Over the last decade, and through the worldwide economic downturn, the United States has remained the top choice for foreign life sciences companies looking to locate research and development or manufacturing facilities.
A Jones Lang LaSalle study that tracked how foreign investors chose new markets after the economic recession concluded the U.S. remained the number one choice, even after other countries offered incentives.
The study showed from 2003 to 2010 the U.S. region tallied double amount of direct foreign investment, $112 billion, compared with its number two competitor Ireland with $53.1 billion.
US markets remained the top spot for international investment from 2007 to 2010, during a period when Ireland fell from second to fifth place, and was replaced by China in second place, Singapore in third, and India in fourth place.
Jones Lang LaSalle study is seen as prudent advice that the US must remain competitive with growing markets around the world to remain on top. The study found, while the US remained the leader, the worldwide economic downturn caused some cost-conscious pharmaceutical companies to shift investments to growing markets of China, India, Singapore.
Overall, geographic locations viewed as a viable investment offered production flexibility along with government incentives, and were conveniently located with other components of the supply chain such as warehouses and airports.
"The global economic downturn changed industry dynamics. Since 2007, some companies adjusted their location strategies to focus on new markets that offer revenue growth, cost efficiencies, favorable tax structures and consolidation opportunities," the report concluded. Locations that remained viable also offered production flexibility, and were conveniently located with other components of the supply chain such as warehouses and airports.
"For investors, it's important to understand trends that affect facility planning, especially the need to realign the enterprise's operating footprint with the new realities of how revenue will be generated and how profit margins can be preserved, " Bill Barrett, managing director of Jones Lang LaSalle's life sciences business said.