Northeast Heats Up as Life Science Industry Capital/MRO Project Investments Exceed $7 Billion

Reported by Annette Kreuger, Industrial Info Resources, Incorporated (Sugar Land, Texas)--Like any long-term union, the one shared between the U.S. Northeast Region, which comprises Delaware, New Jersey, New York and Pennsylvania, and the Life Science Industry is a classic example of a love/hate relationship. The Northeast Region has been pummeled over the past few years with scores of pharmaceutical plants closing and lucrative jobs lost.

On the other hand, the region remains a favorite for capital investment from both the private and public sectors, for new and upgraded life science manufacturing plants and research centers. Currently, there are 237 active projects translating to a hefty $7.05 billion in total investment value (TIV), according to Industrial Info's Pharmaceutical-Biotech Data Platform. Despite the relative high cost of living in the Northeast, harsh winters and lucrative incentive battles in every other part of the U.S., the region continues to be an industry magnet for investment.

Industrial Info will discuss pharma-bio developments and trends as well as those of other major industries at its upcoming Market Outlook & Networking Event in Valley Forge, Pennsylvania. The free event will be held Thursday, May 11, beginning at 3:30 p.m. at the Radisson Valley Forge.

Out of the region's current 237 reported capital and MRO (maintenance) projects, 139 projects, representing $3.6 billion TIV, have a future kick-off date. The remaining 98 ($3.5 billion TIV) are in various stages of construction, of which some still have remaining bids to be let.

Click on the image at right for a chart detailing project count and value by state in the U.S. Northeast.

The numbers in the Northeast region are dynamic: As one project completes construction, another almost certainly pops up in planning. The region's life-science construction activity is sourced out of both the commercial and public sectors, offering a blend of both manufacturing projects and laboratories.

While drug companies need production capacity and drug development space, universities pony up the funds to build the massive research centers that are needed for a multitude of reasons. Beyond basic education, these high-dollar laboratory complexes attract federal dollars and top research scientists. Ultimately, they hope to attract commercial interest from manufacturers.

Click here for access to the 2017 North American Pharmaceutical-Biotech Outlook.

While New York continues to attract the most investment, with 121 projects amounting to a stunning $4.5 billion TIV, the other three states all have some form of construction activity. Pennsylvania delivers $1.5 billion spread across 48 projects. New Jersey is not far behind with 63 projects representing $1.1 billion TIV. Even tiny Delaware is on the books, with five projects valued at $14 million.

Click here for access to North American Pharmaceutical Webinar.

France's Eurofins Scientific is investing $59 million to expand Eurofins Lancaster Laboratories (Lancaster, Pennsylvania). The project adds "Building M," a 165,000-square-foot contract analytical testing laboratory, and has the potential to add 350 jobs.

New Jersey scored a win, when Spain's Laboratorias HIPRA (Girona, Catalonia) chose Mantau as the site for a grassroot animal vaccine manufacturing plant. The $100 million project, which includes a 375,000-square-foot facility, could begin construction later this summer.

Regeneron Pharmaceuticals Incorporated (NASDAQ:REGN) (Tarrytown, New York) has massive expansion plans in Rensselaer and Tarrytown, New York. Hundreds of millions of dollars are designated to expand the Mount Pleasant and Greenburgh sites, as well Rensselaer.

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