Puerto Rico Manufacturing Proposition Analysis
For this report, assume federal action leads to significant in-shoring of
Biopharma and Medtech manufacturing to the US based on incentive schemes
Scenario
Impact to
companies
Impact on
Puerto Rico
1
Limited financial
intervention
Federal efforts to support in-shoring
focused on areas with limited financial
impact (e.g., supply chain reporting)
Companies choose to localize to US
for strategic reasons (e.g., increase
resilience)
Minimal Puerto Rico must deploy
own resources strategically, given
minimal federal aid
2
Focus of this report..
Federal incentive schemes
("middle of the road")
Federal action creates new financial
incentives; wide spectrum (e.g., wage
tax credits, credits for economically
distressed zones, elimination of GILTI)
More companies view in-shoring to US
as right business case as incentives
outweigh tradeoffs (e.g., time / cost
for volume and/or tech transfer)
Moderate Potential to capture
incremental manufacturing value
depending on specific legislation
3
Forced localization
("extreme")
Illustrative
Federal action or contracts ban or
prohibit companies from selling non-
domestically produced products in the
US (i.e., full US supply chain req'd)
Companies make material supply
chain and network moves required to
do business in US and maintain position
in growing global markets (e.g., China)
High Potential to capture significant
manufacturing value from forced in-
shoring, but lower likelihood scenario¹
Less change
1. Based on synthesized interviews with industry stakeholders
More change
4
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