Reshoring Capex Is Showing Up in Industrial Backlogs

Backlog commentary from industrial suppliers this earnings season has been consistently stronger than headline PMI data would suggest.

What we're seeing

Automation equipment and electrical infrastructure suppliers are guiding to backlogs extending 18 to 24 months out, well beyond typical replacement-cycle demand.

Our read

This looks less like a short-cycle inventory restock and more like the early innings of a multi-year reshoring capex cycle. We are building positions in suppliers with the highest content-per-facility in new domestic manufacturing builds.