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CONSTRUCTION/PROJECT PLANNING
Life Sciences Fueling Construction Demand In the wake of the pandemic, life sciences companies are rapidly expanding, spurring a demand for new facilities to house their operations. By Gul Dusi, Project Director, Linesight
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n a time of widespread economic upheaval, the life sciences industry is one of the few whose prospects have changed for the better. Called upon to rapidly develop and distribute an all-important COVID-19 vaccine without sacrificing the research and production of existing drugs, the biotech industry is expanding at breakneck speed. Currently, around 13.9 million square feet of life sciences1 research and manufacturing space is under construction in key markets. In the United States, lab space vacancies have dropped to 7.1 percent,2 while commercial properties are being converted into R&D facilities on a massive scale. This biotech boom is providing a vital lifeline to the construction industry. Due to the impact COVID-19 has had on various industries, plummeting contracting demand has led to the loss of roughly $60.9 billion in GDP, as construction jobs dropped to 6.5 million across the U.S.3 By embracing the current demand for life sciences facilities, developers can not only thrive in difficult times, but also play a role in speeding the world’s recovery from COVID-19. Contractors are, therefore, rushing to secure lucrative projects, building research and manufacturing facilities in the life sciences sector. But with speed-to-market being a critical factor, biotech executives must choose construction partners who can mitigate shortages in labor
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The life sciences industry continues to grow with increasing demand for research and manufacturing facilities.
and materials while guaranteeing timely government authorization to improve delivery timelines and get their clients working in a new space as quickly as possible.
The Challenges of Supplying Demand Prior to the pandemic, medical advances combined with an aging and expanding population were projected to grow the life sciences sector. With the global prescription drug market expected to surpass $1 trillion by 2022,4 there has been an increased demand for lab space and the development of life sciences hubs. Repurposing commercial spaces to meet lab requirements continues to be a growing trend, as
is the need for multi-product facilities5 to produce more personalized medicines that are generated in smaller quantities. In order to meet these requirements, life sciences companies must choose developers that understand current design specifications for specialized spaces and can deliver projects quickly. Having the ability to mitigate several issues causing significant project delays across the industry is paramount for construction companies. Supply chains have been upended since the early days of the pandemic in China, an essential manufacturing hub for the construction industry. Companies have had to stockpile material in an effort to continue projects without interruption.
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5/26/21 10:22 AM
