Rewriting the Global Industrial Map: Where Companies and Capital Are Placing Their Bets

A persistent state of uncertainty is causing companies to face an array of environmental, infrastructural and geopolitical challenges that directly impact supply chains and real estate portfolios. To help clients navigate these challenges, Newmark recently hosted the Industrial Velocity Conference, hosting a panel titled "Rewriting the Global Industrial Map: Where Companies and Capital Are Placing Their Bets." 

Moderated by Hettie Cust of Newmark’s International Desk, the discussion brought together three regional leaders: Sergio Perez from Latin America, Josh Pater from the UK and Alan Reeves from the U.S. These industrial experts analyzed how companies and capital are navigating a world defined by environmental, infrastructural and geopolitical challenges. 

Navigating a State of "Permacrisis" 

In recent years, the global industrial sector has been operating in an environment defined by continuous disruption. The combination of extreme weather events, infrastructural issues (such as the Baltimore Bridge collapse and the Suez Canal blockage), and unstable and unpredictable geopolitics have highlighted the fragility of our global supply chains. Businesses increasingly face the challenges of these ‘Black Swan events’, exacerbated by frequent macroeconomic shocks – in 2025, U.S. tariff policy changed every 4.7 days on average, further fueling this environment of sustained uncertainty. 

This reality has fundamentally altered supply chain strategy, forcing executives to rethink their operational footprints. Alan Reeves emphasized that businesses must adapt their real estate strategies to accommodate this new environment. He notes the reality that “the only thing we can be certain about these days is uncertainty.” 

The ‘just-in-time' inventory model has been replaced by a ‘just-in-case’ mentality, prompting companies to hold more inventory and develop multi-node networks to distribute risk. This structural shift has fueled the rise of nearshoring and friendshoring as corporations seek greater stability and control. 

Regional Investment Flows and Nearshoring Trends 

As corporations seek stability, capital continues to flow towards regions offering strategic advantages in labor, infrastructure and geopolitical alignment. The panelists detailed how these dynamics play out across the three critical markets of Mexico, the U.S. and the UK.  

Expanding Operations in Mexico 

Mexico continues to capture significant FDI as companies pursue nearshoring strategies to secure North American supply chains. Sergio Perez highlighted the market's ongoing strength despite external economic noise. "The highest absorption in the country was 2024, which is more than triple 2020 levels, so it's at a historical high," Perez explained. He pointed to demographic advantages as a primary driver for this growth, noting that Mexico has a competitive labor pool with a mean age of 29 and currently has more engineering graduates than the U.S. 

While some activity has shifted from the border to the country's center to manage labor costs, capital continues to flow in as groups like Panattoni Development and Realty Income are entering the Mexican market. 

Securing Supply Chains in the United Kingdom 

In Europe, the UK sees targeted capital deployment aimed at bolstering domestic capabilities and supporting advanced manufacturing. Direct investment from overseas plays a major role in this expansion. 

Josh Pater noted a structural increase in space requirements as companies build inventory. This demand, combined with a reduction in on-site development starts, creates a landlord-favorable environment. The UK is seeing significant inward investment, particularly from the U.S. and Asia, in sectors like data centers, automotive and retail logistics. Pater also identified the defense sector as a source of new demand. Pater stated, “In the last three months, we've seen 1.2 million square feet of take up within that sector specifically. That's new demand coming through." 

Focusing on Mission-Critical Assets in the United States 

The U.S. remains a primary destination for foreign capital, particularly in high-value sectors like semiconductors, data centers and defense-adjacent manufacturing. Alan Reeves observed that companies prioritize locations offering long-term operational security. 

"When you look across the entire global landscape, we've continued to see an uptick in foreign direct investment across the globe, though the U.S. continues to see the largest share of it," Reeves said. He noted specific geographic preferences, stating, "The U.S. Southeast remains one of the hottest destinations for FDI." 

Reeves emphasized that investors are prioritizing stability over pure cost savings and seek locations with reliable power, water and infrastructure to support long-term operations. 

A Shift in Decision-Making 

A central theme was the evolution of how investment decisions are made. The panelists noted a clear pivot from exclusively cost-centric analysis to a focus on stability and certainty. Reeves explained that clients now understand that long-term cost success is an outcome of operational stability. Factors like community opposition, which can be quickly mobilized through social media, and the condensed timelines for corporate site selection now play a larger role in the decision matrix. 

Pater added that real estate is just one component of a larger business strategy. Clients require nimble advisory services to navigate changing market conditions, with some international entrants phasing their investments to establish a foothold before committing to larger, long-term bets. 

An Optimistic Outlook 

Despite complex market conditions, the panelists expressed strong confidence in the industrial sector's trajectory. 

• Alan Reeves highlighted the potential for a substantial increase in announced capital investment in the U.S. over the next three to five years as a result of industrial policy repositioning, possibly an incremental $300 billion to $500 billion above typical cycles. 

• Sergio Perez believes Mexico’s strong fundamentals and strategic partnership with the U.S. position it for continued growth. 

• Josh Pater sees strengthening inward investment for the UK and Europe, driven by a global race for capital deployment. 

The consensus was clear: while the global map is being redrawn by complex forces, the industrial sector is not stagnant. Instead, it is adapting with strategic, forward-looking decisions that prioritize resilience and operational certainty, paving the way for continued growth and investment.