Pharma manufacturing ‘boom’ faces high costs, potential delays

With more than $ 270 billion in obligations so far, a new wave of pharmaceutical manufacturing is scheduled to reach the United States.

At least, this is what the industry is trying to display.

Take Johnson & Johnson’s (JNJ) $ 55 billion over the next four years, which were announced in March, which includes expansion of current installations ongoing. Meanwhile, Elie Lily (Lili) announced $ 50 billion investments in February, with half of the current plans.

Behind the promises of billions of dollars to re -manufacture medicines are more realistic: while some ads are new, many have been working for years.

the reason? Global manufacturing imprint has proven risky, thanks to the Covid-19s. In addition, the expiration of patents has expired more research and development activity and thus more local manufacturing needs. Then there is the fact that people live longer, and require greater volume of medications.

These are the main reasons behind plans for long -term plans that drug makers have started in the past few years.

But the timing of ads in the first half of the year coincides with another reason: the threat of definitions from the Trump administration on imported pharmaceutical goods.

“It was not as if the definitions and pharmaceutical companies came [decided to] Opening plants due to definitions. “

She said that some plans will be lifted to fulfill the moment in an attempt to completely avoid customs duties.

“When they decide the actual exchange … three to five years have passed in planning,” Romero said.

Lilly is one of the few who announced new plans in line with Trump’s needs, to bring the production of basic chemical components, which are currently in Europe or Asia, to the United States.

“I think if the goal is to repeat the supply chain, I may say that the threat of definitions has already done so.”

Especially since the amount of $ 270 billion can also be a dates, as some companies have chosen not to issue cheerful ads about their plans, according to experts.

“It is precise to mention that there is a global approach to the supply chain in the field of vital medicines and technology. Lessons learned from the epidemic, and the disruption of the supply chain, created a greater focus in the regional character of supply chains,” said Jose Jiminies, Vice President and Leader of Life Sciences at the main construction company in Gilban.

Gamenies said that generations of people who live longer are increasing the demand for medicines for chronic and serious diseases that spread in the oldest age groups.

For this reason, the recently announced plans have nothing to do with Trump’s efforts to revive American manufacturing and more than the risk of supply chain and the needs of drug giants.

This is why the United States will see a wave of construction activity – the opposite pioneers that will come with it.

“The ads indicate” a great deal of work for all these companies to do in the United States in the same time frame. “

Lux Bernkeel, director and leader of American Life Sciences in Deloitte, said that the construction industry is already facing delay in current construction projects – before the elections and subsequent definitions.

At a conference he attended in October, Bernkel said that one of the biggest questions suffering from drug leaders is, “With all of these ads, can the construction industry keep up with the demand for the Pike?”

New manufacturing ads can turn into a high -risk competition for pharmaceutical companies in the hope of obtaining the best teams in their projects.

With business plans for years before ads, drug makers were already looking for factors such as site, material costs and employment.

Experts said what they did not plan was the cost and time that Trump’s policies and immigration policies have created.

With the increase in the cost of steel and aluminum due to the definitions, as well as disturbances in the treatment of the immigration visa, the construction industry feels pain. Romero indicated that in general, construction rates have increased by 45 % since 2020, after a brief decrease after birth.

All this will add more costs and possible delay.

“We may see more temporary suspension of projects if it is difficult to attract people to work sites. Moreover, there is a stop to emigrate to the country,” Romero said.

“This is a very interesting historical bond from the events that meet at the same time,” said Arda Ural, a leader in the two Americas in EY.

He said that each company has a different level of exposure to problems, because each company has a different size and scope for the project.

That is why the new ads will add more pressure to the construction industry.

Jenny Tavirras, Vice President and Leadership of the Life Sciences Sector in the Sto Building Group, said she expects a lot of cooperation between major and smaller construction companies.

She said, “Even the biggest builders will need help and partners for these accelerating time tables.”

Will the construction rush to this manufacture, or even bypass it, will restore it, high historical in the United States? This is a discussion.

The ancient centers included in the northeastern United States, especially the Tarsat and Boston region; North Carolina “Research Triangle”; West Coast and Chicago. But recently, Ohio, Georgia, Texas, and even Florida appeared as possible sites for new sites. In the Middle West, Indianapolis flourishes thanks to Elie Lily’s investment, a leader of a leading weight loss drugs, Zepbound.

The management of these facilities is another consideration of drug makers, because they need high skills work. But the employment requirements of operating these sites are a quarter of what they were, thanks to automation and robots, according to Deloitte’s Pernenkil. So it may be needed for employees of 1000, which should be a small skilled percentage, instead of 4000.

“I don’t think they will all go to the old Pharma centers. They will spread in the United States, which is what [Trump] Bernkel said the administration was trying to do it.

But Northwar, from Sanska, said it was unlikely to spread to the states that are not home to at least one or a planned location.

“You can stand on a factory in the middle of the place because it is cheap land and cheap work to build the facility,” he said. “But if you cannot get the appropriate workforce to operate it successfully, this is an unpopular situation.”

Angeli Khomelani It is the first health reporter in Yahoo Finance, which covers all things Pharma, insurance, care services, digital health, PBMS, health policy and politics. It includes GLP-1S, of course. Follow Anjalee in the name Anjkhem on social media x, LinkedIn and Bluesky social media platforms anjkhem.

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