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Released November 04, 2014 | SUGAR LAND
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Reported by Annette Kreuger, Industrial Info Resources (Sugar Land, Texas)--As illustrated by the torrent of negative political campaigning raging across the country, it has become difficult, if not near impossible to find common ground among politicians at any level. The outlier in this case appears to be the courting and landing of new life science industry facilities.
Opposite sides of the bench aside, life science planners are proving to be on everyone's dance card. In North America alone, there are currently 200 reported new facility builds on the books, representing a total investment value (TIV) of $15.4 billion in active development (drawn from 218 reported projects from Industrial Info's Pharmaceutical Tracker - Online Database.)
Click on the image at right for a graph detailing new-build projects in the North American life-science industry.
The projects are in various stages of planning, ranging from early market analysis to actual construction. Some of the projects are grassroot, new from the ground up, while others, the "additions," include reconfiguration and/or renovations of newly acquired facilities. These additions establish the new company's first laboratory or manufacturing operations at that particular location.
These new builds translate to a project average TIV of $76 million. These kinds of numbers underscore why life-science projects remain at the top of any economic developer's "get" list. The current project total of 218 is higher than the actual number of sites, as both the initial new build project and future phases already in planning are included.
The projects range from a $1 million investment to construct a new drug delivery facility, all the way up to billion-dollar mega-projects. A number are sourced out of the public sector, with many benefiting from federal or state dollars. On the other hand, a surprising amount of corporate activity is moving forward, as some of the operational redundancies from previous years have been addressed and companies are now ready to begin building. The majority of the projects remain research-based at this point, but there is a definite manufacturing presence on the list.
The indisputable king of current industry new build investment is Baxter International Incorporated's (NYSE:BAX) (Deerfield, Illinois) $1 billion plan to build an approximately 1 million-square-foot plasma fractionation facility with purification and fill/finish suites, equipped for the manufacturing of up to 3 million liters of blood plasma-based therapeutics. Initially operating under the code name "Project Marathon" during negotiations, the company brokered a deal to receive $210 million worth of incentives from the state for the project, which is to be built with the 1,600-acre Stanton Springs development in Covington, Georgia.
View Project Report - 300070134
Gilead Sciences (Foster City, California) chose La Verne, California as the site to build a $250 million intravenous biologics plant. Plans call for the construction of a 400,000-square-foot building that will house production, research and distribution.
View Project Report - 300184560
Not all the projects land in the nine-figure stratosphere; in fact, there are a number of projects valued at less than $20 million each that any municipality would be proud to claim, along with the higher-than-average paying jobs they will bring. A sample would include such projects as the $17 million contract manufacturing (CMO) plant that Cosmax US Corporation (Solon, Ohio) is building in Solon, Ohio, on the former L'Oreal campus (three buildings totaling 338,000 square feet). Cosmax and design/build firm Chemstress (Akron, Ohio) is renovating/upfitting 20,000 square feet to establish both contract and proprietary production of cosmetics, hair care and skin care products.
View Project Report - 300159363
Industrial Info will continue to monitor the project activity closely, making appropriate changes to both project status and value. Some undoubtedly will be put on hold and others cancelled. On the other hand, new ones will move in to take their place.
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.
Opposite sides of the bench aside, life science planners are proving to be on everyone's dance card. In North America alone, there are currently 200 reported new facility builds on the books, representing a total investment value (TIV) of $15.4 billion in active development (drawn from 218 reported projects from Industrial Info's Pharmaceutical Tracker - Online Database.)
Click on the image at right for a graph detailing new-build projects in the North American life-science industry.The projects are in various stages of planning, ranging from early market analysis to actual construction. Some of the projects are grassroot, new from the ground up, while others, the "additions," include reconfiguration and/or renovations of newly acquired facilities. These additions establish the new company's first laboratory or manufacturing operations at that particular location.
These new builds translate to a project average TIV of $76 million. These kinds of numbers underscore why life-science projects remain at the top of any economic developer's "get" list. The current project total of 218 is higher than the actual number of sites, as both the initial new build project and future phases already in planning are included.
The projects range from a $1 million investment to construct a new drug delivery facility, all the way up to billion-dollar mega-projects. A number are sourced out of the public sector, with many benefiting from federal or state dollars. On the other hand, a surprising amount of corporate activity is moving forward, as some of the operational redundancies from previous years have been addressed and companies are now ready to begin building. The majority of the projects remain research-based at this point, but there is a definite manufacturing presence on the list.
The indisputable king of current industry new build investment is Baxter International Incorporated's (NYSE:BAX) (Deerfield, Illinois) $1 billion plan to build an approximately 1 million-square-foot plasma fractionation facility with purification and fill/finish suites, equipped for the manufacturing of up to 3 million liters of blood plasma-based therapeutics. Initially operating under the code name "Project Marathon" during negotiations, the company brokered a deal to receive $210 million worth of incentives from the state for the project, which is to be built with the 1,600-acre Stanton Springs development in Covington, Georgia.
View Project Report - 300070134
Gilead Sciences (Foster City, California) chose La Verne, California as the site to build a $250 million intravenous biologics plant. Plans call for the construction of a 400,000-square-foot building that will house production, research and distribution.
View Project Report - 300184560
Not all the projects land in the nine-figure stratosphere; in fact, there are a number of projects valued at less than $20 million each that any municipality would be proud to claim, along with the higher-than-average paying jobs they will bring. A sample would include such projects as the $17 million contract manufacturing (CMO) plant that Cosmax US Corporation (Solon, Ohio) is building in Solon, Ohio, on the former L'Oreal campus (three buildings totaling 338,000 square feet). Cosmax and design/build firm Chemstress (Akron, Ohio) is renovating/upfitting 20,000 square feet to establish both contract and proprietary production of cosmetics, hair care and skin care products.
View Project Report - 300159363
Industrial Info will continue to monitor the project activity closely, making appropriate changes to both project status and value. Some undoubtedly will be put on hold and others cancelled. On the other hand, new ones will move in to take their place.
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.
