Pharma-Biotech Construction Update: $6 billion Earmarked for 87 New Sites in 2008

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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--Just two weeks into the new year, the Pharmaceutical & Biotech Industry is already planning to finish construction on nearly 90 new North American facilities. A recent survey of active reported projects in Industrial Info's Pharmaceutical Tracker - Online Database has revealed that 87 North American manufacturing plants and research facilities are expected to complete construction within the next 12 months. Cumulatively, the projects represent a potential total investment value (TIV) of just more than $6 billion, which includes both original construction costs and for future phases that are already planned or under consideration.

Click on the image at right to view 2008 Pharma-Biotech Industry New Plant Construction Chart.

The new facilities each carry an impressive average potential TIV of $68.9 million per site. The projects, which are in various phases of planning, engineering and construction, include grassroot facilities, the purchase of existing buildings with intent to renovate and equip, and future expansions/upgrades. Sources for the new build activity include private industry, commercial developers, universities and the federal government.

There is a regional shift as to the location of the 2008 new plant construction completions from last year. The Midwest has leaped ahead to claim the top spot with 15 new plants and a potential of $182 million in TIV among those sites. This was a net gain of eight projects, or 87%, over its performance last year. The region completely slipped by 2007's trio of regional leaders -- Mid-Atlantic, Northeast and West Coast -- which were all tied for first place with each claiming 12 new facilities that were finished. In fact, none of those regions even made it to second place this year, as the Southeast slid in line behind the Midwest with its 12 new sites scheduled to wrap up this year. The region gained four additional buildings, or 50%, over its 2007 tally of eight new facilities. In regard to TIV, the Southeast's plant activity could eventually source an impressive $1.12 billion in project spending.

A look at some of the 2008 facilities reveals a wide variety of both purpose and price. Projects include the controversial $200 million National Biocontainment Laboratory being built in Boston, Massachusetts. Barring the success of protesters' efforts to halt the opening of the lab, the project is scheduled for completion later this year. A bit further out west is Chesnut Properties' $100 million biotech research/office complex being built in Tempe, Arizona. The project will add a total of 260,000 square feet of building space divided among a six-story, 225,000-square-foot office building and 35,000 square feet on three stories of commercial biotech labs.

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