In this episode of Other People’s Money, host Max Wiethe sits down with Chris Semenuk, an investment partner at Tema ETFs, to discuss the massive secular tailwinds driving the US manufacturing and electrification renaissance. Semenuk argues that after a three-year recession and decades of underinvestment, US industrial capacity and manufacturing are finally entering a powerful recovery cycle. Moving beyond the hype of AI and hyperscalers, they explore how &quot;boring&quot; short-cycle industrial companies like those producing essential components like ball bearings, pneumatics, and filters are primed for extraordinary earnings growth. They also discuss how America’s electrification mega trend goes beyond the AI data center buildout. Follow Chris on X: https://x.com/ChrisSemenuk Follow Max on X: https://x.com/maxwiethe Follow Other People’s Money on: Apple Podcast https://bit.ly/4e7QJ1M Spotify https://bit.ly/3Yhaazi YouTube https://bit.ly/3C63VXR X https://x.com/opmpod Timestamps: 00:00 Manufacturing Recession Ends 00:46 Meet the Industrial Bull 02:00 Proof Reindustrialization Is Real 05:28 What Reindustrialization Really Means 07:49 Why Companies Build Here 12:45 Advanced Goods Not Old Jobs 15:52 AI Hype Versus Reality 17:27 Picking the Equipment Winners 21:46 Inside Factory Wall Plays 23:26 Short Cycle Sequencing 27:53 Destocking Rates Tariffs Fog 32:28 Why Stocks Held Up 37:03 Valuing Cyclical Industrials 45:05 Tariffs Drive Onshoring 50:31 Humanoids And Automation 54:31 Grid Demand Inflection 57:05 Behind the Meter Reality 01:01:10 Rural Utilities Winners 01:08:22 High Voltage Bottleneck 01:14:40 Service Backlogs and Duration 01:18:28 Secular Tailwinds Wrap Up

The US Manufacturing and Electrification Megatrends Are Here and They’re Way More Than AI | Chris Semenuk

Other People's Money with Max Wiethe

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**Podcast:** Other People's Money with Max Wiethe

## Transcript

The US Manufacturing has essentially been in a recession for three straight years and we have only just emerged now. The ISM PMI survey just reached above 50 in the last three months. And that's after three consecutive years of sub-50. It's the longest construction period in the survey, three straight years. And we are only three to four months into a recovery. While everyone is trying to chase hyperscalers, semiconductor companies, space companies, there is an enormous amount of impact.

There is this investment opportunity happening right now underneath everyone's nose that involves just basic US industrial champions that are businesses that have essentially been off their radar for, in some cases, five to 10 years. Hello and welcome to Other People's Money. I'm Max Wiethe and I'm joined today by Chris Semenuk. He's an investment partner at Tema ETFs where he manages two funds, one focused on manufacturing and reshoring, RSHO.

And the other focused on electrification, VOLT. Both have performed very well compared to the market since their inception and year to date. Chris, thank you for joining me today. Hi Max, thanks for having me on. Manufacturing, reshoring, electrification. I might argue that they're tied to a broader trend of re-industrialization. We could argue about whether we're re-industrializing or this is a new wave of industrialization that's very different than the industrialization

that this country had before. I'm sure we're going to get into those nitty-gritty details, but I want to just start out with a question more broadly about this is something that we've been hearing about from multiple administrations. It broadly has bipartisan support that we should be re-industrializing here in the United States and whether it was the CHIPS Act with Biden or tariff policy from President Trump. It's clearly being pushed at the highest levels of government. My question is, to what extent is it a reality?

I get that question all the time. I think re-industrialization or de-globalization in terms of a world scale are both extremely real. Where do you see that most? Just look at the unprecedented size of backlogs within household multi-industrial businesses, whether that's

G-E, GE, GE, Vranova, companies like Caterpillar. We're looking at backlogs here that have historically never been recorded. The backlog at Caterpillar is north of $60 billion. The backlog at Vranova is north of almost $90 billion.

So the notion that this is some kind of fantasy, that we don't really see this on the ground, is frankly nonsense. And the backlogs of these businesses, whether they're large caps like the ones I mentioned or even smaller caps or medium caps, we have seen unprecedented order backlogs for businesses that extend out to two to three years in length.

And the other place that an investor or an audience member can look at is simply industrial production. Actuall...

The US Manufacturing and Electrification Megatrends Are Here and They’re Way More Than AI | Chris Semenuk

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The US Manufacturing and Electrification Megatrends Are Here and They’re Way More Than AI | Chris Semenuk

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.