America’s $3 Trillion Manufacturing Comeback: How Robots, Cheap Energy, and Skilled Workers Are Reshaping Global Industry

After decades of offshoring, three powerful forces are driving an unprecedented industrial renaissance on U.S. soil, with manufacturing construction surging 200% in just two years.

It’s Terry Gardner from C.J. Lawrence, a division of Apollon Wealth Management, and I wanted to share some thoughts with you on an investment theme and a related strategy that we believe has been evolving for the past decade and is particularly timely today.

The theme is the American Industrial Renaissance, and the thesis behind that theme is that the U.S. is undergoing a renaissance in industrial manufacturing. We’re seeing this in the data, and it’s based on three important economic factors. The first is increased adoption of automation and robotics. This new technology is finally closing the labor cost advantage that many foreign manufacturing jurisdictions have had for the past 30 or 40 years. In fact, a report from Forrester Research in 2022 suggested that manufacturing companies that adopt automation and robotics can reduce their operating costs by 25 to 50%, which is a game changer in terms of labor cost arbitrage, and site selection. Companies can now look to locate in the U.S. and utilize robotics and automation to remain cost competitive. We’re seeing that play out today through the increased use of what are known as co-bots, or collaborative robots, which are increasingly being used in the manufacturing process in collaboration with human labor. These co-bots are increasing labor productivity, improving safety, increasing output, and lowering costs, and that’s a big win for U.S. industrial manufacturers that engage in that strategy.

The second major competitive advantage allowing U.S. manufacturers to compete effectively is their access to low-cost energy. The U.S. is the world’s largest producer of natural gas and as a feedstock for electricity production, that helps keep electricity costs and power costs low in the U.S., particularly versus developed country manufacturing jurisdictions. In fact, U.S. energy costs can sometimes be 50% lower than other developed country manufacturing energy prices. That’s a major advantage.

The third advantage would be a competitive labor force. We know that global manufacturers want to tap into the U.S. market because it’s the largest consumer market in the world. It has an attractive demographic from a consumer perspective, but also from a labor perspective. In fact, 27% of the U.S. population, according to U.S. census data, is between the ages of 25 and 40 and is well-educated relative to international standards. That represents a very attractive talent pool for skilled labor for manufacturers looking for new locations. We think this investment strategy is particularly timely and is likely at an inflection point based on some things that we’re looking at, one being a surge in manufacturing construction, which we’re seeing in U.S. Census Bureau data, running now at an annualized revenue run rate of $244 billion a year versus $80 billion a year just two years ago. That’s the construction of U.S. manufacturing facilities, plants, and it is accelerating at a rapid pace.

U.S. energy infrastructure spending is also surging. In fact, a report published by Goldman Sachs suggests that over the next six years, energy infrastructure spending could eclipse $2.9 trillion here in the U.S. That’s an absolute energy spending super-cycle.

Finally, as we mentioned, U.S. manufactures are increasingly using co-bots and are accelerating adoption and utilization of robots and automation. Data provided by the Association for Advancing Automation (A3) (https://www.automate.org/market-intelligence/insights/north-american-robot-orders-hold-steady-in-q1-2025-as-a3-launches-first-ever-collaborative-robot-tracking) at the May 14, 2025 Automate 2025 conference showed that the rate of adoption of co-bots in manufacturing is accelerating, from just 8% two years ago, to a current adoption growth rate of 30%. Increased utilization of co-bots and robots is closing the labor cost differential between the U.S. and other manufacturing countries.

The C.J. Lawrence Industrial American Renaissance strategy incorporates these secular tailwinds into a diversified portfolio, with a broad industrial base at its core, and leaders in the ecosystem that support the industrial base, surrounding it. It’s an interesting construct, and we’re more than happy to share some thoughts on the strategy and on the portfolio with you. If you’re interested, feel free to reach out to me at (212) 888-6403, or you can email me at terry.gardener@apollonwealth.com. Look forward to catching up. Thanks.

CJ Lawrence a division of Apollon Wealth Management, LLC (“Apollon”) provides advice and makes recommendations based on the specific needs and circumstances of each client. For clients with managed accounts, Apollon has discretionary authority over investment decisions. Investing involves risk and clients should carefully consider their own investment objectives and never rely on any single chart, graph, or marketing piece to make decisions. The information contained in this post is intended for informational purposes only, is not a recommendation to buy or sell any security and should not be considered investment advice. Market performance information and projections have been provided by third-party sources and, although believed to be reliable, have not been independently verified and its accuracy or completeness cannot be guaranteed. Any opinions, projections, forecasts, and forward-looking statements presented herein are valid as on the date of this video and are subject to change. Past performance is no guarantee of future performance. Please contact your financial advisor with questions about your specific needs and circumstances.