Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
en
Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--By the time the first quarter of 2015 ends, the North American Pharmaceutical & Biotech Industry is expected to wrap up more than $5.5 billion worth of capital and maintenance investments, according to Industrial Info's project database. Spread over 272 individual projects, this figure covers all those scheduled for completion from January 1, 2015, through March 31, 2015. While some of the smaller projects began construction rather recently, others kicked off several years ago.
Click on the image at right to view a chart detailing first-quarter 2015 North American Pharma-Biotech Industry project completions.
Project completion data become more valuable as it ages, an approach that is different from analyzing projects yet to begin. After enough time has gone by, projects built in the past can be compared with those that are now being planned and built. That is when a clearer picture of industry trends and direction emerges. In the case of the Pharmaceutical & Biotech Industry, the most definite hallmark of today's figures versus the relatively recent past is both the number of capital projects and average total investment value (TIV).
Including projects reported for the manufacturing and research sectors, the first-quarter 2015 stats represents a significant jump of 131 projects, or 92%, over first-quarter 2014, when 141 projects were completed. When considering the total investment value (TIV), the $5.5 billion first-quarter figure for project completions outperformed first-quarter 2014's $3 billion. This is due to the increased number of projects, but they represent a lower project average TIV.
A look at the average TIV investment for first-quarter 2015 projects is $20 million, which is actually a slight drop from the first-quarter 2014 project average of $21 million. That project average has held steady for the past several years.
A look back several years earlier reveals the average industry TIV on completed capital projects was significantly higher than today's low-twenties average. In 2009, the first-quarter project average was an astounding $68 million. There is a reason for that.
In 2009, the so-called "Golden Era" of the Pharma-Biotech Industry was winding down. Construction on the industry's last few North American mega-projects was being completed. Both public and private, the size and cost echoed a more prosperous time that had come to a halt.
The entire industry was in a tailspin. The purse strings were tied and the goose that laid the golden egg was in hibernation. Corporate planners were charged with the disposal of laboratories and plants rather than building anything new or expanding. As the number of players dwindled thanks to mergers and acquisitions, there were too many facilities and too little profit.
Now, as the industry slowly has begun to find its focus again, more capital projects are being planned and built, albeit with a much more cautious eye. "Lean" and "mean" are the by-words imprinted on every industry planners' playbook. Smaller and more efficient facilities and production methods are being employed, along with partnerships and a more judicious use of contract manufacturers.
Nevertheless, due to the expensive nature of the industry's production and research requirements, a comparatively large number of major projects being planned and built. One of the larger projects scheduled to finish construction during first-quarter 2015 is the $132 million upfit and expansion at Swiss drugmaker Hoffman-LaRoche's Genentech's manufacturing campus in Oceanside, California. The plan was to double capacity of the biological oncology therapies plant from 90,000 to 180,000 litres, with project team members of CRB Consulting Engineers (Carlsbad, California) and DPR Construction (San Diego, California).
George Washington University wrapped up construction on its massive Science and Engineering Complex in Washington D.C. The $275 million project added an eight-story, 480,000-square-foot LEED Silver building to accommodate multi-disciplinary research capacity and instruction. The project team included Hickok Cole Architect (Washington D.C.) and Clark Construction (Bethesda, Maryland).
The first phase of Unipharma LLC's (Miami, Florida) new Liquid & Oral Dose OTC (over-the-counter) Generics contract manufacturing (CMO) plant in Tamarac, Florida, represented a $50 million investment. During the site selection process, the company used the moniker "Project Monodose." Using Design-Build ANF Group (Davie, Florida), the company renovated approximately 100,000 square feet of the 135,000-square-foot former Tamarac Commerce Center. The majority of the project was to outfit the approximately 75,000 square feet for the contract production of generic liquid and oral dose pharmaceuticals, with the remaining 25,000 square feet for administrative and support space. There are two subsequent phases planned for the site.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Click on the image at right to view a chart detailing first-quarter 2015 North American Pharma-Biotech Industry project completions.Project completion data become more valuable as it ages, an approach that is different from analyzing projects yet to begin. After enough time has gone by, projects built in the past can be compared with those that are now being planned and built. That is when a clearer picture of industry trends and direction emerges. In the case of the Pharmaceutical & Biotech Industry, the most definite hallmark of today's figures versus the relatively recent past is both the number of capital projects and average total investment value (TIV).
Including projects reported for the manufacturing and research sectors, the first-quarter 2015 stats represents a significant jump of 131 projects, or 92%, over first-quarter 2014, when 141 projects were completed. When considering the total investment value (TIV), the $5.5 billion first-quarter figure for project completions outperformed first-quarter 2014's $3 billion. This is due to the increased number of projects, but they represent a lower project average TIV.
A look at the average TIV investment for first-quarter 2015 projects is $20 million, which is actually a slight drop from the first-quarter 2014 project average of $21 million. That project average has held steady for the past several years.
A look back several years earlier reveals the average industry TIV on completed capital projects was significantly higher than today's low-twenties average. In 2009, the first-quarter project average was an astounding $68 million. There is a reason for that.
In 2009, the so-called "Golden Era" of the Pharma-Biotech Industry was winding down. Construction on the industry's last few North American mega-projects was being completed. Both public and private, the size and cost echoed a more prosperous time that had come to a halt.
The entire industry was in a tailspin. The purse strings were tied and the goose that laid the golden egg was in hibernation. Corporate planners were charged with the disposal of laboratories and plants rather than building anything new or expanding. As the number of players dwindled thanks to mergers and acquisitions, there were too many facilities and too little profit.
Now, as the industry slowly has begun to find its focus again, more capital projects are being planned and built, albeit with a much more cautious eye. "Lean" and "mean" are the by-words imprinted on every industry planners' playbook. Smaller and more efficient facilities and production methods are being employed, along with partnerships and a more judicious use of contract manufacturers.
Nevertheless, due to the expensive nature of the industry's production and research requirements, a comparatively large number of major projects being planned and built. One of the larger projects scheduled to finish construction during first-quarter 2015 is the $132 million upfit and expansion at Swiss drugmaker Hoffman-LaRoche's Genentech's manufacturing campus in Oceanside, California. The plan was to double capacity of the biological oncology therapies plant from 90,000 to 180,000 litres, with project team members of CRB Consulting Engineers (Carlsbad, California) and DPR Construction (San Diego, California).
George Washington University wrapped up construction on its massive Science and Engineering Complex in Washington D.C. The $275 million project added an eight-story, 480,000-square-foot LEED Silver building to accommodate multi-disciplinary research capacity and instruction. The project team included Hickok Cole Architect (Washington D.C.) and Clark Construction (Bethesda, Maryland).
The first phase of Unipharma LLC's (Miami, Florida) new Liquid & Oral Dose OTC (over-the-counter) Generics contract manufacturing (CMO) plant in Tamarac, Florida, represented a $50 million investment. During the site selection process, the company used the moniker "Project Monodose." Using Design-Build ANF Group (Davie, Florida), the company renovated approximately 100,000 square feet of the 135,000-square-foot former Tamarac Commerce Center. The majority of the project was to outfit the approximately 75,000 square feet for the contract production of generic liquid and oral dose pharmaceuticals, with the remaining 25,000 square feet for administrative and support space. There are two subsequent phases planned for the site.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
