'A Shift In Domestic Production': How PCL Is Helping Secure The Future Of Biomanufacturing
U.S. pharmaceutical companies began investing heavily in domestic manufacturing when the pandemic caused global supply chain disruptions that persist today. Now, these companies are ramping up onshore production, due in part to the tariffs imposed by President Donald Trump.
U.S.-based pharmaceutical company Eli Lilly on Feb. 26 announced a $27B plan to construct four manufacturing megasites in the U.S., aiming to bolster domestic production capabilities. Johnson & Johnson followed suit on March 21 with plans to invest $55B in new plants across the country, including a facility in North Carolina that will focus on treatments for cancer and neurological diseases.
General contracting firm PCL Construction, which has worked on more than $25B worth of manufacturing projects, including biopharma work, has kept a close eye on this rapid domestic growth. It plans to stay flexible to help clients meet their manufacturing needs, PCL Director of Manufacturing Andrew Ahrendt said.
“We’ve responded to this shift in domestic production demand by investing in our Manufacturing Center of Excellence, which helps streamline manufacturing for a variety of industries, including life sciences,” he said. “By hiring additional engineers and vertically integrating our total plant and facility delivery process, we are poised to meet this increased demand.”
A Focus On Speed To Market
Ahrendt said that since the pandemic, the speed to market of drugs and medical supplies has changed. The pandemic exposed a vulnerability in the market that prompted efforts to reduce dependency on foreign suppliers when supply chain disruptions started occurring. As a result, more U.S. life sciences manufacturing shifted stateside.
“We’re seeing the federal government work in unison with research institutions and the life sciences industry to streamline projects and accelerate production of not only Covid vaccines but now weight-loss drugs and cancer drugs,” he said. “This continuous domestic improvement mindset, while bringing together all the different stakeholders, is allowing projects to be delivered faster today than they ever were before.”
He added that because of the increased onshoring, there has also been a greater demand for artificial intelligence to accelerate drug discovery, manufacture products and optimize supply chains for more cost-effective biopharma operations.
Alleviating Pain Points In Supply Chain Delays
PCL is supporting its clients through supply chain disruptions associated with tariff escalations by developing manufacturing solutions. One of the ways it is doing this is by strengthening alternate supplier pipelines to mitigate potential future tariffs by sourcing developing equipment and material alternatives, Ahrendt said.
Also, the company can leverage PCL global procurement services, which assists its clients with material and equipment sourcing to find alternate suppliers and address domestic preference requirements.
“By being proactive in the procurement stages, we can be more flexible with lead times, helping us stay on top of project schedules,” Ahrendt said.
He added that PCL can develop procurement strategies for its projects, including plug-and-play equipment such as motors, electrical and controls devices. PCL can also expedite overseas shipments, materials and equipment, including customs and port of entry care and custody for its clients.
PCL has its own manufacturing facilities to store materials in-house and save costs. However, Ahrendt found that prioritizing prefabrication in an off-site plant in a controlled environment makes construction more scalable while there are still labor shortages.
The Impact Of Deregulation
The Food and Drug Administration has been using fast-track programs to expedite the review of drugs that address unmet medical needs, especially for rare diseases and drug companies that need partners that can engage and mobilize quickly, he said.
PCL is pivoting to adapt to a market with fewer regulations and shortened approval timelines by supporting life sciences and accelerated drug development with its manufacturing services. It is also investing in new and expanded drug facilities with integrated project deliveries and fast-track construction, Ahrendt said.
He added that long-term deregulation may also affect the way companies invest in biotech facilities.
“We’re seeing a trend of large pharmaceutical companies that want to acquire innovative biotech startups before their first products are launched in order to capture the next wave of therapies,” he said. “In the long game, deregulation may help mitigate risks and reduce costs to make early-stage investing in biotech facilities more appealing.”
Moving To Digital Transformation
PCL is now adopting a more digital approach on its project sites to help move construction along. It does this through building information modeling, which provides a 3D visualization of plant lines and construction operations. Ahrendt said this helps stimulate work situations virtually to provide better safety protocol and identify risks before workers begin to operate equipment.
The company is also experimenting with AI, digital sensors and robotics to help replace repetitive on-site tasks like overhead drilling, planning cable routing and even using site photogrammetry to monitor temperature and humidity levels. Ahrendt said PCL uses smart construction with real-time data to create a digital twin for its clients to monitor how efficiently their operations run.
Ahrendt is optimistic about what the future holds for domestic manufacturing and believes this is a great time to be in construction.
“I’m looking forward to what the next five years hold for the investment in reshoring and manufacturing in the U.S.,” he said. “I see the current administration working closely with manufacturers. This focus on domestic production will have a positive trickle-down effect on energy production, critical mineral mining and supply chains.”
This article was produced in collaboration between PCL Construction and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
