CoTD: US Manufacturing Capacity Back on Growth, Production Will Follow

Research evidence excerpt

CoTD: US Manufacturing Capacity Back on Growth, Production Will Follow

Update

June 16, 2026 11:06 AM GMT

Morgan Stanley & Co. LLCMMulti-Industry | North America Christopher Snyder, CFA

Equity Analyst

CoTD: US Manufacturing Chris.Snyder@morganstanley.comBrandon Knutson +1 212 761-4470

Brandon.Knutson@morganstanley.com +1 212 761-4168

Capacity Back on Growth, Toby Okwara

Toby.Okwara@morganstanley.com +1 212 761-1693

Production Will Follow Christine Yao

Research Associate

Christine.Yao@morganstanley.com +1 212 761-4193

Chart of the Day (CoTD) highlights charts that tie into latest

Multi-Industry

investor conversations, are timely for the macro + company North America

events, or just ones that we find interesting. Industry View Attractive

Exhibit 1: Where is US adding Manufacturing Capacity ? Chart below tracks April

2026 YoY change in production capacity by vertical. While total US Industry

capacity +1.3% sounds muted, installed bases move slowly and this positive rate

of change is following decades of stagnation

Source: Morgan Stanley, US Census Bureau

The nature of our US Reshoring incomings suggest the thematic is really just a

function of policy driven headlines rather than actual impact on the ground - we

very much disagree and want to provide some concrete proof (pun intended). US

Industrial capacity grew 1.3% yoy in April - while this sound muted, installed bases

more slowly and what is more important is that this represents positive rate of

change for the US Industrial economy after decades of stagnation (Exhibit 2-3).

And activity should continue to build over time - Reshoring momentum begets

more momentum as supply chains are established and this infrastructure can be Morgan Stanley does and seeks to do business with

companies covered in Morgan Stanley Research.