With the latest information on the new US tariffs and how they will impact the pharmaceutical industry, reshoring has resurfaced once again, with industry professionals left wondering what the future of pharma distribution will look like.
But what exactly is reshoring, and how does it directly impact the cold chain industry?
CREST’s Marketing Executive, Katherine Witts, breaks down the key information for you to stay in the know of the industry trend that is continuously growing in popularity.
What is reshoring?
Reshoring is the opposite of globalisation, it’s the strategic decision of keeping the supply chain, manufacturing and production of products within the domestic market.
The conversation of reshoring became prominent following the pandemic, which highlighted that using the global supply chains comes with additional risks – this included over-reliance on single sources to logistical disruptions and product quality control.
Why is reshoring beneficial to the pharmaceutical and medical industry?
Due to the high-risk nature of pharmaceutical products, shortening the supply chain reduces the risks of product contamination, counterfeiting and security risks, not to mention the reduction in costs.
As the pandemic taught us, reshoring also makes it possible to respond faster in the event of national emergencies or drug shortages. As a result, more lives are saved.
Reshoring and cold chain logistics
One of the primary challenges associated with reshoring is the need for companies to break away from established, long-standing overseas partnerships.
This shift involves relocating production operations back to the home country, which can disrupt the global supply chains and require significant investment in new infrastructure.
Additionally, companies must identify suitable domestic facilities for manufacturing, packaging, and storage – a task that can be both costly and time-consuming.
For the cold chain logistics sector, however, this challenge presents a substantial growth opportunity. With the movement of production closer to home, demand for local cold storage and transportation solutions is expected to rise.
This shift can drive the development of new coldstore facilities, strengthen domestic logistics networks and create a surge in related employment opportunities, contributing to local economic growth.
Additionally, this trend can foster innovation in refrigeration technologies, energy efficiency, and real-time monitoring systems, enhancing the overall resilience and sustainability of domestic supply chains.
In need of a new pharmaceutical coldstore facility for your vaccine production, wound care facility, cell gene therapy manufacturing, or medical device manufacturing?
Mark Kendrick, CREST’s controlled environment specialist, has extensive experience in pharma cold storage solutions and is available to discuss your project needs.
You can reach out to Mark at 07585 301425 or send us an enquiry.
Further Reading:
Reshoring the UK pharmaceutical supply chain for future resilience
UK Pharmaceutical Sector Embraces Reshoring for Enhanced Supply Chain Resilience
