturing potential. We are happy to engage in in-depth discussions about localizing value creation in the United States. With our offices in Boston and Detroit, we have local expertise and established teams on the ground to support you in the strategic planning and implementation of your initiatives in the US.
Your contact
Munich Strategy GmbH & Co. KG
Türkenstraße 5
80333 München
t +49 – 89 – 1250 1590
presse@munich-strategy.com
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