Podcast episode
Episode 216 – Marks on the Market: America’s Push to Reshore U.S. Manufacturing | Steve Cook (LFM Capital)
Join hosts Richard Cunningham and Luke Roush as they sit down with Steve Cook, Executive Managing Director of LFM Capital, for a deep dive into the state of US manufacturing and the reshoring revolution transforming American industry. From the deck of an aircraft carrier to the shop floor to private equity boardrooms, Steve brings a unique perspective on what it takes to build manufacturing companies that strengthen both portfolios and national security.
All opinions expressed on this podcast, including the team and guests, are solely their opinions. Host and guests may maintain positions in the companies and securities discussed. This podcast is for informational purposes only and should not be relied upon as specific investment advice for any individual or organization.
Episode Notes
The manufacturing renaissance is here – but not in the way most investors think. Steve Cook, Executive Managing Director of LFM Capital, pulls back the curtain on what’s actually driving the reshoring of US production, which sectors offer the best risk-adjusted returns, and why operator-led private equity is outperforming financial engineering approaches in today’s market.
As a former Navy fighter pilot and Dell manufacturing leader who managed 2,200 shop floor employees, Steve brings rare perspective to both the strategic importance and investment potential of American manufacturing. He explains why major companies are finally bringing 100% of supply chains back to the US, how global labor costs have converged faster than expected (English-speaking managers now cost more in China than the US), and why the combination of quality issues, logistics challenges, and geopolitical risk has made reshoring economically compelling.
This episode delivers specific insights on deal flow, valuation multiples, creative financing structures, and the role of interest rates in shaping the PE market. Steve also shares surprising data on AI’s limited current impact on manufacturing floors, why aerospace and defense warrant long-term allocation, and how LFM evaluates EBITDA margins and leadership quality when underwriting investments. He closes with profound reflections on Genesis, marriage, partnership structures, and why 50/50 ownership consistently fails in both business and relationships.
CHAPTERS
00:00 Introduction
01:43 Steve Cook’s Background and LFM Capital Overview
03:20 Shop Floor DNA: Operators vs Deal Partners in Private Equity
06:43 Leadership Training and the LFM Difference
08:25 The Reshoring Movement: Why US Manufacturing Matters
11:45 Events That Woke America Up to Manufacturing Vulnerability
15:26 Trump 2.0, Liberation Day Tariffs, and Trade Data
17:10 Manufacturing Employment vs Revenue: The Real Story
19:26 Economic Strength Equals Military Strength
21:23 Which Industries Must the US Control?
22:08 Tax Policy, Labor Costs, and the Reshoring Formula
25:35 China Labor Convergence: Managers Now Cost More
26:53 High EBITDA Margins and Free Cash Flow Fundamentals
27:34 AI on the Manufacturing Floor: Reality vs Hype
32:09 The 3D Printing Myth and What Actually Works
33:01 The PE Deal Market: Slow 2024 and Creative Structuring
36:45 Landing on Aircraft Carriers vs Leading Through Uncertainty
40:06 Interest Rates and Their Impact on PE Transactions
41:22 Genesis, Marriage, and 50/50 Ownership Structures
46:43 Why Biblical Partnership Principles Work in Private Equity