Puerto Rico Manufacturing Proposition Analysis
Project
Disclaimer
BCG is supporting the Puerto Rico Financial Oversight and Management Board ("Board") in a
short, focused effort to assess how Puerto Rico can best position itself to create mutual value for
biopharmaceutical and medical device manufacturing companies, the US, and Puerto Rico. As
part of the project, BCG was asked to consider:
•
Companies and/or product segments most likely to in-shore to the US in the face of COVID-
19 impacts and potential federal action;
Puerto Rico's competitive position and value proposition for biopharmaceutical and medical
device manufacturers, particularly those identified as most likely to in-shore;
Related potential impacts of federal tax incentives currently under consideration in Congress
Operating on a rapid four-week timeline, BCG developed recommendations set forth herein based
on critical assumptions provided by and scope aligned with the Board and estimated impacts
from policy and economic analysis, relying on best-faith efforts and stakeholder interviews, and
to the extent possible, utilizing data that currently existed. Note that where location-specific
data was unavailable, BCG leveraged similar data from other locations as an illustrative proxy to
inform decision making. The results of the analysis reflect current context and are subject to
change based on evolving federal and local action, insights from outreach efforts to companies,
and information on global manufacturing shifts in the coming months. This report is intended to
provide directional guidance based on the current state of in-shoring discussions, scenario
planning, and federal action. It is also based on a critical assumption provided by the Board that
federal legislation is significant enough that it brings back material manufacturing to the US and
is applicable to companies in Puerto Rico.
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