Report reveals US manufacturing centres outside traditional hubs

By Ben Hargreaves

- Last updated on GMT

Locations of US biopharma facilities

Related tags United states PhRMA

A PhRMA report outlined the benefits that are brought to the US economy by the biopharmaceutical manufacturing industry, including revealing where the majority of facilities are located.

The report was published by PhRMA​ and details the particular benefits biopharmaceutical manufacturing provides to the US economy, including the value of the industry, the level of exports, and where manufacturing is concentrated.

In total, there are approximately 1,193 facilities within the US producing FDA-approved products under good manufacturing practice (GMP) regulations.

All but six states in the US house a biopharmaceutical manufacturing a facility, with 37 states having more than five.

As could be expected, there is a concentration of facilities in the traditional hubs for the biopharma industry, in California and Massachusetts.

Though not considered typical centres for the industry and away from the concentration of activity on the Eastern seaboard, Texas and Colorado were home to a comparatively large number of facilities.

Image: PhRMA

Economic output

The report also noted that the biopharma sector performed well, in terms of economic output, against other private sector manufacturing, during the period 2000 to 2016.

In addition, labour productivity was estimated to be three times higher when compared against all manufacturing industries – with the ‘value added per worker’ equating to $605 (€538) in the biopharma industry compared to $217 (€193) in other manufacturing industries.

Image: PhRMA

The roles generated in the industry are also comparatively well paid compared to other sectors, with biopharma roles providing wages 72% higher than the average for US manufacturing. The average wage paid in the biopharma industry was $115,010 in 2017.

President Trump has made it clear that he wants pharmaceutical manufacturing to stay within US borders​, with actions that seem to have generated mixed results in favour​ and against​ this policy.

The value of manufacturing taking place within the US was highlighted in the report, with it noting that, of the R&D-focused industries, the biopharma industry was the largest exporter of goods in 2017.

Image: PhRMA

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