Top 19 'De-Globalization' Themed Investment Strategies to learn for capitalizing on shifting supply chains in 2025 - Goh Ling Yong
For the past four decades, the world has operated on a simple, powerful premise: globalization. Goods, capital, and information flowed across borders with increasing ease, creating a hyper-efficient, interconnected global economy. We were told this was the permanent state of things. But as we look towards 2025, the cracks in that foundation are impossible to ignore.
The COVID-19 pandemic exposed the fragility of just-in-time supply chains that stretched halfway around the world. Geopolitical tensions, most notably between the US and China, have turned trade from a tool of cooperation into a weapon of competition. Nations are now prioritizing resilience and national security over pure efficiency, sparking a powerful new trend: de-globalization. This isn't about the world shutting down; it's about a great realignment. Supply chains are being redrawn, manufacturing is coming home (onshoring), or moving to friendly nations (friend-shoring).
This seismic shift is more than just a headline—it's one of the most significant investment opportunities of our generation. Companies and entire industries are being reshaped, creating a new set of winners and losers. For the prepared investor, this volatility is a fertile ground for growth. Here are 19 de-globalization-themed investment strategies to help you navigate and capitalize on this new world order in 2025.
1. The Industrial Automation & Robotics Boom
As companies move manufacturing from low-wage countries back to developed nations, they face a stark reality: higher labor costs. The solution? Robots. Onshoring is economically unfeasible without a massive investment in automation to offset the wage gap and boost productivity.
This trend is a direct tailwind for companies that design, build, and integrate industrial robots, automated assembly lines, and warehouse logistics systems. We're talking about the "picks and shovels" of the new manufacturing era. These technologies are no longer a luxury but a necessity for any company serious about reshoring its operations.
Pro-Tip: Look for leaders in robotics and factory automation like Fanuc (FANUY), Rockwell Automation (ROK), and Siemens (SIEGY). ETFs like the ROBO Global Robotics and Automation Index ETF (ROBO) offer broader exposure to this critical theme.
2. Advanced Manufacturing & 3D Printing
De-globalization is accelerating the adoption of technologies that make localized production faster and cheaper. At the forefront is advanced manufacturing, particularly industrial-scale 3D printing (additive manufacturing). This allows companies to produce complex parts on-demand, without relying on distant suppliers.
Imagine an aerospace company 3D printing a critical turbine blade in-house instead of waiting months for it to arrive from an overseas foundry. This is a game-changer for supply chain resilience. The technology reduces waste, shortens development cycles, and allows for unprecedented customization, making domestic manufacturing competitive again.
Pro-Tip: Keep an eye on established players like Stratasys (SSYS) and 3D Systems (DDD), as well as companies that supply the materials and software for this growing industry.
3. Industrial Real Estate & Logistics Hubs
New factories need to be built somewhere. Reshored supply chains require a complete overhaul of logistics networks, leading to a surge in demand for modern warehouses, distribution centers, and manufacturing facilities, especially in North America and Europe.
This isn't just about four walls and a roof. These are highly sophisticated "smart" warehouses integrated with automation and robotics, located near key transportation arteries. Industrial Real Estate Investment Trusts (REITs) are a primary beneficiary, as they own and operate these essential properties.
Pro-Tip: Leading industrial REITs like Prologis (PLD) and Duke Realty (DRE) are well-positioned. Also, consider companies that build and manage the infrastructure around these new industrial parks.
4. Friend-Shoring Winner: Mexico
As US companies reduce their reliance on China, they are looking for manufacturing partners who are closer, friendlier, and integrated into the same trade bloc. Mexico is the undisputed winner of this "near-shoring" trend, thanks to the USMCA trade agreement and its shared border with the world's largest consumer.
International firms are pouring billions into setting up new factories in northern Mexico to serve the US market. This creates a ripple effect, boosting everything from Mexican industrial parks and transportation networks to its skilled labor market.
Pro-Tip: The most direct way to play this is through a Mexico-focused ETF like the iShares MSCI Mexico ETF (EWW), which holds a basket of the country's largest public companies benefiting from this influx of foreign investment.
5. Friend-Shoring Winner: Vietnam & Southeast Asia
For companies seeking a "China plus one" strategy in Asia, Vietnam and the broader ASEAN region are top destinations. With a young, dynamic workforce and lower manufacturing costs, countries like Vietnam, Malaysia, and Indonesia are absorbing the supply chain capacity that is exiting China.
These nations are rapidly building out their infrastructure and moving up the value chain from simple textiles to complex electronics assembly. This diversification of global manufacturing is a long-term trend that will fuel economic growth across the region for years to come.
Pro-Tip: Consider ETFs like the Global X FTSE Vietnam ETF (VNAM) or the iShares MSCI ASEAN ETF (ASEA) to gain diversified exposure to this key manufacturing hub.
6. Friend-Shoring Winner: India
India presents a unique dual opportunity. It's not only a prime candidate for friend-shoring, with major companies like Apple ramping up production there, but it also boasts a massive, fast-growing domestic market of 1.4 billion people.
The Indian government's "Make in India" initiative is providing powerful incentives for companies to establish manufacturing bases. As India integrates further into global supply chains while simultaneously serving its own booming consumer class, it becomes a powerful de-globalization play.
Pro-Tip: An ETF like the iShares MSCI India ETF (INDA) provides broad exposure. Also, research specific Indian conglomerates with strong manufacturing and infrastructure divisions.
7. Semiconductor Independence
Semiconductors are the bedrock of the modern economy, and the geographic concentration of their production in Taiwan has been identified as a critical global vulnerability. Nations like the US, Japan, and Germany are now aggressively subsidizing the construction of domestic chip foundries to ensure a secure supply.
This has ignited a capital expenditure supercycle in the semiconductor industry. The beneficiaries are not just the chip designers or manufacturers like Intel (INTC) or TSMC (TSM), but also the highly specialized companies that make the complex equipment needed to build and run a fabrication plant.
Pro-Tip: Look beyond the chipmakers to the "picks and shovels" players. Companies like ASML Holding (ASML), Applied Materials (AMAT), and Lam Research (LRCX) are indispensable to this onshoring effort.
8. Critical Minerals & Rare Earths Mining
Modern technology—from EVs and wind turbines to smartphones and missiles—runs on a cocktail of critical minerals like lithium, cobalt, nickel, and rare earth elements. For decades, China has dominated the mining and processing of these materials, giving it immense geopolitical leverage.
As part of de-globalization, Western nations are scrambling to secure their own supply chains for these vital inputs. This means investing heavily in mining and processing projects located in friendly, geopolitically stable countries like Australia, Canada, and the United States.
Pro-Tip: Investigate miners focused on these strategic materials outside of China, such as MP Materials (MP) for rare earths or Albemarle (ALB) for lithium. The SPDR S&P Metals & Mining ETF (XME) offers broader exposure.
9. Upgrading Domestic Infrastructure & Utilities
A revitalized domestic manufacturing base requires a 21st-century infrastructure backbone to support it. This means upgrading everything: electrical grids to power new factories, ports to handle different shipping routes, and highways and rails to move goods efficiently.
This creates a durable, long-term demand for engineering and construction firms, raw material suppliers, and utility companies. These are often stable, dividend-paying investments that are direct beneficiaries of government-backed infrastructure spending bills designed to support onshoring.
Pro-Tip: Infrastructure ETFs like the Global X U.S. Infrastructure Development ETF (PAVE) are a great starting point. Also, look at top-tier engineering firms and regulated utilities in regions seeing significant manufacturing investment.
10. Cybersecurity for Fragmented Supply Chains
A globalized supply chain, while complex, was often managed through centralized systems. A de-globalized world features a more fragmented, decentralized, and digitally connected network of suppliers. This creates exponentially more potential entry points for cyberattacks.
As Goh Ling Yong often points out, securing these new, complex supply chains is no longer an IT issue; it's a core business continuity and national security issue. Companies that provide cybersecurity solutions, especially for operational technology (OT) in factories and logistics, are set for explosive growth.
Pro-Tip: Leaders in cloud and endpoint security like CrowdStrike (CRWD) and Palo Alto Networks (PANW) are essential plays, as they protect the digital connections that hold these new supply chains together.
11. Energy Independence & Security
One of the first casualties of geopolitical friction is the reliability of energy supplies. We saw this clearly with Europe's reliance on Russian natural gas. De-globalization means countries are prioritizing energy independence as a matter of national security.
This is a multi-pronged tailwind. It benefits domestic oil and gas producers, LNG export infrastructure (like Cheniere Energy, LNG), and accelerates the build-out of domestic renewable energy sources like solar and wind. It's even sparking a renaissance for nuclear power as a reliable, carbon-free baseload energy source.
Pro-Tip: A diversified approach is best. Consider energy sector ETFs (XLE), LNG exporters, and clean energy ETFs (ICLN) to capture all facets of the push for energy security.
12. Defense & Aerospace Spending
De-globalization is not happening in a vacuum; it's a symptom of a more fractured and contentious geopolitical landscape. Rising tensions between global powers inevitably lead to increased defense budgets.
Nations are reinvesting in their military capabilities, from next-generation fighter jets and naval ships to advanced missile defense systems and cybersecurity warfare. This provides a steady, long-term demand stream for prime defense contractors and the vast network of suppliers that support them.
Pro-Tip: Major defense contractors like Lockheed Martin (LMT), Raytheon (RTX), and BAE Systems (BAESY) are the most direct beneficiaries. Aerospace and defense ETFs like ITA or PPA offer diversified exposure.
13. Commodities & Raw Materials
A key, and perhaps underappreciated, consequence of de-globalization is that it is inherently inflationary. Rebuilding entire supply chains is far less efficient than the globalized system it's replacing. It requires duplicating infrastructure and creates competition for finite resources.
This means building new factories, warehouses, and transportation networks will require immense amounts of basic materials like copper, steel, and cement. This structural increase in demand for "old economy" materials could fuel a long-term commodities supercycle.
Pro-Tip: Investing directly in commodities can be volatile. Consider large, diversified mining companies like BHP Group (BHP) or ETFs that track industrial metals like the Invesco DB Base Metals Fund (DBB).
14. Pharmaceutical & Healthcare Onshoring
The pandemic revealed a shocking truth: a vast majority of the world's essential medicines and their active pharmaceutical ingredients (APIs) are produced in China and India. This dependence is now viewed as an unacceptable national security risk.
Governments are now actively promoting the onshoring of critical pharmaceutical manufacturing through grants and favorable regulations. This benefits not only the large drug makers but also the smaller, specialized contract development and manufacturing organizations (CDMOs) that can provide domestic production capacity.
Pro-Tip: Look for pharmaceutical companies and CDMOs with significant and growing manufacturing footprints in North America and Europe.
15. The New Logistics & Shipping Routes
The old shipping routes were dominated by massive vessels sailing from Asia to Europe and North America. As supply chains shift to Mexico, Southeast Asia, and Eastern Europe, entirely new logistics networks are required.
This benefits niche logistics providers, regional trucking companies, and railroad operators who can adapt to these new trade flows. It also drives investment in port infrastructure in places like the US Gulf Coast or the Mediterranean to handle goods from new locations.
Pro-Tip: Investigate railroad operators like Union Pacific (UNP) serving the US-Mexico trade route, and global logistics leaders like Kuehne + Nagel (KHNGY) that are nimble enough to manage these complex new networks.
16. Small & Mid-Cap Domestic Champions
While large multinational corporations will adapt, the most direct beneficiaries of onshoring are often the small and mid-cap (SMID) companies that form the backbone of a domestic supply chain. These are the component manufacturers, specialized engineering firms, and business service providers that get the new contracts.
These companies are often overlooked by large institutional investors, but they can offer explosive growth potential as they become critical suppliers to the newly reshored manufacturing giants. This requires more research but can be highly rewarding.
Pro-Tip: The iShares Russell 2000 ETF (IWM) provides broad exposure to US small caps. For a more targeted approach, screen for SMID industrial and materials companies with high domestic revenue exposure.
17. Skilled Labor & Workforce Training
You can't have a manufacturing renaissance without skilled workers to operate the new factories and sophisticated machinery. Decades of offshoring have led to a skilled labor shortage in many developed countries, creating a massive need for workforce training and technical education.
This is a powerful tailwind for companies that provide vocational training, professional certifications, and educational technology platforms focused on the industrial trades. They are a crucial enabler of the entire onshoring trend.
Pro-Tip: While many of these are smaller or private companies, look for publicly traded education and staffing firms that are expanding their technical and vocational programs.
18. Agricultural Self-Sufficiency & AgTech
Just like with energy and medicine, food security is climbing to the top of the national agenda. The war in Ukraine highlighted how quickly global food supply chains can be disrupted. This is pushing countries to invest in their domestic agricultural capacity.
This trend benefits not just traditional farming operations but, more importantly, the technology that makes them more efficient. This includes precision agriculture (GPS-guided tractors, drones), advanced irrigation systems, and vertical farming technologies that allow for crop production in any climate.
Pro-Tip: Companies like Deere & Company (DE) are leaders in precision agriculture. Also, explore companies involved in fertilizer production and advanced seed technology.
19. The Contrarian Play: Shorting Fragile Globalizers
For every trend, there is a counter-trend. A more advanced strategy is to identify companies that are most vulnerable to de-globalization and are failing to adapt. These are often businesses with thin margins, heavy debt loads, and supply chains that are almost exclusively dependent on a single country like China.
As geopolitical frictions rise and supply chain disruptions become more common, these companies will struggle with rising costs, production delays, and loss of market share. This is a higher-risk strategy that requires deep fundamental analysis, but it can be a powerful hedge against the risks of this new era. As I, Goh Ling Yong, always advise, understand the risks before employing advanced strategies.
Pro-Tip: This strategy is best left to experienced investors. It involves identifying companies with high geopolitical risk exposure, low geographic diversification in their manufacturing footprint, and weak balance sheets.
Conclusion: A New Era for Investors
The shift from hyper-globalization to a multi-polar, regionalized world is not a short-term event. It is a long-term, structural realignment that will define the investment landscape for the next decade. While it introduces new risks and volatility, it also unlocks incredible opportunities for those who can see the writing on the wall.
The 19 strategies outlined above provide a roadmap for repositioning your portfolio to thrive in this new environment. The key is to think about resilience, security, and proximity. Where are the new factories being built? Who is building them? What technologies are they using? And which countries are benefiting from these new flows of capital?
The era of easy, set-and-forget global index investing may be giving way to a period where thoughtful, thematic stock selection will be rewarded like never before. The great realignment has begun—is your portfolio ready?
What other de-globalization themes are on your radar for 2025? Share your thoughts and strategies in the comments below!
About the Author
Goh Ling Yong is a content creator and digital strategist sharing insights across various topics. Connect and follow for more content:
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