After an initial surge of reshoring announcements, 2025 has ushered in a more cautious phase for pharmaceutical manufacturing. The cause isn’t a lack of commitment, it’s uncertainty. Unpredictable tariff changes, import taxes, and global sourcing constraints have made it difficult to scope and price projects with confidence.
In early May 2025, the Trump administration issued an executive order directing the FDA and EPA to fast-track domestic pharmaceutical manufacturing approvals. The FDA will now work more closely with manufacturers during planning and construction, and the EPA will accelerate permits for qualified facilities.
These changes follow a major tariff update that includes a 10% blanket import tax and targeted duties as high as 245% on Chinese APIs and 25% on medical devices from Canada and Mexico. For project teams, that means higher cost uncertainty and slower green-lighting of capital projects.
Despite these challenges, long-term investment is not slowing down — it’s ramping up:
- Takeda has committed $30 billion in U.S. R&D and manufacturing over the next decade, emphasizing the need for stable, innovation-friendly policy.
- Eli Lilly is investing $27 billion to construct four new U.S. facilities, creating thousands of jobs.
- Bristol Myers Squibb announced $40 billion in U.S. expansion over five years.
- Johnson & Johnson is allocating $55 billion to expand its domestic production capabilities.
- Amneal Pharmaceuticals and Apiject are expanding fill-finish capacity in New York, targeting 400 million units and creating 200 new jobs.
This level of commitment confirms what many in the industry already know: reshoring isn’t slowing down — it’s simply shifting gears.
Five Ways Suppliers and Manufacturers Can Prepare Now
1. Get Ahead on Site and Supply Chain Readiness
Whether you’re an equipment manufacturer, cleanroom integrator, or automation partner, now is the time to help clients finalize facility specs, accelerate long-lead procurement, and localize key fabrication processes. Companies that secure local sources for skids, filters, tanks, and isolators will be in a stronger position as tariffs make offshore sourcing more unpredictable.
2. Support Resilient Procurement Strategies
New tariffs are driving a shift to dual sourcing, regional supply agreements, and shorter logistics routes. Suppliers that provide transparency, pricing agility, and diversified sourcing will be top of mind for procurement teams reworking their vendor maps. This is also an opportunity to partner with CDMOs and logistics providers to create bundled offerings.
3. Engage With State-Level Expansion Programs
States like North Carolina, Indiana, and Texas are offering significant life sciences incentives, including tax credits, training grants, and expedited permitting. As outlined in CBRE’s Life Sciences Q1 2025 Report, these states are becoming magnets for facility expansions. Suppliers that align early with local EDCs and state programs will get preferred positioning for vendor selection.
4. Help Clients Understand Total Cost of Ownership
Tariffs, inflation, and interest rates are forcing more CFOs to model cost exposure in real time. Suppliers can stand out by providing clear TCO estimates under multiple sourcing scenarios, especially when comparing domestic vs. offshore equipment or material choices. Pre-built ROI calculators, digital procurement tools, and lifecycle cost projections all strengthen client trust.
5. Prepare for Workforce Deployment
Labor remains one of the biggest bottlenecks for capital projects. Suppliers who can deliver not only equipment but also trained installation and commissioning crews will have a significant edge. Now is the time to build partnerships with local workforce boards, union affiliates, and technical colleges to ensure your company can scale in tandem with your clients.
Tariffs Are Slowing Capital Flow — Not Killing It
Let’s be direct: U.S. pharmaceutical companies aren’t cancelling their capital plans, they’re being more deliberate. Recent reporting from the Financial Times confirms that many firms are delaying final build decisions as they await clarity on trade policy and imported input costs.
In this environment, speed still matters, but so does effective risk management. Manufacturers are breaking projects into smaller phases, negotiating flexible delivery schedules, and rewarding partners who can respond quickly to changing project scopes.
For suppliers, this is the time to adapt, not to pause.
A Strategic Call to Action
If you’re a supplier, systems integrator, CDMO, or capital project partner, the next 6–12 months are your chance to create future market advantage. The reshoring wave will return to full strength, but only those who’ve used this period wisely will be ready to move fast when it does.
At Hygenix, we help companies across the pharma manufacturing value chain prepare for what’s next. Whether you’re seeking site selection support, procurement strategy, or capital planning insights, we’ll help you align with market conditions, not wait on them.
Contact Hygenix today to build resilience into your reshoring strategy and be among the first to benefit from the next wave of U.S. pharmaceutical manufacturing investment acceleration.