Pharma-Bio Industry Construction Injects $22 Billion into North American Economy

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--Beyond seeking cures for physical ailments, the Pharmaceutical & Biotech Industry contributes a great deal to our collective economic health in the form of new plant construction. A recent survey of active reported projects in Industrial Info's Pharmaceutical Tracker has revealed that 243 North American manufacturing plants and research facilities are currently under development. Together, these projects represent a potential total investment value (TIV) of nearly $22 billion, a figure that includes both original construction costs and future phases that are already planned or under consideration. Underscoring the significant costs involved in virtually every form of life science construction, the average TIV of the current forecasted projects is $90.5 million.

The mix of new builds includes drug development laboratories, research centers, business incubators, commercial biotech campuses, and both clinical and large-scale manufacturing plants. All of the sites are in various stages of development, ranging from the initial planning phase to actually being under construction. Mirroring the industry's need for new product development coupled with broader threats from a vast array of deadly maladies, the majority of the new builds are focused on research. As discussed in detail within the New 2008 Pharmaceutical-Biotech Outlook, most of the manufacturing sites target the production of vaccines or biological therapies.

The industry's spending trends are exemplified by the current top two new build projects, each representing a potential $1 billion in capital investment. One is Bristol-Myers Squibb's (NYSE: BMY) (New York, New York) massive Devens, Massachusetts, biologics manufacturing campus and the other being the U.S. Army Medical Research Institute of Infectious Diseases' (USAMRIID) Medical Biodefense Research Lab in Frederick, Maryland. The Bristol Myers plant will focus on the production of biologic compounds used to make Orencia, a recently approved rheumatoid arthritis treatment, as well as experimental drugs that have yet to reach the market. USAMRIID's massive expansion and upgrade of its existing site at Fort Detrick will allow the targeted research necessary in combating a multitude of in continuing the nation's essential biodefense activities.

The popularity of the industry and the facilities it requires has remained strong, and the site-selection process continues to evolve into a much lengthier process. This fact is evidenced by the locations of the remainder of the new plant activity for the year. Spread across the United States and Canada, small towns and major cities alike eagerly court these projects. These state-of-the-art laboratories and manufacturing plants bring high-paying careers and often spur further investment by others in the industry. It is forecast that when the 243 plants open their doors, collectively, they could ultimately employ more than 44,000.

From a regional standpoint, the Great Lakes and the Northeast battle it out for first place. The Great Lakes currently claims the most new sites, with 32 on the books. The Northeast is right behind with 31 new builds. Another favored site of the industry, the West coast, is not far behind with 30. The remaining activity is spread throughout most of North America, including new facilities planned in Ontario, Quebec and Western Canada.

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