The Current Pharma Manufacturing Boom & Suggestions for a More Resilient Supply Chain for all
Since the second half of 2025, pharmaceutical building projects have surged. We saw an earlier spike during the height of the COVID-19 pandemic, when global supply-chain gaps, weaknesses, and vulnerabilities were laid bare. That reality is still reshaping the industry.
Most of today’s major capital projects are being driven by companies with strong internal funding. In other words, the organizations that have the money, primarily Big Pharma, are actively spending it and fueling much of the current momentum across the sector.
These newly announced commitments are also exceptionally large. Many exceed the scale of what we’ve seen in previous decades, yet they still fall within the typical construction and validation timelines of 2.5 to 5 years.
This recent article outlines four notable elements of the current pharma build boom:
Geographic concentration: The majority of activity is happening along the Eastern Seaboard…for now.
Infrastructure requirements: Electrical power capacity is a major priority and will remain a key determinant of business success, especially as AI continues to reshape manufacturing. I would add access to stable water sources as an equally critical factor, as both are among the earliest considerations in major facility planning.
Minimal impact from federal changes: Current federal budget shifts, department cuts, and regulatory adjustments do not appear to be slowing these large-scale investments. The bigger question is what the landscape will look like, for Big Pharma and for small and mid-sized companies, once this boom begins to taper.
Exclusion of generics: Generic drug manufacturers are largely absent from this trend. With tariffs not heavily targeting generics, there is less urgency to reshore or expand domestic production for that segment.
When we talk about the pandemic exposing global supply-chain fragility, one factor often overlooked; but absolutely central to long-term growth and stability, is the quality of supplier relationships. Companies interact with suppliers every day, yet few manage those relationships in a way that meaningfully builds resilience.
Between the disruptions of 2020–2023, the dramatic pullback in VC funding in 2023, and the ongoing economic and industry uncertainty of 2025, organizations are being pushed to make smarter, more strategic decisions, especially around CAPEX. Leaders are asking:
If we scale, do we hire or build? Or do we outsource?
How do we stretch budgets for maximum ROI?
Can we leverage bulk purchasing without risking inventory waste?
Where do we double down, and where do we optimize?
Even with all this on the table, supplier relationship optimization is still rarely prioritized unless a crisis forces it into focus. And when vendor or supplier management IS addressed, companies tend to fall back into transactional, one-sided approaches that don’t truly strengthen the relationship.
Big Pharma may be enjoying a period of accelerated expansion, but trends of this size eventually cool. And if small and mid-sized firms aren’t growing and moving in the same direction as larger pharmaceutical companies, even at a slower pace, the industry will feel the long-term consequences in innovation capacity, competitiveness, and overall market health.
At The Biokive, we help small to mid-sized companies improve growth by strengthening the supplier relationships that support every part of their business. We focus on supplier identification, selection, and management processes that build resilience, reduce risk, and enhance long-term performance.
If this resonates with you or your organization, reach out to us here or at info@biokive.com.