Infrastructure & Automation: Reindustrializing the West

U.S. reindustrialization could drive a multiyear investment cycle in manufacturing infrastructure and automation through 2027.

• Companies announced $1.76 trillion in U.S. manufacturing investments from January 2025 to September 2026, while capital equipment orders rose 15% from January 2025 and industrial production reached its highest level since April 2019.
• The ISM Manufacturing PMI reached 55.6 in July 2026, its highest level since June 2022 and the ninth consecutive month of expansion, while industrial output is forecast to increase 5.2% between January 2025 and December 2027.
• Consumer electronics and solutions represented 41% of announced investment, semiconductors and electronics 23%, pharmaceuticals 21%, and other industries 11%. The project pipeline included 181 projects and at least $433 billion of investment, with 94 projects under construction.
• Infrastructure can account for up to 85% of a new production site's total cost. TSMC plans to invest $265 billion in up to 10 semiconductor fabs and related infrastructure at its Arizona site.
• U.S. manufacturing may require 3.8 million additional workers by 2033, with about half of those positions potentially unfilled. Industrial robot installations rose 11% year over year to 38,000 units in 2025 and could reach 41,800 in 2026, while only 8.3% of U.S. manufacturers have adopted robots.

Takeaway: Investors could find a multiyear demand cycle among infrastructure material, equipment, engineering, construction, and robotics suppliers as manufacturing capacity expands and labor constraints support automation adoption.