a lot has been said about reshoring as companies look to bring manufacturing back to their home countries particularly the us yet the ramp up is just getting started experts believe so the potential for the trend to drive stock values is not yet fully tapped reshoring is essentially companies returning operations to their original country from overseas supply chain security a strong us dollar and government incentives are among the reasons for the uptick said brian belski chief investment strategist at bmo capital markets the reshoring craze is real especially as you continue to hear more and more about this general theme of deglobalization he said it is a trend that is going to accelerate especially in the first part of the year he added the us has learned its lesson during covid and the lockdown and supply chains breaking reshoring and foreign direct investments are expected to create a recordbreaking 350000 us jobs in 2022 according to the reshoring initiative  an advocacy group that tracks manufacturing jobs and foreign investment announcements by companies in the third quarter jumped 20 since the second quarter and 150 versus 2019 ubs analyst chris snyder wrote in a november note he pointed to chinas zerocovid policy and the european energy crisis as two big drivers as chinas zerocovid has dragged on theyre shutting down but were fully reopening snyder told cnbc its very difficult for a business or a multinational to have your point of supply and your point of demand be operating under very different playing fields and thats made … supply chain very difficult to operate some 87 of us executives with operations in china plan to move production out of the country and about 70 of those are considering the us for relaxation according to a survey by ubs evidence lab the online survey took place june 10 through july 7 and polled 450 senior executives across the us even apple has been moving away from china said tech investor gene munster of the 150 new manufacturing locations added in 2021 79 are based outside of mainland china and 24 of those 150 are in the us he said for apple it is more about getting out of china than it is about getting into the us said munster founder and managing partner at loop ventures the company is looking to shift production to india and vietnam the wall street journal reported earlier this month yet it is semiconductor auto and tech hardware companies that have been leading the way according to snyder reshoring announcements from chipmakers soared 500 in the third quarter from the second quarter while auto was up 100 and tech hardware saw a 45 bump to lure semiconductor manufacturing back to the us president joe biden signed the chips and science act into law in august it includes more than 52 billion for us companies producing computer chips and billions more in tax credits best way forward companies will continue to focus on improving operating efficiencies reducing costs preserving cash and sustaining earnings growth and north america will provide a safe haven bmos belski said in a dec 8 note we think that supply chains will not only move closer to home but evolve as there is no longer a one size fits all solution in the face of severe disruptions but rather a best way forward as opposed to the accustomed cheapest way forward he wrote he expects sectors that produce products critical to national security and will therefore be potential beneficiaries of various governments incentives to be wellpositioned to benefit from reshoring those sectors are industrials materials health care technology and consumer discretionary among the stocks he thinks will benefit are those that will help build new plants and equipment like agco  illinois tool works  dupont and freeportmcmoran  bmo owns all of these companies 2023 about derivative plays automation is an obvious beneficiary of reshoring but thats a theme that has already been around and invested in since 2020 said ubs snyder that includes names like emerson electric and rockwell automation  instead he thinks 2023 will be all about underappreciated derivative plays some of the electrical names are really underappreciated beneficiaries because they have so many touch points throughout the process he said you have to buy electrical products when youre building a factory you have to buy electrical products when youre building out the equipment in that factory when youre connecting the grid to that factory you need electrical components the best play on that theme is power management company eaton  snyder said they sell into the grid you have to build out the grid when you bring factories online he said they sell into the construction of the factory they sell into the equipment of the factory the automation of the factory keysight technologies  which provides electronic design and test solutions is also an interesting play he said the companys equipment is needed for big semiconductor manufacturing plants as companies test chips as they are produced snyder said as were seeing this big build out in semi capacity thats driving demand for keysights test equipment he said te connectivity and amphenol are two more names he mentioned both have exposure to automation and electric vehicles both play into auto which is one of the best reshoring end markets he said when you build the new auto production facility their automation businesses make money auto is the most automated industrial end market snyder said then they have big ev businesses that get paid once the build out is complete cnbcs michael bloom contributed reporting