Global pharma is pulling back from the UK. AstraZeneca’s cancelled upgrades, Eli Lilly’s stalled biotech hub, and Merck’s relocation of R&D all point to the same conclusion: the world’s biggest players no longer see the UK as a stable or competitive place to invest.
That should worry everyone in life sciences, not just policy makers. When investment dries up, manufacturing feels it first.
Across the global industry, pricing pressure is reshaping where and how medicines are made. The US is moving to control domestic drug prices, forcing global manufacturers to recover margins elsewhere. European rebate systems are tightening too, while inflation and energy costs add another layer of complexity. That mix of global and local pressure is driving companies to reassess every site, every investment, and every efficiency they can find.
It’s easy to blame the retreat from the UK on government policy (pricing frameworks, rebate schemes, or funding pledges that never materialize). Of course, those things matter, but there’s another side to the story that sits squarely in our own hands: how competitive and efficient our manufacturing base really is.
A competitiveness problem, not just a policy one
UK life sciences manufacturing still has huge potential, but it’s losing ground. Global pricing pressure, rising energy costs, and slow-moving regulation make investment decisions tougher than ever. Add to that a patchwork of outdated systems and fragmented data, and it’s not hard to see why capital is flowing elsewhere.
I’ve visited enough facilities, from small CMOs to global pharma sites, to know that too many are still running on legacy systems that can’t see or share what’s happening in real time. It’s like trying to compete in a race while looking in the rear-view mirror. Every wasted batch, every unplanned stoppage, and every manual workaround adds cost, and global companies see it in the bottom line.
If the UK is to remain relevant in pharma manufacturing, there has to be focus on what can be controlled. The running of plants is one of the most important parts of that.
Manufacturers can’t rewrite tax codes or pricing policies, but they can strengthen operational resilience. That means improving changeovers, connecting systems and making better use of data.
Energy is the elephant in the room
Industrial energy costs in the UK are consistently higher than in almost every competitor market. The government can and should act on that, because without policy intervention – through improved grid infrastructure, predictable pricing, and targeted incentives – it’s difficult for manufacturers to compete with the economics offered in Ireland, Germany, or the US.
But while we wait for policy to catch up, manufacturers can’t afford to stand still. Energy efficiency has to be treated as a core part of digital transformation. The same data that helps improve yield and reduce downtime can also identify where energy is being lost. Connected systems let you see exactly which process, pump, or cleanroom is drawing more power than it should. Visibility gives you control, and through control, you cut costs.
Energy policy may sit with the government, but energy management sits with us on the factory floor.
Strengthening operational resilience
When information moves freely between automation, utilities, quality, and performance systems, teams can act before small deviations become big losses. I’ve seen facilities cut deviation review times from days to hours simply by connecting existing systems. Those gains don’t need a five-year digital roadmap. They need focus, teamwork, and a culture that actually backs change.
The missing link for many facilities sits between the plant floor and the enterprise systems above it. Software platforms that connect production, process, and utility data bridge that gap, creating a single view that everyone can trust. In many cases, that means integrating IT and OT environments – connecting localized, plant-level systems with enterprise-level infrastructure to deliver real-time visibility across the operation. It’s that middle layer that gives context to the data, turning alarms and trends into decisions. When you can see a deviation, its root cause, and its impact in real time, you can act before it becomes a problem. That’s how connected systems start translating directly into cost control and reliability.
Continuous improvement used to mean squeezing out another percentage point of throughput or yield. Now it’s about protecting the investment case for UK manufacturing. A plant that’s connected, traceable, and flexible attracts new products and funding. One that isn’t will be the first to lose them when global networks are reviewed.
Digitalization isn’t an optional upgrade anymore; it’s the baseline for competitiveness.
Global pharma doesn’t choose manufacturing sites on sentiment. It chooses them on cost, reliability, and speed to release. So, if your data’s stuck in silos and your validation takes months, you’re already out of the race.
The goal isn’t another expensive system or shiny dashboard, but interoperability. Giving people visibility and confidence in the information that drives their decisions is what keeps a plant agile, audit-ready and able to take on new work when it becomes available.
What manufacturers can do now
In my opinion, there are a few simple things manufacturers can do straight away.
The first is to connect existing systems. Stop waiting for the perfect platform and start linking what you already have, because the moment you can see what’s actually happening, you can deliver some quick wins.
Secondly, you can empower your people. The best technology in the world doesn’t mean much if the people using it can’t act on the data. Give operators, engineers, and quality teams the confidence and real-time insight to make decisions on the spot, without waiting for a report or sign-off. That’s how you turn data into action.
Third is to build for adaptability. The ability to bring in a new line, product, or process quickly (without weeks of disruption) is what separates sites that grow from those that get left behind.
None of what I’ve outlined requires a government initiative. It just needs site leaders and management teams who recognise that competitiveness now lives in the details of how production runs day to day. If global pharma sees the UK as uninvestable, then the UK needs to change what they see in its facilities. They need to see operations that are lean, connected, and ready to scale with teams who have the data and tools to make fast, informed decisions. They need confidence that the UK can deliver with the same consistency, cost discipline, and energy efficiency as any other major market.
Factory spending across the UK is already at its lowest since Brexit. That should be the wake-up call. We can’t wait for policy to fix competitiveness for us. The turnaround starts on the factory floor – it starts with modernization, connectivity, and leadership. Building plants that are efficient, energy-smart, and digitally capable, the UK will become impossible to ignore.
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