U.S. Manufacturing Onshoring Stocks For Investors Watching Tariff Driven Factory Spending
With Washington now applying 50% tariffs on US$20b of Canadian imports and Ottawa preparing dollar-for-dollar retaliation, the long talked about shift toward onshoring suddenly feels more real. This disruption to steel, autos, lumber, and other cross border flows could reshape where factories sit and where capital goes. This article walks through 3 stocks exposed to this news and why they may matter for your watchlist.
The three stocks below are just a starting sample, since the full screen surfaced 29 more industrials and materials companies with onshoring related narratives that are not covered here but may be worth a closer look. To identify and analyze the ideas that best fit your own approach, head straight into the U.S. Manufacturing Onshoring Beneficiaries (Industrial & Materials) screener.
MYR Group (MYRG)
Overview: MYR Group is a US based electrical contractor that builds and maintains high voltage lines, substations, and complex wiring for utilities, factories, data centers, transport systems, and other large infrastructure projects, with operations largely tied to domestic spending on power grids and industrial facilities. As manufacturers bring more production onshore and plants are upgraded, MYR Group’s role wiring those facilities and reinforcing the surrounding grid places it close to the physical work behind the onshoring trend.
Operations: MYR Group generates about US$2.1b from Transmission & Distribution projects and about US$1.9b from Commercial & Industrial work, giving it two sizeable revenue pillars across utility and industrial customers.
Market Cap: US$5.0b
MYR Group offers exposure to the nuts and bolts of onshoring, wiring up new US factories, data centers, and grid upgrades while carrying a sizeable backlog of multi year utility contracts that add visibility to future work. The company has been focusing on higher margin projects such as battery storage and data centers, which supports improving profitability. At the same time, rising labor costs, lumpy commercial and industrial backlog, and heavier spending to win bigger jobs could pressure margins if demand slows. For investors tracking supply chain reshoring, this mix of opportunity and execution risk makes MYR Group an electrical contractor worth a closer look.
MYR Group’s push into higher margin data center and battery projects could be masking a very different risk reward profile than its utility backlog suggests. Get the full picture in the 5 key rewards and 1 important warning sign
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Granite Construction (GVA)
Overview: Granite Construction is a U.S. infrastructure contractor and materials producer that builds and rehabilitates roads, bridges, rail lines, airports, dams, industrial sites, and energy projects, while also supplying aggregates and asphalt that feed its own jobs and third party customers. That mix ties Granite directly to the onshoring theme as manufacturers, logistics hubs, data centers, and energy projects require more domestic transport links, industrial sites, and construction materials.
Operations: Granite generates about US$4.1b from its Construction segment and about US$1.2b from Materials, offset by around US$0.4b of intersegment eliminations where it supplies its own projects.
Market Cap: US$5.4b
Granite Construction offers exposure to U.S. onshoring from the ground up, literally pouring the roads, industrial pads, data center sites, and energy infrastructure that support more domestic production. The company is focusing on this demand with a growing backlog, materials integration that can help with cost control, and acquisitions that expand its reach in high growth regions. At the same time, Granite is working toward sustained profitability and carries meaningful debt, so execution on new projects and further deals needs to be tight. For investors tracking onshoring, this combination of infrastructure exposure, materials scale, and balance sheet risk makes Granite a stock to watch closely.
Granite Construction’s growing backlog and materials scale could be masking a very different risk reward mix than many investors assume. Get the full story in the 4 key rewards and 2 important warning signs
EMCOR Group (EME)
Overview: EMCOR Group is a U.S. based electrical and mechanical contractor that designs, installs, and services the critical systems that keep factories, data centers, and other industrial facilities running. This ties it directly to onshoring related builds and upgrades as production shifts onshore from Canada. Alongside this manufacturing work, EMCOR also provides broad facility services such as maintenance, energy retrofits, and industrial turnaround work across sectors like healthcare and refining.
Operations: EMCOR generates most of its revenue from U.S. Mechanical Construction and Facilities Services at about US$8.2b and U.S. Electrical Construction and Facilities Services at about US$5.8b. It also sees additional contributions from U.S. Building Services at about US$3.2b and U.S. Industrial Services at about US$1.4b.
Market Cap: US$34.7b
For investors tracking U.S. manufacturing onshoring, EMCOR Group provides a mix of electrical and mechanical project work on data centers, high end factories, and industrial sites. This is supported by facility services that can add recurring earnings. Management has highlighted a large and diversified backlog linked to data centers, healthcare, and manufacturing, along with a history of using acquisitions and prefabrication to pursue higher efficiency and margins. At the same time, the company notes risks around labor shortages, industrial cycle swings, and the need to absorb tariff related cost changes, while working to build contractual protections and pricing discipline. For investors seeking exposure to onshoring driven factory work, with both quality metrics and execution risks to consider, EMCOR may warrant closer attention.
EMCOR’s mix of high-spec factory and data center work, combined with recurring services, suggests a story that many investors may only be half seeing. Get the full context in the analysis report for EMCOR Group
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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