Business Insights | Three Things to Know About Biomanufacturing Reshoring

While U.S. biomanufacturing investment has been on the rise for years, activity has increased throughout 2025. Given biomanufacturing’s intricate requirements, the search for acceptable facilities or greenfield sites is both complex and competitive. For businesses such as large pharma companies, growing biotech companies, developers wondering how to best position sites or local governments wanting to bring manufacturing jobs to constituents, here are three things to know about biomanufacturing reshoring.

1. Labor and infrastructure resources are essential for large-scale biomanufacturing.

Biomanufacturing is a labor-intensive and resource-heavy endeavor. Although precise electricity utilization varies dramatically based on the specific process, scale and facility design, biomanufacturing is extremely energy-intensive. The overall energy-usage intensity (EUI) for pharmaceutical plants is 14 times higher than other types of manufacturing facilities and office buildings.¹ The most energy-demanding are the HVAC and cleanroom systems, which require precise temperature, humidity and air-quality controls. This is why the majority of biomanufacturing sites need at least 5 megawatts of power and require backup energy in case of emergencies. The search for this type of electricity is complicated by the competing searches of AI firms and chipmakers, who also require substantial amounts of electricity to sustain their businesses.

In addition to electricity, the pharmaceutical and biotech industries generate complex wastewater that requires advanced treatment systems. Some manufacturing companies have faced challenges requiring citywide upgrades to water and wastewater systems. A typical 20,000-liter batch facility uses over 1.5 million gallons of water annually.² With water being a critical resource for manufacturing processes, companies must plan for sustainable water usage and treatment solutions.

In addition to water and electricity, life sciences companies also need a highly skilled workforce, from researchers to manufacturing personnel. Many companies have adopted a key strategic imperative to locate their facilities in areas with strong labor markets to ensure access to a large pool of qualified professionals. The 2025 CBRE U.S. Life Sciences Talent Trends report highlights competitive and emerging markets for R&D, manufacturing and MedTech talent.

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.

2. Diversifying manufacturing sources can offer flexibility.

During the COVID-19 pandemic, manufacturing companies felt the effects of supply chain disruption, equipment and raw materials shortages and higher costs. According to an August 2021 Informa survey of life sciences companies, 87% said supply chains were still affected by the pandemic, the exact same share as the year before. U.S. firms reported more problems than their European counterparts, with 25% reporting significant impacts, compared with 11% in Europe.³ To mitigate this vulnerability, and to avoid tariffs, life sciences companies are exploring increased domestic production. This can further lead to diversifying multiple locations throughout the U.S., requiring simultaneous site searches and concurrent capital projects.

Performing these complex site searches and projects in parallel requires extensive collaboration with a trusted advisor who can support all aspects of these vital long-term investments.

3. Capital-intensive projects require financial flexibility.

As of mid-September 2025, large pharma companies have announced over $375 billion of U.S. capital projects and new site commitments. Many large companies often prefer to own their sites to protect their manufacturing capabilities and provide operations flexibility or have long lease terms to safeguard their equipment investments and production capabilities. This can lead to large and complex capital expenditure, often spread across many projects.

Not every company wants to burden its balance sheet or rely on in-house capital expenditure tracking and incentive redemption. A trusted advisor can offer flexibility, including helping to secure new development financing, a strategic sale-leaseback or other financial solutions.

Conclusion

Developing new biomanufacturing facilities presents significant challenges, encompassing utility infrastructure, labor supply, financial planning and project management. Successfully navigating this complex and competitive environment requires careful consideration of site selection, local incentives, infrastructure readiness and financial strategies. Partnering with a trusted advisor allows you to proactively evaluate options and ensure a smooth project cycle from inception to completion.