Clean industry opens $4.7tn global supply chain investment opportunity

Clean cement and steel sectors attract trillions in supply chain capital

Heavy industry is moving into a new investment phase. Clean cement, low-carbon steel, green ammonia and sustainable aviation fuel are drawing capital at a scale rarely seen outside energy or infrastructure. Goldman Sachs Research estimates that $6 trillion of annual investment is needed this decade to support net zero, infrastructure and clean water goals. Much of that spending will flow into industrial supply chains.

For UK manufacturers and engineering firms, this represents a commercial opening. The opportunity is not confined to producing the end products. It extends across project development, specialist equipment, logistics, materials supply and technical services. Businesses already active in construction, chemicals, metals or transport may find themselves part of a much larger industrial procurement cycle.

This shift is being driven by policy, yes, but also by hard commercial factors. Supply chain volatility, geopolitical friction and rising tariffs are forcing manufacturers to rethink where they build capacity. Consequently, investment in domestic and allied production is rising fast. Capgemini’s 2025 report on manufacturing resurgence found that organisations across the US, Europe and the UK plan to double domestic investments over the next three years.

Understanding where this capital is going, and why, matters for UK SMEs. Moreover, knowing which sectors are moving first can help businesses position themselves for contracts, partnerships or tender opportunities before the market becomes crowded.

Investment projections point to sustained industrial expansion

Goldman Sachs Research has identified green capital expenditure as a dominant driver of global infrastructure over the next decade. The firm estimates that meeting the UN Sustainable Development Goals through 2035 could require up to $4.7 trillion annually. That figure covers a broad range of priorities, including clean energy, water infrastructure and industrial decarbonisation.

Capgemini offers a different lens. Its 2025 report projects that total reindustrialisation investment, including both capital and operational expenditure, will reach around $4.7 trillion over the next three years. That is up from $3.4 trillion in 2024. The report is clear that this is not speculative. It reflects active investment plans already underway in the US, Europe and the UK.

These are not the same metric. Goldman Sachs is looking at annual global needs across multiple sectors. Capgemini is measuring near-term reindustrialisation spending in advanced economies. However, both point to the same conclusion. Industrial supply chains are entering a period of sustained, large-scale capital deployment.

The sectors attracting the most attention are those where decarbonisation is both urgent and technically complex. Cement production is responsible for around 8% of global CO2 emissions. Steel contributes another 7%. Aviation fuel remains a major source of transport emissions. Ammonia, used in fertilisers and increasingly as a hydrogen carrier, is also under pressure to decarbonise. These industries cannot simply switch to renewable electricity. They require new production processes, new facilities and new supply chains.

Supply chain resilience is driving location decisions

Decarbonisation is not the only factor. Capgemini’s research shows that two-thirds of US and European organisations now have an active or in-progress reindustrialisation strategy. These strategies are responding to supply chain volatility, geopolitical friction and tariff pressure. The goal is to bring production closer to home or into allied jurisdictions.

Friendshoring is a key part of this. Around 73% of executives surveyed by Capgemini identify it as central to future sourcing and production plans. Friendshoring means building supply chains in countries with aligned political and economic interests. For the UK, that creates potential advantages. Businesses with advanced manufacturing capabilities, engineering expertise or specialist technical services may benefit from this shift.

However, it also means competition is intensifying. European and North American firms are expanding domestic capacity at the same time. UK SMEs need to demonstrate not just technical competence but also reliability, scalability and alignment with low-carbon standards. Clients commissioning new clean cement or steel facilities will expect suppliers to meet carbon reporting requirements, often as a condition of contract.

This is particularly relevant for firms pursuing public sector tenders. Procurement Policy Note 06/21 requires suppliers bidding for central government contracts above £5 million to publish a carbon reduction plan. Many private sector clients are adopting similar requirements. Therefore, businesses without robust carbon data may find themselves excluded from high-value opportunities, regardless of technical capability.

Key sectors present distinct commercial opportunities

Clean cement is attracting early investment. Traditional cement production relies on heating limestone to extreme temperatures, releasing large quantities of CO2. New processes aim to capture those emissions or use alternative materials. Consequently, cement plants are being redesigned from the ground up. That creates demand for engineering design, emissions monitoring, carbon capture equipment, alternative fuel supply and logistics.

Steel is following a similar path. Most steel is still made in blast furnaces using coal. Electric arc furnaces and hydrogen-based direct reduction offer lower-carbon alternatives. Both require new infrastructure. Electric arc furnaces need reliable power supply and scrap metal logistics. Hydrogen reduction needs hydrogen production, storage and distribution networks. Each of these represents a supply chain opportunity.

Green ammonia is less visible but commercially significant. Ammonia is traditionally made using natural gas in a process that generates substantial emissions. Green ammonia uses renewable electricity to produce hydrogen via electrolysis, then combines it with nitrogen. This process is energy-intensive and requires new production facilities. It also creates demand for electrolyser manufacturing, hydrogen storage, ammonia transport and safety systems.

Sustainable aviation fuel is perhaps the most complex. Airlines are under pressure to reduce emissions but cannot easily switch to electric power for long-haul flights. Sustainable aviation fuel, made from waste oils, agricultural residues or synthetic processes, offers a near-term solution. However, production capacity is still limited. Scaling it up will require new refineries, feedstock supply chains and distribution networks.

UK businesses face both opportunity and competitive pressure

UK SMEs with relevant capabilities are well placed to benefit. The country has strong engineering expertise, particularly in chemicals, metals and energy. Many firms already supply industrial clients and understand the technical standards involved. However, this opportunity is not automatic. Firms need to position themselves deliberately.

First, they need to understand which parts of the supply chain they can credibly serve. A mechanical engineering firm might supply precision components for carbon capture systems. A logistics business might handle transport of hydrogen or ammonia. A consultancy might offer project development or regulatory compliance support. The key is to identify where existing capabilities align with emerging demand.

Second, businesses need to demonstrate carbon competence. Clients commissioning clean industrial projects will expect suppliers to measure and report their own emissions. That means understanding Scope 1, 2 and 3 emissions, setting reduction targets and tracking progress. For many SMEs, this will require investment in carbon accounting systems and potentially external support to ensure data quality.

Third, firms need to stay informed about where investment is flowing. Large capital projects often go to established contractors with track records in similar work. However, those contractors rely on specialist subcontractors and suppliers. Identifying the prime contractors early, understanding their procurement processes and building relationships before contracts are awarded can make the difference between winning and losing work.

Finally, businesses should consider geographic focus. Friendshoring means that some investment will favour domestic or allied suppliers. UK firms may have advantages in projects across Europe or in partnerships with US or allied-nation clients. However, they may face stronger competition from domestic suppliers in those markets. Understanding where UK credentials carry weight, and where they do not, is essential.

What UK businesses should be tracking now

• Goldman Sachs Research estimates $6 trillion of annual investment is needed this decade to support net zero, infrastructure and clean water goals globally.
• Capgemini projects that reindustrialisation investment will reach around $4.7 trillion over the next three years, up from $3.4 trillion in 2024.
• Two-thirds of US and European organisations now have an active or in-progress reindustrialisation strategy, driven by supply chain resilience concerns.
• Around 73% of executives identify friendshoring as a key part of future sourcing and production plans, favouring suppliers in allied jurisdictions.
• Clean cement, low-carbon steel, green ammonia and sustainable aviation fuel are the sectors attracting the most capital investment.
• UK SMEs need carbon reporting capabilities to compete for high-value contracts, particularly in public sector procurement under PPN 06/21.

How to position your business for clean industry contracts

Businesses should start by auditing their current capabilities against the needs of clean industrial projects. Engineering firms might assess whether their design expertise applies to carbon capture, hydrogen systems or alternative materials. Manufacturers should evaluate whether their products can meet the technical standards required for low-carbon processes. Service providers need to understand whether their offerings align with the procurement priorities of clients building new facilities.

Carbon reporting is no longer optional. Our net-zero program for carbon reporting compliance helps UK SMEs measure emissions, set reduction targets and meet PPN 06/21 requirements. Firms that delay this work risk being excluded from tender processes, even if their technical capabilities are strong.

Building relationships early matters. Large industrial projects often have long lead times. Prime contractors begin identifying potential suppliers well before formal procurement begins. Attending industry events, engaging with trade bodies and demonstrating relevant expertise through case studies or white papers can raise visibility. Similarly, understanding the specific requirements of clients in cement, steel, ammonia or aviation fuel sectors allows businesses to tailor their approach.

Supply chain resilience is a selling point. Clients are prioritising suppliers who can demonstrate reliable delivery, particularly in the context of geopolitical uncertainty. UK businesses should be prepared to explain how they manage risk, secure materials and maintain continuity. For some, that may mean diversifying their own supplier base. For others, it may mean investing in backup capacity or buffer stock.

Training and skills development should not be overlooked. Clean industrial processes often involve new technologies or methods. Ensuring your workforce understands hydrogen safety, carbon capture systems or alternative materials can be a differentiator. Resources such as the SBS Academy training on Scope 3 emissions provide practical support for businesses building internal expertise.

Finally, businesses should track policy developments closely. Government support for clean industry is evolving. Grants, tax incentives and subsidies can make projects more viable. However, eligibility criteria often require businesses to meet specific environmental or social standards. Staying informed about what is available, and ensuring your business qualifies, can unlock additional opportunities.

Where to find detailed guidance and updates

The UK government’s Department for Energy Security and Net Zero publishes updates on industrial decarbonisation policy, including funding opportunities and regulatory changes. Visit gov.uk for the latest information.

Goldman Sachs Research releases periodic reports on infrastructure and green capital expenditure. These provide valuable context on global investment trends and sector-specific forecasts. Access their research at goldmansachs.com/insights.

Capgemini’s 2025 report on manufacturing resurgence offers detailed analysis of reindustrialisation investment and supply chain strategies. The full report is available at capgemini.com/insights.

For businesses seeking support with ESG compliance and carbon reporting services, we provide practical guidance tailored to UK SMEs navigating net-zero requirements and tender criteria.