Ian King and I spend a lot of time debating the next big boom.an exciting new “convergence” that’s setting up a once-in-a-decade phenomenon that could mint anywhere from 1,000% to as much as 5,000% gains over five years. Let’s begin…One theme comes up again and again — the concept of “reshoring.” Reshoring is the opposite of offshoring. It means companies are bringing production and manufacturing “back home” to where the company was first established. And I can tell you today, a U.S. reshoring boom is upon us! It’s back to “Made in America” … and this time it’s all about technology. Today, we’re going to look at the accelerating reshoring trend. As you’ll see, two key sectors have already started moving their operations back home, and that’s a huge boon for American business. I’ll also share the ticker of one U.S. robotics automation stock set to benefit from this reshoring revolution. Finally, I’ll show you Ian’s top way to invest in
The Great Reshoring Boom Is Gaining Steam
With the pandemic largely behind us and the flaws of offshoring exposed, U.S. manufacturing is steadily returning stateside.Deloitte survey found that 62% of U.S. manufacturers and nearly half of transport companies have already started reshoring or nearshoring their production capacities. In both industries, more than a quarter of companies are reportedly “exploring” the idea.A
Data from Deloitte also showed that U.S. companies likely reshored nearly 350,000 jobs in 2022, up from 260,000 in 2021.Alongside this, transportation and manufacturing companies with over $500 million in yearly revenue anticipate “a significant share of Asia-originating freight to move onshore or nearshore to alleviate supply chain challenges and improve competitive positioning.” In fact, per Deloitte data, this could decrease the share of Asia-originating shipments to the U.S. by 20% by 2025 and by 40% by 2030. This phenomenon is set to happen during a time when China’s dominance in global trade is expected to decline, with its trade growth falling from 26% to 13% in the next five years. So, this trend is clearly already at play. But where we can expect to see it most? Look no further than the Midwest and Texas. As this graphic shows, manufacturing and transportation leaders have high expectations for reshoring to both regions.
Similar to the Second Industrial Revolution (Industry 2.0), when America experienced a technological revolution … we’re seeing the same thing happening again today in Made in America 2.0. During Industry 2.0, the use of electricity in production processes was a major invention. Today with Made in America 2.0, innovations like smart factories, automation, robotics and 3D printing allow the U.S. to make more goods at home. As global manufacturing technology wars intensify in this digital era, to the victor goes the spoils. The winner will dominate the worldscape. But how to find those winners? As Ian often says to me: “Hardware eats the world.” And there’s one vital technological hardware component needed to make this reshoring revolution a reality … semiconductors.
The Brains of Modern Electronics
To quote the Semiconductor Industry Association (SIA): “Semiconductors are the brains of modern electronics.”Semiconductors, also called microchips, are a vital component of electronic devices. Thanks to developments in semiconductor technology, electronic devices have become smaller, quicker and more dependable over the last 50 years. Without semiconductors we would have no smartphones, smart TVs, computers, video games or advanced medical diagnostic equipment. Per SIA: “A single semiconductor chip has as many transistors as all of the stones in the Great Pyramid in Giza, and today there are more than 100 billion integrated circuits in daily use around the world — that’s equal to the number of stars in our corner of the Milky Way galaxy.” “It is truly a modern marvel, a feat of human ingenuity and engineering unmatched by any other industry.”
Fun fact. Did you know semiconductors were invented in the U.S. and that the U.S. still remains the leader in state-of-the-art semiconductor design and manufacturing?Chips and Science Act of 2022, a government policy aimed at boosting U.S. competitiveness and innovations, helps bolster this U.S. tech dominance. Government policy … innovation … and private funding. This trifecta has the potential to offer one of the greatest investment scenarios of this decade and beyond. Here’s just one company that’s likely to benefit from this scenario…SIA notes that the semiconductor industry employs over 250,000 workers in the U.S. and supports nearly 1.8 million additional U.S. jobs. Semiconductors are a top-5 American export — after airplanes, refined oil and automobiles. Though the intense competitive nature of the semiconductor global market and the cyclical nature of the semiconductor industry is real, it’s imperative for the U.S. to maintain its semiconductor dominance in this digital age. That’s why the
One investment to consider to riding this reshoring boom is Wisconsin-based Rockwell Automation (NYSE: ROK). Rockwell is an American provider of industrial automation and transformative digital technologies. The company has invested in research and development, science and technology, and the workforce of the future to help the United States lead in the industries of tomorrow. The company operates worldwide but North America accounts for about 60% of revenue. Its technology and expertise have supported the growth of American manufacturing for 120 years. And most notably, Rockwell has served the semiconductor and high-tech industries for over 30 years. Rockwell sees the CHIPS Act 2022 as a potential boost for American manufacturing of semiconductors. As the company sees it, the passage of the CHIPS and Science Act of 2022 “paves the way for the strengthening of the semiconductor supply chain in the United States, supports the growth and diversification of our workforce and enhances technology development for years to come.” The key part in that quote is “enhances technology development for years to come.” Rockwell is talking about Made in America 2.0 here! It is ready for the next generation of homegrown manufacturing and the decoupling of our reliance on China. Are you? And do you know what key investments to make today for this fast-approaching future? For a potentially lucrative and longer-term outlook on what’s happening with chips and reshoring, look no further Ian’s Extreme Fortunes service. As Ian sees it, America is racing to reclaim its spot as the chip manufacturing leader, and it’s propelled by an exciting new convergence of government funding, private investment and innovation. This is the fourth such convergence Ian has seen in his career, following the booms in shale, green energy and biotech that Ian foresaw because of this same dynamic. The U.S. is pumping major cash into bringing chip manufacturing back home. We’re talking about a $250 billion-dollar undertaking here. Private investment is also on the rise despite economic challenges, and innovation is speeding up exponentially. So, you know this is a once-in-a-decade phenomenon that could mint anywhere from 1,000% to as much as 5,000% over five years. And we’re telling you here, in The Banyan Edge, because this emergence is happening now. You can click here now to learn Ian’s best ways to invest in this U.S. reshoring and chip manufacturing revolution — with three U.S. small-cap stocks primed for outsized gains. Until next time,Amber LancasterDirector of Investment Research, Strategic Fortunes
Disclaimer: We will not track any stocks mentioned in The Banyan Edge. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates and buy/sell guidance, please check out Strategic Fortunes.