European Companies are Reindustrializing Even with Less Money

European and American companies are rethinking where and how they manufacture products — and they are moving faster than before, even as planned spending declines.

European manufacturers are increasingly embracing reindustrialization and nearshoring despite lower planned investment.

According to a new report by the Capgemini Research Institute, 73% of European and US companies now have a reindustrialization strategy, up from 59% in 2024. In Spain, the figure has climbed to 76%, compared with 45% two years ago, Sergio Garcia reported for Euronews.

However, planned investment over the next three years has declined sharply — from $4.7 trillion (€4.3 trillion) to $2.5 trillion (€2.3 trillion).

The report said the decline does not necessarily indicate retreat, but rather a shift toward strategies that are “more selective and less capital-intensive.”

Supply chain resilience has emerged as a major priority, with 86% of companies now prioritizing it over short-term profit. Meanwhile, 87% of firms plan to invest in artificial intelligence, automation, and digital modeling tools to make nearshoring more viable.