Navigating the Equipment and Machinery Market - Pharmaceutical Technology

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Navigating the Equipment and Machinery Market
Pharmaceutical Technology's annual survey on equipment and machinery reveals the spending levels and type of spending made in 2011 and planned for 2012.


Pharmaceutical Technology
Volume 36, Issue 4, pp. 50-60

Regional spending

2011 levels . In 2011, Western Europe and the United States were the two leading areas for capital investment. More than one-third (37.8%) of respondents said that their companies spent the most on equipment and machinery for facilities in Western Europe, and nearly one-third (32.0%) said their companies spent the most in the United States (including Puerto Rico).


Figure 3: Percentage of respondents that added equipment and machinery in 2011 in various regions. (SCOTT HEINER/INGRAM PUBLISHING/GREGOR SCHUSTER/GETTY IMAGES)
Established markets continue to dominate spending. Nearly half (47.3%) of respondents added machinery and equipment at facilities in the US in 2011, and 42.6% did so in Western Europe (see Figure 3). Eastern and Central Europe was the third leading region for spending with 18.9% adding equipment and machinery at facilities in those regions followed by Canada, with 10.1% adding equipment there (see Figure 3). Capital investment in emerging markets trailed, with 8.9% adding equipment, respectively in China and India, and 7.7% in Mexico, Central, or South America (see Figure 3).

2012 levels . Planned spending in 2012 is commensurate with 2011 levels in established markets and show some redistribution of expenditures in emerging markets. As in 2011, companies plan to spend the most in 2012 in Western Europe (37.7%), the US (35.1%), and Central and Eastern Europe (9.6%). As in 2011, the US, Western Europe, and Eastern or Central Europe are the three leading areas for planned capital investment in 2012. The survey showed 42.3% plan to add equipment and machinery at facilities in the US in 2012, 39.3% in Western Europe, and 12.8% in Eastern and Central Europe (see Figure 4).


Figure 4: Percentage of respondents that plan to add equipment and machinery in 2012 in various regions. (SCOTT HEINER/INGRAM PUBLISHING/GREGOR SCHUSTER/GETTY IMAGES)
As in 2011, planned spending for 2012 is less in emerging markets than in established ones. In emerging markets, one interesting shift is slightly greater investment in China. In 2012, 11.1% of respondents plan to add equipment and machinery at facilities in China compared with 8.9% who added equipment there in 2011 (see Figures 3 and 4). More respondents also plan to add equipment and machinery in Mexico and in Central and South America. In 2012, 9.4% of respondents are augmenting investment in those areas compared to 7.7% in 2011. Also, slightly less (6.8%) plan to add equipment in India compared to 8.9% in 2011 (see Figures 3 and 4).

Areas of spend

2011 levels. The survey also examined the types of equipment and machinery purchased. Companies spent the most in 2011 on solid-dosage manufacturing equipment and machinery, with 35.6% of respondents reporting this area as the highest source of spending in 2011. Equipment for biologic-based API manufacturing and equipment for quality assurance/quality control (QA/QC) were tied for the next two leading areas, with 16.1% of respondents each spending the most in those two areas. Equipment for parenteral/sterile manufacturing was the next highest area of spend for 11.9% of respondents, and equipment for small-molecule API or chemical manufacturing was the next highest source of investment at 7.6%.


Figure 5: Spending trends for various equipment types for purchases made in 2011 (percentage of respondents). (SCOTT HEINER/INGRAM PUBLISHING/GREGOR SCHUSTER/GETTY IMAGES)
The survey showed that tablet presses, capsules-filling machines, equipment for biopharmaceutical production, and analytical instrumentation were areas of active spending in 2011. A specific breakdown showed (see Figure 5):
  • 46.1% increased spending for tablet presses or capsule-filling machines
  • 45.5% increased spending for biopharmaceutical downstream production equipment
  • 42.9% increased spending for analytical instrumentation
  • 39.5% increased spending for biopharmaceutical upstream production equipment
  • 39.2% increased spending for equipment for QA/QC
  • 37.0% increased spending for disposables for biopharmaceutical production
  • 37.0% increased spending for process control and automation
  • 36.3% increased spending for laboratory equipment
  • 35.9% increased spending for cleanrooms or high-containment equipment
  • 35.4% increased spending for packaging equipment
  • 34.6% increased spending for vial or syringe-filling systems
  • 27.1% increased spending for environmental-control equipment
  • 20.0% increased spending for batch reactors for chemical API manufacture.

The areas with the largest decline in spending in 2011 were batch reactors for chemical API manufacturing and cleanrooms or other high-containment equipment. The survey showed that 15.6% of respondents decreased spending on batch reactors and 10.3% decreased their purchases for cleanrooms or other high-containment equipment (see Figure 5).


Figure 6: Spending trends for various equipment types for planned purchases in 2012 (percentage of respondents). (SCOTT HEINER/INGRAM PUBLISHING/GREGOR SCHUSTER/GETTY IMAGES)
2012 planned levels. For 2012, companies plan to increase purchases of tablet presses and capsule-filling machines at commensurate levels in 2011. The same is true for equipment for QC/QA and biopharmaceutical production, both downstream and upstream, as well as disposables. The survey showed, however, a fall in spending for 2012 for environmental-control equipment, equipment for process control and automation, and analytical instrumentation and an uptick in spending for vial or syringe-filling equipment (see Figure 6).

For companies planning to add equipment and machinery in 2012, the survey showed (see Figure 6):

  • 45.3% plan to increase spending for tablet presses or capsule-filling machines
  • 39.5% plan to increase spending for vial or syringe-filling systems
  • 38.7% plan to increase spending for biopharmaceutical upstream production equipment
  • 36.4% plan to increase spending for equipment for QA/QC
  • 34.7% plan to increase spending for laboratory equipment
  • 34.4% plan to increase spending for biopharmaceutical downstream production equipment
  • 32.4% plan to increase spending for disposables for biopharmaceutical production
  • 29.6% plan to increase spending for analytical instrumentation
  • 28.1% plan to increase spending for equipment for process control and automation
  • 25.8% plan to increase spending for batch reactors for chemical API manufacture
  • 22.8% plan to increase spending for packaging equipment
  • 20.4% plan to increase spending for cleanrooms or high-containment equipment
  • 17.5% plan to increase spending for environmental-control equipment.

The area of largest decline for planned expenditures in 2012 is for tablet presses or capsule-filing machines as more companies to plan to decrease spending than to retain it at current levels. The survey showed that 18.9% of respondents plan to decrease spending in 2012 .Other areas of reduced spending for 2012 are equipment for environmental control (19.0% of respondents plan to decrease spending), packaging equipment (14.0%), and analytical instrumentation (11.3%) (see Figure 6).


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