Puerto Rico Industrial
and Manufacturing
Report, H1 2020
After a fiscal crisis, an extended recession, hurricanes, earthquakes, and a global pandemic, Puerto Rico has weathered crisis after crisis over the past several years. The Island’s resilience during these challenging times has been supported by its people’s strength of character, a healthy business environment founded upon Puerto Rico’s status as a part of the United States, a highly competitive tax code, and its entrepreneurial spirit.
Pharmaceutical and medical device manufacturing accounts for 51 percent of Puerto Rico’s GDP. The island is the world’s fifth largest pharmaceutical manufacturing hub by volume, comprising more than 80 manufacturing facilities. The industry that has been built up over decades in Puerto Rico has the potential to turn the island into a jewel in the Caribbean rather than a federal fiscal liability in the United States. Despite past challenges, Puerto Rico still produces 12 of the world’s top 20 drugs, and while companies now must pay taxes on their products, manufacturing in Puerto Rico still comes at a massive discount in comparison with the mainland, and this comes at a time while manufacturing drugs and medical devices offshore has become a national security liability. The island’s existing infrastructure, talent base, rule of law, and reliability in the face of extreme challenges make Puerto Rico a prime candidate for new and additional manufacturing, and JLL is ready to help manufacturers achieve their ambitions in Puerto Rico.