Despite being a small island in the Caribbean, measuring just 100 by 35 miles, Puerto Rico has long punched above its weight as an industrial powerhouse. Already a leading producer of everything from blockbuster medicines to high-tech medical devices, how has it got to this point and what comes next? Four industry leaders from the pharma, medtech, logistics, and manufacturing sectors weigh in.
Multinational Innovative Pharma: Puerto Rico’s Economic Engine
“I am honoured to represent this sector, which makes substantial and far-reaching contributions to Puerto Rico. The pharmaceutical industry drives economic growth, enhances healthcare quality, and actively supports community development, making it a cornerstone of the island’s prosperity and well-being.
“This sector generates around USD 32 billion in economic activity and pays USD 3.1 billion in payroll. PIA members create 18,000 direct jobs with an average salary of USD 80,000, which is four times the average salary in Puerto Rico. These highly specialized and well-paid jobs contribute an estimated USD 150 million in taxes paid by our employees. Indirect employment rises to 69.000.
“The industry is also a large contributor to philanthropic initiatives on the island such as the United Way PR (where individual donations are matched by the companies) and relief funds for natural disasters such as Hurricane Maria in the past.
“There is no question that our sector has been, and continues to be, Puerto Rico’s economic engine and the most critical economic development sector for its long-term financial stability.”
Medtech: Skills, Infrastructure, Supply Chain
Iliette Frontera, president, Medical Devices Cluster
“Given the sector’s rapid expansion, a resilient and well-integrated ecosystem – one that unites academia, government, industry partners, and service providers – is essential to maintaining Puerto Rico’s position as a global MedTech hub. Our approach has prioritised open collaboration, not only to expand existing operations and attract new investments but also to cultivate the next generation of industry professionals. Our efforts have concentrated on three strategic pillars with a keen focus on continuing education and talent development has been a major priority.
“Recognising the urgent need for specialised skills, we collaborated with multiple companies to pinpoint critical skills and gaps in automation, software engineering, and business analytics; fields essential to high-precision, technology-driven manufacturing. In response, we designed and implemented training programs, deployed them across the industry, and are currently being integrated into Puerto Rico’s top universities, allowing students to obtain industry-recognised certifications. This initiative ensures a steady pipeline of skilled professionals to continuously reinforce the island’s competitiveness in advanced manufacturing.
“Second, strengthening the broader MedTech ecosystem has been imperative, particularly in addressing infrastructure constraints. Through a collaborative effort with the Puerto Rico Industrial Development Company (PRIDCO), we provided critical inputs into their launched of the White Box Project – an initiative aimed at replacing outdated facilities with modern, purpose-built industrial spaces designed to accommodate business expansion and investment growth.
“The third major focus has been supply chain optimisation, a crucial factor in ensuring long-term industry stability. After conducting an industry-wide assessment of raw material needs, we identified key commodities such as metals and packaging and pursued a dual strategy—expanding local sourcing capabilities while simultaneously attracting international suppliers to establish a presence in Puerto Rico. This approach not only reinforces supply chain resilience but also creates new business opportunities within the local manufacturing ecosystem.”
Logistics: Reshoring & Hub Status
Ivan Lugo, board of directors, Air Cargo Community Puerto Rico
“Puerto Rico is making strides in gaining recognition for its logistics strengths, and we are actively working on strategies with the government to promote reshoring: bringing foreign manufacturers back to the US and Puerto Rico. The island has a significant advantage in this area because we have the global regulatory knowledge, talent, infrastructure, incentives, and a robust supply chain that can support logistics to anywhere in the world.
“One of the key reports we are focusing on is the ‘U.S. Bioscience Economy: Driving Economic Growth and Opportunity in States and Regions.’ This report, produced by the Biotechnology Innovation Organization (BIO) and the Council of State Bioscience Associations, highlights Puerto Rico’s strengths in bioscience which includes pharmaceuticals, medical devices, agricultural biotechnology, and medical research. Notably, the global bioscience industry continues to grow at a remarkable pace, second only to the semiconductor and AI industries.
“Puerto Rico stands out as the only US jurisdiction with a highly skilled workforce in all four areas of bioscience. According to this report, Puerto Rico is one-third above the national average in terms of highly specialised employment in these fields. This is a significant achievement, especially when compared to other states in the US. It highlights how competitive Puerto Rico is, particularly in pharmaceuticals and medical devices, which continue to grow on the island. This skilled talent not only makes Puerto Rico a competitive player within the US but also strengthens its position on the global stage.
“Moving forward, we aim to build on these strengths and continue positioning Puerto Rico as a leading logistics and bioscience hub by leveraging our highly skilled workforce, world-class infrastructure, and strategic location.”
Manufacturers: Embracing New Tech
Yandia Perez, executive vice president, Puerto Rico Manufacturers Association (PRMA)
“Puerto Rico is actively working to keep pace with the advancements in digitalization and new technologies in manufacturing. While we have a robust infrastructure and state-of-the-art facilities, there is a growing need for a deeper integration of artificial intelligence and other emerging technologies into our manufacturing processes. Many companies here are already implementing these technologies to enhance productivity and efficiency, showcasing a commitment to modernizing operations.
“However, there remains a gap in aligning academic programs with the specific skills needed in the industry. Our universities produce highly qualified graduates, but as technology evolves rapidly, we must ensure that their curricula reflect current market demands. Strengthening this connection between academia and industry is crucial for our workforce to remain competitive.
“The opportunities lie in not only enhancing technical skills but also fostering innovation and adaptability among our talent pool. For instance, encouraging partnerships between companies and educational institutions can help bridge this gap, allowing students to gain hands-on experience and learn the latest industry practices.
“Ultimately, PRMA’s mission is to support the economic development of Puerto Rico by strengthening our members through benchmarking, best practices, attractive incentives, and access to capital, all while ensuring that Puerto Rico remains a prime location for business.”
