**Washington**: A survey reveals that 96% of U.S. healthcare executives anticipate new domestic facilities driven by automation and supply chain vulnerabilities. The trend could create 350,000 jobs next year, despite expected challenges from compliance costs and advanced manufacturing techniques.
A recent survey conducted by Black Book Research has revealed a significant shift towards reshoring in the U.S. healthcare manufacturing sector. The study involved 60 executives from pharmaceutical and biotech companies, split evenly between those based in the United States and those operating offshore.
The findings indicate that tariff-related incentives, increased automation, and vulnerabilities in supply chains are driving the trend for U.S. firms to relocate manufacturing back home. Overwhelmingly, 96% of U.S. executives and 94% of international respondents anticipate the establishment of new or expanded U.S. facilities, which are expected to heavily utilise automation technologies, including robotics and artificial intelligence.
In 2024, the reshoring and foreign direct investment initiatives are projected to generate around 350,000 jobs, with the medical and pharmaceutical sectors accounting for approximately 14% of this total. However, most of the healthcare executives surveyed—90%—expect that the jobs created will be either “limited” or “highly specialized,” as companies increasingly rely on advanced manufacturing techniques. Doug Brown, Founder of Black Book Research, noted, “Reshoring doesn’t mean reversing automation – it means rethinking workforce needs,” highlighting a shift away from traditional manufacturing roles.
Regulatory factors also play a crucial role in reshoring strategies. All executives agreed that there would be increased oversight for domestic manufacturing, particularly from agencies such as the FDA, EPA, and OSHA. While 97% of U.S. executives recognised compliance complexity as one of their primary challenges, they acknowledged that stricter regulations might enhance product quality and consumer trust.
Despite anticipating increased production costs due to compliance and smart factory infrastructure, two-thirds of respondents support reshoring as a critical national strategy. This perspective is echoed by a separate consumer sentiment analysis, which found that 98% of surveyed Americans favour bringing key industries back to the U.S. This sentiment stems from concerns over national security and reducing reliance on foreign suppliers.
The urgency to reshore has been amplified by the COVID-19 pandemic, which exposed the U.S. dependency on importing over 80% of its active pharmaceutical ingredients from countries like China and India. Domestic manufacturers reported notable disruptions during the pandemic and have since begun evaluating reshoring options.
Brown remarked, “For healthcare providers and systems, reshoring brings dual outcomes – greater product quality assurance and availability, but also higher procurement costs in the near term.” These changes are likely to affect various sectors including healthcare negotiations and government budgets significantly, particularly with U.S. healthcare spending estimated to reach $6.8 trillion by 2030.
The trend is not confined to the U.S., as data suggests that 80% of global manufacturers are also considering reshoring or nearshoring to enhance operational resilience. This indicates that the move towards reshoring may reflect a broader global shift in manufacturing strategies.
Source: Noah Wire Services
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