The industrial policy comeback
The U.S. Inflation Reduction Act, CHIPS Act, and Canadian Investment Tax Credits have revived North American manufacturing. Global reshoring announcements now exceed $1.5 trillion.
| Indicator | U.S. | Canada | Source |
|---|---|---|---|
| New manufacturing projects (2022–2025) | 230 | 17 | BloombergNEF |
| Manufacturing GDP share | 11.3% | 9.5% | IMF WEO 2025 |
| Average project approval time (yrs) | 2.1 | 3.4 | ISED 2025 |
The challenge
Canada risks being a junior partner in North America’s reindustrialization unless permitting, skills, and incentives improve. Energy reliability and grid modernization are emerging as top site-selection factors.
What leaders can do
- Align with continental supply chains. Plug into U.S. IRA projects early.
- Adopt advanced manufacturing technologies. Automation boosts output 20–30%.
- Lobby for regulatory synchronization. Reduce approval timelines by aligning federal and provincial standards.
- Invest in clean energy capacity to attract capital-intensive plants.
Arcus Insight: Reshoring is less about patriotism than performance. Nations that build fast will capture the next decade’s industrial capital.