Reshoring and Supply Chain Reconfiguration: Unlocking Undervalued Industrial and Logistics Equities in 2025

The U.S. industrial and logistics sector is undergoing a seismic shift in 2025, driven by historic tariffs, geopolitical tensions, and a strategic pivot toward supply chain resilience. As companies abandon fragile global supply chains in favor of nearshoring and onshoring, industrial real estate, logistics providers, and technology enablers are reaping the rewards. For investors, this presents a unique opportunity to identify undervalued equities poised to capitalize on these structural trends.

The Drivers of Nearshoring: Tariffs, Resilience, and Regionalization

The Biden administration's aggressive tariff policies-ranging from 10% on Chinese goods to 25% on solar panels and 50% on electric vehicles-have forced corporations to rethink their sourcing strategies, according to a Forbes analysis. According to a JLL report, U.S. industrial tenant demand surged 13% year-over-year in 2025, with third-party logistics (3PL) providers accounting for 35% of leasing activity. CBRE notes that 3PLs will dominate this space for years, as companies prioritize flexibility and proximity to end markets.

Meanwhile, manufacturing demand is accelerating. Phoenix, a nearshoring hub, has seen a 385% spike in manufacturing needs since 2020, driven by semiconductor and consumer goods producers, a trend JLL has documented. This shift is not temporary; it reflects a long-term reconfiguration of supply chains toward regionalization, automation, and AI-driven efficiency, according to a LoadMiles article.

Key Beneficiaries: 3PLs, Logistics Tech, and REITs

1. Third-Party Logistics (3PL) Providers
3PLs like DHL Supply Chain, FedEx Supply Chain, and C.H. Robinson are central to this transition. DHL's 1,600 warehouses and AI-driven systems enable complex, localized operations, while C.H. Robinson's Navisphere platform offers real-time tracking and predictive analytics, according to a DVUnified roundup. Analysts rate CHRW as a "Moderate Buy," according to MarketBeat, with a $116.33 average price target and a 4.3% free cash flow yield.

2. Logistics Technology
Manhattan Associates (MANH) is a standout in logistics software. Despite a -28.84% six-month return, the company's cloud adoption and AI innovations have attracted a "Buy" rating from DA Davidson and Baird, with price targets ranging from $190 to $270, according to an Investing.com note. Its trailing P/E of 56.07 and forward P/E of 40.59 suggest growth potential, albeit at a premium to peers, per StockAnalysis.

3. Logistics REITs
Prologis (PLD), the world's largest logistics REIT, is benefiting from surging demand for modern, automated warehouses. As of September 2025, PLD trades at a P/E of 19.65, down from 25.71 in late 2024, as reported by Macrotrends. This discount to historical averages, combined with strong leasing demand in the U.S. and Mexico, positions Prologis as a compelling value play, a point also highlighted by a Forbes analysis.

Undervalued Industrial Equities: Metrics and Opportunities

CNH Industrial (CNH)
CNH Industrial, a leader in farm and construction machinery, is trading at a 43% discount to the Morningstar fair value estimate. Its P/E of 17.04 is 25% below its 10-year average of 21.31, reflecting undervaluation despite strong demand for sustainable equipment, according to Public.com.

GE Aerospace (GE)
GE Aerospace's P/E of 41.96 (up from 27.80 in 2024) appears elevated, but its $140B services backlog and focus on green aviation justify optimism, according to Yahoo Finance. Analysts project $6.99 in EPS for 2026, driven by reshoring and infrastructure spending, as noted in a Motley Fool article.

Boeing (BA) and Union Pacific (UNP)
Boeing, despite its recent challenges, remains a key player in aerospace and defense, with nearshoring trends boosting domestic production. Union Pacific, a critical rail infrastructure provider, benefits from increased freight volumes tied to onshoring, according to Validea.

Risks and Considerations

While the nearshoring boom is robust, investors must remain cautious. High P/E ratios for some logistics tech stocks (e.g., MANH) suggest growth expectations may already be priced in. Additionally, interest rate volatility could pressure REITs like Prologis. However, for companies with strong fundamentals and clear tailwinds-such as CNH Industrial and 3PLs-the risks are outweighed by long-term potential.

Conclusion

The reshoring and nearshoring revolution is not a passing trend but a structural reimagining of global supply chains. For investors, this means opportunities in undervalued industrial and logistics equities that are well-positioned to benefit from proximity-based manufacturing, automation, and regionalized supply chains. By focusing on companies with strong valuation metrics, like CNH Industrial and Prologis, and leveraging the growth of 3PLs and logistics tech, investors can capitalize on a transformative shift in the industrial sector.