Pills, Policy, and Proximity: Decoding the Push to Onshore Pharma

The onshoring pharma trend picks up speed in 2025 with the backdrop of recent executive orders and policy shifts in the US and Europe. New mandates prefer local manufacturing as a hedge against supply chain weakness highlighted by intensifying geopolitical tensions and recent shocks worldwide. Companies are responding by investing in smart manufacturing, artificial intelligence-enabled supply chain resilience, and digital solutions to ensure traceability and responsiveness of operations.

 

Legislative and regulatory signals, especially from the incoming US government, are indicating incentives for home manufacturing and potential tariffs on imports, causing pharma players to reassess global partnerships and increase sourcing. Onshoring is not just risk insurance; it's also about capturing value through innovation, faster R&D, and improved quality oversight.

 

As the "tea leaves" of policy settle, pharma executives are making resilient, technology-enabled domestic operations a priority in order to stay competitive and compliant in a changing environment.

 

Source: Goodwin Law, ZS, Pharma Manufacturing, PwC