Rising trade barriers against China and growing concern over supply chain reliability are reshaping where the world makes things. That shift creates potential openings and risks for investors who care about where factories are built, not just what they produce. This article looks at three stocks that appear exposed to these onshoring and domestic manufacturing trends, and explains how each might react if current China shock fears deepen.
The three stocks below are just a starting sample, and the full screen surfaced 22 more companies with equally compelling onshoring and domestic manufacturing narratives that are not covered in this article. To identify and analyze the highest conviction ideas in this theme, go straight to the Developed-Market Onshoring & Domestic Manufacturing Beneficiaries screener.
Nexans (ENXTPA:NEX)
Nexans is a France headquartered cable group that sits squarely in the onshoring theme because its power and industrial cables are core ingredients for new factories, upgraded grids, and resilient local infrastructure. The PWR Grid & Connect activities are the largest contributors, with PWR Connect generating about €3.8b in revenue, followed by PWR Transmission at about €1.8b, PWR Grid at roughly €1.7b, and Other Activities at about €1.3b. With a market cap of about €6.0b, Nexans is a mid to large sized player that many investors may not yet have on their radar.
Investors looking at the onshoring story may want to monitor Nexans because it supplies the cables that physically connect new domestic factories and upgraded power grids, and it has been reshaping itself around electrification, offshore wind, and higher value grid projects. The company is working with low carbon materials and long term supply deals, which supports the push for cleaner, local infrastructure. At the same time, profitability is relatively thin and tied to volatile construction and infrastructure cycles, with one off losses and funding structure adding another layer of risk. A key consideration is whether the earnings profile and focus on high value projects can outweigh those pressure points as demand for resilient, home based manufacturing networks develops.
Nexans is restructuring its focus on higher value grid and electrification projects, yet thin margins and funding choices could be masking the real story. Get the full context in the 4 key rewards and 2 important warning signs
Prysmian (BIT:PRY)
Prysmian is an Italy headquartered cable group that ties directly into the onshoring and domestic manufacturing theme because its power and telecom cables are basic equipment for new factories, data centers, and grid upgrades in developed markets. The business is broad, with Electrification Industrial & Construction contributing about €8.3b in revenue, Power Grid about €4.2b, Transmission about €3.4b, and Digital Solutions about €1.9b, alongside other electrification lines. With a market cap of roughly €35.7b, Prysmian is a large scale infrastructure supplier rather than a niche component maker.
Investors looking at Prysmian get exposure to electrification, grid reinforcement, and AI era data connectivity in one stock, supported by a mix of long term transmission projects and higher volume construction and fiber products. The company is already committing over $1b to expand U.S. manufacturing capacity and has signed a €5.5b multi year optical cable deal with Molex, which ties directly to onshoring and data center build outs. The flip side is that this is now a premium valued, capital intensive business with meaningful debt and complex project risk. The key question is whether its global cable and systems platform can keep justifying that confidence if conditions or tariff policies shift again.
Prysmian’s push into U.S. factories, power grids, and data cables looks like an accelerating onshoring story that many investors may still be underestimating. Get the full picture in the analyst forecasts for Prysmian
Avnet (AVT)
Avnet is a Phoenix based distributor that sits in the flow of onshoring because it supplies the semiconductors, connectors, and embedded systems that go into factory equipment, automation projects, and industrial electronics. The larger Electronic Components division generates about US$25.9b in revenue, with the Farnell unit adding about US$1.8b from online and catalog distribution, together supporting a global customer base from OEMs to smaller engineering teams. With a market value of about US$7.6b, Avnet is a mid sized way to get exposure to shifting electronics and industrial supply chains as production moves closer to end markets.
Investors looking at Avnet are getting a large scale distributor that sits between chipmakers and manufacturers at a time when tariffs and supply chain rerouting make authorized, technically capable middlemen more important. The company is leaning into higher margin design support, digital platforms, and embedded systems. That focus could help its thin 1.2% net margins and relatively low 6.7% return on equity if that mix shift continues. The flip side is that Avnet relies heavily on external funding, has had a recent one off loss of about US$134.7m, and its dividend is not fully backed by free cash flow. As a result, the onshoring exposure comes with balance sheet and cash generation questions that are worth unpacking further.
Avnet’s thin 1.2% net margin and 6.7% return on equity could be masking where this onshoring story really goes next. Get the full 3 key rewards and 3 important warning signs (1 is major!)
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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