BoA presentaion on reshoring

Stark Realities

• Asset Complexity ↑nearly doubled since 1975 • Dashboard Surface ×8 growth—supervisors went from ~8 KPIs in 2001 to 40 + by 2024. • Deep-Tenure Pool ↓50 %—workers with 20 + years on the job fell from ~33 % of technicians in 1975 to under 17 % today.

Sources: U.S. Census Bureau Annual Survey of Manufactures; National Association of Manufacturers Capital Expenditures Survey; Bureau of Labor Statistics CPS Tenure Tables; LNS Research Manufacturing Analytics Benchmark Survey.

Stark Realities

• Capital Lungs Collapsed: 2008–09 capex plunged 30 %, starving plants of fresh capacity • High-Octane Sectors Offshore: Computers and telecom moved abroad, hollowing out the fastest-growing engine • Tribal Knowledge Evaporated: Mass retirements stripped decades of tacit “living middleware” from the shop floor • Complexity Overshot Human Bandwidth: 14 years of bolton dashboards and retrofits buried operators in alarms they couldn’t triage • Credit Stayed Frozen: Boards refused rebuild budgets, turning deferred maintenance into chronic downtime

Sources: U.S. Bureau of Labor Statistics – Manufacturing Labor Productivity (OPHMFG) & Output per Worker (PRS30006162), FRED, LNS Research.

Reshoring ≠ Reperformance Visibility without velocity is latency with better lighting

Why Every Approval Loop is a Latency Tax

Treat tribal know-how as an intangible asset whose velocity and decay predict factory performance

Expertise Velocity—The Leading Factory KPI You’re Missing

60 % EV Today • Only 60 % of veteran expertise captured (target 95 %) 8 % / mo. Depreciation

• Un-captured knowledge decays 8 % each month 50–100× Arbitrage

• Each expert-hour yields 50– 100 • AI-guided hours, saving $50– $100/hr

Every dollar of new factory spend must be measured against our ability to capture the expertise that makes it hum

Reference: Deloitte & The Manufacturing Institute. (2025). “2025 Manufacturing Industry Outlook” https://www2.deloitte.com/us/en/insights/industry/manufacturing.html

The $1T Latency Tax Latency isn’t inefficiency—it’s capital decay

~$1.4 Trillion

Technology made the walls transparent, but we keep the gates. Reference: Deloitte & The Manufacturing Institute. (2021–2025).“Creating Pathways for Tomorrow’s Workforce Today” + 2025 Update

The $1 T Knowledge Exodus Threat Expert retirements and decision latency compound EV decay into a $1 T+ drag

~$1 Trillion

Every un-captured retirement accelerates EV decay—1 T of revenue at stake. Reference: Deloitte & The Manufacturing Institute. (2021). “2021 Skills Gap Study. ”https://www.themanufacturinginstitute.org/research/skills-gap-and-future-of-work/

Underwriting the Invisible: EV & Capital Velocity If you can’t measure retention, you’re underwriting risk

EV Is the New Underwriting Score

EV-first factories don’t just operate—they learn and evolve

You Can’t Scale Judgment Through Labor Alone Agentic AI is not automation—it’s memory

Agentic AI captures reasoning, not just tasks—closing the EV gap fast

Reference: Harvard Business Review. (Dec 2024). “What Is Agentic AI, and How Will It Change Work? ”https://hbr.org/2024/12/what-is-agentic-ai-and-how-will-it-change-work

Agent Washing Creates Significant Risk

Agentic AI = One-Degree Separation Agentic AI is not automation—it’s memory. Geographic distance becomes irrelevant; bureaucratic layers dissolve; institutional authority is replaced by programmable reasoning; data stops being stored and starts being acted upon autonomously. Connectivity evolves from “carry and transmit” to “simply share”— everything speaks to everything in an always-on digital nervous system, eliminating isolated decisions. Access transforms into a strategic, programmable layer of governance—APIs become constitutions, protocols become laws, tokens become credentials, and those who control access, not data, shape the new world. Reasoning Agents emerge as first-class actors—autonomous constructs capable of evaluating trade-offs, understanding context, adapting goals, learning from outcomes, and applying causal logic to pursue structured objectives. Decision latency collapses from weeks or months to real-time loops, as feedback flows directly into action and objectives update continuously across a living graph of interoperating agents.

Inspired by the “One-Degree” paradigm: collapsing intent-to-action distance through agentic autonomy

Reference: White Paper _ The One -Degree World We Don’t See Coming, Michael Carroll - 2024

What an Expertise-Preserving Factory Looks Like Architecture outranks investment

The Pump on Line 3 will fail within eight hours unless lubricant temperature is reduced by four degrees

5 Quick Metrics: • Time-to-autonomy • EV velocity • Safety incident delta • ROI unlocked • Feedback integration rate

EV-first factories don’t just operate—they learn and evolve

Progress Measured by Mastery, Not Time Milestones built on EV—not task completion.

EV metrics make speed safe.

How Capital Moves When Expertise Flows You’re not just financing equipment—you’re underwriting cognition

Financing the Velocity Curve Strategic Urgency – Countdown to Advantage Last Window. First Time We Can Get It Right.

Your countdown isn’t to construction—it’s to relevance

EV-based funding gates turn CapEx into strategic momentum. Reference: IBM. (2025). “Reshoring Manufacturing to the U.S.: Role of AI and EaaS Models.” https://www.ibm.com/think/insights/reshoring-manufacturing

From Gates to Guardrails Governance is the new infrastructure. This reshoring window is once-in-a-generation. You’ll win—or wait another 20 years

“Permission is not a process—it’s an architectural decision.” Decide fast. Build smart. Capture what matters.

Thank you