Mission Report: Industrial Resilience

Written By Onward M1C

“The Next Industrial Era”

-Natalie Aldrich

Introduction

Global supply chains are under strain. Disruptions, escalating tariffs, and rising labor costs are forcing a rethink of how and where critical components are made. At the same time, aging workforces and demand for higher output are driving a structural shift toward greater efficiency, automation, and resiliency. Industrial robotics sit at the center of this transformation.This market is projected to grow from $34 billion in 2024 to over $60 billion by 2030, with a CAGR of 9.9%. 

This technological shift is moving the industry beyond a focus on cost reduction to one of agility and risk mitigation. Recent global disruptions have made it clear that a fragile supply chain is a significant business risk. The dual pressures of global supply chain disruptions and escalating tariffs are upending traditional sourcing models. Companies are actively pursuing reshoring and nearshoring strategies to reduce their reliance on single-country suppliers. 

This move not only mitigates tariff exposure and geopolitical risks but also improves quality control and responsiveness to customer demands. With the advent of robotics, AI, and new software capabilities across the value chain, the next wave of manufacturing will be leaner, faster, and more efficient than ever before.

We see these three domains as the foundation of the next industrial era—areas where innovation is reshaping resilience and where we are actively investing:

Advanced Manufacturing Efficiency

North America, in particular, is seeing robust adoption, driven by demands for precision, productivity, and the need to address labor shortages. Companies are leveraging robotics for tasks from handling and assembly to quality inspection, AI to advance engineering design, to capturing all the data on a manufacturing floor to optimize workflow, training, and throughput.

  • Robotics are advancing beyond inspection into the core, labor-intensive steps of production—from order intake through CNC programming, cutting, scheduling, and task management. While humanoids capture headlines, a wide range of form factors is becoming ubiquitous on the factory floor. With new tools for scaling, vertically integrated robotics platforms, novel data capture methods, and software to optimize workflows, the industry is moving closer to “lights-out” factories that reduce labor reliance while boosting output. Companies leading this shift include Formulate (an M1C portfolio company), Hadrian, FigureAI, Aether Manufacturing, Agility Robotics, Cobot, and Launchpad.

  • AI is transforming manufacturing by enabling generative design for lighter, more cost-effective components, predictive maintenance that prevents costly downtime, and data-driven feedback loops that flag material needs, optimize facility layouts, and improve quoting and material selection. Startups like Maive (a M1C portfolio company), Phaidra, PhysicsX, Atomic Industries, eXlens, Heliux, RIIICO, Pico, Terragrit, Paperless Parts, Squint, and Partsimony are at the forefront of this shift, demonstrating how AI can unlock step-change productivity across the industrial base.

Supply Chain and Logistics

Supply chain and logistics have attracted nearly $92 billion in venture capital since 2021, with the most compelling opportunities in startups using technology to eliminate inefficiencies and build resilience. This includes companies like SnoFox, which uses a "digital twin" to optimize cold chain logistics and reduce energy consumption, Glid (a M1C portfolio company), which is pioneering autonomous, dual-mode vehicles to seamlessly bridge road and rail freight and Diagon, an AI-powered marketplace that simplifies the procurement of manufacturing equipment for factories. These ventures are not just streamlining operations; they are fundamentally reshaping how goods move, from the factory floor to the final destination.

  • Resource Sovereignty - As supply chains shift westward, core resources and their “picks & shovels” are ripe for disruption through new business models. This spans critical minerals, medicine/biomanufacturing (Aralez Bio, Biosphere), semiconductors/compute, and advanced cast/forged components (Fabri, Foundry Labs, Foundation Alloy).

  • Transportation - The movement of goods is a linchpin of resilient supply chains, yet disruptions quickly ripple into production. Autonomous rail cargo, low-cost cargo aviation, and innovations in maritime and shipbuilding promise lower costs and greater reliability. Companies include Intramotev, FleetZero, and Natilus.

Frontier Industries

Space, drones, hypersonics, and robotics are dual-use technologies driving both national security and commercial markets, giving startups multiple pathways to scale. Falling costs - from reusable rockets to factory robotics - are making them foundational for resilient supply chains and automated infrastructure. The strongest opportunities lie with companies turning innovation into real-world logistics and defense solutions, such as General Galactic, Astro Mecha, Lux Aeterna (an M1C portfolio company), and Varda Industries.

Conclusion

The future of industrial resilience is not defined by risk avoidance but by competitive advantage. Companies that harness AI, robotics, and advanced supply chain technologies will build faster, leaner, and more adaptable operations - from the factory floor to the final mile. This is a multi-trillion-dollar opportunity to rewire global manufacturing and logistics into localized, diversified, and sustainable ecosystems.

At M1C, we believe the ventures that achieve this will anchor the next industrial era—and we intend to back them.

Onward!

Onward M1C
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