The term “biomanufacturing” encompasses the use of biologics, such as cell lines, enzymes, or microorganisms, to produce commercial products. Those products run the gamut from pharmaceuticals to food ingredients.
The growing demand for biomanufacturing-driven products translates to a corresponding increase in the need for factories and sites. But unlike a traditional factory plant site, finding that ideal locale for a biomanufacturing concern requires a more specialized approach.
A CBRE article about the topic lists three “must-haves” when it comes to site selections.
#1—Labor and Infrastructure
To put it succinctly, “biomanufacturing is a labor-intensive and resource-heavy endeavor,” the article explained. Energy requirements are high (up to 14 times higher than those of other manufacturing facility types).
The resulting wastewater requires special, advanced treatment systems. Furthermore, life sciences companies require highly skilled workers, ranging from researchers to manufacturing experts.
“Finding an appropriate site requires extensive investment, so it is important to make data-driven location decisions using a holistic approach that weighs factors like labor costs and availability, power and water supply and state and local incentives,” commented the article’s authors.
#2—Supply Diversification
The pandemic generated significant supply chain disruptions, which continue to affect manufacturing companies, including those in biomanufacturing, today. The CBRE article noted that mitigating supply chain vulnerabilities—while avoiding tariffs at the same time—means that life sciences companies are moving toward increased domestic production of raw and other materials.
The result is the need for additional locations in the U.S., “requiring simultaneous site searches and concurrent capital projects,” the article said.
#3—Plenty of Capital
In addition to a large reliance on energy, personnel and functioning supply chains, the right biomanufacturing site requires capital flexibility. The article explained that many large companies prefer to own their own sites to safeguard production capabilities and equipment investments.
“This can lead to large and complex capital expenditure, often spread across many projects,” according to the CBRE article’s authors.
The article suggested that financial flexibility could include securing new development funding, a sale-leaseback arrangement or other solutions to help with liquidity.
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