Reshoring, Insourcing, Restoring Critical Industries in the USA and Canada - Pharma
At the beginning of the COVID-19 Pandemic, the US Government identified 16 critical sectors so important to the needs of the country, that without them the country’s health and security would be compromised.
Critical sectors include, chemical, commercial facilities, communications, critical manufacturing, dams, defense, emergency services, energy, financial services, food and agriculture, government facilities, healthcare technology, nuclear reactors, materials and waste, transportation, water and wastewater systems.
The Chemical Sector – Pharmaceuticals
The Chemical Sector, for example, converts raw materials into more than 70,000 products. It includes:
- Basic chemicals
- Specialty chemicals
- Agricultural chemicals
- Consumer products
The pandemic prompted public and private sector leaders to re-examine dependence on imports in many critical industries. For example, Canada imports nearly twice as many pharmaceutical products than it exports and the USA imported over $179 billion in pharmaceuticals in 2020. According to the U.S. Food and Drug Administration (FDA) 2019 Drug Shortages Report, 88% of the manufacturing sites producing ingredients and 63% of finished drug manufacturing are located outside of the US.
Reshoring, Insourcing, Restoring
Pharmaceutical industry executives are now re-thinking their global supply networks and planning to bring critical product manufacturing back onshore. EY surveyed over 500 CEOs and over 64% said they are looking to acquire more domestic production facilities. This post-pandemic strategy will ensure that critical pharmaceuticals are produced domestically and will also lead to future export opportunities.
Future Exporting for Restored Industries
ISA certifies pharmaceutical and nutraceutical companies for Halal ingredients, process, and distribution domestically and internationally. With Halal certification pharmaceutical companies that re-shore their production facilities in the USA will be able to export to markets world-wide.
There is public pressure to re-shore critical industries like pharmaceuticals in order to make the USA and Canada less dependent on imported pharmaceutical ingredients and finished products. The pandemic has magnified the need for public-private initiatives that enable business continuity during pandemics and other “Acts of God”. While global economic interdependency will no doubt continue, there is a need to have domestic production of goods in sectors that are critical to the health, welfare and security of each country.
Companies that re-shore can export their products world-wide. ISA Halal certification facilitates entry into many overseas markets.
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