An unprecedented wave of capital investment has surged into U.S. manufacturing since 2020, yet capacity expansion remains stubbornly sluggish. This disconnect, highlighted in Kearney’s 2026 Reshoring Index, raises critical questions for industry leaders and policymakers.
What Happened
Capital investment in U.S. manufacturing has tripled since the COVID-19 pandemic, surpassing $11 trillion. However, this influx has resulted in a mere 1.5% increase in manufacturing capacity. Despite the surge in domestic investments, U.S. manufacturing imports rose by $133 billion between 2024 and 2025, with imports from 14 Asian low-cost countries increasing by $60 billion in 2025 alone. The Reshoring Index, although improved from -115 to -86, remains negative, indicating a persistent reliance on foreign goods.
According to Patrick Van den Bossche of Kearney, only about half of the investments aimed to expand capacity; the rest focused on modernizing or replacing outdated facilities. This trend is partially driven by the aging industrial infrastructure in the U.S., where the average age of industrial fixed assets is nearly 25 years.
What This Means for Your Business
For businesses in the Architecture, Engineering, Construction, and Manufacturing (AECM) sectors, the disparity between investment and capacity growth suggests several strategic considerations. The focus on modernization over expansion highlights opportunities for firms specializing in facility upgrades and efficiency enhancements. Additionally, the slow pace of capacity growth underscores the importance of strategic planning in procurement and contract management, particularly in industries like semiconductors and pharmaceuticals, where precision and quality are paramount.
Compliance with evolving regulations, such as the Cybersecurity Maturity Model Certification (CMMC) and NIST standards, remains crucial. Firms must also consider the implications of zero trust architectures in supply chain security, particularly as import reliance persists.
What US Operators Should Watch
As the manufacturing landscape continues to evolve, decision-makers should monitor federal funding opportunities aimed at capacity expansion and modernization. Keeping abreast of regulatory timelines, such as CMMC audit dates, and procurement windows will be vital for competitive positioning. Operators should also track any shifts in trade policies that could impact import dynamics and domestic manufacturing incentives.
Source: [Manufacturing Dive]. Read the original story ->
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