The UK’s pharmaceutical market is the ninth largest in the world, making a greater contribution to the UK economy than any other sector. However, growth rates have slowed in recent years: pharmaceutical R&D capital expenditure in the UK fell by around £359m from £496m in 2002 to just £137m in 2012, while in pharma manufacturing in particular, capital expenditure declined from a peak of £1bn in 2001 to just £422m in 2012.1
According to the AMA Research Pharmaceutical and Biotechnology Construction sector report1: ‘The greatest barrier to capital investment in the UK over the past few years has been the lack of financial incentive to locate new manufacturing plants in the country.’
Leading pharmaceutical companies will now find themselves with greater responsibility for health, safety and welfare in construction projects than ever before due to the regulatory changes
However, trends are beginning to reverse. The North East of England Process Industry Cluster, which represents a large number of pharma companies based in the region, has committed to investing £7bn into the area by the end of the year, as well as attracting some 16,000 new employees, all of which is likely to include the upgrade of existing (and construction of new) facilities. Nationally, the UK government has also announced plans for £200m worth of capital projects in the sector during the period covered by the AMA Research report.
Leading pharmaceutical companies are also beginning to announce expansion plans, meaning that they will now find themselves with greater responsibility for health, safety and welfare in construction projects than ever before due to the regulatory changes.