UK is the 9th largest pharmaceutical market in the world, and the sector makes a greater contribution to the UK economy than any other industrial sector – and also generates an annual trade surplus of almost £3bn.
The industry is
particularly important in terms of its R&D contribution and the pharmaceutical sector alone
accounts for more UK-based business R&D than any other manufacturing sector
– around £4.2bn is spent on pharmaceutical R&D in the UK,
almost 25% of the total industrial R&D spend.
The top 10 global
pharmaceutical companies account for around £24bn or almost half of total UK sector
of the top global pharmaceutical companies have a considerable manufacturing and
research presence in the UK, with 12 out of the top 20 global pharmaceutical companies
accounting for a total of 55 UK sites.
Known as ‘The Golden Triangle’ the centres of
London, Cambridge, Oxford and Stevenage house the UK’s largest biomedical cluster in the UK. Clusters of pharmaceutical companies are also
found in areas close to universities. The North West, in
particular, is home to ‘Big Pharma’, with several global pharmaceutical
companies operating a facility in the region.
Capital expenditure by pharmaceutical companies in the UK
has been in decline, with R&D capital expenditure falling from £496m in
2002 to just £137m in 2012, and manufacturing capital expenditure declining
from a peak of nearly £1bn in 2001 to just £422m in 2012.
However, the Government has announced a forward pipeline
of over £200m worth of capital projects in the pharmaceutical and biotechnology
sectors between now and 2018. In addition to these confirmed capital projects,
a number of expansion plans have been announced by leading pharmaceutical
companies, which are reviewed in AMA’s report and should be of interest to
construction companies and their supply chains operating in the pharmaceutical
sector and to suppliers of laboratory and allied products. Increasing specialisation
within the pharmaceutical industry has also brought about varied opportunities
for construction engineers and contractors, and also broadening into other
niche construction sectors in advanced manufacturing, food processing etc.
“Current design and
construction trends are moving away from ‘bespoke’ buildings to flexible and
mobile laboratories and cleanrooms requiring less time to design and build, and
incorporating modern methods of construction. The demand
for mobile or modular cleanrooms is increasing driven by industry cutbacks
which have forced many pharmaceutical companies to rethink their business and
manufacturing operations” said Andrew Hartley, Director of AMA Research.
and Biotechnology Construction Sector Report – UK 2014-2018 Analysis’
report is published by AMA Research, a leading provider of market research and
consultancy services within the construction and home improvement markets. The
report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242