Why pharmaceutical companies must secure industrial manufacturing space in the Southeast U.S. now.
The new reality for pharma manufacturers
Pharmaceutical companies face a historic squeeze: 100% tariffs on branded imports unless you build U.S. manufacturing capacity, paired with government drug pricing reforms that cap Medicaid reimbursements at “most-favored-nation” levels. The Pfizer–Trump agreement (Sept 2025) made this explicit: Pfizer secured a 3-year tariff exemption by pledging $70B in U.S. pharmaceutical manufacturing and R&D, and agreeing to lower Medicaid prices.
Pfizer’s deal: what it signals for everyone else
| Deal Element | Pfizer Terms | Implication for You |
|---|---|---|
| Tariff Relief | 3-year waiver on 100% import tariffs | Early movers lock better terms; waiting risks worse deals |
| Pricing Trade-off | Lower Medicaid prices to MFN levels | Margins face dual stress: tariffs + pricing rules |
| Capital Commitment | $70B U.S. investment in manufacturing/R&D | Governments expect real facilities and jobs, not just intent |
| Competitive Advantage | Credibility + government goodwill | Peers that act first gain policy and market leverage |
Why the Southeast is the smart move for pharmaceutical manufacturing
- Lower operating costs than coastal markets.
- Logistics reach: two-thirds of the U.S. population within a one-day truck drive.
- Skilled workforce pipelines via universities and technical colleges supporting life sciences and advanced manufacturing.
- Business-friendly incentives competing for pharma jobs and investment.
- Room to grow in scalable industrial parks with expansion land.
Your relocation roadmap (simple + strategic)
- Quantify exposure — model tariffs + Medicaid MFN pricing impact.
- Define facility needs — cleanrooms, HVAC/air handling, utilities, floor loads, and expansion capacity.
- Engage the Southeast — secure incentives early while budgets are strong.
- Lease U.S. industrial manufacturing space — demonstrate credible commitment to regulators and investors.
- Retrofit and scale — phase GMP/cleanroom buildouts and grow in place.
Benchmarking the competition
| Company | U.S. Commitment | Strategic Goal |
|---|---|---|
| Pfizer | $70B + tariff waiver | Secure relief, reduce import costs, gain goodwill |
| Eli Lilly | $5B U.S. expansion | Internalize API & biologics, de-risk supply |
| AstraZeneca | $50B by 2030 | Long-term hedge against tariffs & supply shocks |
What’s in it for you (quick hits)
- Tariff relief access by proving U.S. presence.
- Margin protection via lower operating costs.
- Investor/regulatory credibility with visible commitment.
- Scalability without costly relocations later.
- Speed-to-market in Class A pharmaceutical-ready space.
About Hollingsworth Companies
Hollingsworth Companies is a proven partner for manufacturers seeking Class A industrial space across the Southeast. Since 1972, we’ve helped companies—from light manufacturing to medical and sciences—launch and scale in business-friendly communities.
What we do
- Develop single-tenant, Class A steel & masonry industrial buildings (~100,000–300,000+ SF).
- Provide ready-to-occupy space, eliminating 9–12 months of construction delay.
- Design for expansion capacity so tenants can double or triple without relocating.
- Deliver build-to-suit / finish-to-suit options for pharmaceutical manufacturing (GMP, cleanrooms, air handling).
Our track record
- 20M+ square feet of developed industrial space.
- Multiple industrial parks strategically positioned across the Southeast.
- Dozens of national & international tenants in manufacturing, logistics, and life sciences.
- Deep collaboration with economic development groups to accelerate projects and incentives.
Why companies work with us
- Speed-to-market: move faster than greenfield builds.
- Scalability: parks and parcels designed for future growth.
- Strategic Southeast locations: interstate access, workforce pipelines, pro-business climate.
- Tenant-first delivery: facilities adapted to your operational and compliance needs.
Ready to secure pharmaceutical manufacturing space?
The companies that act first capture the best locations and incentive packages. Let’s get you on the fast track.
Contact Hollingsworth Companies
Website: Hollingsworthcos.com
Phone: (865) 457-3601
Email: info@hollingsworthcos.com



