Puerto Rico Manufacturing Proposition Analysis
Comparison of Puerto
Rico's value proposition
relative to US states
Considered value proposition
across eight dimensions
1. Labor and workforce
2.
Quality and reliability
3.
Infrastructure
4.
Operations risk
5.
6.
7.
Tax climate
Manufacturing ecosystem
Manufacturing cost
8. Ability to serve US market
Comparison, along with prioritized products/companies,
informs impact analysis of federal legislation
Established manufacturing states
-
Economically distressed zones
States
MA, CA, NJ, NC, PA, IN, IL
Southeast, Mid-Atlantic, Border States
+
Lower cost in manufacturing
+
Specialized labor force
Puerto Rico's
competitive
+
advantages
Established hub for small
molecules and diverse medtech
+
Track record of reliability in mfg.
+
Puerto Rico's
challenges
Weaker mfg. ecosystem esp. for
new modalities and biologics
Perception of infrastructure and
reliability issues on the island
PR generally not preferred vs. these
locations; more credible (or close) in
noted segments vs. others; must
overcome material perception issues
vs. these locations
Existing infrastructure for
mfg. of pharma and medtech
Similar cost in manufacturing
Perception of higher operational
risk vs. mainland US
PR generally preferred with strong
value prop. vs. these locations; not
expected to lose at scale besides
one-offs or where players have
existing footprints
Source: Fitch Solutions / BMI Research, PharmNets, Euromonitor, Healthcare and Life Sciences Review Puerto Rico 2020,
EIU, World Bank, Notre Dame Climate Risk Index, SEDA, Transparency International, CNBC State Business index, EIA, BLS,
USTR, Cushman & Wakefield, BCG analysis
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