Pharma-Biotech Capital Construction Investment Snapshot: $15 Billion in 2014 Project Kick-Offs

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--With the new year off to an uncertain economic start, it is somewhat heartening to take a look back at some of the high points in 2014. A recent analysis of reported projects that began in 2014, according to Industrial Info's Pharmaceutical Tracker - Online Database, revealed that the Pharmaceutical & Biotech Industry kicked off a healthy $15 billion worth of construction activity in North America.

Click on the image at right for a graph detailing kickoffs in the Pharmaceutical & Biotech industry in 2014.

Despite the industry's ongoing merger and acquisition activity, as well as the continued slashing of jobs across the globe, 739 projects carrying an average total investment value (TIV) of $20 million managed to make it to construction status.

This healthy total was helped in part by several huge projects, including Michigan State University's launch of the $730 million Rare Isotope Facility in Lansing. At the opposite end of the spectrum are $1 million in scheduled maintenance programs. The projects referenced are sourced out of the public, private and institutional markets, and include everything from grassroot projects to annual maintenance shutdowns.

The 2014 projects are a good reflection of the industry as a whole and where its capital dollars are going: manufacturing, research and distribution. Even "Big Pharma" has rejoined the action, as illustrated by Eli Lilly's (NYSE:LLY) (Indianapolis, Indiana) launch of a $140 million expansion of insulin cartridge production at its Indianapolis campus. This is the latest in a series of expansions at the site.

In September, the Fresenius Medical Care North America kicked off another $140 million project in Knoxville, Tennessee. The company is renovating and upfitting 280,000 square feet of an existing building formerly owned by Panasonic to produce kidney dialysis products for the east coast market. Project team members include construction manager Stacey Enterprises (Ogden, Utah) and Axis Architects (Salt Lake City, Utah).

From a regional standpoint, the Great Lakes led in project investment for 2014, with $2.6 billion divided among 106 projects. Next up was the Southeast, with $2.2 billion going into 111 construction starts. Rounding out the top three 2014 spending leaders was New England, by delivering 58 projects totaling just more than $2 billion.

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.