Reindustrialisation is no longer a theoretical ambition in Spain. According to a new report from the Capgemini Research Institute, 76% of large Spanish companies now have an active reindustrialisation strategy, up from just 45% two years ago. That figure surpasses the European and US average of 73%, marking Spain as a standout case in the continent's industrial revival.
The report, titled “The return of industry: reindustrialisation strategies in Europe and the United States”, surveyed executives across both regions. It found that geopolitical pressures are the primary driver: 85% of Spanish executives cited such pressures as the reason for action, and 60% said they would stick to their plans even if short-term costs rise.
Investment drops but focus sharpens
Despite the surge in strategic commitment, the financial picture is more sobering. Planned investment for the next three years has fallen from $4.7 trillion in 2024 to just $2.5 trillion. Yet the report interprets this not as a retreat but as a refinement. Companies are moving toward “more selective and less capital-intensive” models, prioritising efficiency over sheer scale.
Resilience now trumps short-term profit for 86% of firms. To keep production closer to home affordable, 87% plan to invest in artificial intelligence, automation, and digital twins. In Spain, nine out of ten companies intend to deploy AI, cementing its role as a crucial economic driver.
The reindustrialisation landscape varies sharply across the Atlantic. The United States is leaning heavily on reshoring—bringing factories back to American soil. Europe, by contrast, is increasingly turning to friendshoring: manufacturing in allied countries such as India, Vietnam, Mexico, and Canada. More than half of companies have no intention of leaving China entirely, but the goal is to spread risk rather than sever ties.
Spain's rapid shift reflects broader European trends. The country's industrial base, long reliant on tourism and services, is now being reoriented toward production. This aligns with the EU's push for strategic autonomy, though challenges remain. For context, Spain's political landscape has been shifting rightward, as noted in our analysis of Pedro Sánchez's challenges. Meanwhile, the country continues to lead Europe in tourism, as overnight stays data shows.
The report underscores that reindustrialisation is not a uniform process. While the US pursues a more protectionist path, Europe is building a network of trusted supply chains. Spain's high adoption rate suggests that even smaller economies can move quickly when geopolitical and economic incentives align. Whether this momentum can be sustained amid falling investment levels will be a key test for the continent's industrial future.
