As U.S. tariffs under Trump widen again and trade frictions with partners like Canada heat up, the story is no longer just about politics. It is about which companies might feel squeezed and which could see new demand as supply chains adjust across North America. This article walks through three stocks from our North American Onshoring Capital-Goods & Automation Suppliers screener that appear positioned to benefit from these shifting trade currents.

The three stocks below are just a sample from this theme, and the full screen surfaced another 37 North America listed industrial and automation companies with equally compelling onshoring stories that are not covered here. To go broader and identify your own highest conviction ideas, head straight into the North American Onshoring Capital-Goods & Automation Suppliers screener to filter and analyze this full group of potential reshoring suppliers.

IPG Photonics (IPGP)

IPG Photonics supplies the fiber lasers and laser based systems that sit inside many automated cutting, welding, and materials processing lines, which are exactly the kind of high throughput tools new onshored factories depend on. Almost all of its US$1.1b revenue comes from Laser Systems and Components sold to manufacturers and equipment makers, rather than a mix of unrelated segments. With a market cap of about US$3.1b, IPG Photonics is a mid sized industrial technology company that gives investors direct exposure to the push toward more automated, locally based production.

Investors looking at onshoring and factory automation may find IPG Photonics interesting because its lasers are already embedded in many robotic and high speed production lines, including electric vehicle and battery manufacturing. Some analysts see potential for higher earnings and margins as new medical, semiconductor, and defense uses develop, while recent results indicate the company is adapting its global footprint to handle tariff changes and keep orders moving. The catch is that IPG Photonics carries a rich valuation and relies heavily on materials processing demand, so any setback in industrial capex or tougher competition could be a headwind. For investors seeking exposure to reshoring and automation, IPG Photonics may warrant closer evaluation as part of a broader research process.

IPG Photonics’ rich valuation and onshoring exposure create a powerful but easy to misread story. Get the full picture with the 3 key rewards and 1 important warning sign that could reshape how you see its automation upside.

Novanta (NOVT)

Novanta supplies the precision lasers, motion systems, and robotics friendly components that help power advanced factory lines and medical devices, which fits squarely with the onshoring and automation theme of this screener. Its revenue is fairly balanced between Automation Enabling Technologies at about US$523 million and Medical Solutions at roughly US$506 million, giving investors exposure to both industrial and healthcare automation. With a market cap of around US$5.3b, Novanta is a mid cap player in the automation supply chain rather than a niche specialist.

For investors watching how onshoring and physical AI reshape factories and hospitals, Novanta offers a mix of robotics ready hardware, high margin medical technologies, and acquisition fueled expansion that has caught analysts’ attention. The appeal is that these businesses sit in areas where customers often commit to multi year programs rather than one off orders. However, investors also need to weigh a rich valuation, reliance on deals, and exposure to tariff and restructuring costs that can make earnings choppy. Anyone considering Novanta may want to look past the recent headlines and momentum to understand how resilient its automation and medical franchises really are under a higher tariff world.

Novanta’s mix of factory and medical automation can make the usual headline metrics feel incomplete. Go straight to the 2 key rewards and 1 important warning sign to see how its long term programs and deal driven growth compare.

ATS (TSX:ATS)

ATS is a pure play on factory automation and assembly systems, which ties it closely to the North American onshoring theme as manufacturers retool lines and bring production closer to home. Almost all of its CA$2.93b revenue comes from Automation Systems, giving you focused exposure to equipment and services that help life sciences, energy, food and other customers automate complex production. With a market cap of about CA$2.6b, ATS sits in the mid cap bracket of industrial automation suppliers.

For investors watching how higher U.S. tariffs are pushing companies to rework supply chains and add more automation in North America, ATS offers a direct way to gain exposure to that trend through its design, build, and digital factory services. Management is targeting margin improvement through an 18 month fixed cost transformation and a growing mix of higher margin aftermarket and digital revenues, which could make earnings more resilient if project timing remains choppy. The flip side is that ATS leans heavily on acquisitions, carries meaningful leverage, and has seen softer order bookings, so the bar for execution on backlog conversion and cost savings is high. If ATS can balance that risk with its reshoring exposed project pipeline and recurring services push, the long term story could be more interesting than the recent volatility suggests.

ATS’s automation pipeline, cost reset, and push into higher margin services could be telling a very different story than recent volatility suggests. Get the full context in the analysis report for ATS before you miss the key twist.

Seeking Alternatives Before The Crowd

Some of the most interesting ideas move quietly at first, then gather breakout momentum once the crowd catches on. Check these fresh screens while it still matters and consider them while they are still early.

• Spot companies with robust cash flows and solid fundamentals before they start gaining broader attention by scanning the 51 high quality undervalued stocks that remain under the radar for now.
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• Track the expanding electrification theme by checking the hand picked 9 top copper producer stocks supplying essential materials while demand stories are still forming.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.