FTI Experts’ Hub: Funding the Onshore Manufacturing Push

June 29, 2026

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With federal incentives often falling short, state and local tools are taking center stage. McRae Thompson talks to CPE’s Laura Valean about lesser-known financing solutions.

As the push to bring manufacturing back to the U.S. continues, developers and investors keep are searching for ways to fund capital-intensive projects. But what financing tools might they be overlooking?

In this episode of FTI Experts’ Hub, CPE Executive Editor Laura Valean sits down with McRae Thompson, senior managing director & co-leader of U.S. Tax Advisory in the Real Estate Solutions practice at FTI Consulting, to explore how companies can finance large-scale onshore manufacturing developments at a time when federal support may not be as generous—or as easy to access—as many expect.

From semiconductors and advanced battery manufacturing to AI-enabling infrastructure, biotech, EV production, critical minerals and steel processing, the next wave of industrial development is increasingly tied to supply chain resilience and local economic growth. But according to Thompson, the most meaningful incentives are often not found in Washington, D.C. They’re negotiated at the state and local level, where governments can use property tax abatements, sales and use tax exemptions, job creation credits and other tools to compete for transformative projects.

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The conversation also takes a closer look at industrial revenue bonds, a financing mechanism that can help lower borrowing costs and, in some cases, provide significant upfront project financing. Thompson explains how IRBs work, how they differ from grants and tax credits, what types of developments may qualify, and why they can be especially valuable for multibillion-dollar projects that need certainty over long periods of time.

Watch the full conversation to learn why localized capital strategies may play a defining role in the next chapter of U.S. industrial growth. Here’s what Valean and Thompson talk about:

(0:55) A new industrial revolution?
(3:13) Why federal support for onshoring projects is limited
(5:02) Common state and local tax incentives for industrial development projects
(6:52) Limitations of traditional incentives
(7:35) What industrial revenue bonds are and how they work
(10:02) The type of projects eligible to be financed through IRBs
(13:34) What’s next for IRBs and state-level incentives