- Many mid-market manufacturers cannot access the capital needed to build, retool or expand their facilities.
- A few factors tend to separate reshoring projects that get financed from those that stall.
- Market Street Capital is built to help manufacturers solve the multi-instrument structuring problem.
U.S. manufacturing is in the middle of a reshoring wave. Companies are moving production back to the United States, driven by supply chain resilience needs, CHIPS Act-adjacent demand and a broader push to reduce reliance on China. According to the Reshoring Initiative’s 2024 Annual Report, more than 2 million manufacturing jobs have been announced in the United States since 2010 through reshoring and foreign direct investment, including approximately 244,900 announced in 2024.
But announcements are outpacing financing. Many mid-market manufacturers cannot access the capital needed to build, retool or expand their facilities. Closing that gap usually means stacking several financing tools together rather than relying on a single lender. This is where firms such as Market Street Capital play a role, helping manufacturers assemble the right mix of capital.
Reshoring projects strain conventional financing for a few reasons. New or retrofitted facilities are expensive. Specialized equipment adds cost, and revenue often lags well behind construction. Many of the companies riding this wave are mid-market suppliers, not the large primes capturing headline federal awards. For example, a 2023 CHIPS for America funding opportunity targets semiconductor materials and manufacturing equipment supplier projects with capital investment below $300 million. Availability and terms of federal programs change; figures are as of August 2026. Even so, many smaller suppliers still struggle to access that funding directly.
Banks also tend to be cautious. They are wary of funding speculative capacity expansion without long-term contracts already secured. A higher-rate environment adds to the difficulty of sizing a single loan against an uncertain ramp-up period. As a result, sponsors typically need to blend senior debt, equipment financing, and working capital lines rather than lean on one facility.
Senior term debt funds the core capital expenditure of a project. It is sized against projected earnings once the facility is fully ramped up. Lenders often want a committed offtake or long-term supply agreement with an anchor customer before extending this kind of debt.
Equipment financing covers machinery such as CNC machines or cleanroom tooling. This type of financing enables a company to acquire equipment without paying the full cost upfront. Because the equipment itself secures the loan, it is often faster to close and cheaper than general corporate debt.
Asset-based lending, or ABL, is a revolving facility secured by receivables and inventory. ABL works well for asset-rich, working-capital-intensive businesses with uneven cash flow. That description fits a manufacturer that is ramping production but not yet billing at full scale. ABL is often the tool that lets a growing supplier take on a new customer contract without straining its cash position.
Mezzanine debt fills the space between senior lenders and sponsor equity. Mezzanine sits between senior debt and equity in the capital structure. It is priced higher than senior debt but lower than equity, and often includes warrants or other equity features. Public incentives add yet another layer. State and local programs, along with CHIPS Act supply chain grants, can help reduce the amount of private capital a project needs. These sources usually need to be locked in before senior lenders will close, so sequencing matters.
Coordinating all these pieces is not simple. An equipment lender, an ABL provider, a term lender and public incentives all need to work together. That means careful collateral segmentation, so each lender knows exactly what it holds a lien on.
A few factors tend to separate reshoring projects that get financed from those that stall. Signed or highly probable supply agreements with credible anchor customers matter most. Realistic ramp-up timelines, validated by independent technical review, also help. Collateral needs to be clearly segmented across equipment, receivables and real estate so multiple lenders can stack without conflict. Incentive funding should be locked in, or close to it, to reduce pressure on private capital.
This is the kind of multi-instrument structuring problem Market Street Capital is built to help manufacturers solve. Through its debt capital markets and specialty lending practice, the firm works on senior debt, asset-based lending and mezzanine structuring. These are the exact tools a reshoring manufacturer typically needs to combine.
Market Street also focuses on middle-market companies. That focus lines up well with who actually needs this kind of help: Tier 2 and Tier 3 suppliers benefiting from reshoring demand but too small to draw much attention from large banks or federal programs.
Market Street maintains a network of more than 8,000 investor, family office and bank contacts; network size does not indicate that any investor will participate in a given transaction. Sourcing equipment lenders, ABL providers and mezzanine capital at the same time requires that kind of reach. As an independent adviser, Market Street’s role centers on structuring facilities and negotiating terms across multiple lenders.
For manufacturers trying to turn reshoring demand into built capacity, the real constraint usually is not whether financing exists. It is whether that financing can be assembled quickly and coherently across several instruments. That coordination is the focus of Market Street’s debt capital markets advisory work. No financing outcome can be assured.
For more information about the company, visit www.MarketStreetCP.com.
NOTE TO INVESTORS: The latest news and updates relating to Market Street are available in the company’s newsroom at https://nnw.fm/MarketSt
Disclosures
This article is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any such offer may be made only pursuant to definitive offering materials and applicable transaction documents.
Nothing in this article is tax, legal or accounting advice. Readers should consult their own advisers.
Market data and third-party information are from sources believed to be reliable but have not been independently verified. No representation is made as to accuracy or completeness. Statements about financing structures are general in nature; no financing outcome can be assured.
Broker-dealer services are provided by Pickwick Capital Partners, LLC, Member FINRA/SIPC.
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