Planned investment for the next three years is falling even as AI cements its role as a crucial economic driver.
European and US companies are rethinking where and how they make things and they are doing it faster than ever. But the money they are willing to spend is shrinking.
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According to a new report by the Capgemini Research Institute, 73% of European and US companies now have a reindustrialisation strategy in place, up from 59% in 2024.
In Spain the figure is even higher, at 76% — a dramatic jump from just 45% two years ago.
The cash, however, is not keeping pace. Planned investment for the next three years has dropped from $4.7 trillion (€4.3tr) to $2.5 trillion (€2.3tr).
That is not, the report argues, a retreat. It is a recalibration, with companies shifting towards models that are "more selective and less capital-intensive".
The shift in priorities is stark and 86% of companies now put supply chain resilience above short-term profit. And to make nearshoring viable, 87% plan to invest in AI, automation and digital modelling tools.
The US is bringing factories home
The two approaches to reindustrialisation are diverging sharply. The US is focused on reshoring — bringing production back to American soil.
Europe is increasingly turning to friendshoring, manufacturing in allied countries rather than at home.
India, Vietnam, Mexico and Canada are all gaining ground as alternatives to China, though more than half of companies say they have no intention of leaving the Chinese market entirely.
Spain is among the report's standout cases, with 85% of Spanish executives stating geopolitical pressure is what finally pushed them to act. 60% say they will hold course even if short-term costs rise.
