11.11.20 -- How Surplus Pharmaceutical Equipment Can Reduce Costs

The pharmaceutical industry has embraced a global supply chain model for decades. However, a variety of concerns –– notably underscored by supply chain disruptions driven by the COVID-19 pandemic –– are pushing companies to redraw their global supply chains to resume more domestic manufacturing, aided by new technologies and equipment that can reduce costs.

There are many factors to consider when tasked with acquiring the equipment needed to run a pharmaceutical facility. Being aware of every up-front cost is a must when determining optimal equipment ownership. See how state-of-the-art used equipment can be a great strategy for cost savings for businesses.

As pharmaceutical manufacturers’ equipment budgets continue to rise, demand grows for acquiring equipment that addresses today’s trends. These five tips can ensure that, whether purchasing new or used equipment, the entire procurement process runs as efficiently as possible.

Major trends in the pharmaceutical and biotechnology manufacturing industries are driving significant shifts in the management of laboratory and processing equipment inventory. Pharmaceutical manufacturers must be aware of the outlets for their surplus and idled equipment so that they do not lose opportunities to redeploy that equipment to another area of the business or sell it for cash.

Mergers and acquisitions among pharmaceutical companies, as well as an ever-changing product mix, leads to surplus capital equipment among pharmaceutical manufacturing facilities. Often, these surplus inventories occupy valuable manufacturing and lab space, or they are in storage facilities or "bone yards." An effective capital equipment investment recovery strategy can help turn idled equipment into moneymaking assets.

Over the last decade, mergers and acquisitions have come to define both growth and consolidation in the pharmaceutical industry. Often, a merger or acquisition is the quickest, most cost-effective way to realize advanced capability without building a facility from the ground up. However, even a successful merger or acquisition of manufacturing facilities creates a range of asset management issues.