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North America Remains Strongest Link in Global Pharma-Biotech Industry Chain

There is no arguing that the entire Pharma-Biotech Industry has undergone a massive reorganization that is still not complete. But reports of the industry's demise were premature to say the least. The truth of the matter can always be found in the facts, and the fact is that the industry continues to spur billions of dollars in new capital investment each year. And this is a figure that is trending back up from the lows of a couple of years ago, when virtually every industry was slammed by the economic tsunami.

A recent analysis of North American projects found in the Pharmaceutical-Biotech Tracker - Online Database reveals 713 active capital and maintenance (MRO) projects, with a combined total investment value (TIV) of $14.5 billion, that are scheduled to begin construction in 2012. The undeniable fact of this spending should encourage the more widespread use of another truism when referring to the industry: Even when things are really bad, they're still pretty good.

Amidst all of the news that proclaim all "real" growth is overseas, it is important to remember that the domestic market remains at the top of the "food chain," and despite the dire prognoses, that is not expected to change for a very long time, if ever. China is expected to slip past Europe and Japan sooner than expected in terms of industry market share, but from its existing 2%, it is an awfully long way to catch up with North America's 28%. And the North American figure will continue to grow, albeit at the single digit rate of five to seven percent, rather than the double digit frenzy of the golden age.

In the first quarter of 2012, the industry has already kicked-off construction on 110 capital and maintenance projects carrying a TIV of $3 billion. (source: Industrial Info's Pharmaceutical-Biotech Tracker - Online Database). The entire year's expected project activity, which carries a healthy average TIV of $20 million, covers capital projects, which range from expansions and facility upgrades to grassroot projects rising from the ground up or additions that transform existing buildings into state-of-the-art life science facilities. Routinely scheduled maintenance programs are also covered. A large percentage of the current project activity deals with the need to develop new vaccines and treatments that target a host of ailments.

Join Annette Kreuger, Industrial Info's vice president for Pharmaceutical-Biotech Industry research, in this week's "Navigating the Currents of Change" webcast for an in-depth discussion on the industry that touches everyone's life. Topics of discussion include what types of plants and research centers are being built and where they are located, as well as what trends are impacting today's Pharmaceutical-Biotech Industry.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.