ABPI News

In the pharmaceuticals sector we are seeing an increasing trend towards a reduced overall number of 'global' manufacturing plants, which are progressively replacing 'national' plants.

This is the inevitable result of sector consolidation, supply chain efficiencies and the rolling back of national trade boundaries. A similar global trend is now being seen with formulation, potentially leaving only packing as a long term national activity.

For many years pharmaceuticals has been one of the major success stories in the UK manufacturing base with a positive balance of payments for the last full year (2002) of £2.6bn. But unless the UK Government takes steps on behalf of UK industry to facilitate a competitive environment for global manufacturing activity, its long term role in manufacture may be limited to the relatively low technology packaging end.

With the reduced number of pharmaceutical manufacturing plants, the UK is increasingly in competition with both the emerging and 'low tax' territories to attract - and retain - global manufacturing investment.

The UK does, however, still have major competitive advantages, rooted in its strong science base, its r&d tradition and its established reputation for world-class drug manufacture. In addition, two of the world's largest pharma companies are still UK domiciled.

The current issue of Manufacturing Chemist with its focus on manufacturing in Ireland shows how a positive attitude to attracting investment can reap huge rewards for the national economy on a long- term basis.

Similar positive thinking is needed to ensure a thriving manufacturing base in general - and, in terms of pharmaceuticals and chemicals, the maintenance of two major positive contributors to the UK's balance of trade.