As 2025 nears the halfway mark, the industrial market is indicating the signs of nearshoring and onshoring movements accelerate. According to the NAIOP’s recent summit, they concluded that, “over the last four decades, only 1-2% of supply chains had drastically moved, but in the last three years, up to 35% have moved or are in consideration to be moved.” The original reasons for offshoring production were to take advantage of low labor costs, globalization and scale. Due to the pandemic and intellectual property compromises among the primary reasons, seismic shifts have begun.
Smaller Trends Show More of the Movement
Analyzing the industrial capital projects from January through May 2025 reveals that company relocations and the investment in renovations dominate over new construction and expansions, according to Industrial SalesLeads. The trends show that relocation and renovations represent more than 60% of the activity in the industrial sector, a clear sign that onshoring companies are finding avenues to ramp up faster.
Where is the Movement Occurring?
The states with the most activity gaining relocations and renovations are Florida, Georgia, Illinois, New York, North Carolina, California and Texas. This represents 57% of all activity across the U.S. These projects are well distributed in value with industrial projects ranging from less than a million to $25M. However, project totals are strong ranging from $26M on up.
According to Reshoring Initiative, reshoring is most prominent in technology, automotive, apparel and pharmaceuticals. Industrial SalesLeads reported in January and March that Macom Technology Solutions and Onsemi, both are semiconductor manufacturers are planning for the renovation of their facility in North Carolina and New York.
The project is estimated over $100M with 430 jobs to be created. According to MNI’s May Economic Indicators for U.S. Manufacturers, hiring, as reported by the Department of Labor, was subdued. However, with the continued reshoring efforts, this may change. Watch for future trends and reports.
Smaller, yet key industrial projects include Boehringer Ingelheim, a pharmaceutical company relocating operations to Georgia with an investment between $5M to $10M and Oxford Industries, a high-end apparel manufacturing company investing $2M in renovations. They will relocate their operations this summer.
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