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Manufacturing Reshoring Is Breathing New Life Into U.S. Industrial Markets

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Franco Faraudo & Nicholas Pipitone
January 09, 2025

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PROPMODO EXCLUSIVE

A manufacturing revival is reshaping America’s industrial landscape, fueled by reshoring, federal investments, and a push for supply chain resilience. As the South emerges as a manufacturing powerhouse, industrial developers and communities are racing to capitalize on this transformative trend.

Manufacturing is making a strong comeback in the U.S., driven by reshoring efforts as companies seek to minimize risk, improve quality, and meet sustainability goals. The pandemic exposed vulnerabilities in global supply chains, prompting businesses to rethink their production strategies. Rising labor costs in traditional hubs, shifting trade policies, and federal legislation like the CHIPS Act and Inflation Reduction Act have also played a significant role in revitalizing domestic manufacturing. This trend is reshaping industrial real estate, with growing demand for facilities in both established and emerging markets.

The resurgence is particularly noticeable in the South and along the U.S.-Mexico border. Southern states have become hotspots for manufacturing growth, adding millions of square feet of new space and attracting investment for projects like EV plants. Meanwhile, nearshoring to Mexico has surged, with the country now surpassing China as a top exporter of advanced manufacturing goods to the U.S. These developments have created a ripple effect, boosting demand for industrial, logistics, and even residential real estate in regions experiencing major manufacturing investments.

But, challenges like zoning restrictions and community opposition could hinder industrial expansion. New laws, such as California’s Assembly Bill 98, highlight the increasing regulatory hurdles for industrial developers. Despite these obstacles, the reshoring trend shows no signs of slowing down, promising opportunities for developers, investors, and local economies while solidifying America’s manufacturing resilience.

Dive into today’s featured article to uncover how reshoring is driving a U.S. manufacturing renaissance, transforming industrial real estate and redefining supply chain strategies. This article is free to read for the next 24 hours. Not a subscriber? Get unlimited access to all our exclusive content for just $25 for your first year using our special code: NEWYEAR. Sign up now!

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