In an era marked by disruption – from pandemics and geopolitical tensions to climate shocks and technological shifts – the global economy is undergoing a profound transformation.
At the heart of this change is a rethinking of supply chains: how they’re built, where they’re located and how resilient they are to future shocks.
For investors, this reconfiguration is opening up new opportunities in industrial real estate and energy infrastructure – two sectors poised to benefit from the drive toward resilience.
This shift isn’t just political, but structural. The Covid-19 pandemic, supply-chain bottlenecks and the war in Ukraine exposed the region’s vulnerabilities. In response, companies and governments are investing in ‘nearshoring’ and ‘friend-shoring’ strategies to secure access to critical supplies.
The numbers tell the story: the share of companies investing in ‘nearshoring’ rose from 42% in 2024 to 56% in 2025. Major firms such as Microsoft, Volvo, Sanofi and Nestlé have announced significant expansions in European production capacity.
Meanwhile, the European Union’s Net-Zero Industry Act mandates that 40% of annual net-zero technology deployment must be sourced from domestic manufacturing by 2030 – a dramatic shift given China’s current dominance in solar-panel production.
For investors, this reconfiguration is opening up new opportunities in industrial real estate and energy infrastructure – two sectors poised to benefit from the drive toward resilience.
Europe’s industrial revival
After decades of globalisation, Europe is having a major rethink. The continent is embarking on a reindustrialisation journey, aiming to produce more goods within its borders and reduce reliance on distant suppliers.This shift isn’t just political, but structural. The Covid-19 pandemic, supply-chain bottlenecks and the war in Ukraine exposed the region’s vulnerabilities. In response, companies and governments are investing in ‘nearshoring’ and ‘friend-shoring’ strategies to secure access to critical supplies.
The numbers tell the story: the share of companies investing in ‘nearshoring’ rose from 42% in 2024 to 56% in 2025. Major firms such as Microsoft, Volvo, Sanofi and Nestlé have announced significant expansions in European production capacity.
Meanwhile, the European Union’s Net-Zero Industry Act mandates that 40% of annual net-zero technology deployment must be sourced from domestic manufacturing by 2030 – a dramatic shift given China’s current dominance in solar-panel production.
Five themes driving change
Five macro forces are accelerating Europe’s industrial transformation:- Deglobalisation. Companies are moving away from long-distance supply chains that prioritised cost over robustness.
- Protectionism and trade tensions. Strategic industries are being shielded through tariffs and export controls.
- Global supply chain risk. Events like port closures and geopolitical conflicts have heightened risk awareness.
- Security and defence. Increased defence spending is driving domestic production of military equipment.
- Automation & industry 4.0. Technologies like artificial intelligence (AI), robotics, and 3D-printing are making local production more viable.
These forces are reshaping industrial real estate needs. Demand is rising for production and distribution capacity in Central and Eastern Europe, as well as in revitalised Western European hubs.
Investors are eyeing opportunities across asset types – from heavy industrials and research and development hubs to urban logistics and open storage.
With 70% of the Iberian grid powered by renewables, the lack of rotational inertia – normally provided by fossil-fuel turbines – led to cascading failures.
This event highlights a critical vulnerability in modern energy systems: the challenge of maintaining grid stability in a renewables-heavy environment. It also underscores the urgent need for investment in grid modernisation.
Technological solutions are emerging to address these challenges, including hybrid power plants, battery energy storage systems, grid-forming inverters, transmission interconnections and smart grid software.
Beyond the technology, broader drivers are fuelling grid investment: ageing infrastructure in developed economies, rising energy demand from AI and cooling loads, climate resilience and the push to reduce reliance on foreign fossil fuels.
In industrial real estate, Europe’s reindustrialisation is creating demand for:
Investors are eyeing opportunities across asset types – from heavy industrials and research and development hubs to urban logistics and open storage.
Energy infrastructure imperative
While Europe retools its factories, the region’s energy infrastructure is also under pressure. In April this year, Spain and Portugal experienced a full-scale blackout triggered by ‘grid frequency oscillations’.With 70% of the Iberian grid powered by renewables, the lack of rotational inertia – normally provided by fossil-fuel turbines – led to cascading failures.
This event highlights a critical vulnerability in modern energy systems: the challenge of maintaining grid stability in a renewables-heavy environment. It also underscores the urgent need for investment in grid modernisation.
Technological solutions are emerging to address these challenges, including hybrid power plants, battery energy storage systems, grid-forming inverters, transmission interconnections and smart grid software.
Beyond the technology, broader drivers are fuelling grid investment: ageing infrastructure in developed economies, rising energy demand from AI and cooling loads, climate resilience and the push to reduce reliance on foreign fossil fuels.
Where opportunities lie
The reconfiguration of supply chains isn’t just about logistics, it’s about rebuilding the physical and digital infrastructure that underpins production and distribution.In industrial real estate, Europe’s reindustrialisation is creating demand for:
- Standard and light industrials. For production and assembly.
- Heavy industrials. For mass manufacturing.
- R&D hubs. For innovation and prototyping.
- Urban and ‘Big Box’ logistics. For last-mile and large-scale distribution.
In energy infrastructure, the need for grid resilience is driving investment in:
- Advanced storage and inverter technologies
- Flexible generation assets
- Transmission upgrades
- Smart grid platforms
These assets are not only essential for operational continuity – they’re aligned with sustainability goals and digitalisation agendas, making them attractive for long-term capital deployment.
Whether it’s the factories of Central Europe or the grid technologies stabilising Iberia, the investment case is clear: resilience is the new growth.
This transformation is not without its challenges – higher short-term costs, the need for skilled labour and the balancing act between open trade and strategic autonomy.
But with strong policy support and technological innovation, the foundations are being laid for a more stable, self-reliant and sustainable economic future.
Final thoughts
As the global economy pivots from efficiency to resilience, investors have a unique opportunity to participate in the rebuilding of supply chains for a new era.Whether it’s the factories of Central Europe or the grid technologies stabilising Iberia, the investment case is clear: resilience is the new growth.
This transformation is not without its challenges – higher short-term costs, the need for skilled labour and the balancing act between open trade and strategic autonomy.
But with strong policy support and technological innovation, the foundations are being laid for a more stable, self-reliant and sustainable economic future.