Seizing the Near-Shoring Opportunity: How Privately Held U.S. Manufacturers Can Lead in the Next Industrial Era

The U.S. is entering a once-in-a-generation industrial realignment. More than $1.5 trillion in reshoring-driven investment is already flowing into six strategic sectors: semiconductors, aerospace, pharmaceuticals, defense, advanced materials, and packaging.

For founder-led and privately held manufacturers, this moment offers a narrow window to reposition before new supply chains—and new Tier-1 partnerships—lock into place.

Winning firms are aligning to sectors that matter, modernizing with purpose, tapping untapped incentives, and signaling reliability where it counts. Those who move now are gaining ground. Those who wait will be competing for scraps once the reset is over.

The next 12–24 months will define who leads the future of American manufacturing—and who gets left behind.

A $1.5 Trillion Realignment Is Already Underway

In 2025, U.S. manufacturing is no longer whispering its comeback—it’s roaring. Driven by a perfect storm of tariffs, supply chain fragility, AI disruption, and geopolitical shifts, a historic wave of industrial investment is reshaping the American production landscape. The numbers are staggering: over $1.5 trillion in cumulative capital commitments now fuel what many are calling the greatest industrial revival since the post-WWII boom.

And this resurgence isn’t theoretical. In just the past 90 days:

• Nvidia committed up to $500 billion to build AI supercomputers entirely within the U.S.
• Apple announced $500 billion in domestic infrastructure across five states.
• Novartis revealed a $23 billion plan to build or expand 10 U.S. facilities.
• Toyota broke ground on a $9.3 billion battery plant in North Carolina.
• Abbott Labs committed $500 million to new U.S. research and production centers.

These megaprojects join a swelling wave of reshoring activity from firms like Intel, TSMC, GE Aerospace, and Micron. Policy support—from the CHIPS Act to state-level incentives—has helped spark the fire. But what’s fueling the engine now is momentum. Global supply chains have been exposed, digital technologies are maturing fast, and domestic manufacturing is once again a source of strategic advantage.

Behind the Headlines: The Real Opportunity for Privately Held Manufacturers

While the headlines spotlight billion-dollar announcements, the most accessible—and urgent—opportunities lie further upstream. For founder-led and privately held U.S. manufacturers, the real potential is not just to ride the reshoring wave—but to power it.

Much of America’s industrial base was hollowed out over the last 30 years. What’s needed now isn’t just reactivation—it’s reinvention.

As one industry veteran put it:

“We outsourced manufacturing in the past. To bring it back, we’ll need to reinvent it.”

That reinvention has already begun—and it starts with:

1. Feedstock & Subcomponent Supply
   U.S. manufacturers are now being tapped to supply the critical inputs once sourced from overseas: specialty metals, advanced plastics, electronics subassemblies, and biocompatible materials. Firms that own these links in the chain will become indispensable partners to larger OEMs.
2. Repurposing Idle Capacity
   Across the Midwest and Northeast, legacy factories run at partial capacity. With targeted investment in automation and AI, these assets can be retooled to meet high-margin, high-spec manufacturing demand in sectors like aerospace, clean tech, and medical devices.
3. Localized Contract Manufacturing

As reshoring takes hold, OEMs increasingly seek nimble U.S.-based partners for just-in-time, just-right production. Founder-led firms that can deliver precision, customization, and responsiveness have a once-in-a-generation chance to reposition as core suppliers.

The reshoring surge is already reshaping supply chains, capital flows, and customer expectations. This paper details how smaller firms—if equipped with the right tools—can punch above their weight and claim Tier-1 positions. If you’re not acting now, your competitors are.

Policy Whiplash and Strategic Clarity: Navigating Uncertainty in the Tariff Era

For all the momentum behind U.S. manufacturing, the path forward isn’t without turbulence. Many leadership teams—especially in mid-sized, privately held firms—find themselves navigating a trade landscape marked by uncertainty, not clarity.

The current tariff regime is evolving quickly, but not always coherently. Rather than a long-term industrial policy, recent trade measures appear driven by short-term leverage—tools for negotiation with major partners like China, the EU, and Mexico. Announcements are often rolled out without full detail, exemptions shift by the quarter, and enforcement timelines remain fluid.

That creates real headwinds for strategic planning. Leaders are asking tough questions:

• Will these tariffs stick long enough to justify a plant retrofit?
• Will we gain cost advantage—or find ourselves stuck with higher input prices?
• Are we building toward a policy tailwind, or a political bargaining chip?

These are not paranoid questions—they’re rational ones. And yet, amidst the policy noise, a deeper signal is emerging.

Certain sectors are no longer in play—they’re already locked in. Reshoring in areas like defense, semiconductors, aerospace, and biomanufacturing has moved beyond theory. Backed by hundreds of billions in committed capital from firms like Nvidia, Apple, Novartis, and Micron, these industries are now too strategically vital, too deeply embedded in national priorities, and too far along in execution to reverse course. The rationale for domestic production in these areas isn’t just economic—it’s about resilience, security, and technological sovereignty.

For founder-led manufacturers, that’s the opportunity hiding in the chaos.

Yes, policy will shift. Tariffs will rise and fall. But the larger industrial realignment is already underway—and firms that can act with speed and clarity now will claim position before the dust settles. In an environment where large corporations may pause or hedge, agility becomes advantage.

The firms that win in this next chapter will not be those that wait for perfect policy alignment. They’ll be the ones that move decisively when the trend is clear—even if the headlines are not.

Where Founder-Led Manufacturers Can Win: Six Strategic Sectors Driving U.S. Reshoring

The reshoring wave is not a rising tide lifting all boats—it’s a targeted realignment, accelerating most where national security, technological reinvention, and post-pandemic vulnerabilities intersect. For founder-led and privately held U.S. manufacturers, the opportunity lies not in rebuilding what was lost, but in supplying what comes next.

The companies best positioned to lead are those that can serve as upstream enablers: providing the inputs, infrastructure, and highly specialized capabilities required to localize complex supply chains. They’re not competing on scale alone, but on trust, speed, and technical precision—often becoming indispensable to OEMs that can no longer afford the fragility of global sourcing.

Across the landscape, six sectors stand out as the most strategic reshoring footholds. Each combines macroeconomic tailwinds with specific, addressable needs where smaller U.S. firms can plug in and deliver high-value work.

Reshoring Opportunity Map: Six Sectors Where U.S. Manufacturers Can Lead

Sector Snapshots:

Semiconductors: Strategic Fragility Drives Precision Demand

Semiconductors sit at the center of the reshoring movement. Following pandemic-era shortages and rising geopolitical tensions, the U.S. government and private sector have committed over $100 billion to bring chip production stateside. But fabs don’t operate in isolation—they rely on an intricate supply web of upstream suppliers.

That’s where founder-led firms thrive: from precision machining and cleanroom components to test systems and advanced coatings. The opportunity isn’t in building fabs—it’s in supplying the tools and systems that enable them to function at scale.

Aerospace & Defense: Reinvention Under Pressure

The aerospace and defense sector is undergoing a strategic reset. While long-term spending is poised to grow, the Department of Defense is cutting underperforming programs and rebalancing its supplier base to prioritize accountability and readiness. At the same time, adversarial threats and export control pressures are driving urgency around localized sourcing.

Crucially, future defense priorities will not mirror the past. New technologies—from drone swarms to autonomous battlefield systems—are rapidly outpacing legacy platforms. Founder-led firms that can deliver certified, cost-effective, and rapid-turn solutions—composites, CNC components, traceable subassemblies—are well-positioned to become essential players in this evolving industrial base.

Medical Devices: Resilience as a Mandate

COVID-19 laid bare the fragility of global healthcare supply chains. In its wake, U.S. agencies including HHS and the FDA have rolled out incentives to localize medical device production—especially for diagnostic tools, monitoring systems, and wearable tech.

Founder-led manufacturers with expertise in biocompatible molding, cleanroom assembly, and sensor integration are now critical to this realignment. Firms able to meet near-medical quality standards—or those willing to invest in the capability—will find themselves competing not on scale, but on trust, speed, and compliance.

Pharmaceutical Manufacturing: Critical Inputs, Strategic Control

Pharmaceutical production is moving rapidly toward domestic reinforcement. The U.S. has grown increasingly wary of its reliance on China and India for essential active pharmaceutical ingredients (APIs), generic drug components, and vaccine fill-finish operations. That strategic exposure, combined with rising demand for biologics, has triggered a renewed push to reshore core infrastructure.

Opportunities for privately held manufacturers are centered on enabling systems and high-spec production environments: sterile packaging, modular cleanrooms, batch processing components, and filtration/HVAC subsystems. These are not speculative needs—they are undersupplied, regulatory-intensive, and time-sensitive, making agile domestic partners increasingly valuable.

Advanced Packaging & Logistics: Local, Smart, and Sustainable

Packaging has shifted from a cost center to a strategic function. With the e-commerce surge, sustainability mandates, and a rising demand for localized fulfillment, U.S.-based firms that can deliver customization, rapid production, and material innovation are gaining traction.

Founder-led manufacturers with capabilities in bioplastics, compostable films, and automation-friendly packaging substrates are increasingly being tapped by retailers, logistics firms, and consumer brands that can no longer afford global fulfillment complexity—or delay.

High-Performance Industrial Materials: Fueling the Next Industrial Curve

As AI, electrification, and robotics redefine how goods are made, the materials used in production are becoming more specialized and strategic. Rare-earth alternatives, micro-molded plastics, and advanced thermal coatings are not just inputs—they’re enablers of next-generation performance.

Historically dominated by global suppliers, these categories are now seeing localized demand from OEMs seeking reliability and responsiveness. Founder-led firms that can scale batch production, collaborate on design cycles, and deliver consistent performance will find themselves at the heart of tomorrow’s manufacturing stack.

From Strategy to Execution: How Founder-Led Firms Are Winning in the Reshoring Era

The reshoring opportunity is no longer theoretical—it’s already being seized by founder-led firms across the country. The examples that follow, drawn from Newport LLC research and anonymized for confidentiality, show how smaller manufacturers are repositioning themselves as strategic suppliers in high-momentum sectors.

Each case represents a different industry, but a shared pattern emerges: firms that invest in automation, respond to policy incentives, and build technical credibility are winning contracts once reserved for larger incumbents. These stories offer a blueprint for how other manufacturers can move from observation to action.

Case Study 1: Garment & Textiles Manufacturer

• Investment: Approximately $25 million into a large, automated facility, estimated at 70,000 square feet, operated by a New York-based company.
• Upgrades: Implementation of automated fabric cutting and 3D printing for rapid prototyping to enhance production efficiency and flexibility.
• Key Outcome: Secured a high-profile contract to produce apparel for a national team at the 2024 Olympics, reportedly driving an estimated 10% revenue increase in 2024, with projections for further gains in 2025 tied to rising demand for U.S.-made apparel.

Automation fueled this textiles firm’s grab of a 2024 Olympic contract, riding the wave of demand for U.S.-made apparel. It’s now a standout in the reshoring surge.

Case Study 2: Electronics & PCB Manufacturer

• Investment: Roughly $12 million to expand into automated production, supported by state manufacturing grants for a Pennsylvania-based company.
• Upgrades: Integration of AI-driven production control and enhanced quality assurance systems to boost efficiency and reliability.
• Key Outcome: Secured approximately $8 million in new defense and aerospace contracts in 2024, significantly expanding its backlog from prior years, reflecting a surge in domestic sourcing by government and high-tech clients.

State-backed automation landed this electronics firm $8 million in 2024 defense contracts, doubling its backlog amid reshoring’s rise. It is proof incentives pay off.

Case Study 3: Medical, Aerospace & Defense Manufacturer

• Investment: An estimated $15 million in advanced manufacturing upgrades across multiple facilities for a Massachusetts-based company.
• Upgrades: Adoption of AI-driven precision engineering and automated assembly to handle complex components for high-demand sectors.
• Key Outcome: Achieved a 44% revenue increase to over $145 million and an approximate 45% earnings rise in a recent 2024 quarter, driven by large contracts from medical and defense clients shifting production back to the U.S.

This manufacturer’s investment in cutting-edge technology enabled it to capture significant reshoring demand, particularly in medical devices and aerospace/defense. The results underscore how upgrading capabilities can position firms as tier-one suppliers to industry giants.

These cases demonstrate that reshoring opportunities are within reach for agile, privately held manufacturers. By investing in automation and leveraging available incentives, firms can secure high-value contracts and achieve substantial growth. The garment example shows scalability through technology, the electronics case illustrates the power of public-private partnerships, and the medical/defense case proves the payoff of building advanced supplier capabilities. Together, they set a precedent for how smaller players can drive a tech-fueled reinvention of U.S. manufacturing, helping fill the $150-200 billion supply chain gap outlined earlier in this report.

Final Playbook: Four Strategic Moves for Founder-Led Manufacturers

The reshoring surge isn’t just a capital story—it’s an execution race. Founder-led manufacturers that win in this environment are doing more than responding to headlines. They’re actively repositioning themselves to become indispensable links in high-value, high-urgency supply chains.

Newport’s work with privately held manufacturers across the country reveals four repeatable moves that separate those gaining traction from those standing still:

1. Own Your Niche in the Right Sector

Start by aligning to reshoring demand that matches your technical depth. Don’t chase broad manufacturing trends—focus on where you can supply critical inputs, components, or infrastructure in sectors like semiconductors, pharma, aerospace, or specialty materials.

Ask: Where are we already 70% aligned—and what investment would get us the rest of the way?

2. Modernize with Purpose

Automation and AI should serve customer trust and performance, not just internal efficiency. The fastest-moving firms are using tech to improve traceability, shorten lead times, and pass compliance audits—not just reduce headcount.

Move: Target one system, process, or certification where modernization creates an immediate external signal of readiness.

3. Exploit the Incentive Landscape

Federal, state, and defense-backed funding windows are still open—but not forever. Firms that move early can unlock non-dilutive capital to support expansion, facility upgrades, and compliance. Playing offense here reduces capex risk while accelerating scale.

Move: Tap into sector-aligned grants and partner with advisory teams that know how to navigate the process.

4. Signal Strategic Credibility Early

Reshoring partners don’t need perfection—but they demand reliability. Whether through ISO certification, pilot projects, or demonstrated agility under pressure, smart firms are investing early in the signals that matter to Tier-1 buyers.

Ask: What can we do now to prove we’re not just ready—but essential?

This is not a moment for incrementalism. It’s a moment to move with intent—and position your firm as the kind of trusted supplier tomorrow’s industrial economy will be built around.